Self efficacy belief is a generative cognitive capability which leads to
firm performance. We theoretically argue that building entrepreneurial
self efficacy belief enables firms to achieve innovation, building
managerial self efficacy belief enables firms to achieve efficiency; but
it is only when firms build both, that they achieve sustained advantage
and superior performance. We delineate and term this dynamic capability as
the cognitive ambidexterity capability. It is a higher order dynamic
capability that enables firms to switch from one to another (ESE to MSE
and vice versa) according to dynamic environmental requirements. We
contribute to the literature in ambidexterity and dynamic capability by
extending the current balancing and concurrent execution of paradoxical
foci to this switching capability. We conclude with theoretical and
practical implications.