Tension |
Andriopoulos and Lewis (2009Andriopoulos, C., & Lewis, M. W. (2009). Exploitation-exploration tensions and organizational ambidexterity: managing paradoxes of innovation. Organization Science, 20(4), 696-717. doi: 10.1287/orsc.1080.0406 https://doi.org/10.1287/orsc.1080.0406...
); Chandrasekaran, Linderman and Schoreder (2012Chandrasekaran, A., Linderman, K., & Schroeder, R. (2012). Antecedents to ambidexterity competency in high technology organizations. Journal of Operations Management 30(1/2), 134-151. doi: 10.1016/j.jom.2011.10.002 https://doi.org/10.1016/j.jom.2011.10.00...
);Chang, Hughes and Hotho (2011Chang, Y., Hughes, M., & Hotho, S. (2011). Internal and external antecedents of SMEs' innovation ambidexterity outcomes. Management Decision49(10), 1658-1676. doi: 10.1108/00251741111183816 https://doi.org/10.1108/0025174111118381...
); Judge and Blocker (2008Judge, W. Q., & Blocker, C. P. (2008). Organizational capacity for change and strategic ambidexterity. European Journal of Marketing, 42(9-10), 915-926. doi: 10.1108/03090560810891073 https://doi.org/10.1108/0309056081089107...
); O'Reilly and Tushman (2008O'Reilly, C. A.,III, & Tushman, M. L. (2008). Ambidexterity as a dynamic capability: resolving the innovator's dilemma., Research in Organizational Behavior 28, 185-206. doi: 10.1016/j.riob.2008.06.002 https://doi.org/10.1016/j.riob.2008.06.0...
, 2011); Raisch and Birkinshaw (2008Raisch, S., & Birkinshaw, J. (2008). Organizational ambidexterity: antecedents, outcomes, and moderators., Journal of Management 34(3), 375-409. doi: 10.1177/0149206308316058 https://doi.org/10.1177/0149206308316058...
); Raisch, Birkinshaw, Probst and Tushman (2009); Tiwana, (2008Tiwana, A. (2008). Do bridging ties complement strong ties? An empirical examination of alliance ambidexterity., Strategic Management Journal 29(3), 251-272. doi: 10.1002/smj.666 https://doi.org/10.1002/smj.666...
) |
This is the fundamental tension at the heart of an enterprise's long-run survival. The basic problem confronting an organization is to engage in sufficient exploitation to ensure its current viability and, at the same time, devote enough energy to exploration to ensure its future viability. (O´Reilly & Tushman, 2011O'Reilly, C. A.,III, & Tushman, M. L. (2011). Organizational ambidexterity in action: how managers explore and exploit., California Management Review 53(4), 5-22. doi: 10.1525/cmr.2011.53.4.5 https://doi.org/10.1525/cmr.2011.53.4.5...
, p. 1) |
Trade-off |
Ancona, Goodman, Lawrence and Tushman (2001Ancona, D., Goodman, P., Lawrence, B., & Tushman, M. (2001). Introduction to special topic forum on time and organizational research. Academy of Management Review26(4), 507-511. doi: 10.5465/AMR.2001.5393884 https://doi.org/10.5465/AMR.2001.5393884...
); Andersen and Nielsen, (2007Andersen, T., & Nielsen, B. (2007). The effective ambidextrous organization: a model of integrative strategy making processes [Working Paper nº 12/2007]. Copenhagen Business School, Copenhagen, Denmark.); Cao, Gedajlovic and Zhang (2009Cao, Q., Gedajlovic, E., & Zhang, H. (2009). Unpacking organizational ambidexterity: dimensions, contingencies, and synergistic effects., Organization Science 20(4), 781-796. doi: 10.1287/orsc.1090.0426 https://doi.org/10.1287/orsc.1090.0426...
); Changet al. (2011Chang, Y., Hughes, M., & Hotho, S. (2011). Internal and external antecedents of SMEs' innovation ambidexterity outcomes. Management Decision49(10), 1658-1676. doi: 10.1108/00251741111183816 https://doi.org/10.1108/0025174111118381...
); Floyd and Lane (2000Floyd, S. W., & Lane, P. J. (2000). Strategizing throughout the organization: managing role conflict in strategic renewal. , Academy of Management Review 25(1), 154-177. doi: 10.5465/AMR.2000.2791608 https://doi.org/10.5465/AMR.2000.2791608...
); Gibson and Birkinshaw (2004Gibson, C. B., & Birkinshaw, J. (2004). The antecedents, consequences, and mediating role of organizational ambidexterity. Academy of Management Journal 47(2) 209-226. doi: 10.2307/20159573 https://doi.org/10.2307/20159573...
); He and Wong (2004He, Z.-L., & Wong, P.-K. (2004). Exploration vs exploitation: an empirical test of the ambidexterity hypothesis. Organization Science 15(4) 481-494. doi: 10.1287/orsc.1040.0078 https://doi.org/10.1287/orsc.1040.0078...
); Kyriakopoulos and Moorman (2004Kyriakopoulos, K., & Moorman, C. (2004). Tradeoffs in marketing exploitation and exploration strategies: the overlooked role of market orientation. International Research in Marketing 21, 219-240. Retrieved fromhttps://faculty.fuqua.duke.edu/~moorman/Publications/IJRM2004.pdf. doi: 10.1016/j.ijresmar.2004.01.001 https://faculty.fuqua.duke.edu/~moorman/...
); Levinthal and March (2003); Simsek, Heavey, Veiga and Souder (2009Simsek, Z., Heavey, C., Veiga, J. F., & Souder, D. (2009). A typology for aligning organizational ambidexterity's conceptualizations, antecedents, and outcomes. Journal of Management Studies, 46(5), 864-894. doi: 10.1111/j.1467-6486.2009.00841.x https://doi.org/10.1111/j.1467-6486.2009...
) |
Exploration and exploitation are fundamentally different logics that create tensions. They compete for firms' scarce resources, resulting in the need for firms to manage the trade-offs between the two. (He & Wong, 2004He, Z.-L., & Wong, P.-K. (2004). Exploration vs exploitation: an empirical test of the ambidexterity hypothesis. Organization Science 15(4) 481-494. doi: 10.1287/orsc.1040.0078 https://doi.org/10.1287/orsc.1040.0078...
, p. 481) |
Puzzle |
Birkinshaw and Gibson (2004Gibson, C. B., & Birkinshaw, J. (2004). The antecedents, consequences, and mediating role of organizational ambidexterity. Academy of Management Journal 47(2) 209-226. doi: 10.2307/20159573 https://doi.org/10.2307/20159573...
); O'Reilly and Tushman (2004O'Reilly, C.,III, & Tushman, M. (2004). The ambidextrous organization. Harvard Business Review 82(4), 74-81. Retrieved from https://hbr.org/2004/04/the-ambidextrous-organization
https://hbr.org/2004/04/the-ambidextrous...
) |
The failure to achieve breakthrough innovations while also making steady improvements to an existing business is so commonplace- and so fascinating-that it has become a battleground of management thought. For decades, scholars have spun theories to explain the puzzle and offered advice on how to solve it. (O'Reilly & Tushman, 2004O'Reilly, C.,III, & Tushman, M. (2004). The ambidextrous organization. Harvard Business Review 82(4), 74-81. Retrieved from https://hbr.org/2004/04/the-ambidextrous-organization
https://hbr.org/2004/04/the-ambidextrous...
, p. 1) |
Dilemma |
Benner and Tushman (2003Benner, M. J., & Tushman, M. (2003). Process management and technological innovation: a longitudinal study of the photography and paint industries. Administrative Science Quarterly, 47(4), 676-706. doi: 10.2307/3094913 https://doi.org/10.2307/3094913...
); Caoet al. (2009Cao, Q., Gedajlovic, E., & Zhang, H. (2009). Unpacking organizational ambidexterity: dimensions, contingencies, and synergistic effects., Organization Science 20(4), 781-796. doi: 10.1287/orsc.1090.0426 https://doi.org/10.1287/orsc.1090.0426...
); Chandrasekaran et al. (2012Chandrasekaran, A., Linderman, K., & Schroeder, R. (2012). Antecedents to ambidexterity competency in high technology organizations. Journal of Operations Management 30(1/2), 134-151. doi: 10.1016/j.jom.2011.10.002 https://doi.org/10.1016/j.jom.2011.10.00...
); Duncan (1976Duncan, R. (1976). The ambidextrous organization: designing dual structures for innovation. In R. Kilaman & L. Pondy (Eds.), The management of organizational design (pp. 167-188). New York: North Holland.); Luzon and Pasola (2011Luzon, M. D. M., & Pasola, J. V. (2011). Ambidexterity and total quality management: towards a research agenda., Management Decision 49(6), 927-947. doi: 10.1108/00251741111143612 https://doi.org/10.1108/0025174111114361...
) |
No study has provided a solution to the dilemma of exploration-exploitation through ambidexterity. (Luzon & Pasola, 2011Luzon, M. D. M., & Pasola, J. V. (2011). Ambidexterity and total quality management: towards a research agenda., Management Decision 49(6), 927-947. doi: 10.1108/00251741111143612 https://doi.org/10.1108/0025174111114361...
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Paradox |
Andriopoulos and Lewis (2009Andriopoulos, C., & Lewis, M. W. (2009). Exploitation-exploration tensions and organizational ambidexterity: managing paradoxes of innovation. Organization Science, 20(4), 696-717. doi: 10.1287/orsc.1080.0406 https://doi.org/10.1287/orsc.1080.0406...
, 2010); Bierly and Daly, (2007Bierly, P. E., & Daly, P. S. (2007). Alternative knowledge strategies, competitive environment, an organizational performance in small manufacturing firms. Entrepreneurship Theory and Practice31(4), 493-516. doi: 10.1111/j.1540-6520.2007.00185.x https://doi.org/10.1111/j.1540-6520.2007...
); O'Reilly and Tushman (2008O'Reilly, C. A.,III, & Tushman, M. L. (2008). Ambidexterity as a dynamic capability: resolving the innovator's dilemma., Research in Organizational Behavior 28, 185-206. doi: 10.1016/j.riob.2008.06.002 https://doi.org/10.1016/j.riob.2008.06.0...
); Smith and Tushman (2005Smith, W. K., & Tushman, M. L. (2005). Managing strategic contradictions: a top management model for managing innovation streams., Organization Science 16(5), 522-536. doi: 10.1287/orsc.1050.0134 https://doi.org/10.1287/orsc.1050.0134...
); Tiwana (2008Tiwana, A. (2008). Do bridging ties complement strong ties? An empirical examination of alliance ambidexterity., Strategic Management Journal 29(3), 251-272. doi: 10.1002/smj.666 https://doi.org/10.1002/smj.666...
) |
Because the routines, processes, and skills required for exploitation are fundamentally different than those required for exploration, we label these paradoxical capabilities as ambidexterity. (O´Reilly & Tushamn, 2008O'Reilly, C. A.,III, & Tushman, M. L. (2008). Ambidexterity as a dynamic capability: resolving the innovator's dilemma., Research in Organizational Behavior 28, 185-206. doi: 10.1016/j.riob.2008.06.002 https://doi.org/10.1016/j.riob.2008.06.0...
, p. 188). |