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Structural Differentiation and Ambidexterity: The Mediating Role of Integration Mechanisms

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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Journal ArticleDOI
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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Journal ArticleDOI
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

Journal ArticleDOI
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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Journal ArticleDOI
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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Journal ArticleDOI
TL;DR: In this article, a taxonomical analysis of the elements and components of the concept of organisational ambidexterity is undertaken, and it is found that a project-focused notion of ambideXterity involves different levels, dimensions and mechanisms.
Abstract: The objective of this paper is to explore a project-focused understanding of contemporary organisational ambidexterity literature. As part of this process, a taxonomical analysis of the elements and components of the concept of organisational ambidexterity is undertaken. Findings suggest that a project-focused notion of organisational ambidexterity involves different levels, dimensions and mechanisms. The predominant contribution of this paper resides within the taxonomy study, which provides a platform for a more holistic understanding of organisational ambidexterity as a multifaceted concept applicable to the project management discipline.

23 citations

Journal ArticleDOI
TL;DR: In this article, the authors examined the relationship of IT ambidexterity with the potential moderating role of market complexity in a sample composed of 292 British high-tech firms.
Abstract: New product development (NPD) speed is becoming an important weapon by which firms can gain market share in today's competitive and complex market environments, where consumer preferences change rapidly. Drawing on the information technology (IT)-enabled organizational capabilities perspective, this study proposes that IT ambidexterity—the simultaneous pursuit of IT exploitation and IT exploration, which has become imperative in modern industry to sustain the business value of IT—enhances NPD speed by facilitating operational agility. We examine the proposed relationship of IT ambidexterity with the potential moderating role of market complexity in a sample composed of 292 British high-tech firms. Our findings, based on a moderated-mediation analysis, suggest that the impact of IT ambidexterity on NPD speed is mediated by operational agility and that the mediation effect is especially pronounced in complex markets. The resulting theoretical arguments and empirical evidence yield further insights into the strategic impacts of IT.

23 citations

Journal ArticleDOI
TL;DR: In this article, the authors use fuzzy-set qualitative comparative analysis to analyze survey data of 274 managers in Egyptian firms operating in uncertain environments based on the motivationability-opportunity framework and configuration theory.

23 citations

Journal ArticleDOI
TL;DR: In this article, the authors use a qualitative research in five Dutch industrial sectors to study the ambidexterity strategies that established firms use for their systematic creation of strategic innovations.
Abstract: As strategic innovation may lead to high revenue and profit growth a deeper understanding of any enabling organizational capabilities is highly relevant to both researchers and managers. Therefore, in this paper we focus on the concept of "ambidexterity". More specifically, we use a qualitative research in five Dutch industrial sectors to study the ambidexterity strategies that established firms use for their systematic creation of strategic innovations. We find that established companies have to cope with different ambidexterity frictions in the initiation and commercialization phases of strategic innovation projects. These results add to the emerging academic discussion on ambidexterity by showing that the appropriate ambidexterity approach may not only differ by innovation type but also by the specific phase of the innovation project. Our findings are also relevant to managerial practice as they suggest a limited value of isolated business development units for strategic innovation initiation.

22 citations

Journal ArticleDOI
TL;DR: The theoretical model is discussed, the effects of these five variables are explained, certain additional correlations that are meaningful are highlighted, and implications for research libraries are discussed.
Abstract: The research reported here is focused on a specific type of change in an organization: an innovation. In an empirical analysis of research libraries, it was found that five factors had a significant impact on the innovation performance of the library. These factors relate to the strategy, organizational structure, and leadership of the research library. The study sample consisted of 50 libraries that were members of the Association of Research Libraries. This paper will discuss the theoretical model, explain the effects of these five variables, highlight certain additional correlations that are meaningful, and discuss implications for research libraries.

22 citations