Name: Namrata Chugh
Country: India

Year: 2025
Volume: Volume-12, Issue-1 (Jan-June)
Page Number: 146-153
DOI: https://doi.org/10.5281/zenodo.16015615

The ability of firms to balance exploration (innovation and experimentation) with exploitation (efficiency and productivity) has become crucial for sustaining competitive advantage in dynamic markets. This study explores the concept of ambidextrous innovation and examines the impact of organizational structure, specifically capital expenditure (CAPEX), on the simultaneous pursuit of exploration and exploitation activities within IT firms. Using a sample size of 22 IT companies, secondary data were collected from the ProwessIQ database to empirically analyse the relationship between CAPEX and firm performance, measured through Return on Assets (ROA) and Return on Investment (ROI). Data Envelopment Analysis (DEA) was employed as the primary technique for this analysis, with DEAP software facilitating the evaluation of the firms’ operational efficiency. This comprehensive analysis provides valuable insights into the ambidextrous capabilities of firms, shedding light on how investment in capital can influence both innovative initiatives and efficiency-driven outcomes. Through this study, the structural alignment of IT firms is assessed, offering a deeper understanding of how these companies balance their innovative efforts with performance-driven results.
Keywords – Ambidexterity, Innovation, Exploration, Exploitation, IT Firms