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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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Journal Article•
TL;DR: In this article, the authors investigated the relationship between exploration and the profitability, survival, and acquisition likelihood of start-ups simultaneously and found a balance-is-best relationship for profitability of survived firms and for the acquisition likelihood for high tech firms.
Abstract: The theory of exploration and exploitation is based on the logic of trade-offs and yet empirical research has rarely investigated these trade-offs as manifested between different dimensions of performance In the context of start-ups, getting acquired is an additional performance dimension previously ignored in the ambidexterity literature This paper utilizes the recently completed Kauffman Firm Survey data to investigate the relationship between exploration and the profitability, survival, and acquisition likelihood of start-ups simultaneously A balance-is-best relationship is found for profitability of survived firms and for the acquisition likelihood of high tech firms, while an exploitation focus is found to maximize the survival chances of low and medium tech firms For low and medium technology start-ups we find evidence of a trade-off between survival likelihood and profitability-given-survival, and for high tech start-ups we find evidence of a differently shaped trade-off between acquisition likelihood and profitability-given-survival
3 citations
Journal Article•
TL;DR: In this paper, the authors investigate how socio-cultural barriers to knowledge transfer emerge from the divergent life-worlds of new ventures and parent corporations and what enables interorganisational knowledge transfer across these barriers.
Abstract: Since most innovations occur at the boundaries of cultural systems, the transfer of knowledge across these boundaries is of paramount interest to knowledge management. We investigate how socio-cultural barriers to knowledge transfer emerge from the divergent life-worlds of new ventures and parent corporations and what enables interorganisational knowledge transfer across these barriers. The paper is anchored in the micro-interactionist tradition in organisational learning and addresses the constructivist discourse in social studies of knowledge. The empirical part is based on an exploratory multi-case study on 12 corporate venture capital (CVC) dyads in two different industries in Germany. The results highlight the 'clash of cultures' between parent corporations and new ventures and suggest drawing more attention to the integration of different modes of learning and types of knowledge by boundary-spanning across divergent life-worlds. The CVC units of parent corporations play a crucial role in interorganisational learning both as translator and as broker of knowledge.
3 citations
Cites background from "Structural Differentiation and Ambi..."
...Scholarship in innovation management and organisational learning has only recently drawn more attention to the interface of exploration and exploitation, the Achilles’ heel of organisational learning (e.g., Frost and Vogel, 2008; Jansen et al., 2009; Taylor and Helfat, 2009)....
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TL;DR: The results show that IT function competence positively influences organizational ambidexterity and this relationship is stronger when the IT function aims to be an active business partner or aims to reduce architectural complexity.
Abstract: We investigate whether the information technology (IT) function’s competence and role affect organizational ambidexterity. We first hypothesize that IT function competence is positively related to ...
3 citations
Cites background or methods from "Structural Differentiation and Ambi..."
...Integration mechanisms such as senior management social integration and cross-functional interfaces influence organizational ambidexterity (Jansen et al. 2009)....
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...Although separated, the units have integration capabilities that ensure the effective use of organizational resources (Jansen et al. 2009)....
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...Yet once achieved, ambidexterity is rare and not easily duplicated (Jansen et al. 2009), giving ambidextrous organizations competitive advantages over time (Barney 1991)....
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...Following others, we use the exploration-exploitation perspective as a theoretical basis for organizational ambidexterity (Birkinshaw and Gupta 2013; He and Wong 2004; Jansen et al. 2009)....
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17 Jun 2018
TL;DR: This research contributes to existing literature by providing an understanding of corporate incubators as a multinational phenomenon, which has been neglected so far, and applies a multiple case study approach including 18 semi-structured interviews with incubation managers.
Abstract: Multinational corporations increasingly establish corporate incubators to combine their own resources with complementary resources of nascent ventures. In order to fulfill their parent's strategic objectives, corporate incubators need to turn into highly efficient resource brokers. The cross-regional embeddedness of incubation hubs leads to a high diversity of involved stakeholders and a complex resource flow among them, which requires a particular organizational design of the corporate incubator. In this context, results of this paper incorporate the recommendation of striking a critical balance between autonomy and integration that might shift depending on the parent's strategic orientation. Furthermore, this research contributes to existing literature by providing an understanding of corporate incubators as a multinational phenomenon, which has been neglected so far. Therefore, the study applies a multiple case study approach including 18 semi-structured interviews with incubation managers.
3 citations
01 Jan 2014
TL;DR: In this article, the authors examined the impact of bring-your-own-device (BYOD) policies on employees' performance, job satisfaction, and work-life conflicts.
Abstract: This dissertation examines how the management and configuration of organizational IT portfolios enhance organizations and their employees. Specifically, the theory of the differentiation and integration of information technologies is developed with in-depth examinations of “Bring-Your-Own-Device” (BYOD) policies. Four data collections are utilized: survey vignettes, case studies, agent-based simulations, and a questionnaire survey. Each essay uses a mixed-method approach providing insights into the selection, development, and management of ITs across individual and organizational levels. Essay 1 explores the impact of BYOD on employees’ performance, job satisfaction, and work-life conflicts. The results indicate that IT integration improves performance and job satisfaction, and reduces work-life conflicts. Alternatively, IT differentiation increases work-life conflicts while having no direct impact on performance or job satisfaction. However, the impact of IT differentiation is enhanced when increased IT integration is present in the organization’s IT portfolio which in combination provides variety for individuals while ensuring reduced compatibility issues across employee tasks. Essay 2 examines how organizations can configure their IT portfolios over time to meet the demands of varying task portfolios. The results provide insights into optimal levels of IT differentiation and IT integration for varying environments. Increased IT differentiation allows employees to utilize more efficient and effective technologies to meet their specific tasks. However, an increased level of IT integration is needed to meet the additional compatibility concerns arising from this IT differentiation. Essay 3 examines how individual decision-making behaviors and organizational IT policies impact the configuration of IT differentiation and IT integration. A combination of online survey vignettes, agent-based simulations, and a questionnaire survey provides insights into how individuals and organizations can impact the IT portfolio over time. The results indicate that the claimed benefits of BYOD may not materialize unless the employees are choosing their provided technologies based on rational decisions. This dissertation finds that BYOD polices may increase productivity and satisfaction for employees and organizations. However, organizations must ensure they examine their task portfolio, employee technology needs and knowledge, and IT policy attributes to ensure BYOD is the right solution. The results provide organizations increased knowledge to ensure increased performance from their IT decisions. Table of
3 citations
Cites background from "Structural Differentiation and Ambi..."
...2012), and organizational ambidexterity (Jansen et al. 2009; Raisch et al. 2009)....
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...Theoretical Foundations Considerable prior research has investigated the configuration, design, and implementation of organizational structures to enhance performance of organizations, teams, and individuals (Ancona and Caldwell 1992; Jansen et al. 2009)....
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...Considerable prior research has investigated the configuration, design, and implementation of organizational structures to enhance performance of organizations, teams, and individuals (Ancona and Caldwell 1992; Jansen et al. 2009)....
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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.
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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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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.
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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.
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19,160 citations