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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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Citations
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Journal ArticleDOI
TL;DR: In this paper, exploratory and exploitative learning as distinct team-level activities, constructed measures of them, and examined their relationships with psychological safety, task conflict, and team performance.
Abstract: This study conceptualized exploratory and exploitative learning as distinct team-level activities, constructed measures of them, and examined their relationships with psychological safety, task conflict, and team performance. Structural equation analysis in a sample of 142 innovation project teams indicated that psychological safety was linearly and nonlinearly related to team exploitative and exploratory learning, respectively; whereas task conflict positively moderated the relationship between psychological safety and exploitative learning. Furthermore, exploratory and exploitative learning were additively related to team performance, as rated by team managers, and mediated its relationship with psychological safety. The findings contribute to understanding how and under what conditions organizational teams engage in exploratory and exploitative learning to maximize their performance.

198 citations


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

  • ...Authors (e.g., Gibson & Birkinshaw, 2004; He & Wong, 2004; Jansen et al., 2009; Lubatkin et al., 2006) have proposed that exploration and exploitation are not only distinct learning activities but also interact to simultaneously contribute to performance (i....

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  • ...This adds to the developing consensus in the literature that exploratory and exploitative learning are distinct activities that positively relate to performance (e.g., Gibson & Birkinshaw, 2004; Jansen et al, 2009; Mom et al., 2007; Jansen, van den Bosch, & Volberda, 2006)....

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  • ...Performance of both activities can be accomplished in a number of ways, including engagement in paradoxical thinking by individual team members (Gibson & Birkinshaw, 2004), division of team members’ time to both activities, and differential assignment of team members to roles that relate to exploration or exploitation of knowledge (Jansen et al., 2009; Raisch & Birkinshaw, 2008)....

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  • ...Authors (e.g., Gibson & Birkinshaw, 2004; He & Wong, 2004; Jansen et al., 2009; Lubatkin et al., 2006) have proposed that exploration and exploitation are not only distinct learning activities but also interact to simultaneously contribute to performance (i.e., they form an ambidextrous entity)....

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  • ...…in paradoxical thinking by individual team members (Gibson & Birkinshaw, 2004), division of team members’ time to both activities, and differential assignment of team members to roles that relate to exploration or exploitation of knowledge (Jansen et al., 2009; Raisch & Birkinshaw, 2008)....

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Journal ArticleDOI
TL;DR: In this article, the authors discuss how PBOs in the construction industry can manage the exploration/exploitation paradox at different organizational levels by using cooperative procurement procedures to facilitate both exploration and exploitation of knowledge and technologies in construction projects.

194 citations

Journal ArticleDOI
TL;DR: This work develops and test the concept of network consistency as the overlap between the informal network of advice and information with formal structures and processes, expressed as networks, and theorizes that consistency between formal and informal networks exerts differing effects on performance.
Abstract: We take a network perspective to organizational architecture, conceptualizing it as multiple networks of both formal and informal interactions and argue that their interplay is key to better understanding individual organizational member performance. We develop and test the concept of network consistency as the overlap between the informal network of advice and information with formal structures and processes, expressed as networks. We theorize that consistency between formal and informal networks exerts differing effects on performance. We test our theory in a financial services firm, using secondary data to create formal networks and annual performance evaluations for our dependent variable, along with primary survey data from organizational members to obtain the informal advice and information network. Results support our network approach to organizational architecture. Copyright © 2012 John Wiley & Sons, Ltd.

193 citations

Journal ArticleDOI
TL;DR: It is found that organizational BDA capabilities affect a firm's ambidexterity and agility, which, in turn, affect its performance.

185 citations

Journal ArticleDOI
TL;DR: The authors assess the extent to which different ways of measuring dynamic capabilities in quantitative studies correspond to the theoretical essence of the concept, and develop recommendations for future research.
Abstract: The growing popularity of explaining firm performance through dynamic capabilities has motivated plenty of conceptual development in the field. However, empirical approaches to measuring dynamic capabilities have so far not been under comprehensive scrutiny. The authors; purpose is to assess the extent to which different ways of measuring dynamic capabilities in quantitative studies correspond to the theoretical essence of the concept, and develop recommendations for future research. They find that four types of operationalizations have been used: (1) managers’ evaluations; (2) financial data; (3) company's experience, actions and performance; and (4) managers’ or employees’ experience, actions and performance. Based on their analysis, the authors provide eight recommendations for future research that relate to identifying ordinary and dynamic capabilities, avoiding common method bias, taking into account the quality and fitness rather than the quantity of dynamic capabilities, and acknowledging the cumulativeness of dynamic capabilities through the use of longitudinal data. They conclude that refining the dynamic capability operationalizations would help to formulate competing hypotheses and to increase the theoretical precision of the field.

178 citations


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

  • ...…et al. (2013), Capron and Mitchell (2009), Danneels (2008), Drnevich and Kriauciunas (2011), Fang and Zou (2010), Feller et al. (2013), Jansen et al. (2009), Kusunoki et al. (1998), Kyrgidou and Spyropoulou (2013), Lee et al. (2015), Malik and Kotabe (2009), Marcus and Anderson…...

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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