- Published: September 19, 2022
- Updated: September 19, 2022
- University / College: Middlesex University
- Language: English
- Downloads: 35
Ideally, Organisational Ambidexterity (OA) entails an enterprise’s ability to simultaneously pursue both explorative (discontinuous) and exploitative (incremental) innovative endeavours (Bednarek et al., 2016; D’Souza et al., 2017; Goel & Jones, 2016; Junni et al., 2013; Moss et al., 2014; Simsek; Solís-Molinaa-2018). Exploration is linked to experimentation and heightened variance, whereas exploitation is linked to heightened productivity and efficiency – via ameliorated execution and mitigated variance (March, 1991). It has been documented that the engagement in these inherent activities OA of exploration and exploitation, could potentially ascertain an enterprise’s long-term survival and overall success (Cibson & Birkinshaw, 2004). Nonetheless, other documentations have simultaneously supported (e. g., Cibson & Birkinshaw,
2004; Lin et al., 2007; Lubatkin et al., 2006), and counteracted these prevailing assertions (e. g., Athuahene-Gima, 2005; Venkatraman, et al., 2007).
As a consequence, these differing documentations have aligned along the following two core depictions, namely, optimal OA and combined OA. Optimal OA refers to realising an optimal balance between exploration and exploitation endeavours, whereas combined OA refers to integrating high-levels of both exploration and exploitation endeavours (Cao et al., 2009). More specifically, optimal OA has been likened to realising and preserving a desirable ratio between exploration and exploitation, an undertaking considered to be vital for enterprise survival. In this case, OA is positioned as midpoint and/or optimal point on a continuum, whereby – exploration is situated on one end and exploitation on the other (March, 1991; Simsek &et al., 2009). It has as such been argued that enterprises endowing diminished internal resources and/or impeded access to external resources represent ideal candidates for optimal OA (Cao et al., 2009). Correspondingly, combined OA has been likened to the fact that both exploration and exploitation undertakings are positioned as independent activities, whereby it is paramount to the intensity of both undertakings should be considerable maximised (Cao et al., 2009; Simsek et al., 2009).