Organizational Ambidexterity in Action: How Managers Explore and Exploit

Charles A. O'Reilly III; Michael L. Tushman

Article | California Management Review

Organizational Ambidexterity in Action: How Managers Explore and Exploit

by Charles A. O'Reilly III and Michael L. Tushman

Abstract

Dynamic capabilities have been proposed as a useful way to understand how organizations are able to adapt to changes in technology and markets. Organizational ambidexterity, the ability of senior managers to seize opportunities through the orchestration and integration of existing assets to overcome inertia and path dependence, is a core dynamic capability. While promising, research on dynamic capabilities and ambidexterity has not yet been able to specify the specific mechanisms through which senior managers are actually able to reallocate resources and reconfigure assets to simultaneously explore and exploit. Using interviews and qualitative case studies from thirteen organizations, this article explores the actions senior managers took to implement ambidextrous designs and identify which ones helped or hindered them in their attempts. A set of interrelated choices of organization design and senior team process determines which attempts to build ambidextrous organizations are successful.

Keywords: Decision Choices and Conditions; Management Practices and Processes; Resource Allocation; Organizational Change and Adaptation; Organizational Design; Opportunities;

Format: Print

17 pages

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Citation:

O'Reilly, Charles A., III, and Michael L. Tushman. "Organizational Ambidexterity in Action: How Managers Explore and Exploit." California Management Review 53, no. 4 (Summer 2011): 5–21.

We consider the role of individual-level diversification as a mechanism through which skilled researchers engage in successful exploration—recognizing and integrating new knowledge external to one’s domains of expertise. To approach an ideal experiment, we (1) employ a matching procedure and (2) exploit the unexpected adoption of Microsoft Kinect as a motion-sensing technology in research. We evaluate the impact of Kinect and its embodiment of new knowledge on a set of ability-matched, diversity-varying researchers without prior experience in motion sensing and find that diversified researchers explore more successfully than their more specialized peers. We also examine the role of personal preferences and professional incentives as antecedents of diversification and find that culture, age, and intellectual freedom are positively associated with the propensity to diversify successfully.

Article | Strategy & Leadership | 2019

Overcoming Cultural Resistance to Open Source Innovation

John Winsor, Jin Hyun Paik, Michael Tushman and Karim R. Lakhani

Purpose: This article offers insight on how to effectively help incumbent organizations prepare for global business shifts to open source and digital business models.
Design/methodology/approach: Discussion related to observation, experience and case studies related to incumbent organizations and their efforts to adopt open source models and business tools.
Findings: Companies that let their old culture reject the new risk becoming obsolete if doing so inhibits their rethinking of their future using powerful tools like crowdsourcing, blockchain, customer experience-based connections, integrating workflows with artificial intelligence (AI), automated technologies and digital business platforms. These new ways of working affect how and where work is done, access to information, an organization’s capacity for work and its efficiency. As important as technological proficiency is, managing the cultural shift required to embrace transformative industry architecture – the key to innovating new business models -- may be the bigger challenge.
Research limitations/implications: Findings are based on original research and case studies. Insights are theoretically, based on additional study, interviews, and research, but need to be tested through additional case studies.
Practical implications: The goal is to make the transition more productive and less traumatic for incumbent firms by providing a language and tested methods to help senior leaders use innovative technologies to build on their core even as they explore new business models.
Social implications: This article provides insights that will lead to more effective ideas for helping organizations adapt.
Originality/value: This article is based on original research and case experience. That research and experience has then been analyzed and viewed through the lens of models that have been known to work. The result is original insights and findings that can be applied in new ways to further adoption within incumbent organizations.

Keywords: open source innovation; Organizational Culture; Organizational Change and Adaptation; Business Model; Technological Innovation; Collaborative Innovation and Invention;

Citation:

Winsor, John, Jin Hyun Paik, Michael Tushman, and Karim R. Lakhani. "Overcoming Cultural Resistance to Open Source Innovation." Strategy & Leadership 47, no. 6 (2019): 28–33. View Details

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Knowledge work is becoming increasingly challenging as pace of change in the knowledge frontier is increasing. Organizations have created multiple mechanisms to minimize knowledge gaps and increase learning such internal training, mentorship programs as well as encouraging their professionals to exchange knowledge outside the boundaries of the organization. Reaching outside the organizational boundaries for knowledge exchange has changed dramatically in the last decade with the rise of online professionals communities. In the case of computer science and software engineering it has become a norm to learn and as questions that used to be kept within the boundaries of the organizations, externally, with a community of external professionals help answer and learn. It is less clear whether contributing to such online communities helps improve professionals’ knowledge work or becomes a competing or distracting force from their work place knowledge work. This is the empiric puzzle our study has set to explore. We conducted a mixed method study combining qualitative data from more than 100 interviews with software professionals with a unique quantitative dataset measuring software professionals’ code productivity in their workplace by the hour/every week for one to two years.

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Organizational Ambidexterity in Action: How Managers Explore and Exploit

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