Topic: Sustainability From Viewpoint Ambidexterity, Leadership and Organizational Learning
Topic: Sustainability From Viewpoint Ambidexterity, Leadership and Organizational Learning
Topic: Sustainability From Viewpoint Ambidexterity, Leadership and Organizational Learning
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The Concepts of
Exploration & Exploitation
Exploration implies firm behaviors characterized
by search, discovery, experimentation, risk
taking and innovation, while exploitation
implies firm behaviors characterized by
refinement, implementation, efficiency,
production and selection.
He & Wong, 2004, Exploration vs. Exploitation: An Empirical Test of the Ambidexterity
Hypothesis, Organization Science, V15, p481.
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The Concepts of
Exploration & Exploitation
Exploration and exploitation require substantially
different structures, processes, strategies, capabilities,
and cultures to pursue and may have different impacts
on firm adaptation and performance (He & Wong, 2004).
Exploration is associated with organic structures,
loosely coupled systems, path breaking,
improvisation, autonomy and chaos, and emerging
markets and technologies.
Exploitation is associated with mechanistic
structures, tightly coupled systems, path
dependence, routinization, control and bureaucracy,
and stable markets and technologies
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The Concepts of
Exploration & Exploitation
The returns associated with exploration are
more variable and distant in time, while the
returns associated with exploitation are more
certain and closer in time (He & Wong, 2004).
In other words, explorative firms generate
larger performance variation by
experiencing substantial success as well as
failure, while exploitative firms are likely to
generate more stable performance.
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The Concepts of Balance
Maintaining an appropriate balance between
exploration and exploitation is a primary factor
in system survival and prosperity (March, 1991).
Firms need to achieve a balance between
exploration and exploitation to achieve superior
performance (Tushman and OReilly, 1996).
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The innovation balancing act
March (1990)
Exploratory learning
Exploitative learning
Types of projects
Emerging Business
Unsupported teams
are set up outside the established organisation and
management hierarchy
General Manager
General Manager
Existing Emerging
Business Business
Ambidextrous Leadership
Different alignments held together through senior-team integration, common
vision and values, and common senior-team rewards
Topics
Reference(s) as Consideration
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