Organizational ambidexterity and corporate entrepreneurship : the differential effects on venturing, innovation and renewal processes

Most corporate entrepreneurship studies have focused on either innovation, venturing or strategic renewal making comparison between the antecedents of all three aspects of corporate entrepreneurship difficult. Moreover, studies on corporate entrepreneurship hardly address organizational antecedents, while simultaneously managing and organizing CE and mainstream activities has been seen as a major challenge for incumbent firms. Our findings show that organizational ambidexterity has strong and differential effects on venturing, innovation and renewal. We find, for example, that innovation is affected by horizontal integration, while strategic renewal is significantly influenced by integration on top management team level.

The Role of Ambidexterity in Marketing Strategy Implementation: Resolving the Exploration-Exploitation Dilemma

Formulating consistent marketing strategies is a difficult task, but successfully implementing them is even more challenging. This is even more pertinent as marketing strategies quite often incorporate inherent conflicts between major breakthroughs and consolidation. Consequently, marketers need to balance exploratory and exploitative strategies. However, the literature lacks concrete insights for marketing managers as to how exploratory and exploitative strategies can be best combined. This paper addresses this issue by introducing a framework of multiple types of ambidexterity. Based on qualitative research, tools and procedures are identified to overcome marketing dilemmas and support strategy implementation by drawing on ambidextrous designs.

Socioemotional Wealth, Ambidexterity, and Family Firm Performance: An Empirical Study

While family business literature agrees that family firms are driven by both non-economic and financial motives, it is unclear how the prioritization of socioemotional wealth (SEW) over financial considerations affects family firms' financial performance. Based on a sample of 343 family firm owners from German-speaking Europe, this study reveals a significant and positive relationship between the firm owners' SEW considerations and their family businesses' financial performance. This relationship, in turn, is found to be mediated by organizational ambidexterity. A fine-grained analysis of the different SEW dimensions indicates that this pattern may be driven by two elements of socioemotional wealth only (family members' identification with the firm and emotional attachment). Our findings demonstrate that business families do not necessarily face a trade-off when prioritizing the preservation of their SEW over stabilizing or improving the financial performance of their business. The study enriches several streams of literature and opens up numerous avenues for future research.

Dynamic client portfolios as sources of ambidexterity:exploration and exploitation within and across client relationships

This paper explains how dynamic client portfolios can be a source of ambidexterity (i.e., exploration and exploitation) for knowledge-intensive firms (KIFs). Drawing from a unique qualitative dataset of firms in the global reinsurance market, we show how different types of client relationships underpin a dynamic client portfolio and become a source of ambidexterity for a KIF. We develop a process model to show how KIFs attain knowledge by segmenting their client portfolios, use that knowledge to explore and exploit within and across their client relationships, and dynamically adjust their client portfolios over time. Our study contributes to the literature on external sources of ambidexterity and dynamic management of client knowledge within KIFs.

Formalizált rugalmasság – a kettős képesség kialakulása egy középvállalatban (Formalized adaptability: the development of ambidexterity in a medium-sized enterprise)

Az empirikus kutatás azokra a kérdésekre keresi a választ, hogy a hazai innovatív, növekedésorientált kis- és középvállalkozásokat milyen tényezők támogatják és segítik abban, hogy egyszerre legyenek képesek kiválóan teljesíteni jelenlegi piacaikon, miközben radikális innovációikon keresztül biztosítják a szervezet hosszú távú növekedési pályáját. A kutatás kvalitatív, feltáró, egyéni interjúkra épülő esettanulmányos módszertan keretein belül 14 vezetői interjúra, helyszíni megfigyelésre és széles körű dokumentumelemzésre épül. Az eredmények alapján a kettős képességű szervezetek teljesítményét egy hat, egymással összefüggésben lévő elemből álló modell határozza meg, melynek részei a felsővezetői decentralizáció, menedzsmentkontroll, vezetői szerepek és identitás, feladat- és hatáskörök, motivációs rendszer és a menedzsmenttudás színvonala. _______ The empirical research seeks the answer to the question what kind of factors support and help the innovative, growth-oriented Hungarian SMEs to both have the ability to operate at an excellent level in their current markets and to ensure the long-term growth path of the organization through radical innovations. The research applies qualitative, interview-based methodology. The dataset consists of 14 interviews with managers from different organizational level of the examined company, on-site observation and document-analysis. The main contribution of the article is a model that includes the influential structural and contextual factors of organizational ambidexterity, which are decentralization, management controlling, leader roles and identity, functions and authorities, motivation system and level of management knowledge.

Organizational ambidexterity as a new research paradigm in strategic management

Long-term survival and growth depends on the firm’s ability to exploit its current competencies while exploring fundamentally new ones. Finding the balance between exploration and exploitation is called ambidexterity in the literature. This paper is a comprehensive review of organizational ambidexterity theory. Creating and maintaining the capacity to simultaneously pursue these contradictory activities is an extremely difficult managerial challenge. Although, several aspects are well-researched, especially structural and leadership solutions in large, multinational enterprises, but little is known about: (1) how ambidexterity forms in earlier growth stages? (2) What are the key drivers and elements of organizational context that makes organizations able to become ambidextrous? (3) What is the role of different managerial levels in this formation process? Reviewing the literature, in this article the author would like to introduce the paradox of exploration and exploitation, the tensions and different aspects of ambidexterity, the fields current stage and some important research gaps.

A micro perspective analysis of capability renewal through knowledge integration within product innovation projects

The aim of this paper is examine how firms renew their organisational capabilities based on micro organisational processes. Organisational capability development literature points to firms’ failure in capability renewal process. To overcome this inefficiency, it is proposed to integrate dynamic capability and ambidexterity perspectives by studying knowledge integration within product innovation. In this relation, applying micro perspective in studying technology diffusion within Iranian Auto industry revealed micro co-evolutionary relationships between knowledge integration within product innovation and capability development. Furthermore, based on near decomposability principals, the analysis suggested relationships among modularity of product architecture, modularity of organisational modularity and modularity of industry architecture in downstream and upstream value chain. Based on these micro-macro co evolutionary effects, capability development process underlying successful corporate entrepreneurship may be verified.

Strategic capability development : a multi-level case study of the role of knowledge integration within product innovation

Capability development is at the heart of creating competitive advantage. This thesis intends to conceptualise Strategic Capability Development as a renewal of an organisation's existing capability in line with the requirements of the market. It followed and compared four product innovation projects within Iran Khodro Company (IKCO), an exemplar of capability development within the Iranian Auto industry. Findings show that the maturation of strategic capability at the organisational level has occurred through a sequence of product innovation projects and by dynamically shaping the learning and knowledge integration processes in accordance with emergence of the new structure within the industry. Accordingly, Strategic Capability Development is conceptualised in an interpretive model. Such findings are useful for development of an explanatory model and a practical capability development framework for managing learning and knowledge across different product innovation projects.

A conceptual analysis of strategic capability development within product innovation projects

Strategic capability development refers to the renewal of the organisational capabilities which are sources of competitive advantage. The aim of this paper is to examine how strategic capability and competitive advantage build up over time. Recent literature points to the integration of dynamic capability and ambidexterity perspectives in explaining organisational capability development. Literature analysis reveals the role of knowledge integration and product innovation in integrating dynamic capability and ambidexterity. However, little attention has yet been paid to knowledge integration within innovation projects as a context for capability development. Accordingly, this paper aims to develop a conceptual framework for strategic capability development focusing on the role of knowledge integration within product innovation projects. This framework contributes to identifying and emphasising the role of micro processes in capability renewal which in turn enhances our understanding of strategic capability development.

The contingent effects of differentiation and integration on corporate entrepreneurship

This paper develops a contingency view regarding the effects of structural differentiation and integration on levels of corporate entrepreneurship. Integrating notions of benefits and costs resulting from integration with structural contingency theory, we argue that the joint effects of structural differentiation and integration on corporate entrepreneurship levels are moderated by organizational size and environmental dynamism. Our findings from a time-separated sample demonstrate that in smaller organizations and more dynamic environments, the positive effects of integration on the structural differentiation-corporate entrepreneurship relationship strongly diminish. As such, with this research we begin to identify contingencies that influence the corporate entrepreneurship levels observed among firms striving to balance the needs for structural differentiation and integration.

ACE research vignette 040: Three steps towards more corporate entrepreneurship within an organisation

This series of research vignettes is aimed at sharing current and interesting research findings from our team of international Entrepreneurship researchers. In this vignette, Henri Burgers investigates what managers can do to make their firm more entrepreneurial.

Examining the new product innovation – performance relationship: Optimizing the role of individual-level creativity and attention-to-detail

New product innovation has been identified as the key to firms' marketplace success, profit and survival. Yet, the failure rate for new products is high. Because of the high costs associated with new product development, there is considerable theoretical and managerial interest in how to minimize the high failure rates of new products and what separates new product winners from losers. This study focuses on individual level ambidexterity – namely head of the R&D departments' capacity to engage in creativity and attention-to-detail simultaneously, a skill involving different centers of attention, and relying on somewhat incompatible behaviors and processes. The ability to engage in these behaviors simultaneously is seen as being ambidextrous. Drawing from the data of 150 advanced manufacturing firms in India (gathered from one CEO and one head of the R&D department for each firm), the results show that when an individual head of R&D engages heavily only in creativity, too many new, risky ideas may come and when he/she engages heavily only in attention-to-detail, he/she may suffer through a lack of novel ideas. Both approaches limit individual's contribution to enhancing product innovation – financial performance relationship. The results also show that an individual head of R&D needs to engage in high levels creativity and attention-to-detail in the pursuit of enhancing product innovation to achieve superior financial performance.

Achieving service quality through service innovation exploration-exploitation: The critical role of employee empowerment and slack resources

Purpose This study investigates the effects of service innovation exploration-exploitation on financial performance through the delivery of quality services. Additional emphasis is also given to examining the extent to which employee empowerment and slack resources enhance or suppress the performance benefits of service firms engaging in service innovation exploration versus exploitation. Design/methodology/approach Data were drawn from a multi-informant survey of service firms using a drop-and-collect approach. The survey gathered data from managers, customer service employees and customers to test the hypotheses. Findings The results show that excelling at both exploitative and exploratory innovation helps enhance the quality of services, which in turn yield superior financial performance. Further, empowering employees enhances the relationship between exploratory and exploitative service innovation and service quality. We also show that the extent managers’ perceived their market to be competitive influences in the pursuit of high levels of both service innovation exploration and exploitation and that this relationship is impacted by the extent they believe they have available slack resources. Practical implications The findings suggest that service firms need to pursue both exploitation and exploration at high levels simultaneously and empower their employees to stay ahead of competitors in delivering quality services, which ultimately contribute to the achievement of superior financial outcomes. Also, the findings highlight the importance of employee empowerment, market competitiveness and slack resources in the pursuit of high levels of both service innovation exploration and exploitation. Originality/value These findings and our theory indicate that this study is the first to empirically examine organizational ambidexterity in the context of service innovation exploration – exploitation adopting the principles of combined and balanced innovation. The study provides insights into the critical role of customers’ perceptions of service quality in contributing to firms’ financial performance. Our insights are unique in that the study incorporates managers, employees and customers in an integrated service innovation model.