Mediating Role of Integration Mechanisms
Summary
- Exploration and exploitation are different units in ambidextrous firms (structural
differentiation)
- They need to be integrated and combined (= be a dynamic capability) in order to achieve
ambidexterity – there is an interdependency between these two
- Integration works best through:
o (informal) social integration of senior team members
o (formal) organizational integration through cross-functional interfaces (e.g. task
forces)
- Ambidextrous firms should thus focus on providing informal integration measures for higher
management levels (since they are interdependent and need more frequent adjustment) and
formal integration measures for organizational members (since they are less interdependent)
- Furthermore, it was shown that two proposed mediators have NO integrative effect:
o (formal) contingency rewards for senior team members
o (informal) connectedness within an organization
Introduction
Research has shown that firms need to be ambidextrous – combining exploitative and
explorative actions, even though they might be contrasting
o Exploration = efficiency, centralization, tight culture
o Exploration = flexibility, decentralization, loose culture
Ambidexterity is considered a dynamic capability
Little research exists on how firms achieve ambidexterity
Some recent studies address structural differentiation and organizational context as factors
affecting the development of ambidexterity
The paper argues that structural differentiation and integration play a crucial role in a firm’s
ability to pursue exploratory and exploitative innovation concurrently
3 contributions to the current dialogue:
Linking ambidexterity and dynamic capabilities
Ambidexterity is recognized as a dynamic capability
it refers to the routines/processes by which ambidextrous organizations mobilize, coordinate
and integrate contradictory efforts and (re)allocate resources across contrasting (explorative
and exploitative) units
New insights into the interrelationship of structural differentiation, integration and ambidexterity.
Structural differentiation = subdivision of organizational tasks into different units
Helps ambidextrous organizations to maintain multiple competencies that address
paradoxical demands
, Ensures that exploratory units are able to enjoy the required freedom and flexibility
Besides structural differentiation, it is also important to engage in integrative efforts
Ambidexterity requires integration and application of differentiated exploratory and
exploitative efforts without corrupting the internal structures within each unit’s area of
operation
Thus, integration efforts are seen as a mediator to the relationship between structural
differentiation and ambidexterity
Investigating different types of integration mechanisms for becoming ambidextrous
Some scholars suggest: differentiated org. units and tight senior team integration is needed
for ambidexterity
Others: differentiated org. units need to be integrated via formal and informal integration
mechanisms to increase knowledge flow across these units
This study: investigates how senior team mechanisms and organizational integration
mechanisms mediate the relationship between structural differentiation and ambidexterity
Hypothesized model
Literature Review
Exploration and exploitation in ambidextrous organizations:
- Are paradoxical
- Combining them helps organizations overcome structural inertia (resulting from exploitation)
and prevents them from accelerating exploration without gaining benefits
Exploration Exploitation
- Focus on targeting new customers, - Focus on exploiting existing customers,
markets, sales channels, technologies markets, sales channels, technologies
- Require new knowledge / the departure - Deepen existing knowledge to improve
from existing knowledge established efforts
There are two forms of how both can be combined in a firm: