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Structural Differentiation and Ambidexterity: The Mediating Role of Integration Mechanisms
05 Nov 2008-ERIM report series research in management Erasmus Research Institute of Management (Erasmus Research Institute of Management)-
TL;DR: The findings suggest that the previously asserted direct effect of structural differentiation on ambidexterity operates through informal senior team and formal organizational integration mechanisms, and contributes to a greater clarity and better understanding of how organizations may effectively pursue exploration and exploitation simultaneously to achieve ambideXterity.
Abstract: 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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01 Mar 2016
TL;DR: A case study is investigated to better understand how exploitation and exploration were combined when opening data for creating transparency and how these factors found to influence ambidexterity.
Abstract: Government's resources are often committed to delivery existing services providing little room for innovation. Ambidexterity is the capacity of an organization being able to develop new products and innovate while also continue providing and updating their existing services. Ambidexterity is a concept originating from organizational studies, and hardly used in the public sector. Ambidexterity is the ability to exploit and explore at the same time. As scant attention is given in e-government we opted for investigating a case study to better understand how exploitation and exploration were combined when opening data for creating transparency. Exploration was enabled by introducing incentives to ensure that the open data was used to identify and fight corruption, whereas exploitation was focused on improving data collection, storage and treating, creating efficiency on the monitoring and accountancy procedures of expenditures on the government. Other factors found to influence ambidexterity are the availability of resources, knowledge management, data quality management, external partnership and legislation.
7 citations
TL;DR: In this paper, the authors identified the impact of strategic leadership on the organizational ambidexterity of the (94) Jordanian chemical manufacturing companies operating at King Abdullah II Ibn Al-Hussein Industrial City.
Abstract: Organizations need to be ambidextrous to acquire new capabilities to be compatible with changing business environment and at the same time to employ its available capabilities to achieve the efficiency. The leadership contributes in building organizational ambidexterity through creating the context of ambidexterity. Therefore, the purpose of this study is to identify the impact of strategic leadership on the organizational ambidexterity of the (94) Jordanian chemical manufacturing companies operating at King Abdullah II Ibn Al-Hussein Industrial City. The sample of the study includes all the study population. The sampling unit and analysis (respondents) composed of the Chief Executive Officers (CEO) of all target companies. In order to achieve the study objectives, the researcher designed a questionnaire to collect the required data from study sample. To test the hypotheses the multiple regression analysis used. Empirical results indicated that the strategic leadership has a positive impact on organizational ambidexterity. Based on the results of the study, the strategic leader must be having the following skills: visioning, focusing, and implementing. In addition, researchers should conduct additional studies in strategic leadership and organizational ambidexterity in the different industries and contexts, especially in the service companies and taking other dimensions of strategic leadership rather than visioning, focusing, and implementing.
7 citations
Cites background from "Structural Differentiation and Ambi..."
...According to (Jansen et al., 2009) organizational ambidexterity is a dynamic capability referring to the routines and processes by which ambidextrous organizations mobilize, coordinate, and integrate dispersed contradictory efforts, and allocate, reallocate, combine, and recombine resources and assets across differentiated exploratory and exploitative units....
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...According to (Jansen et al., 2009) organizational ambidexterity is a dynamic capability referring to the routines and processes by which ambidextrous organizations mobilize, coordinate, and integrate dispersed contradictory efforts, and allocate, reallocate, combine, and recombine resources and…...
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TL;DR: In this paper, the authors suggest that organizational ambidexterity is best orchestrated through individual projects and that stand-alone individual projects are relatively limited in scope, while suffering fr...
Abstract: Some studies suggest that organizational ambidexterity is best orchestrated through individual projects. However, stand-alone individual projects are relatively limited in scope, while suffering fr...
7 citations
11 Jun 2020
TL;DR: In this article, the authors investigate how enterprises simultaneously handle digitalization and business model innovation and employ an ambidexterity perspective to gain new knowledge and get the traction that is needed to make a conceptual contribution.
Abstract: JEL Classification: O33, O39, O52 DOI: 10.22495/cbsrv1i2art1 The current economic situation is in constant flux. Progress in technology and especially the advancement of digital transformation have influenced business endeavors. In this realm, digitalization is closely linked to a high degree of digital disruption and the development of new products, services, and business models. In this paper, we aim to investigate how enterprises simultaneously handle digitalization and business model innovation. We employ an ambidexterity perspective to gain new knowledge and get the traction that is needed to make a conceptual contribution. Thus, a theoretical framing that includes the relationship between business model innovation and digitalization and propositions congruent with our general gestalt of the inquiry will be developed. The results indicate, despite some structural and processual commonalities that digitalization and business model innovation share, the mission to manage both phenomena remains challenging. In particular, some peculiarities inherent in the ambidexterity perspective need to be taken into account. Particularly under the constraints of a high degree of resource scarcity, it is important to strive for sustainable actions that lead to increased value creation and competitive advantage. Thus, this study implements an ambidexterity perspective on the two distinct areas of technology and innovation and provide groundings for further research avenues on ambidexterity and firm performance.
7 citations
Cites background from "Structural Differentiation and Ambi..."
...…and exploitation initiatives (Auh & Menguc, 2005; Smith & Tushman, 2005; Sidhu et al., 2004) because companies are in most cases not able to deal with scarce resources internally and reach out for new opportunities from the external environment (Gupta, Smith, & Shalley, 2006; Jansen et al., 2009)....
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...In volatile environments and increased competition among companies, industries, and markets, the problem of limited resources becomes a key challenge (Raisch & Birkinshaw, 2008; Jansen et al., 2009)....
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Posted Content•
TL;DR: It is shown how HRM systems as specific bundles of HRM practices facilitate ambidextrous learning, and the challenge of creating and sustaining the horizontal and vertical fit of an HRM system with regard to different ambidexterity designs is emphasized.
Abstract: During the past decade ambidexterity has emerged as the central research stream in organization science to investigate how organizations manage to remain successful over time. By using the lens of organizational learning, ambidexterity can be defined as the simultaneous pursuit of exploration and exploitation. However, the link between ambidexterity and the human resource management of a firm is still a blind spot on the ambidexterity research map. To shed light on this issue, we show how different ambidextrous learning architectures can be created and maintained by the means of consistent HRM systems. By doing so, we show how HRM systems as specific bundles of HRM practices facilitate ambidextrous learning. Thereby we emphasize the challenge of creating and sustaining the horizontal and vertical fit of an HRM system with regard to different ambidextrous designs.
7 citations
Cites background or methods from "Structural Differentiation and Ambi..."
...Furthermore, HRM practices such as knowledgemanagement projects or cross-functional teams (Jansen et al., 2009) may serve as functional...
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...Furthermore, HRM practices such as knowledgemanagement projects or cross-functional teams (Jansen et al., 2009) may serve as functional equivalent to integration via the TMT (e.g., Smith & Tushman, 2005)....
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References
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TL;DR: This article seeks to make theorists and researchers aware of the importance of not using the terms moderator and mediator interchangeably by carefully elaborating the many ways in which moderators and mediators differ, and delineates the conceptual and strategic implications of making use of such distinctions with regard to a wide range of phenomena.
Abstract: In this article, we attempt to distinguish between the properties of moderator and mediator variables at a number of levels. First, we seek to make theorists and researchers aware of the importance of not using the terms moderator and mediator interchangeably by carefully elaborating, both conceptually and strategically, the many ways in which moderators and mediators differ. We then go beyond this largely pedagogical function and delineate the conceptual and strategic implications of making use of such distinctions with regard to a wide range of phenomena, including control and stress, attitudes, and personality traits. We also provide a specific compendium of analytic procedures appropriate for making the most effective use of the moderator and mediator distinction, both separately and in terms of a broader causal system that includes both moderators and mediators.
80,095 citations
"Structural Differentiation and Ambi..." refers background in this paper
...A four-item scale ( = 0 70) measures firmlevel exploitative innovation (Jansen et al. 2006) and captures the extent to which organizations build on existing knowledge and pursue incremental innovations that meet the needs of existing customers (Abernathy and Clark 1985, Benner and Tushman 2003,…...
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TL;DR: In this article, the authors examined the link between firm resources and sustained competitive advantage and analyzed the potential of several firm resources for generating sustained competitive advantages, including value, rareness, imitability, and substitutability.
46,648 citations
"Structural Differentiation and Ambi..." refers background in this paper
...provides organizations with competitive advantages over time (Barney 1991)....
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...Our study broadens the conceptual interpretation of organizational ambidexterity and suggests that it is difficult to achieve yet rare and not easily imitated, and 797 provides organizations with competitive advantages over time (Barney 1991)....
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TL;DR: In this paper, the authors argue that the ability of a firm to recognize the value of new, external information, assimilate it, and apply it to commercial ends is critical to its innovative capabilities.
Abstract: In this paper, we argue that the ability of a firm to recognize the value of new, external information, assimilate it, and apply it to commercial ends is critical to its innovative capabilities. We label this capability a firm's absorptive capacity and suggest that it is largely a function of the firm's level of prior related knowledge. The discussion focuses first on the cognitive basis for an individual's absorptive capacity including, in particular, prior related knowledge and diversity of background. We then characterize the factors that influence absorptive capacity at the organizational level, how an organization's absorptive capacity differs from that of its individual members, and the role of diversity of expertise within an organization. We argue that the development of absorptive capacity, and, in turn, innovative performance are history- or path-dependent and argue how lack of investment in an area of expertise early on may foreclose the future development of a technical capability in that area. We formulate a model of firm investment in research and development (R&D), in which R&D contributes to a firm's absorptive capacity, and test predictions relating a firm's investment in R&D to the knowledge underlying technical change within an industry. Discussion focuses on the implications of absorptive capacity for the analysis of other related innovative activities, including basic research, the adoption and diffusion of innovations, and decisions to participate in cooperative R&D ventures. **
31,623 citations
"Structural Differentiation and Ambi..." refers background in this paper
...Organizational integration mechanisms not only facilitate new value creation through linking previously unconnected knowledge sources (Cohen and Levinthal 1990), but also through providing opportunities to leverage common resources and obtaining synergies across exploratory and exploitative units…...
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TL;DR: The dynamic capabilities framework as mentioned in this paper analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change, and suggests that private wealth creation in regimes of rapid technology change depends in large measure on honing intemal technological, organizational, and managerial processes inside the firm.
Abstract: The dynamic capabilities framework analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change. The competitive advantage of firms is seen as resting on distinctive processes (ways of coordinating and combining), shaped by the firm's (specific) asset positions (such as the firm's portfolio of difftcult-to- trade knowledge assets and complementary assets), and the evolution path(s) it has aflopted or inherited. The importance of path dependencies is amplified where conditions of increasing retums exist. Whether and how a firm's competitive advantage is eroded depends on the stability of market demand, and the ease of replicability (expanding intemally) and imitatability (replication by competitors). If correct, the framework suggests that private wealth creation in regimes of rapid technological change depends in large measure on honing intemal technological, organizational, and managerial processes inside the firm. In short, identifying new opportunities and organizing effectively and efficiently to embrace them are generally more fundamental to private wealth creation than is strategizing, if by strategizing one means engaging in business conduct that keeps competitors off balance, raises rival's costs, and excludes new entrants. © 1997 by John Wiley & Sons, Ltd.
27,902 citations
"Structural Differentiation and Ambi..." refers background in this paper
...…capabilities, which are embedded in the distinct ways that organizations integrate, build, and recombine competences flexibly across boundaries, are fundamental to long-term strategic advantage (Eisenhardt and Martin 2000, Henderson and Cockburn 1994, Kogut and Zander 1992, Teece et al. 1997)....
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TL;DR: In this article, structural equation models with latent variables are defined, critiqued, and illustrated, and an overall program for model evaluation is proposed based upon an interpretation of converging and diverging evidence.
Abstract: Criteria for evaluating structural equation models with latent variables are defined, critiqued, and illustrated. An overall program for model evaluation is proposed based upon an interpretation of converging and diverging evidence. Model assessment is considered to be a complex process mixing statistical criteria with philosophical, historical, and theoretical elements. Inevitably the process entails some attempt at a reconcilation between so-called objective and subjective norms.
19,160 citations