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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, the impact of mobile virtual network operators (MVNOs) on the performance of mobile network operators in the presence of overlapping generations of wireless mobile technologies (2G and 3G) was examined.
Abstract: This study examines the impact of mobile virtual network operators (MVNOs) on the performance of mobile network operators (MNOs) in the presence of overlapping generations of wireless mobile technologies (2G and 3G). MVNOs distribute MNOs’ mobile services to customers without owning any spectrum or network infrastructures. Some MVNOs are wholly owned by MNOs with a revenue-sharing mechanism (branded MVNOs), while others operate through wholesale agreements with MNOs (third-party MVNOs). By focusing on the impact of MVNOs on MNOs’ performance, we investigate governance issues, e.g., delegation vs. ownership, in value chains with overlapping generations of technologies. Using proprietary data, we design a quasi-experiment to analyze branded and third-party MVNOs. First, we use a sliding window adjusted difference-in-differences model as an exploratory analysis. Next, in the main analysis, we employ dynamic propensity score matching, which allows us to explore the variation of the impact over time. We find that branded and third-party MVNO launches both increase an MNO's 2G market share, whereas its 3G market share increases only with a branded MVNO launch. In addition, the positive effects diminish over time for branded MVNOs, but strengthen for third-party MVNOs. These results suggest that, when launching MVNOs, managers should decide on value chain governance based on technology migration and market maturity. If the focus is to quickly seize the market share with new mobile technologies, branded MVNOs are preferred. On the other hand, if the focus is to expand in a niche, mature market, delegating to third-party MVNOs may be more effective.
9 citations
TL;DR: In this paper, the authors analyzed the impact of organizational structure on convergent change in Bogota's SMEs and found that modifications in differentiation and formalization can explain the change in organizational structure and that centralization does not affect it.
Abstract: By integrating the structural contingency and the organizational adaptation theories, this study analyzes the impact of the main variables of organizational structure on convergent change. The authors also examine whether some contingency variables, such as the firm's size, age and sector, may help to explain differences in the relationship between organizational structure and convergent change.,This work was carried out through an explanatory and cross-sectional study. The hypotheses were tested through a multiple regression analysis.,This paper demonstrates that, in Bogota's SMEs, modifications in differentiation and formalization explain convergent change, and that centralization does not affect it. Furthermore, the authors find that the company's size explains these relationships, and that age and sector do not influence them.,The authors provide useful information in this work to guide managers and professionals on the implications of organizational structure and convergent change, more specifically on decisions regarding hierarchical arrangement, job division and processes redefinition.,This work provides empirical evidence with original data for a better understanding of the reality of Colombian SMEs in the Latin American context.
9 citations
01 Jan 2018
TL;DR: In this article, the authors investigate how leaders facilitate organizational learning ambidexterity for the innovation they are pursuing, using Crossan et al.'s (1999) 4I framework, and they find that one of the most challenging phases is in the integrating phase, which requires trade-offs, particularly in resource allocation with individuals or groups often competing for scarce resources to explore and exploit.
Abstract: Organizational ambidexterity is about developing necessary organizational capabilities to compete in new and changing markets that enable organizations to survive in the face of dynamic external environments. It is about finding a balance between exploring new knowledge and exploiting existing knowledge or capabilities. The research on ambidexterity has offered different mechanisms for pursuing ambidexterity, and has highlighted the pivotal role of organizations’ senior teams and leadership behaviors in balancing the conflicting demands of exploration and exploitation. Research has also shown that no universal best practices should be sought to resolve the dilemma but instead leaders need to understand the situational context to enable them to develop the capability to effectively adjust the internal context of their organizations to the demands of the dynamic external environment or context. However, exactly how these leaders actually manage the interfaces of exploration and exploitation and the inevitable conflicts that arise from these two conflicting activities in practice is less clear. This study tries to address this gap by using an organizational learning lens to investigate what leaders actually do to achieve ambidexterity.
Research has shown that in terms of responding to the effects of the external context or environment, leaders need to pursue both cost-leadership (exploitation) and differentiation (exploration) strategies simultaneously to enable their organizations to compete competitively; they need to avoid “a stuck in the middle strategy” where they fail to successfully pursue either strategy. The aims of this thesis are thus twofold. The first aim is to examine the impact of external environments or contexts (i.e., competition, customer demands, development of technology, strategic partners, and government) on exploratory and exploitative innovation that organizations pursue. The second aim of this thesis, using Crossan et al.’s (1999) 4I framework, is to investigate how leaders facilitate organizational learning ambidexterity for the innovation they are pursuing. Leaders need to provide internal contextual support (i.e. strategy, structure, organizational culture, and resources) to facilitate learning in each of 4I phases in order to pursue innovation. Exploration of new knowledge (idea generation) is often associated with the intuition and interpretation phases of the 4I organizational learning process. Conversely, exploitation of existing knowledge (implementation) is closely linked to the process of institutionalization. One of the most challenging phases of the 4I framework is in the integrating phase, which requires trade-offs, particularly in resource allocation with individuals or groups often competing for scarce resources to explore and exploit.
A qualitative approach was adopted to address the research aims of this study. Case studies of four large Australian service organizations were undertaken in an exploratory analysis of the complex phenomenon of ambidexterity for innovation to…
9 citations
TL;DR: Information technology has been acknowledged as a driver of innovation performance and scholars agree that the impact of IT is mediated by additional organisational factors as mentioned in this paper, however, some of these factors are not considered in this paper.
Abstract: Information technology (IT) has been acknowledged as a driver of innovation performance and scholars agree that the impact of IT is mediated by additional organisational factors. Among those mediat...
9 citations
TL;DR: In this article, the integration of organisational units has been extensively researched in various streams of management and organization sciences, and it is very important whenever knowledge differences have to be overco...
Abstract: Integration of organisational units has been extensively researched in various streams of management and organization sciences. It is very important whenever knowledge differences have to be overco...
9 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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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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