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Organizational Ambidexterity: Balancing Exploitation and Exploration for Sustained Performance, (2009)

by J Birkinshaw, G Probst, M Tushman
Venue:Organization Science
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TECHNOLOGICAL INNOVATION AND THE THEORY OF THE FIRM: THE ROLE OF ENTERPRISE-LEVEL KNOWLEDGE, COMPLEMENTARITIES, AND (DYNAMIC) CAPABILITIES

by David J. Teece , 2010
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Organizing Continuous Product Development and Commercialization: The Collaborative Community of Firms Model

by Charles C. Snow, Øystein D. Fjeldstad, Christopher Lettl, Raymond E. Miles - Journal of Product Innovation Management, Winter 2010. 170 7 , 2010
"... The increased importance of knowledge creation and use to firms ’ global competitiveness has spawned considerable experimentation with organizational designs for product development and commercialization over the last three decades. This paper discusses innovation-related organizational design devel ..."
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The increased importance of knowledge creation and use to firms ’ global competitiveness has spawned considerable experimentation with organizational designs for product development and commercialization over the last three decades. This paper discusses innovation-related organizational design developments during this period, showing how firms have moved from stand-alone organizations to multifirm network organizations to community-based organizational designs. The collaborative community of firms model, the most recent organizational design in this evolutionary process, is described in detail. Blade.org, a purposefully designed collaborative community of firms dedicated to the continuous development and commercialization of blade servers, a computer technology with large but unforeseeable market potential, is used as an illustrative case. Blade.org’s organizational design combines a community ‘‘commons’ ’ for the collective development and sharing of knowledge among member firms with explicit institutional mechanisms for the support of direct intermember collaboration. These design elements are used to overcome the challenges associated with (1) concurrent technological and market experimentation and (2) the dynamic coordination of a complex emergent system of hardware, software, and services provided by otherwise independent firms. To date, Blade.org has developed more than 60 new products, providing strong evidence of the innovation prowess of the collaborative community of firms organizational model. Based on an analysis of the evolution of organizational designs and the case of Blade.org, implications for innovation management theory and practice are derived.
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... and analyzers. In effect, each type tries to reduce some of the trade-offs associated with its particular strategic approach and to achieve what has been referred to as organizational ambidexterity (=-=Raisch et al., 2009-=-; Tushman and O’Reilly, 1996; Zi-Lin and Poh-Kam, 2004). The Rise of Multifirm Network Organizations During the post-World War II years, prospector, defender, and analyzer firms tended to operate as i...

Measuring the Impact of Organizational Social Web Site Usage on Work Performance: A Multilevel Model

by Philip Raeth, Maurice Kügler, Stefan Smolnik - In Proceedings of the International Conference on Information Systems (ICIS , 2011
"... This paper describes the development of a multilevel model for investigating the impact of organizational social web site (SWS) usage on individual and team performance. Despite the SWS focus on collective phenomena – such as crowd sourcing and collective intelligence – previous research on SWS usag ..."
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This paper describes the development of a multilevel model for investigating the impact of organizational social web site (SWS) usage on individual and team performance. Despite the SWS focus on collective phenomena – such as crowd sourcing and collective intelligence – previous research on SWS usage in general does not investigate it as a multilevel phenomenon. Our paper addresses this gap by drawing on existing guidelines for multilevel theorizing. We thus propose that SWS usage impacts individual and team performance through its improved collaboration capabilities. Organizational learning and social capital theories serve as the theoretical foundation. Ultimately, we present a multilevel model as the foundation for future empirical research on SWS usage’s impact on individual and team performance. Our research’s contribution lies in the theoretical derivation of a multilevel model.
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...ce throughsexploitation. Following the ambidexterity literature, a combination of exploration and exploitation willseventually result in a higher performance impact (e.g., Raisch and Birkinshaw 2008; =-=Raisch et al. 2009-=-).sHypothesis 1a (H1a). Individual SWS usage is positively related to individual performance impact.sAssuming that exploration and exploitation are two ends of a continuum due to the limited resources...

Achieving contextual ambidexterity in R&D organizations: a management control system approach

by Ian P. Mccarthy, Brian R. Gordon - R&D Management , 2011
"... Research on how managers control R&D activities has tended to focus on the performance measurement systems used to exploit existing knowledge and capabilities. This focus has been at the expense of how broader forms of management control could be used to enable R&D contextual ambidexterity, ..."
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Research on how managers control R&D activities has tended to focus on the performance measurement systems used to exploit existing knowledge and capabilities. This focus has been at the expense of how broader forms of management control could be used to enable R&D contextual ambidexterity, the capacity to attain appropriate levels of exploitation and exploration behaviors in the same R&D organizational unit. In this paper, we develop a conceptual framework for understanding how different types of control system, guided by different R&D strategic goals, can be used to induce and balance both exploitation and exploration. We illustrate the elements of this framework and their relations using data from biotechnology firms, and then discuss how the framework provides a basis to empirically examine a number of important control relationships and phenomena. 1.
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...ighted by scholars who suggest that ‘given the dynamism of markets and organizations, it is important to develop theories that combine static elements with more dynamic perceptions of ambidexterity’ (=-=Raisch et al., 2009-=-, p. 686). Thus, we suggest that our framework can be used to explore how R&D managers use different control systems to dynamically shift the balance or mix between exploitation and exploration over t...

Coordination and learning in Wikipedia: Revisiting the dynamics of exploitation and exploration.

by Aleksi Aaltonen , Jannis Kallinikos - Research in the Sociology of Organizations, , 2013
"... ABSTRACT The evolution of Wikipedia betrays an increasing reliance on policies and guidelines, signalling certain stabilisation in the knowledge making processes underlying the encyclopaedia. We interpret such a state of affairs as reflecting the need to provide a few principles and guidelines of c ..."
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ABSTRACT The evolution of Wikipedia betrays an increasing reliance on policies and guidelines, signalling certain stabilisation in the knowledge making processes underlying the encyclopaedia. We interpret such a state of affairs as reflecting the need to provide a few principles and guidelines of coordination, in a context that has otherwise been marked by vast diversity, high membership turnover and the lack of traditional exploitative structures. Rather than reflecting bureaucratisation and a shift away from its constitutive principles, the consolidation of these coordinative mechanisms further embeds the distinctive profile of knowledge making processes characteristic of the online encyclopaedia. They reinforce the diversity of the collective (rather than individual capabilities and skills) as the primary source of knowledge and render the mechanisms of harvesting Managing 'Human Resources' by Exploiting and Exploring People's Potentials
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...product (an encyclopaedia) and as a consolidation of specific knowledge practices on how to produce a peer-based encyclopaedia (a collective arrangement). According to March, having a mixture of slow and fast learners or a turnover of members can help maintain the balance between exploitative and exploratory learning in an organisation. Others have suggested designing the organisation as a loosely coupled system of both exploratory and exploitative units (ambidexterity) and shifting periodically between exploitative and exploratory modes (punctuated equilibria) (Gupta, Smith, & Shalley, 2006; Raisch, Birkinshaw, Probst, & Tushman, 2009). In most organisations, these concerns are the responsibility of top management and often mediated by a human resource function that assumes the responsibility for recruitment and training of personnel and the design of jobs and positions. Such operations are thus embedded into standard management thinking that assumes a degree of organisational stability and managerial capacity as the basis of directing resources and boosting learning. Under such circumstances, ‘management controls the allocation of decision rights to exploit or explore’ (Gupta et al., 2006, p. 696). Furthermore, industries...

How Useful Are the Strategic Tools We Teach in Business Schools?

by Robert P. Wright, Sotirios E. Paroutis, Daniela P. Blettner
"... ABSTRACT Strategic tools are indispensible for business and competitive analysis. Yet we know very little about managers ’ internal logic as they put these tools into practical use. We situate our study in a business school context using action learning prior to the manifestation of practice to comp ..."
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ABSTRACT Strategic tools are indispensible for business and competitive analysis. Yet we know very little about managers ’ internal logic as they put these tools into practical use. We situate our study in a business school context using action learning prior to the manifestation of practice to complement our understanding of practice. Using Personal Construct Theory and Repertory Grids, our mid-range theorizing showed that, contrary to current thinking about strategic tools, managers think in dualities (often paradoxically) and have a preference for multiple-tools-in-use, tools that provide different perspectives, peripheral vision, connected thinking, simultaneously help differentiate and integrate complex issues, and guide the thinking process. These findings are important for designing better tools and the nurturing of critical managerial competencies needed for a complicated world. Our study’s focus also has wider implications for scholars as we see our own material evaluated by those who will put these lessons into practice.
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...ironments, managers are expected to recognize and embrace a more complicated (not simplified ) understanding of an (e)merging world(s) (Bartunek et al., 1983; Martin, 2007a; Plambeck and Weber, 2009; =-=Raisch et al., 2009-=-), and as such, need at their disposal tools and techniques for better decision making. Under such conditions we envisage more heightened expectations by managers to look for tools and techniques that...

EXTENDING THE IS STRATEGY TYPOLOGY: AN ASSESSMENT OF STRATEGY IMPACTS ON CAPABILITIES DEVELOPMENT AND PERFORMANCE

by Janice Lo, Dorothy Leidner
"... A typology of IS strategy has recently been forwarded in the literature in which IS strategy is categorized into three types: Innovative, Conservative, and Undefined. But more recent investigations in IS found that when firms attempt to take an ambidextrous approach, to some degree exhibiting both m ..."
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A typology of IS strategy has recently been forwarded in the literature in which IS strategy is categorized into three types: Innovative, Conservative, and Undefined. But more recent investigations in IS found that when firms attempt to take an ambidextrous approach, to some degree exhibiting both moderately innovative and conservative strategy behaviors, firms tend to perform equally well or better than those implementing predominately a single approach. Therefore, this paper proposes an extension to the existing typology by including a fourth strategy—IS Ambidextrous. It contributes by operationalizing and testing the extended typology in a model that assesses IS strategies ’ impacts on dynamic capabilities development and ultimately on performance. It is found that, in practice, a substantially high percentage of firms strive to be ambidextrous and that this approach to IS is a rewarding strategy and by no means inferior to any of the other IS approaches in the typology.
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...d Defender strategiess(similar to the Innovator and Reserved strategies, respectively).sMarketing research also examinessambidexterity (e.g. Sarkees et al. 2010) as does the management sciences (e.g. =-=Raisch et al 2009-=-).sAdditionally, similar concepts have been proposed in IS research regarding how IT can be used in supportsof a firm’s business strategy, that is, for IT-business strategic alignment.sFor example, Ta...

AMBIDEXTROUS IS STRATEGY: THE DYNAMIC BALANCING ACT OF DEVELOPING A ‘TRANSFORM & MERGE ’ STRATEGY IN THE BANKING INDUSTRY

by Robert Wayne Gregory, Mark Keil
"... Motivated by the lack of empirical IS strategy research in the M&A problem domain, in this paper we present a revelatory case study of a 7-year-long organizational balancing act of searching for the right information systems (IS) strategy in the pre-deal phase of a bank merger. Our case study is ..."
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Motivated by the lack of empirical IS strategy research in the M&A problem domain, in this paper we present a revelatory case study of a 7-year-long organizational balancing act of searching for the right information systems (IS) strategy in the pre-deal phase of a bank merger. Our case study is about simultaneous IT-driven organizational transformation and merger-driven integration, providing us with a fertile ground to study the development and evolution of ambidextrous IS strategies, which are underresearched. Based on the theoretical insights that emerge from our case study, we extend Chen et al.’s (2010) IS strategy typology and propose three different archetypes of IS ambidextrous strategy. Further theoretical insights relate to the required organizational capabilities for the successful implementation of IS ambidextrous strategies as well as the co-evolutionary interplay between business and IT units in that process. Future research should empirically test the IS ambidextrous strategy archetypes proposed in this paper as well as the associated findings.
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...an IS hybrid-staggered strategy, which we depictsin Figure 3. In this phase, the tactics for resolving tensions was based on integration tactics (Gilbert 2006;sO’Reilly and Tushman 2008; Raisch 2008; =-=Raisch et al. 2009-=-).sFigure 3.sIS Hybrid-Staggered (Phase 3 in our case)sImplications for ResearchsThis case study of a banking organization of searching for the right IS strategy in the pre-deal phase of asbank merger...

Juggling Paradoxical Strategies: The Emergent Role of It Capabilities

by Abhishek Kathuria , Benn Konsynski - Proceedings of the Thirty Third International Conference on Information Systems (ICIS
"... Abstract ..."
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...ing long spells ofsexploitation with short bursts of exploration (Siggelkow and Levinthal 2003) or simultaneously pursuingsboth strategies within different parts of the firm (Benner and Tushman 2003; =-=Raisch et al. 2009-=-). Bothsapproaches are facilitated by three types of mechanisms – organizational structures, contexts, andsleadership processes (Tushman and O'Reilly 1996). Different organizational structures facilit...

“We Are Always After That Balance ” – Managing Innovation in the New Digital Media Industries

by Sabine Hotho, Katherine Champion
"... The pressure to innovate is growing as technology cycles change more rapidly. Organisations need to balance exploration and exploitation effectively if they are to heed the innovation imperative. Organisational ambidexterity is proposed as a means to achieve such balance with structural or contextua ..."
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The pressure to innovate is growing as technology cycles change more rapidly. Organisations need to balance exploration and exploitation effectively if they are to heed the innovation imperative. Organisational ambidexterity is proposed as a means to achieve such balance with structural or contextual ambidexterity as possible choices. Yet how organisations become ambidextrous is an as yet under-researched area, and different industry sectors may pose different innovation challenges. Using the case study method, this paper examines how a computer games company responds to an industryspecific innovation challenge and how it endeavours to balance exploration and exploitation. The findings suggest that ambidexterity is difficult to achieve, and is fraught with organisational tensions which might eventually jeopardise the innovation potential of a company. The paper suggests that more qualitative research is needed to further our understanding of innovation challenges, innovation management and organisational ambidexterity. Key words: ambidexterity: innovation management; creative organisation; exploration and exploitation. 1
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