The Impact of Organisational Context and Competences on Innovation Ambidexterity

Abstract

Research into organisation theory contains abundant evidence of the positive effects of ambidexterity on a firm's performance, and of the influence of organisational context on ambidexterity. The present research tests whether organisational context affects innovation ambidexterity. Our results, based on a dataset of 108 large innovative firms, show that firms combining exploration innovation and exploitation innovation should adopt long-term practices that favour risk-taking and creativity, and thereby build an organisational context suited to innovation ambidexterity. Competences were found to have a strong moderating effect. These results have important managerial and theoretical implications. In the case of innovation, firms that simultaneously pursue exploitation and exploration activities should carefully consider how they combine competences and organisational context.

In pursuit of ambidexterity: Managerial reactions to innovation–efficiency tensions

“…Jansen et al (2005) support empirically the argument that organizational units can overcome tensions and pursue exploration and exploitation simultaneously with a positive relation to performance. Brion et al (2010) further underline the role of risk taking and creativity in creating an organizational context that balances both short term focus and long term adaptability. Güttel and Konlechner (2009) finally describe an approach to contextual ambidexterity based on the existence of an integrative frame of reference between top management teams and employees that provide a social foundation for moderating conflicts.…”

Mechanisms for Managing Ambidexterity: A Review and Research Agenda

“…2008; Chang et al . 2009), together with a long‐term view and support for risk‐taking (Brion et al . 2010; Sethi and Sethi 2009).…”

Re-examining location antecedents and pace of foreign direct investment: Evidence from Taiwanese investments in China

“…A major limitation is that this study examines TLFs' sequential location choice and verifies the change of location preference with an exploitation-exploration path based on the assumption of motive-preference inference. For robustness, future studies should longitudinally measure the MNE's strategic intent and validate the exploitation-exploration path by directly linking motive with location choice (Brion, Mothe, & Sabatier, 2010;Makino et al, 2002). The second limitation is that this study empirically examines hypotheses in a downstream FDI context using the case of TLFs in China.…”