Posted Content•
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
More filters
TL;DR: In this paper, the authors examined the ambidextrous design choice of small and medium-sized automotive suppliers in the transition to electric vehicles, using a logistic regression analysis.
Abstract: The automotive industry will undergo a discontinuous and long-term transformation due to the transition to electric vehicles. In addition to the continuous improvement of traditional business models and existing technologies (exploitation), innovative business models and new technologies must be developed and adapted (exploration). Hence, for a successful transition to electric vehicles, a two-handed approach of exploitation and exploration – so-called ambidexterity – is essential. Although in the research literature useful propositions are represented, how to achieve exploitation and exploration sequentially or simultaneously, less is known about the ambidextrous design choice of small and medium-sized automotive companies. This article examines the ambidextrous design choice of small and medium-sized automotive suppliers headquartered in Germany in the transition to electric vehicles. Using a logistic regression analysis the article indicates important internal and external determinants of the ambidextrous design choice in the context of small and medium-sized automotive suppliers.
12 citations
TL;DR: In this paper, the authors suggest that organizational ambidexterity can function as a core mediating mechanism between transformational CEOs and the observed level of corporate entrepreneurship and that the effectiveness of this mediating process varies as a function of critical contingencies related to characteristics of the top management team (TMT), the environment and the organization's design.
Abstract: A chief executive officer (CEO) acting as the firm's transformational leader is typically viewed as instrumental to corporate entrepreneurship in established firms, but how exactly does a higher level of corporate entrepreneurship come about, given a transformational CEO's actions? We suggest that organizational ambidexterity can function as a core mediating mechanism between transformational CEOs and the observed level of corporate entrepreneurship and that the effectiveness of this mediating process varies as a function of critical contingencies related to characteristics of the top management team (TMT), the environment and the organization's design. Our empirical evidence, based on a sample of 145 Chinese private sector firms, and using three primary sources of data (145 CEOs, 506 TMT members, and 1,981 middle managers), provides support for a moderated mediation process. We find that the mediating pathway from transformational leadership to corporate entrepreneurship through organizational ambidexterity is not significant when boundary conditions are ignored. However, when environmental dynamism, TMT collectivism, and structural differentiation are included as moderators, CEO transformational leadership does affect corporate entrepreneurship via the creation and effective functioning of organizational ambidexterity.
12 citations
Cites methods from "Structural Differentiation and Ambi..."
...We used a six-item scale from Jansen et al. (2009) to measure how organizations structure their organizational system into units with distinctive functions and product/market domains....
[...]
TL;DR: In this article, a process model that reveals how structural ambidexterity can generate "proximate isomorphism" that gives rise to parent level exploration and the parent's gradual convergence with the subsidiary creates the conditions for reintegration, and ultimately, strategic renewal.
Abstract: This article shows how the separation and subsequent reintegration of a subsidiary becomes a source of strategic renewal for the parent company. We develop a process model that reveals how structural ambidexterity can generate “proximate isomorphism” that gives rise to parent level exploration and the parent’s gradual convergence with the subsidiary. This creates the conditions for reintegration, and ultimately, strategic renewal. We identify the triggers for proximate isomorphism as well as the mechanisms through which it unfolds. We draw on the longitudinal analysis of strategic renewal of Immochan between 2006 and 2018. Our findings contribute to extant research by developing the link between structural ambidexterity and strategic renewal and, particularly, by showing that proximate isomorphism acts as an integrating mechanism between the parent and the explorative unit.
12 citations
Cites background from "Structural Differentiation and Ambi..."
...On the one hand, it highlights the importance of integrating mechanisms that coordinate resources and knowledge flows (Gilbert, 2006; Kauppila, 2010; Jansen et al., 2009; Raisch and Birkinshaw, 2008)....
[...]
...Over the years, a plethora of empirical studies has found a positive relationship between firm performance and such structural separation (e.g. Jansen et al., 2009; He and Wong, 2004; Lubatkin et al., 2006)....
[...]
...Prior research has already identified a number of such integrating mechanisms such as crossfunctional teams (Jansen et al., 2009) or the synergistic use of practices (Kim and Rhee, 2009)....
[...]
...Structural integrating mechanisms may involve the synergistic combination of practices (Kim and Rhee, 2009) or the formation of cross-functional teams and processes (Jansen et al., 2009)....
[...]
...These units are connected at the corporate level (Benner and Tushman, 2003) and firms need to put mechanisms in place that integrate explorative and exploitative activities (Gilbert, 2006; Kauppila, 2010; Jansen et al., 2009; Raisch and Birkinshaw, 2008)....
[...]
02 Nov 2020
TL;DR: In Ambidextrie, Fahrmann et al. as discussed by the authors describe a situation, in which die Auswirkungen von stark durch die Vergangenheit gepragten Entscheiden dazu fuhren, dass die Moglichkeit bzw. Notwendigkeit neuer Geschaftsmodelle nicht erkannt, verpasst oder deren Chancen falsch eingeschatzt werden.
Abstract: Sich disruptiv verandernde Rahmenbedingungen konnen dazu fuhren, dass bisher erfolgreiche Geschaftsmodelle innert weniger Jahren obsolet werden. Geschuldet ist dies einer mangelnden Anpassungsfahigkeit, deren Ursache unter anderem in der sogenannten Pfadabhangigkeit wurzeln kann. Die Pfadabhangigkeit bezeichnet eine Situation, in der die Auswirkungen von stark durch die Vergangenheit gepragten Entscheiden dazu fuhren, dass die Moglichkeit bzw. Notwendigkeit neuer Geschaftsmodelle nicht erkannt, verpasst oder deren Chancen falsch eingeschatzt werden. Das Ausbrechen aus der Pfadabhangigkeit ist fur den Fortbestand von Unternehmen daher von zentraler Bedeutung. Das Konzept der organisationalen Ambidextrie widmet sich dieser Problemstellung. Ambidextrie beschreibt die Fahigkeit eines Unternehmens, einerseits das Kerngeschaft stetig weiterzuentwickeln, gleichzeitig aber auch neue Wege und Denkweisen zu etablieren und so sicherzustellen, dass Veranderungen im Umsystem rechtzeitig erkannt und die sich dadurch bietenden Chancen fur die Zukunft genutzt werden. Eine Fahigkeit, die gerade im Zeitalter der Digitalisierung an Wichtigkeit gewinnt.
12 citations
Cites background from "Structural Differentiation and Ambi..."
...Aussagen aus der Theorie Die Implementierung von stärker formalen Strukturen wird gegenüber informellen Strukturen bevorzugt (Jansen et al. 2009, S. 808)....
[...]
TL;DR: In this paper, the authors describe an ambidextrouter approach to explore and exploit supplier knowledge in increasingly competitive and complex production environments, which is referred to as an exploration and exploitation of supplier knowledge.
Abstract: Companies must pursue both exploration and exploitation of supplier’s knowledge in increasingly competitive and complex production environments. This has been referred to as pursuing an ambidextrou...
12 citations
Cites background from "Structural Differentiation and Ambi..."
...Coordinating, integrating, and combining activities in this internal organizational environment has been described as a dynamic capability, resting on organizational routines and processes (Jansen et al. 2009)....
[...]
References
More filters
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,…...
[...]
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)....
[...]
...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)....
[...]
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…...
[...]
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)....
[...]
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