4_Structure Flashcards
What are two (extreme) ways to organize?
1) Hierarchy - organization with people at the top
2) Heterarchy - organization with equals
What is the difference between ‘mechanistic structures’ & ‘organic structures’?
Mechanistic structures: centralized, formal, rigid -> Efficiency
Organic structures: decentralized, informal, flexible -> Flexibility
How do companies cope with the ambidexterity paradox?
1) Outsourcing
-> Either exploration or exploitation
2) Temporal ambidexterity
-> Alternate between longer periods of exploitation with shorter periods of exploration
3) Structural ambidexterity
-> Separate business units focused on exploration or exploitation
4) Contextual ambidexterity
-> A supportive organizational context to choose between alignment and adaptability
What is structural ambidexterity?
It separates exploration from exploitation -> challenges like isolation
What is contextual ambidexterity?
Gives integration and knowledge transfer ->challenges like role ambiguity
Which type of ambidexterity is suited for large organizations and high-tech industries?
Structural ambidexterity
Which type of ambidexterity is suited for small organizations and local innovation?
Contextual ambidexterity
What are the main benefits of structural ambidexterity?
Buffers from exploration from exploitation, overcomes resources and routine rigidity, and provides goals clarity
What are the main benefits of contextual ambidexterity
Easier integration, transfer of tacit knowledge, reduced organizational complexity, and difficult to imitate
What are the main challenges of structural ambidexterity?
Isolation, difficult integration and collaboration, and coordination costs
What are the main challenges of contextual ambidexterity
Role ambiguity, no specialization, information overload, and bias towards current business