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Structural Differentiation and Ambidexterity: The Mediating Role of Integration Mechanisms

Justin J. P. Jansen1, Michiel Pieter Tempelaar1, Frans van den Bosch1, Henk W. Volberda1•
Erasmus University Rotterdam1
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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Citations
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Journal Article•DOI•
Finding the way to ambidexterity: exploring the relationships among organisational design, knowledge creation and innovation

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Antonella Martini1, Paolo Neirotti, Davide Aloini1•
University of Pisa1
24 Aug 2015-International Journal of Innovation Management
TL;DR: In this paper, a survey on 112 hi-tech firms in Italy found that structural separation of these initiatives within the organisation directly affects ambidexterity and leads to higher sales growth than when firms achieve ambideXterity through an appropriate organisational context solely.
Abstract: Research suggests the firm's structural and contextual attributes that foster ambidexterity, but theory and testing on their combined effects on knowledge creation, ambidexterity and financial performance remain rather poor. By using a theoretical perspectives built on organisation design and the knowledge-based view of the firm, this article takes into consideration firms' exploration attainments and exploitation initiatives in relation to both their ability to create knowledge in innovation processes and their capacity to apply it into product innovation. Using data from a survey on 112 hi-tech firms in Italy, results show that organisational context attributes influence firm's degree of ambidexterity in knowledge creation in the innovation processes, but it does not have a direct influence on the actual degree of ambidexterity in innovation development. A fundamental condition to ambidexterity in innovation development is the structural separation of exploration and exploitation innovation initiatives. Specifically, we found that structural separation of these initiatives within the organisation directly affects ambidexterity and leads to higher sales growth than when firms achieve ambidexterity through an appropriate organisational context solely. These findings provide a rich explanation of the way firms develop ambidexterity and can obtain superior economic performance from it.

15 citations

Journal Article•DOI•
Ambidextrous orientation and performance in corporate venture units: A multilevel analysis of CV units in emerging market multinationals

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Paulina Junni, Yi-Ying Chang1, Riikka M. Sarala2•
National Taiwan University of Science and Technology1, University of North Carolina at Chapel Hill2
01 Dec 2020-Long Range Planning
TL;DR: In this article, the authors examine absorptive capacity and innovation-oriented corporate culture as moderators of the relationship between ambidexterity of a CV unit and its performance, and propose that an innovationoriented, corporate culture positively moderate the effect of CV unit's ambideXterity on its performance.

15 citations

A Theory of Micro-Level Dynamic Capabilities: How Technology Leaders Innovate with Human Connection

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Lori D Kendall1•
Case Western Reserve University1
01 Jan 2016

15 citations

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

  • ...As different conceptualizations of relational factors have been shown to influence innovation including relational and social integration (Jansen et al., 2006; Jansen et al., 2009; Kahn, 1998) as well as climates for innovation (Anderson & West, 1998; Bain et al....

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  • ...group members occurs when individuals benefit from the talents and contributions from others (Blau, 1960), experience satisfying interactions with others (Jansen et al., 2009), and are willing to reduce defensive posturing, remain open and vulnerable to criticism or perceived loss of status in order to resolve conflicts and maintain group cohesion (Blau, 1960)....

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  • ...…members occurs when individuals benefit from the talents and contributions from others (Blau, 1960), experience satisfying interactions with others (Jansen et al., 2009), and are willing to reduce defensive posturing, remain open and vulnerable to criticism or perceived loss of status in order to…...

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  • ...…conceptualizations of relational factors have been shown to influence innovation including relational and social integration (Jansen et al., 2006; Jansen et al., 2009; Kahn, 1998) as well as climates for innovation (Anderson & West, 1998; Bain et al., 2001), we posit that high quality…...

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Journal Article•DOI•
Ambidexterity in Cross-Sector Collaborations Involving Public Organizations

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Stephen W. Page1, John M. Bryson2, Barbara C. Crosby2, Danbi Seo3, Melissa M. Stone2 •
University of Washington1, University of Minnesota2, California State University, Bakersfield3
02 Jul 2021-Public Performance & Management Review
TL;DR: In this paper, the concept of organizational ambidexterity is extended to encompass knowledge exploration and exploitation in cross-sector collaborations, and cross-organizational collaborations are frequently charged to devise collaborative solutions.
Abstract: This article extends the concept of organizational ambidexterity to encompass knowledge exploration and exploitation in cross-sector collaborations. Collaborations are frequently charged to devise ...

15 citations

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

  • ...…collaborative’s performance (Jansen et al., 2009; O’Reilly & Tushman, 2011); Expressions of public service motivation by senior collaboration partners (Tuan 2017); Strong relationships and mutual support among senior participants in the collaboration (Jansen et al., 2009; O’Reilly & Tushman, 2011)....

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  • ...…links between senior collaboration participants’ pay or other incentives and their individual performance or the overall collaborative’s performance (Jansen et al., 2009; O’Reilly & Tushman, 2011); Expressions of public service motivation by senior collaboration partners (Tuan 2017); Strong…...

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  • ...Adequately resourced organizational structures that support ambidexterity—e.g., through distinct, aligned sub-units focused on either exploring or exploiting knowledge, or cross-functional connections and interfaces (Jansen et al., 2009); 5....

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  • ...Second, we searched our reports’ detailed descriptions of these outputs for indications of knowledge exploration or exploitation, and coded them following conventions in the business literature on ambidexterity (Jansen et al., 2009)....

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  • ...…resources structures aligning exploration and exploitation activities, such as: Inter-organizational connections, such as cross-functional teams (Jansen et al., 2009); Changes in (inter-)organizational routines (Taylor & Helfat, 2009); Resources such as funding, staff, equipment, or other…...

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Journal Article•DOI•
A long life after exploitation and exploration

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Ming Piao1•
Regent University1
02 Aug 2014-European Journal of Innovation Management
TL;DR: In this article, the authors investigate the longevity implications of exploitation and exploration in the hard disk drive industry and find that exploration, independent of exploitation, has a curvilinear impact on organizational longevity.
Abstract: Purpose – The purpose of this paper is to investigate the longevity implications of exploitation and exploration. It examines the main effect of exploitation, the main effect of exploration, and the interaction effect of exploitation and exploration on organizational longevity. Design/methodology/approach – This study employs Cox Proportional Hazard Model in analyzing 20-year data from the hard disk drive industry. Findings – Exploitation, independent of exploration, has a positive impact on organizational longevity. Exploration, independent of exploitation, has a curvilinear impact on organizational longevity. Jointly, exploitation weakens the curvilinear relationship between exploration and organizational longevity. Research limitations/implications – This study challenges the dualistic view that exploitation is for “current viability” and exploration is for “future viability.” It suggests that firms need to actively engage in (instead of compromise) both exploitation and exploration in order to prolong...

14 citations

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"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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Journal Article•DOI•
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Wesley M. Cohen1, Daniel A. Levinthal2•
Carnegie Mellon University1, University of Pennsylvania2
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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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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 Article•DOI•
On the evaluation of structural equation models

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Richard P. Bagozzi1, Youjae Yi1•
University of Michigan1
01 Jan 1988-Journal of the Academy of Marketing Science
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

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