Organizational Ambidexterity and Innovation: propositions for the advancement of theory and practice

Sartori, Priscila Pagliarini; Garrido, Ivan Lapuente

doi:10.15728/bbr.2023.20.2.6.en

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Article • BBR, Braz. Bus. Rev. 20 (2) • Mar-Apr 2023 • https://doi.org/10.15728/bbr.2023.20.2.6.en copy

Organizational Ambidexterity and Innovation: propositions for the advancement of theory and practice

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Abstract

This study addresses the relationship between organizational ambidexterity and innovation. It aims to present propositions for advancing theoretical and practical knowledge, in the face of different contextual conditions and the different industries in which organizations operate. By means of a narrative literature review, covering recent empirical studies, limits of knowledge in this field were identified, giving rise to propositions for its advancement, in theoretical and managerial aspects. As a first contribution, a systematization of the concepts and their relationships is presented, for the study of innovation as a result of the ambidextrous capacity, allowing a broad view of the field. Subsequently, four propositions are highlighted as contributions resulting from the study, based on contextual factors, such as the speed of changes in the environment, the transformation in business models and the leadership orientation towards innovation, given the diversity that characterizes each industry, capable of changing the balance between exploration and exploitation (E&E) over time in organizations.

Keywords:
Organizational ambidexterity; innovation; exploration; exploitation

	**Exploration x Exploitation**	Practical implications
Continuum View	- It considers exploration and exploitation as alternative choices; - Conflict view, competition for scarce resources; - Although essential for long-term survival, the two dimensions of activities are considered to be fundamentally incompatible; - It is assumed that the more resources are dedicated to exploration, the less can be dedicated to exploitation and vice versa.	- Substitutive but cyclical relationship - The alternative with more certain and short-term returns tends to prevail - There is a limited range of combinations between the two dimensions in which the company will outperform; - The relationship between exploration and exploitation makes the performance resulting from the simultaneous implementation of both activities superior, compared to the performance resulting from the sum of their separate implementations.
Orthogonal View	- It considers exploration and exploitation as complementary activities that interact positively; - Vision of interrelated processes; - It disregards the scarcity of resources as an exclusive condition;	- In this view, organizations can maintain a high level of both activities, making the search for a balance between exploration and exploitation unnecessary; - Exploration and exploitation are seen as distinct knowledge, but not mutually exclusive, as processes capable of contributing equally to organizational learning.

Ambidexterity model	Concept	Benefits	Disadvantages	References
structural ambidexterity	- Structural division of tasks; - Dual structures; - Ambidexterity is achieved by means of distinct units that are united by a strategic intente, a broad set of values and linkage mechanisms necessary to leverage shared assets.	- Less implementation complexity.	- It can lead to isolation and failure of individual units to productively unite their efforts;	O’Reilly e Tushman, 2013O'Reilly , C. A.III, & Tushman, M. L. (2013). Organizational ambidexterity: Past, present, and future.The Academy of Management Perspectives,27(4), 324-338. https://doi.org/10.5465/amp.2013.0025 https://doi.org/10.5465/amp.2013.0025... ; Benner e Tushman, 2003Benner, M. J., & Tushman, M. L. (2003). Exploitation, exploration, and process management: The productivity dilemma revisited.Academy of Management Review,28(2), 238-256. https://doi.org/10.2307/30040711 https://doi.org/10.2307/30040711... ; O'Reilly e 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. https://doi.org/10.1016/j.riob.2008.06.002 https://doi.org/10.1016/j.riob.2008.06.0... ; De Visser et al. (2010De Visser, M., de Weerd-Nederhof, P., Faems, D., Song, M., Van Looy, B., & Visscher, K. (2010). Structural ambidexterity in NPD processes: A firm-level assessment of the impact of differentiated structures on innovation performance. Technovation, 30(5-6), 291-299. https://doi.org/10.1016/j.technovation.2009.09.008 https://doi.org/10.1016/j.technovation.2... ).
Contextual ambidexterity	- Creating a setting or context in which individuals divide their attention between competing goals.	Dynamic perspective on adjusting conflicting demands over time.	- Need for multiple impulses simultaneously; - Greater implementation complexity.	Gibson & Birkinshaw, 2004Gibson, C. B., & Birkinshaw, J. (2004). The antecedents, consequences, and mediating role of organizational ambidexterity.Academy of Management Journal,47(2), 209-226. https://doi.org/10.2307/20159573 https://doi.org/10.2307/20159573... ; Gurtner & Reinhardt, 2016; De Clercq, Thongpapanl & Dimov (2013De Clercq, D., Thongpapanl, N., & Dimov, D. (2014). Contextual ambidexterity in SMEs: The roles of internal and external rivalry.Small Business Economics,42(1), 191-205. https://doi.org/10.1007/s11187-013-9471-2 https://doi.org/10.1007/s11187-013-9471-... ); Balboni et al. (2019Balboni, B., Bortoluzzi, G., Pugliese, R., & Tracogna, A. (2019). Business model evolution, contextual ambidexterity and the growth performance of high-tech start-ups.Journal of Business Research,99, 115-124. https://doi.org/10.1016/j.jbusres.2019.02.029 https://doi.org/10.1016/j.jbusres.2019.0... ); Gonzalez & De Melo (2018Gonzalez, R. V. D., & de Melo, T. M. (2018). The effects of organization context on knowledge exploration and exploitation.Journal of Business Research,90(C), 215-225. https://doi.org/10.1016/j.jbusres.2018.05.025 https://doi.org/10.1016/j.jbusres.2018.0... ).
Leadership-based ambidexterity	- Focus on exploration and exploitation performance and on the role of key leaders in organizations, promoting ambidexterity; - Ambidexterity is supported and facilitated by leadership.	- Dynamic perspective on adjusting conflicting demands over time; - Greater flexibility.	- Greater implementation complexity.	O’Reilly & Binns (2019O’Reilly, C., & Binns, A. J. M. (2019). The three stages of disruptive innovation: Idea generation, incubation, and scaling.California Management Review,61(3), 49-71. https://doi.org/10.1177/0008125619841878 https://doi.org/10.1177/0008125619841878... ); Rosing, Frese & Baush (2011Rosing, K., Frese, M., & Bausch, A. (2011). Explaining the heterogeneity of the leadership-innovation relationship: Ambidextrous leadership.The Leadership Quarterly,22(5), 956-974. https://doi.org/10.1016/j.leaqua.2011.07.014 https://doi.org/10.1016/j.leaqua.2011.07... ); 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. https://doi.org/10.1525/cmr.2011.53.4.5 https://doi.org/10.1525/cmr.2011.53.4.5... ).
Sequential ambidexterity	- Temporal division of tasks; - Alternation between exploration and exploitation in the trajectory of companies, realigning their structures and processes in response to changes in the competitive environment.	- Dynamic perspective on adjusting conflicting demands over time; - Less implementation complexity; - By oscillating between organizational modes such as centralization and decentralization, the organization can dynamically increase the levels of exploration and exploitation.	- Difficulty in delimiting exploration and exploitation.	Patel & Husairi, 2018Patel, C., & Husairi, M. A. (2018). Retracted: Firm adaptation, preadaptation, and sequential ambidexterity in firm boundaries during an era of ferment and an era of incremental change.Journal of Product Innovation Management,35(3), 330-349. https://doi.org/10.1111/jpim.12409 https://doi.org/10.1111/jpim.12409... ; Lavie, Stettner & Tushman, 2010Lavie, D., Stettner, U., & Tushman, M. L. (2010). Exploration and exploitation within and across organizations.Academy of Management Annals, 4(1), 109-155. https://doi.org/10.1080/19416521003691287 https://doi.org/10.1080/1941652100369128... ; Boumgarden, Nickerson & Zenger, 2012Boumgarden, P., Nickerson, J., & Zenger, T. R. (2012). Sailing into the wind: Exploring the relationships among ambidexterity, vacillation, and organizational performance.Strategic Management Journal,33(6), 587-610. https://doi.org/10.1002/smj.1972 https://doi.org/10.1002/smj.1972... .

Research 1 - Ambidexterity and Innovation	Research 2 - Innovation and Exploration and Exploitation
Results: 44 (from Web of Science Core Collection) Title: (innovation) AND; Title: (ambidexterity). Web of Science Categories: (Management OR Business) AND; Document Types: (Article); Time frame: Last 5 years; Indexes: SCI-EXPANDED, SSCI, A&HCI, CPCI-S, CPCI-SSH, ESCI.	Results: 29 (from Web of Science Core Collection) Title: (innovation) AND; Title: (exploration AND exploitation). Web of Science Categories: (Management OR Business) AND; Document Types: (Article); Time frame: Last 5 years; Indexes: SCI-EXPANDED, SSCI, A&HCI, CPCI-S, CPCI-SSH, ESCI.

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