Ambidextrous Bureaucracies in Turbulent Policy Environments: How Dynamic Capabilities Drive Public Service Performance
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https://doi.org/10.14419/1ss4jx93
Received date: October 1, 2025
Accepted date: November 14, 2025
Published date: November 28, 2025
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Dynamic Capabilities; Organizational Ambidexterity; Public Service Performance; Policy Turbulence; Public Administration; Bureau-Centric Innovation -
Abstract
This work explores how dynamic capabilities enable public sector organizations to develop ambidextrous capabilities and enhance their performance despite turbulent policy environments. Applying dynamic capability theory and prevailing work on organizational ambidexterity-ty, we explore relationships between dynamic capabilities, organizational ambidexterity, public service performance, and policy turbulence as a moderating variable. Our research adopts data from 286 respondents employed by three separate public service units from SAMSAT settings in Kepulauan Riau Province, Indonesia, and partial least squares structural equation modeling (PLS-SEM) to assess relationships. We find strong empirical support for all relationships proposed. Somewhat surprisingly, dynamic capabilities strongly enhance organizational ambidexterity and public service performance such that organizational ambidexterity itself serves as a partial mediator between dynamic-ic capability and performance (accounting for 34.7% of all effects). Also, policy turbulence emerges as both a direct antecedent to performance and a strong moderator that strengthens the dynamic capabilities-performance relationship under uncertain environments. The model demonstrates high explanatory ability, explaining 64.4% of the variance in organizational performance. Our findings supplement dynamic capability theory in public sector contexts, situate organizational ambidexterity as a mediating mechanism rather than a separate capability, and pro-vide support for the contingent value proposition enjoyed by dynamic capabilities. Our work offers actionable implications for public managers in highly interactive policy environments and augments public administration scholarship, synthesizing theory on bureaucratic settings, incorporating ambidexterity theory.
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Nababan, P. M. L. W., Murwani, F. D., & Efrata, T. C. (2025). Ambidextrous Bureaucracies in Turbulent Policy Environments: How Dynamic Capabilities Drive Public Service Performance. International Journal of Accounting and Economics Studies, 12(7), 757-768. https://doi.org/10.14419/1ss4jx93
