ABSORPTIVE CAPACITY AND ORGANIZATIONAL AMBIDEXTERITY IN INDIGENOUS OIL AND GAS SERVICE COMPANIES IN NIGER DELTA, NIGERIA: THE MODERATING ROLE OF ORGANIZATIONAL FORMALIZATION
Abstract
This study examined the relationship between absorptive capacity and organizational ambidexterity in indigenous oil and gas service companies in Niger Delta, Nigeria: The moderating role of organizational formalization. Primary data was generated through structured questionnaire. The methodology used was quantitative and a cross-sectional survey method was adopted in the investigation of the study variables. The population of this study consisted of 332 (Three Hundred and Thirty Two) staff members of 26 highly functional/ active operational indigenous oil and gas service companies operating in the Niger Delta region of Nigeria. A sample size of 181 was determined using Taro Yamen sample size determination formula. The reliability of the instrument was achieved by the use of the Cronbach Alpha coefficient with all the items scoring above 0.70. Spearman’s rank correlation was used for hypothesis testing while the zero-order partial correlation was used to test the moderating role of organizational structure. The findings of the study revealed that that there is a significant relationship between absorptive capacity and organizational ambidexterity in indigenous oil and gas service companies in Niger Delta, Nigeria. Furthermore, organizational formalization significantly moderated the relationship between organizational ambidexterity in indigenous oil and gas service companies in Niger Delta, Nigeria. The study recommended that indigenous oil and gas companies should foster informal interaction among the firm members’ supports the development of an open organizational format. By keeping the hierarchy at a minimum, unnecessary bureaucratic steps can be avoided and operational effectiveness increased.
Keywords: Absorptive Capacity, Organizational Ambidexterity, Organizational Formalization
CITATION: Maclayton, T. I. (2020). Absorptive capacity and organizational ambidexterity in indigenous oil and gas service companies in Niger Delta, Nigeria: the moderating role of organizational formalization. The Strategic Journal of Business & Change Management, 7(1), 23 – 35.
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DOI: http://dx.doi.org/10.61426/sjbcm.v7i1.1503
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