Origin and Development: Organizational Ambidexterity Refers To An Organization's Ability To Be Efficient in Its

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Organizational ambidexterity refers to an organization's ability to be efficient in its management of

today's business and also adaptable for coping with tomorrow's changing demand. Just as
being ambidextrous means being able to use both the left and right hand equally, organizational
ambidexterity requires the organizations to use both exploration and exploitation techniques to be
successful.

Contents

 1Origin and development


 2Ambidextrous organizational designs and organizational ambidexterity
 3Structural and behavioral mechanisms that lead to organizational ambidexterity
 4Antecedents of organizational ambidexterity
 5Outcomes of organizational ambidexterity
 6Related moderators between organizational ambidexterity and organizational outcomes
 7Levels of ambidexterity
 8Ambidextrous leadership
 9Controversy and future directions
 10See also
 11References
 12Further reading

Origin and development[edit]


Organizational ambidexterity was defined as an organization's ability to be aligned and efficient in its
management of today's business demands as well as being adaptive to changes in the environment at
the same time.[1] This term of organizational ambidexterity was first used by Duncan,[1] however, it
was March[2] that had been credited for developing and generating greater interest in this concept,
especially in the late 20th and early 21st century. Ambidexterity in an organization is achieved by
balancing exploration and exploitation, which allows the organization to be creative and adaptable, while
also continuing to rely on more traditional, proven methods of business.[2] Exploration includes things
such as search, variation, risk taking, experimentation, flexibility, discovery or innovation, whereas
exploitation includes such things as
refinement, choice, production, efficiency, selection, implementation, and execution.[2] Companies that
focus only on exploration face the risk of wasting resources on ideas that may not prove useful or never
be developed. On the other hand, companies that focus only on exploitation may accept status
quo performance and products and fail to reach optimal levels of success.
Organizational ambidexterity is defined broadly, and several other terms are also highly related or
similar to the construct of ambidextrous organization, including organizational learning, technological
innovation, organizational adaptation, strategic management, and organizational design. Things such as
reconciling exploitation and exploration, the simultaneity of induced and autonomous strategy
processes, synchronizing incremental and discontinuous innovation, and balancing search and stability
also tend to refer to the same underlying construct as ambidextrous organization.[3]
There are studies on how structural and behavioral mechanisms affect organizational ambidexterity and
studies on how ambidextrous organizational designs affect organizational ambidexterity. Whereas
earlier studies on structural and behavioral mechanisms regarded the trade-offs between exploration
and exploitation to be insurmountable, more recent research has paid attention to a range of
organizational solutions to engender the existence of ambidexterity. One recent hot research topic in
this area focused on the leadership characteristics that enable organizations to manage the
contradictions that they face and achieve ambidexterity,[4][5][6] which is the origin of the concept
‘ambidextrous leadership’. Several antecedents, outcomes of organizational ambidexterity as well as
related moderators have also been identified in the studies on structural and behavioral mechanisms.
Ambidextrous organizational designs and organizational
ambidexterity[edit]
The studies on "ambidextrous organizations" take the organization as the unit of analysis and
ambidextrous organizing is conceptualized as the simultaneous pursuit and combination of incremental
and discontinuous innovation. [7][8][9] "Ambidextrous organizations" are needed if the failure to balance
exploitation and exploration is to be overcome: "the ability to pursue simultaneously both incremental
and discontinuous innovation results from hosting multiple contradictory structures, processes, and
cultures" (Tushman and O'Reilly, 1996: page 24).[10] It has been empirically found that competence
exploitation is negatively related to radical innovation performance whereas the effect for competence
exploration is positive; competence exploration will be more valuable to the firm when it is matched with
lower levels of competence exploitation, and vice versa.[11] It has been theorized that the "ambidextrous
organization" does not solve the tension between alignment and adaptability but allows for coping with
the tension between different types of alignment in order to produce incremental and discontinuous
innovation. "Ambidextrous organizations" do not alternate between exploration and exploitation, but they
do both simultaneously.[12] There's work that empirically investigates the processes of ambidextrous
organizing by analyzing the implementation of the "ambidextrous organizations" concept in order to
study whether there is evidence on how companies applying the concepts (suggested by "ambidextrous
organizations" proponents) actually manage the processes of exploitation and exploration.[13]

Structural and behavioral mechanisms that lead to


organizational ambidexterity[edit]
Organizational ambidexterity can be considered primarily from two angles. One is architectural or
structural ambidexterity, which uses dual organizational structures and strategies to differentiate efforts
towards exploitation and exploration.[14][15][16] Structural ambidexterity includes dual parts, with one part
focusing on exploitation and the other focusing on exploration. It's also known as the spatial separation
of the dual strategies concepts outlined above. The other approach is contextual ambidexterity, which
uses behavioral and social means to integrate exploitation and exploration at the organizational unit
level.[17][18] Contextual ambidexterity is a balanced type that takes a mid-level position between
exploitation and exploration, also known as parallel structures or hybrid strategies.
Although both angles are related to the theme of organizational ambidexterity, they strongly differ in the
way how they are configured. There has always been a debate of which of the two different approaches
is right. The dual type allows both discrete orientations and fit across dimensions at the unit level but
creates a misfit between organizational units. Some researchers argued that inconsistent structures
may lead to low performance.[19][20] There are also some researchers trying to investigate the external and
internal contingencies under which different configurations can be found. One factor would be the speed
and type of technological change that organizations confront. On the other hand, the balanced type (i.e.
contextual ambidexterity) is consistent with the systems approach of fit across multiple dimensions,[21]
[22]
 but contradicts the opinion that organizational choice is discrete.[23][24] In an environment where
changes are slow, there will be sufficient time to react to the radical changes by constructing dual
structures and strategies. However, in a high-competitive environment, balanced structures may be
better prepared to deal with the constant need for alignment.[3] In future studies, the different
organizational ambidexterity configurations can be compared to find a better solution for dealing with the
exploitation and exploration paradox.

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