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Structural Differentiation and Ambidexterity: The Mediating Role of Integration Mechanisms

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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Proceedings Article
01 Jan 2017
TL;DR: A holistic view is presented to illuminate relationships among resource complementarity, relational capabilities, subsequent performance and cooperation continuance intention based on the perspective of resource-based view to contribute nascent knowledge for sharing economy phenomenon and value co-creation with online marketing and information management disciplines scholarly.
Abstract: In recent years, the sharing economy has been grown increasingly as an important means to achieve sustainable competitive advantage. With the support of mobile phone devices and the ubiquitous application of “SOLOMO (social, location, mobile)” concept, the emerging sharing economy hubs increase the pool of potential service providers and sellers by leveraging networked technology to change how market participants engage in a specific transaction. Several successful examples, such as Uber, Airbnb or live streaming platforms, demonstrate that such phenomenon will continue to generate immense interests and receive growing practical and academic attentions for the next decades. In order to meet the needs of heterogeneous network users or buyers, platform owners seek to promote and exploit the network resources from providers and facilitate the transactions. Therefore, the holistic network performance improves and values are co-created when the presence of platform owner complements network members each other. Though the importance of the above mentioned resource complementarity can be well-recognized from many practical evidences and academic studies, the role and empirical evidence of resource complementarity in facilitating the cocreation value and the impact on subsequent performance under sharing economy context is still not well understood. Moreover, sharing economy network is a new and distinct type of organization form and separates from markets and hierarchies, it still requires unique theories and research approaches for providing deeper insights. Value can be co-created by complementary alignment of mutual resources, but the degree to which value generation occurs is still subject to contextual factors. Therefore, the objective of this study is to present a holistic view to illuminate relationships among resource complementarity, relational capabilities (including relational embeddedness and ambidextrous competence), subsequent performance and cooperation continuance intention based on the perspective of resource-based view. 367 respondents from well-known online streaming platform were collected. We find that all hypotheses are supported, except that relational embeddedness has no any significant effect on financial performance. From this study, we hope to contribute nascent knowledge for sharing economy phenomenon and value co-creation with online marketing and information management disciplines scholarly, and provide fruitful insights to the design of an effective valuecreating ecosystem application platform through our study for practitioners.

5 citations


Cites background or methods from "Structural Differentiation and Ambi..."

  • ...Ambidextrous competence refers to the routines and processes by which firms mobilize, coordinate and integrate various efforts, and allocate, reconfigure or recombine resources and assets across differentiated exploratory and exploitative processes concurrently (Jansen et al., 2009)....

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  • ...For relational embeddedness, items were from Chien et al. (2012), and ambidextrous competence were adapted Twenty First Pacific Asia Conference on Information Systems, Langkawi 2017 8 from Jansen et al. (2009)....

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  • ...As such, prior studies have argued that organizations with higher ambidextrous competence can generate competitive advantage through the process of exploitation and exploration innovation (Jansen et al., 2009)....

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Journal ArticleDOI
TL;DR: In this paper, the authors investigated the business development tasks and processes that span a growth opportunity's planning phase and its implementation phase and their unique performance implications, finding that business development increases firm performance and that the effectiveness of business planning depends on business development.
Abstract: Planning for a growth opportunity's success remains a challenge. Under which conditions does planning work, then? This exploratory study investigates the business development tasks and processes that span a growth opportunity's planning phase and its implementation phase and their unique performance implications. On the basis of 73 CEO responses from growth SMEs, the results show that business development increases firm performance and that the effectiveness of business planning depends on business development. Business developer support is found to positively influence firm performance per se. Business development is presented as an important organisational capability to pursue growth opportunities and subsequently theoretically anchored in the resource-based view of the firm. Implications for managers and for future business development research are discussed.

5 citations


Cites background from "Structural Differentiation and Ambi..."

  • ...A comparable example in the management literature is, for example, organisational ambidexterity, which is comprised by two conflicting organisational processes; exploration and exploitation (Jansen et al., 2009; Tushman and O’Reilly, 1996)....

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Journal ArticleDOI
TL;DR: The findings suggest that the assignment of the ambidextrous task generates the highest individual performance under some conditions, which negates the assumption that individuals find it difficult to handle both exploration and exploitation.
Abstract: While previous studies on ambidexterity have focused on the antecedents or consequences of organizational ambidexterity, not many studies have attempted to explore ambidexterity at the individual level. This study intends to fill such gap and provides arguments on the effects of three different types of task assignment (exploration only, exploitation only, and both exploration and exploitation) on individual performance to understand ambidexterity. We adopted a single-agent simulation model and examined the relationship between the three types of task assignment and individual performance measured by the knowledge creation level. Individual attitude toward risk and tension between exploration and exploitation are considered in our simulation model. The findings suggest that the assignment of the ambidextrous task (both exploration and exploitation) generates the highest individual performance under some conditions, which negates the assumption that individuals find it difficult to handle both exploration and exploitation.

5 citations

Journal ArticleDOI
TL;DR: In this paper, the authors identify and discuss inherent paradoxes and their implications for firm performance in industry-specific strategies, where empirical industry data shows a pattern of conflict between explorative growth strategies and exploitative profit strategies.
Abstract: To survive in today’s increasingly complex business environments, firms must embrace strategic paradoxes: contradictory yet interrelated objectives that persist over time. This can be one of toughest of all leadership challenges, as managers must accept inconsist- ency and contradictions. In this article, we develop and empirically test a set of hypotheses related to ambidexterity, a key example of a paradoxical strategy. Through our analysis of data from a survey of executive leaders, we find a link between organizational ambidexter - ity and strategic planning, suggesting that the complexities of navigating in explorative ventures require more explicit strategy work than the old certainties of a legacy business. We identify and discuss inherent paradoxes and their implications for firm performance in 22 industry-specific strategies, where empirical industry data shows a pattern of conflict between explorative growth strategies and exploitative profit strategies. We argue that this is just one of the inherent paradoxes in the ambidexterity construct.

5 citations

References
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Journal ArticleDOI
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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Book ChapterDOI
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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Journal ArticleDOI
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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Journal ArticleDOI
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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Journal ArticleDOI
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