Abstract:
Drawing on the knowledge-based theory of the firm and organizational learning theory, the
present study chiefly examines the impact of firm-specific human capital on organizational
ambidexterity and the subsequent effect of organizational ambidexterity on productivity by
integrating human capital theory with the theory of transaction cost. The data were garnered
from 197 managers in Sri Lanka with self-reported questionnaires in a time-lagged approach.
The results disclose strong significant relationships between the variables investigated: a
chain of positive relationships between firm-specific human capital and organizational
ambidexterity, organizational ambidexterity and productivity, and productivity and firm
performance; and mediated relationships between firm-specific human capital and
productivity through organizational ambidexterity, and between organizational ambidexterity
and firm performance via productivity. The findings of the study push back the frontiers of
human resource management literature in many ways. Notably, managers should be
cognizant of the effects of firm-specific human capital, organizational ambidexterity, and
productivity on firm performance.
