4 Exploration and Exploitation in Organizations Flashcards
What is organizational ambidexterity?
Organizational ambidexterity is a company’s ability to balance alignment (exploiting existing capabilities and delivering current value) and adaptability (exploring new opportunities and adjusting to change), ensuring long-term success.
What is the difference between structural ambidexterity and contextual ambidexterity?
Structural ambidexterity separates exploration and exploitation activities into distinct units or teams. Contextual ambidexterity, on the other hand, empowers individuals to simultaneously pursue both alignment and adaptability within their day-to-day roles, supported by the organization’s culture and systems.
Which two dimensions of organizational context enable contextual ambidexterity?
Contextual ambidexterity is enabled by a “high-performance context” comprising two dimensions: (1) Performance Management (stretch and discipline) and (2) Social Support (trust and support). Both must be strong and balanced to foster ambidextrous behaviors in employees.
What are the key behaviors of ambidextrous individuals in a high-performance organizational context?
Ambidextrous individuals are proactive and initiative-taking, cooperative, skilled at brokering connections across the organization, and comfortable multitasking—effectively balancing the demands of current performance while seeking new growth opportunities.
What is an ambidextrous organization and why is it important?
An ambidextrous organization is one that can exploit existing capabilities to maintain current success while also exploring disruptive innovations for future growth. This dual focus is essential for long-term adaptability, competitiveness, and avoiding strategic stagnation.
How do ambidextrous organizations structure their innovation efforts compared to traditional approaches?
Instead of fully integrating or completely separating new ventures, ambidextrous organizations set up structurally independent units with their own processes, cultures, and incentives, while maintaining tight senior-level integration. This allows freedom for innovation and synergy with the core business.
What role do senior executives play in an ambidextrous organization?
Senior leaders in ambidextrous organizations must be “ambidextrous” themselves—able to support both incremental improvements and radical innovations. They provide a clear, overarching vision, align incentives across units, and ensure that the separate innovation units are integrated at the top management level.
What are some key success factors for building an ambidextrous organization?
Key factors include:
- A compelling, unifying vision communicated by senior leadership.
- Structurally independent innovation units with distinct cultures and processes.
- Tight integration at the executive level, with aligned incentives and common goals.
- Leadership teams capable of managing trade-offs between current operational excellence and future breakthroughs.
