Background: Responding to fast technological and environmental changes brings about challenges and paradoxes for companies that should be resolved in order to survive long-term and to achieve a sustainable competitive advantage. Ambidexterity is considered a solution to organizational paradoxes. Aim: The purpose of this research is to explore how firms can achieve ambidexterity to handle organizational paradoxes in different market conditions using their dynamic capabilities. Definitions: Ambidexterity: The ability of organizations to handle adaptability and alignment, exploration and exploitation at the same time Dynamic capabilities: The firm’s ability to integrate, build and reconfigure internal and external competencies to address rapidly changing environments Exploration: Activities such as innovation, discovering new opportunities, variation Exploitation: Activities that concern efficiency, implementation and execution Results: There are possible options that companies can follow to achieveambidexterity. These sets of options are distinguished as external vs.internal, sequential vs. parallel, structural vs. contextual and the role ofsenior management behaviour. Depending on market dynamism andenvironmental conditions, a different set of options could be suitable fordifferent companies. In addition, companies can enhance the likelihoodof achieving ambidexterity using their dynamic capabilities.

The purpose of this study was to examine the relationship between market orientation and business performance mediated by marketing resources and moderated by contextual factors. The study also examined the extent to which the conceptual model was a good fit to the sample data. A quantitative approach was used to test if there was a significant relationship between market orientation, marketing resources, and business performance. For the purpose, a cross-sectional survey was carried out to obtain data pertaining to market orientation, marketing resources, contextual factors and business performance. The unit of analysis of the study was banks consisting of 3 public and 15 private banks. A sample size of 507 consisting of 492 branch managers and 15 top level marketing managers was used in the survey. With a response rate of 87.97%, 446 questionnaires were collected of which 377 were used for data analysis. A SEM was used to test the extent to which the theoretical model fits the sample data. Mediation analysis was used to test the indirect effect of market orientation on business performance and hierarchical regression analysis was used to test whether the relationship was moderated by market dynamism, competitive intensity, and government regulation. Finally, an independent t – test was used to examine the statistical variations between public and private banks in terms of market orientation, marketing resources, and business performance. The confirmatory factor analysis revealed that the modified model was fit with the observed data in terms of chi-square and the individual indices. The total effect of market orientation on business performance was moderate with a 0.36 regression coefficient. The indirect effect was high with a 0.91 regression coefficient where complete and inconsistent mediation was found due to suppression effect. The moderation analysis revealed that the interaction effect of market dynamism, competitive intensity, and government regulation was not statistically significant. Finally the result showed that there was a statistically meaningful difference between public and private banks in terms of market orientation, marketing resources, and business performance. Banks in Ethiopia shall strive to segment the market, differentiate their services, and build a strong brand with clear identity. Banks in Ethiopia shall also build on their marketing resources to enhance their business performance. / Business Management / D.B.L.

The purpose of this study was to examine the relationship between market orientation and business performance mediated by marketing resources and moderated by contextual factors. The study also examined the extent to which the conceptual model was a good fit to the sample data. A quantitative approach was used to test if there was a significant relationship between market orientation, marketing resources, and business performance. For the purpose, a cross-sectional survey was carried out to obtain data pertaining to market orientation, marketing resources, contextual factors and business performance. The unit of analysis of the study was banks consisting of 3 public and 15 private banks. A sample size of 507 consisting of 492 branch managers and 15 top level marketing managers was used in the survey. With a response rate of 87.97%, 446 questionnaires were collected of which 377 were used for data analysis. A SEM was used to test the extent to which the theoretical model fits the sample data. Mediation analysis was used to test the indirect effect of market orientation on business performance and hierarchical regression analysis was used to test whether the relationship was moderated by market dynamism, competitive intensity, and government regulation. Finally, an independent t – test was used to examine the statistical variations between public and private banks in terms of market orientation, marketing resources, and business performance. The confirmatory factor analysis revealed that the modified model was fit with the observed data in terms of chi-square and the individual indices. The total effect of market orientation on business performance was moderate with a 0.36 regression coefficient. The indirect effect was high with a 0.91 regression coefficient where complete and inconsistent mediation was found due to suppression effect. The moderation analysis revealed that the interaction effect of market dynamism, competitive intensity, and government regulation was not statistically significant. Finally the result showed that there was a statistically meaningful difference between public and private banks in terms of market orientation, marketing resources, and business performance. Banks in Ethiopia shall strive to segment the market, differentiate their services, and build a strong brand with clear identity. Banks in Ethiopia shall also build on their marketing resources to enhance their business performance. / Business Management / D.B.L.