Lecture 2

Question 1

ORGANIZATIONAL DESIGN FOR GROWTH: AMBIDEXTEROUS
ORGANIZING

Answer 1

If your firm is more heavy handed on exploration. The business could dedicate business units to find and exploit opportunities.

The other way around, the firm could increase the entrepreneurship to explore.

Question 2

Slack resources and absorptive capacity

Answer 2

potentially utilizable resources that can be diverted or redeployed for the achievement of organizational
goals

Having or building the required
knowledge to identify, create and exploit opportunities.

Question 3

CAUSATION

Answer 3

• Identify a goal (e.g., a market entry with a specific product),
  based on an identified opportunity.
• Identify the best way to reach this goal.
• Execute

Question 4

EFFECTUATION

Answer 4

• Start from what the venture has available (e.g., resources,
  network, knowledge) and consider what is possible, given these resources.
• Receive feedback (what works and what does not) and adjust accordingly, based on a changing resource base.

Question 5

SCIENTIFIC METHOD

Answer 5

Start with believes on what could work and develop related hypotheses.

Experiment to validate, reject or adapt these hypotheses.

Update the believes, develop (if needed) new hypotheses.

Question 6

WHICH METHOD IS BEST?

Answer 6

Effectuation is most appropriate under very high uncertainty.

Causation is most appropriate if the environment is predictable.

The scientific approach is appropriate for middling levels of uncertainty.