Stemming the downturn: How ambidexterity and public policy influence firm performance stability during economic crises
Journal
European Management Journal
Type
journal article
Date Issued
2022-04-01
Author(s)
Abstract
A key question confronting policy makers during economic crises is how they can support firms to maintain their performance levels until the economic storm has passed. The present study bridges insights from the ambidexterity and public policy literatures to examine how firm-internal responses (that is, ambidexterity) and external public policy incentives (that is, demand-pull policies) affect the stability of firms' performance in a recessionary economic context. Using data from private German renewable energy firms at a time following the global financial crisis, we find that only firms with low ambidexterity achieve performance stability in light of demandpull policies. This research draws attention to the relevance of stability as a policy-relevant performance measure during times of economic crises. Further, we suggest that greater insight into the interplay of managerial and political factors is necessary to enable policy makers to support the stability of certain industries during crises.
Language
English
HSG Classification
contribution to scientific community
Refereed
Yes
Volume
40
Number
2
Start page
163
End page
174