Economics and Information Theory

textPrior studies have emphasized that structural attributes are crucial to simultaneously pursuing exploration and exploitation, yet our understanding of antecedents of ambidexterity is still limited. Structural differentiation can help ambidextrous organizations to maintain multiple inconsistent and conflicting demands; however, differentiated exploratory and exploitative activities need to mobilized, coordinated, integrated, and applied. Based on this idea, we delineate formal and informal senior team integration mechanisms (i.e. contingency rewards and social integration) and formal and informal organizational integration mechanisms (i.e. cross-functional interfaces and connectedness) and examine how they mediate the relationship between structural differentiation and ambidexterity. Overall, our findings suggest that the previously asserted direct effect of structural differentiation on ambidexterity operates through informal senior team (i.e. senior team social integration) and formal organizational (i.e. cross-functional interfaces) integration mechanisms. Through this richer explanation and empirical assessment, we contribute to a greater clarity and better understanding of how organizations may effectively pursue exploration and exploitation simultaneously to achieve ambidexterity.

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Structural Differentiation and Ambidexterity: The Mediating Role of Integration Mechanisms

Panel Data in Econometrics

Since Aristotle’s claim that knowledge is derived from the understanding of the whole and not that of the single parts (Aristotle’s Holism), researchers have been struggling with systems and parts in terms of their contents and their relative dynamics. This historic effort evolved during the last century into so-called “systems theory” (Bogdanov, 1922, 1980; von Bertalanffy, 1968, Lazlo, 1996; Meadows, 2008). Systems theory is an interdisciplinary theory about every system in nature, in society and in many scientific domains as well as a framework with which we can investigate phenomena from a holistic approach (Capra, 1997). Systems thinking comes from the shift in attention from the part to the whole (Checkland, 1997; Weinberg, 2001; Jackson, 2003), considering the observed reality as an integrated and interacting unicuum of phenomena where the individual properties of the single parts become indistinct. In contrast, the relationships between the parts themselves and the events they produce through their interaction become much more important, with the result that “system elements are rationally connected” (Luhmann, 1990) towards a shared purpose (Golinelli, 2009).

https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID2003159_code1323726.pdf?abstractid=2003159&mirid=1

A Brief Review of Systems Theories and Their Managerial Applications

Purpose – A common thread in the modern marketing theories, such as service‐dominant logic and viable systems approach, is the notion value co‐creation: the locus of value creation is no longer perceived to reside within firm boundaries but value is considered to be co‐created among various actors within the networked market. The evolution of value creation, from value creation by the manufacturing firm to value co‐creation in a network, necessitates a corresponding change in the concepts used to depict value creation. The purpose of this paper is to investigate business models as a broader conceptualization of value co‐creation that captures this change.Design/methodology/approach – The topic is approached by a combination of literature review and interactive research, including interactions with managers from 12 international companies.Findings – Business models are defined as configurations of 12 interrelated elements, covering market, offering, operational, and management viewpoints. The effectiveness...

https://www.researchgate.net/file.PostFileLoader.html?id=5511107bd039b1fe728b4600&assetKey=AS%3A273742167511055%401442276626494

Business model design: conceptualizing networked value co-creation

The paper discusses the role played by business relationships within a view of the firm as a viable system. Attention is focused on relationships between firms and their supplying system, emphasising the way how such relationships affect firms’ innovation processes. The paper also considers the role of trust in enhancing the effectiveness of customer-supplier relationships and in promoting innovation. These aspects are discussed theoretically and further developed using the empirical example of the Ericsson subsidiary in Italy.

The firm as a viable system: managing inter-organisational relationships

Innovation attributes and managers' decisions about the adoption of innovations in organizations: A meta-analytical review

Exploration and Long-Run Organizational Performance The Moderating Role of Technological Interdependence

Interdependence among productive activities: Implications for exploration and exploitation

This paper explores how the rules that guide search affect organizational adaptation in complex and turbulent environments. Our consideration of such rules extends beyond search scope—i.e., exploitation of current technologies vs. exploration of new technologies—to include focus on competition. We consider two types of competitive focus—i.e., external, where the choice of focal technology to be improved is influenced by information about other organizations and internal, where it is not influenced by others. We refer to this expanded set of rules as managerial selection and vary it to explore how it affects organizational adaptation. Employing an agent based simulation model, built on the framework of NKC fitness landscapes, we consider multiple types of interdependencies within and between technologies and across competitors. We show that in the presence of these multiple interdependencies, the ability of organizations to adapt is conditioned as much or more by the focus of search than by its scope. In particular, we observe that in simple and stable environments, organizational adaptation is enhanced by an external focus but in complex and turbulent environments, such external focus is counterproductive.

Gianluca Vagnani

Papers

The firm as a viable system: managing inter-organisational relationships

Innovation attributes and managers' decisions about the adoption of innovations in organizations: A meta-analytical review

Exploration and Long-Run Organizational Performance The Moderating Role of Technological Interdependence

Interdependence among productive activities: Implications for exploration and exploitation

Becoming the best: by beating or ignoring the best? Toward an expanded view of the role of managerial selection in complex and turbulent environments