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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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TL;DR: In this article, a taxonomical analysis of the elements and components of the concept of organisational ambidexterity is undertaken, and it is found that a project-focused notion of ambideXterity involves different levels, dimensions and mechanisms.
Abstract: The objective of this paper is to explore a project-focused understanding of contemporary organisational ambidexterity literature. As part of this process, a taxonomical analysis of the elements and components of the concept of organisational ambidexterity is undertaken. Findings suggest that a project-focused notion of organisational ambidexterity involves different levels, dimensions and mechanisms. The predominant contribution of this paper resides within the taxonomy study, which provides a platform for a more holistic understanding of organisational ambidexterity as a multifaceted concept applicable to the project management discipline.
23 citations
Cites background from "Structural Differentiation and Ambi..."
...By mechanism, we suggest by referring to the works of both Jansen et al. (2009) and Turner et al. (2013a), the specific established means by which organization’s manage the contradictions and tensions associated with ambidexterity....
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...The literature suggests that in order to effectively manage prevalent tensions associated with ambidexterity, an organization need to demonstrate behavioural capabilities that suggests an ability to simultaneously exploit and explore (Jansen et al., 2009)....
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...Studies have found that an emphasis by an organization on one can degrade the other (Jansen et al., 2009), so ambidexterity emphasises a trade-off balance between these two constructs (Adler et al., 1999)....
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TL;DR: In this article, the authors examined the relationship of IT ambidexterity with the potential moderating role of market complexity in a sample composed of 292 British high-tech firms.
Abstract: New product development (NPD) speed is becoming an important weapon by which firms can gain market share in today's competitive and complex market environments, where consumer preferences change rapidly. Drawing on the information technology (IT)-enabled organizational capabilities perspective, this study proposes that IT ambidexterity—the simultaneous pursuit of IT exploitation and IT exploration, which has become imperative in modern industry to sustain the business value of IT—enhances NPD speed by facilitating operational agility. We examine the proposed relationship of IT ambidexterity with the potential moderating role of market complexity in a sample composed of 292 British high-tech firms. Our findings, based on a moderated-mediation analysis, suggest that the impact of IT ambidexterity on NPD speed is mediated by operational agility and that the mediation effect is especially pronounced in complex markets. The resulting theoretical arguments and empirical evidence yield further insights into the strategic impacts of IT.
23 citations
TL;DR: In this article, the authors use fuzzy-set qualitative comparative analysis to analyze survey data of 274 managers in Egyptian firms operating in uncertain environments based on the motivationability-opportunity framework and configuration theory.
23 citations
TL;DR: In this article, the authors use a qualitative research in five Dutch industrial sectors to study the ambidexterity strategies that established firms use for their systematic creation of strategic innovations.
Abstract: As strategic innovation may lead to high revenue and profit growth a deeper understanding of any enabling organizational capabilities is highly relevant to both researchers and managers. Therefore, in this paper we focus on the concept of "ambidexterity". More specifically, we use a qualitative research in five Dutch industrial sectors to study the ambidexterity strategies that established firms use for their systematic creation of strategic innovations. We find that established companies have to cope with different ambidexterity frictions in the initiation and commercialization phases of strategic innovation projects. These results add to the emerging academic discussion on ambidexterity by showing that the appropriate ambidexterity approach may not only differ by innovation type but also by the specific phase of the innovation project. Our findings are also relevant to managerial practice as they suggest a limited value of isolated business development units for strategic innovation initiation.
22 citations
TL;DR: The theoretical model is discussed, the effects of these five variables are explained, certain additional correlations that are meaningful are highlighted, and implications for research libraries are discussed.
Abstract: The research reported here is focused on a specific type of change in an organization: an innovation. In an empirical analysis of research libraries, it was found that five factors had a significant impact on the innovation performance of the library. These factors relate to the strategy, organizational structure, and leadership of the research library. The study sample consisted of 50 libraries that were members of the Association of Research Libraries. This paper will discuss the theoretical model, explain the effects of these five variables, highlight certain additional correlations that are meaningful, and discuss implications for research libraries.
22 citations
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.
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"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. **
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"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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