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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.
Citations
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TL;DR: Wang et al. as discussed by the authors explored the factors influencing ambidextrous activities at the individual level, and constructed a systematic process mechanism of individual ambidexterity, integrating both internal and external factors.
Abstract: Ambidexterity is the source of organizational sustainable development and long-term success. However, understanding the role of individual ambidexterity in organizations remains underdeveloped. Recently, scholars have increasingly emphasized the importance of individual ambidexterity, calling for more research on the topic. This study aims to explore the factors influencing individual ambidexterity. It proposed that goal orientation would be related to individual ambidexterity, and perceived cooperative goal interdependence and constructive controversy would play moderating roles in this relationship.,The paper opted for a survey study. Questionnaires were distributed to enterprise managers from a part-time MBA program at a university located in Beijing, China. They were also asked to bring copies to their colleagues, so they could fill them out. The authors obtained 229 valid questionnaires and used hierarchical regression analysis to test the relationships.,The results revealed that both learning goal orientation and performance goal orientation were significantly and positively related to individual ambidexterity. Perceived cooperative goal interdependence and constructive controversy positively moderated the relationship between learning goal orientation/ performance goal orientation and individual ambidexterity.,The paper provides beneficial suggestions for both managers and employees. It offers a reference for managers regarding how to promote employee ambidexterity. It also provides suggestions for employee career development.,The paper explored the factors influencing ambidextrous activities at the individual level, a very scare approach in extant studies. It also constructed a systematic process mechanism of individual ambidexterity, integrating both internal and external factors.
13 citations
Dissertation•
02 Jun 2017
TL;DR: In this article, the authors examine how negative performance feedback and corporate governance influence the direction of organizational change in terms of exploration and exploitation and how balancing such change over time influences firm performance in the CVC context.
Abstract: This dissertation addresses unexplored issues on the antecedents, management, and outcomes of corporate venture capital (CVC). More specifically, I examine how negative performance feedback and corporate governance influence the direction of organizational change ˗ in terms of exploration and exploitation ˗ and how balancing such change over time influences firm performance in the CVC context. I first review the extant literature on CVC and lay out the unique contributions of my research. Then, in the first essay, I theorize on how poor firm performance influences the resource allocation decisions on exploration and exploitation and how such decisions are affected by the concentration of dedicated and transient shareholders and by the board of directors' monitoring and advising intensities. In the second essay, I empirically examine how the resource allocation decisions on exploration and exploitation are influenced by dedicated and transient shareholders in the context of CVC investing. In the third essay, I examine how balancing exploration and exploitation over time and the characteristics of oscillation impact firm performance. The empirical analysis in the latter two essays is based on CVC investments made by 286 U.S. companies during 1993-2013. This dissertation contributes to the Behavioral Theory of the Firm and Corporate Governance research by introducing how shareholders and boards influence managerial decision-making in search and change, Ambidexterity research by studying how continuous change and organizational inertia impact temporal spillover between exploration and exploitation, and CVC research by examining the antecedents and consequences of explorative and exploitative initiatives in CVC investing.
13 citations
Cites background from "Structural Differentiation and Ambi..."
...Stronger integration mechanisms for the two activities increases the cost of coordination (Mom et al., 2009; Jansen et al., 2009)....
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...As the difference in structure and routines becomes greater, stronger integration mechanisms are needed to coordinate the two activities over different periods (Mom et al., 2009; Jansen et al., 2009)....
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TL;DR: In this article, the authors explore the influences of two top management team (TMT) processes on organizational ambidexterity: TMT behavioral integration and TMT involvement in small and medium enterprises (SMEs).
Abstract: Purpose
Past studies have associated top management’s paradoxical cognition and actions with the ambidextrous performance of firms. Compared to large firms, the top management members of small firms play a focal role in resolving the paradoxical tensions of explorative and exploitative innovation strategies. Anchored in the upper echelons perspective, the purpose of this paper is to explore the influences of two top management team (TMT) processes on organizational ambidexterity: TMT behavioral integration and TMT involvement in small and medium enterprises (SMEs).
Design/methodology/approach
The research is set in the context of 78 hi-tech SMEs across IT, biotech, and electronics industry. Multiple responses were collected from each firm. The authors used hierarchical regression analysis to test the hypotheses.
Findings
The findings from this paper demonstrate that the process of TMT behavioral integration enhances organizational ambidexterity. However, the results show that neither the top management’s involvement, nor the interaction of the top management’s involvement with the behavioral integration of a TMT, enhances organizational ambidexterity.
Research limitations/implications
The limited examination of two TMT processes has restricted the scope of this paper. The study has also been unable to measure paradoxical cognition in the TMT objectively and without proxy measures.
Originality/value
The results from this study add to the existing literature on paradoxical cognition, ambidexterity, and behavioral integration. The results from this study also lend support to the upper echelons perspective. Further, the findings from this paper present significant practical implications by throwing light on the senior team processes necessary for small ambidextrous firms in emerging economies. The volatile and rather unpredictable nature of emerging economies underscore the relevance of examining the facilitating conditions of small ambidextrous firms in these countries.
13 citations
TL;DR: In this paper, the authors examined the impact of social capital on organizational ambidexterity in the context of emerging economies, and found that absorptive capacity positively strengthened the impact on social capital.
Abstract: PurposeThe purpose of this paper is to examine the impact of social capital on organizational ambidexterity in the context of emerging economies. Moreover, this paper aims to study the moderating influence of absorptive capacity on the relationship between social capital and organizational ambidexterity.Design/methodology/approachThe authors conducted two studies using survey data collected from 97 Ecuadorian and 100 Chinese small and medium-sized enterprises (SMEs).FindingsThe authors found that social capital, the extent to which organizational members interact, collaborate and share knowledge with one another and with external actors, has a positive effect on the simultaneous implementation of exploratory and exploitative innovations (i.e. organizational ambidexterity). Moreover, the authors found that absorptive capacity positively strengthens the impact of social capital on organizational ambidexterity.Originality/valueDrawing on the knowledge-based view and the innovation literature, the authors theoretically argue the importance of social capital and absorptive capacity for SMEs to develop and manage exploratory and exploitative innovations simultaneously in emerging economies of different cultures. The authors empirically test proposed hypotheses in Ecuador and China, two emerging markets with important cultural differences, and show the relevance of social capital in multiple settings.
12 citations
12 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.
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.
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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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.
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.
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