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This paper aims to explore the relationship between top management team bricolage and performance and also examines unit ambidexterity's mediating role. More essentially, to understand the black box of organizational knowledge dynamism, a multilevel moderated mediating model is established by exploring the effects of two firm-level moderators, namely, potential absorptive capacity and realized absorptive capacity.

To test the cross-level moderated mediation model, this study used multisource data from 90 R&D units in 45 Taiwanese manufacturing firms through two-wave surveys and retrieving the archival data for assessing unit performance.

This study’s evidence revealed that unit-level ambidexterity mediates the effect between firm-level top management teams’ (TMT) bricolage and unit-level performance. This study also found that firm-level potential absorptive capacity positively moderates the effect between firm-level TMT bricolage and unit-level ambidexterity. Moreover, firm-level realized absorptive capacity strengthens the indirect relationships between firm-level TMT bricolage and unit-level performance via unit-level ambidexterity. The findings shed light on how and why TMT bricolage influences unit ambidexterity and performance in knowledge-intensive sectors.

This paper adds to the existing knowledge-based theory literature by disentangling the association between top management team bricolage and unit performance and identifying the pivotal role of absorptive capacity at both the firm and unit levels.