Psychological Capital and Organizational Performance: The Mediating Role of Organizational Ambidexterity

Abstract Background and purpose: Today’s dynamic environment is increasingly pressuring public organizations to be simultaneously flexible and efficient. The purpose of this study was to examine the mediating role of organizational ambidexterity in the relationship between psychological capital and the perfor-mance of public organizations that have bureaucratic limitations to their activity and are not as competitive as the private sector. Methods: A questionnaire was developed and distributed among the employees of Management and Planning Organizations in 31 provinces in Iran, and a total of 373 questionnaires were returned. The data was analysed using CFA to validate the measures, and then the mediating effects of organi-zational ambidexterity was tested. Results: The results indicated the significant relationship between psychological capital and organizational performance (B=0.55) and the positive mediation effect of organizational ambidexterity on this relationship (0.333). Conclusion: The findings can help managers of public organizations to enhance their organizational performance by strengthening psychological capital and ambidexterity.