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.
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TL;DR: In this paper, the authors draw on a variety of cognate literatures to discuss the field-level structural characteristics and organizational attributes that shape institutional complexity and explore the repertoire of strategies and structures that organizations deploy to cope with multiple, competing demands.
Abstract: Organizations face institutional complexity whenever they confront incompatible prescriptions from multiple institutional logics. Our interest is in how plural institutional logics, refracted through field-level structures and processes, are experienced within organizations and how organizations respond to such complexity. We draw on a variety of cognate literatures to discuss the field-level structural characteristics and organizational attributes that shape institutional complexity. We then explore the repertoire of strategies and structures that organizations deploy to cope with multiple, competing demands. The analytical framework developed herein is presented to guide future scholarship in the systematic analysis of institutional complexity. We conclude by suggesting avenues for future research.
2,129 citations
Cites background from "Structural Differentiation and Ambi..."
...…the ambidextrous approach and to minimize internal resistance, and the skills to communicate clearly their approach in order to offset any media skepticism (e.g., O’Reilly & Tushman, 2004; Jansen et al., 2009; Fang, Lee, & Schilling, 2010; Benner & Tushman, 2003; Siggelkow & Levinthal, 2003)....
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...These include the need for “ambidextrous leaders” with the ability to understand the requirements of different types of businesses, the authority to implement new incentive systems to institutionalize the ambidextrous approach and to minimize internal resistance, and the skills to communicate clearly their approach in order to offset any media skepticism (e.g., O’Reilly & Tushman, 2004; Jansen et al., 2009; Fang, Lee, & Schilling, 2010; Benner & Tushman, 2003; Siggelkow & Levinthal, 2003)....
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TL;DR: An overview of the seven articles included in this special issue is provided and several avenues for future research are suggested.
Abstract: Organizational ambidexterity has emerged as a new research paradigm in organization theory, yet several issues fundamental to this debate remain controversial. We explore four central tensions here: Should organizations achieve ambidexterity through differentiation or through integration? Does ambidexterity occur at the individual or organizational level? Must organizations take a static or dynamic perspective on ambidexterity? Finally, can ambidexterity arise internally, or do firms have to externalize some processes? We provide an overview of the seven articles included in this special issue and suggest several avenues for future research.
1,946 citations
Cites background from "Structural Differentiation and Ambi..."
...The Jansen et al. (2009) article “Structural Differentiation and Ambidexterity: The Mediating Role of Integration Mechanisms” claims that structural differentiation can help ambidextrous organizations maintain multiple inconsistent and conflicting demands; however, these differentiated activities…...
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...Third, ambidexterity may arise from both simultaneous and sequential attention to exploitation and exploration....
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...Kogut and Zander (1992, p. 384) describe “combinative capabilities” as the firm’s ability “to synthesize and apply current and acquired knowledge.”...
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...Several studies in this special issue provide the first evidence that ambidexterity results from interactions across multiple levels (Andriopoulos and Lewis 2009, Groysberg and Lee 2009, Jansen et al. 2009, Mom et al. 2009, Taylor and Helfat 2009)....
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Posted Content•
01 Jan 2013
TL;DR: Organizational ambidexterity refers to the ability of an organization to both explore and exploit--to compete in mature technologies and markets where efficiency, control, and incremental improvement are prized and to also compete in new technologies as mentioned in this paper.
Abstract: Organizational ambidexterity refers to the ability of an organization to both explore and exploit--to compete in mature technologies and markets where efficiency, control, and incremental improvement are prized and to also compete in new technologies and markets where flexibility, autonomy, and experimentation are needed. In the past 15 years there has been an explosion of interest and research on this topic. We briefly review the current state of the research, highlighting what we know and don't know about the topic. We close with a point of view on promising areas for ongoing research.
1,350 citations
TL;DR: The exploration and exploitation framework has attracted substantial interest from scholars studying phenomena such as organizational learning, knowledge management, innovation, organizational design, and strategic alliances as discussed by the authors, and it has become an essential lens for interpreting various behaviors and outcomes within and across organizations.
Abstract: Jim March's framework of exploration and exploitation has drawn substantial interest from scholars studying phenomena such as organizational learning, knowledge management, innovation, organizational design, and strategic alliances. This framework has become an essential lens for interpreting various behaviors and outcomes within and across organizations. Despite its straightforwardness, this framework has generated debates concerning the definition of exploration and exploitation, and their measurement, antecedents, and consequences. We critically review the growing literature on exploration and exploitation, discuss various perspectives, raise conceptual and empirical concerns, underscore challenges for further development of this literature, and provide directions for future research.
1,241 citations
Cites background from "Structural Differentiation and Ambi..."
...…the notion of ambidexterity quite narrowly when referring to contextual balancing and organizational separation, whereas many studies consider ambidexterity as a general term for describing balance between exploration and exploitation (e.g., Jansen et al., 2009; Raisch et al., 2009; Simsek, 2009)....
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...By loosely integrating their exploratory and exploitative units, organizations simultaneously perform both activities and balance them within their boundaries through active integration of the senior-management teams (Jansen et al., 2009)....
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TL;DR: Overall, this work contributes a more accurate view of how leaders effectively balance between efficiency and flexibility by emphasizing heuristics-based “strategies of simple rules,” multiple environmental realities, and higher-order “expert” cognition.
Abstract: Our purpose is to clarify the microfoundations of performance in dynamic environments. A key premise is that the microfoundational link from organization, strategy, and dynamic capabilities to performance centers on how leaders manage the fundamental tension between efficiency and flexibility. We develop several insights. First, regarding structure, we highlight that organizations often drift toward efficiency, and so balancing efficiency and flexibility comes, counterintuitively, through unbalancing to favor flexibility. Second, we argue that environmental dynamism, rather than being simply stable or dynamic, is a multidimensional construct with dimensions that uniquely influence the importance and ease of balancing efficiency and flexibility. Third, we outline how executives balance efficiency and flexibility through cognitively sophisticated, single solutions rather than by simply holding contradictions. Overall, we go beyond the caricature of new organizational forms as obsessed with fluidity and the simplistic view of routines as the microfoundation of performance. Rather, we contribute a more accurate view of how leaders effectively balance between efficiency and flexibility by emphasizing heuristics-based “strategies of simple rules,” multiple environmental realities, and higher-order “expert” cognition. Together, these insights seek to add needed precision to the microfoundations of performance in dynamic environments.
621 citations
Cites background from "Structural Differentiation and Ambi..."
...…and flexibility are contradictory choices that require mutually exclusive solutions that support either efficiency or flexibility (Duncan 1976, Jansen et al. 2009, Lubatkin et al. 2006, Raisch and Birkinshaw 2008, Raisch et al. 2009, Tushman and O’Reilly 1996; see also the Organization…...
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...Finally, regardless of whether ambidexterity is spatial or temporal, senior executives ultimately must integrate the contradictory cognitive agendas of efficiency and flexibility (Gilbert 2006, Smith and Tushman 2005) through mechanisms such as contingent awards for senior teams (Jansen et al. 2009) and education (Taylor and Helfat 2009)....
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...…is spatial or temporal, senior executives ultimately must integrate the contradictory cognitive agendas of efficiency and flexibility (Gilbert 2006, Smith and Tushman 2005) through mechanisms such as contingent awards for senior teams (Jansen et al. 2009) and education (Taylor and Helfat 2009)....
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References
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TL;DR: One of the first in-depth grounded theory analyses of tension management, this study contributes to the relatively recent debate on the recognition, analysis and handling of tensions and paradoxes in organizational change, suggesting innovative criteria for successful change management and identifying promising new avenues for research.
Abstract: Implementing automatic sorting operations in the parcel delivery industry can dramatically improve both capacity and service quality but demands radical and complex organizational change. The present in-depth grounded theory study examined a change process of this kind within one of the few global companies in the parcel delivery sector, focusing on three European hubs where automatic sorting had recently been introduced.,Grounded theory methodology, which facilitates the gradual emergence and dialogical interpretation of empirically grounded theoretical concepts, was particularly suited to the current project's open-ended research design and the hybrid (prescriptive but also constructive) nature of the change process under study. The investigation comprised iterative cycles of data collection, open coding, selective coding and theoretical coding over a three-year period.,In keeping with the dual nature of the change underway, a set of tensions were identified between pairs of opposite poles: manual vs automated, planned vs emergent and corporate vs site. The management of these tensions, which leveraged both prescriptive and sensemaking approaches, was found to trigger knowledge production, facilitating a gradual transition from high to low uncertainty and, consequently, progressive movement along the continuum between each pair of competing poles. Within this process, the industrial engineering function acted as an agent of change with a key orchestrating role.,As one of the first in-depth grounded theory analyses of tension management, this study contributes to the relatively recent debate on the recognition, analysis and handling of tensions and paradoxes in organizational change, suggesting innovative criteria for successful change management and identifying promising new avenues for research. From a managerial perspective, the study outcomes suggest that explicit recognition of uncertainty and tensions in organizational change can pave the way for solutions based on agility and continuous organizational learning.
4 citations
01 Jan 2015
TL;DR: In this paper, the authors address the challenges of serving the bottom of the pyramid (BOP) segments, working in informal economies with institutional voids, with broader and diverse set of partners as well as internal organizational barriers.
Abstract: Addressing the vast, fast-growing, four-billion-people-strong market segment poses unique challenges to MNCs and also requires new thinking in the field of international strategy. Companies seeking to serve the Bottom of the Pyramid (BOP) segments have to deal with market creation issues, working in informal economies with institutional voids, with broader and diverse set of partners as well as internal organizational barriers.
4 citations
Posted Content•
TL;DR: In this article, the authors examine the pervasiveness of entrepreneurial orientation in organizations and present three models for how EO can dynamically pervade organizations and discuss how examining the perviveness of entrepreneurship can further our understanding of entrepreneurship as an organizational phenomenon.
Abstract: While 30 years of entrepreneurial orientation (EO) research has demonstrated that EO provides critical insights into questions of organizational-level strategy and performance, how EO manifests inside organizations has received little attention. Instead of assuming that EO is homogenous, we examine the questions of how and why EO might pervade organizations heterogeneously along three dimensions: vertically across hierarchy levels, horizontally across business units, and temporally as an organization develops. We then present three models for how EO can dynamically pervade organizations and discuss how examining the pervasiveness of EO can further our understanding of entrepreneurship as an organizational phenomenon.
4 citations
TL;DR: The findings suggest that integrative practices influence patient-centered care indirectly through creation of interdependent treatment competence, which enables providers to repeatedly deliver inter dependent treatment in a flexible and adaptive way.
Abstract: BACKGROUND Integration between organizational units to achieve common goals has been of interest to health systems because of the potential to improve patient-centered care. However, the means by which integrative practices actually influence patient-centered care remain unclear. Whereas many studies claim a positive association between implementation of integrative practices and patient-centered care, others raise concerns that integrative practices may not necessarily improve patient-centered care. PURPOSE The aim of this study was to explore the mechanism by which integrative practices influence patient-centered care and to suggest a systematic approach for effective integration. APPROACH We conducted a qualitative study comparing diabetes and mental health services through focus groups with 60 staff members from one health maintenance organization. We developed quantitative indicators to support the suggested model. FINDINGS We identified a five-category framework of integrative practices that each directly and distinctively influences patient-centered care. Moreover, our findings suggest that integrative practices influence patient-centered care indirectly through creation of interdependent treatment competence, which enables providers to repeatedly deliver interdependent treatment in a flexible and adaptive way. PRACTICAL IMPLICATIONS Providers should carefully implement integrative practices considering patient and disease characteristics, as our findings suggest that more implementation of integrative practices is not necessarily better for patient-centered care. Specifically, optimal implementation refers to the collective implementation of different integrative practices and thus encompasses both the extent (i.e., the amount of currently implemented practices out of those considered important to implement) and the extensiveness (i.e., the amount relative to the implementation of other practices) that may lead to interdependent treatment competence and higher patient-centered care. We suggest a creative measurement method of comparing the relative implementation of integrative practices that may assist managers and policy makers in developing interdependent treatment competence.
4 citations
Dissertation•
01 Apr 2013
TL;DR: In this article, the authors provide a critical review of the knowledge transfer literature, with particular reference to absorptive capacity, social capital and external knowledge transfer meta-routines.
Abstract: In order to grow, the pharmaceutical sector has had to heavily rely on both formal and informal innovation networks However, many analysts consider that the industry has not achieved its growth potential and suggest that this is in part due to the inherent organisational barriers to knowledge transfer that exist in the pharmaceutical sector
This thesis provides a critical review of the knowledge transfer literature; with particular reference to absorptive capacity, social capital and external knowledge transfer meta-routines The study takes a pragmatic critical realist approach, using a two stage critical incident technique to elucidate the micro-foundations of problem solving routines as a proxy for knowledge transfer Thematic analysis on the resulting narratives identifies routinized patterns of information seeking behaviour, reveals the micro-foundations of template use and provides insights into how scientists recognise value in the knowledge that they find
The study answers calls to research the role of the individual in organisational routines; to uncover the micro-foundations of external absorptive capacity and to determine how value is recognised in new knowledge A model is proposed that suggests that recognising the value of new knowledge is a construct that is influenced by factors which affect the perceived information quality, the relative subjectivity of the solution and the source’s social-identity The value of knowledge is also further corroborated with the support of other materials or through a wider stakeholder involvement
The study has adopted a ‘strategy-as-practice’ approach and contributes to organisational practice by examining how informal external knowledge transfer through problem solving in a biopharmaceutical organisation is accomplished These insights enable the author to suggest a number of managerial strategies by which pharmaceutical managers might recognise, optimise and facilitate the use of informal networks; whilst protecting their intellectual property and maintaining the potential for innovation
4 citations