Abstract
Dynamic managerial capabilities (DMCs) are defined as the capabilities with which managers create, extend, and modify the ways in which businesses make a living. DMCs help to explain the relationship between the quality of managerial decisions, strategic change, and business performance. Firms can achieve extra 10% revenue if they engage in both service and sales activities in a business report by McKinsey (2015). In this study, we use DMCs as drivers of service-sales ambidexterity. Service-sales ambidexterity denotes the twin goals of achieving quality service while reaching sales goals.To be specific, we investigate how managers’ sensing, seizing, and transforming capabilities help them to achieve ambidextrous service and sales activities. We also examine environmental dynamism as the moderator between dynamic managerial capability and service-sales ambidexterity. Finally, we investigate the influence of managers’ service-sales ambidexterity on service innovation performance and service-sales performance.