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By Patrick Schulze
Recent case reports indicated that competing effectively within the current whereas concurrently growing applicable strategic techniques for the long run is without doubt one of the hardest managerial demanding situations for tested organisations. Patrick Schulze addresses this factor by means of investigating the functionality results and organizational antecedents of innovation techniques and, particularly, ambidexterity. He develops an attractive and leading edge viewpoint in this query arguing that profitable businesses have to develop into ambidextrous via both the structural separation of present and new company or the construction of a supportive organizational context.
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Additional info for Balancing Exploitation and Exploration: Organizational Antecedents and Performance Effects of Innovation Strategies
50ff. D. A. Levinthal and J. G. March (1993), p. 102. See W. M. Cohen and D. A. Levinthal (1990), pp. 128ff. See D. A. Levinthal and J. G. March (1993), p. 106. See J. G. March (1991), p. 73. M. L. Tushman and C. A. O’Reilly III (2007), p. 31. See D. A. Levinthal and J. G. March (1993), p. 106. 128 Two aspects drive this phenomenon. 134 Foremost, most new ideas or innovations are unrewarding. Besides that, the return of any innovation even of those that become very successful, is likely to be very low in the beginning as organizations have to accumulate experience in order to exploit the entire potential.
Ruekert (1995), p. 61. See D. J. Teece (2007), p. 1346. See M. L. Tushman and C. A. O’Reilly III (2004), p. 80. 145 The illustrated differences in organizational requirements suggest viewing exploitation and exploration as two mutually exclusive ends of a continuum. 147 In sum, exploitation and exploration differ in respect to their characteristics and organizational requirements. 149 Furthermore, exploitation and exploration require opposing organizational designs. FIGURE 6 summarizes these main differences.
Tushman and E. Romanelli (1985), pp. 197ff. See M. L. Tushman and E. Romanelli (1985), p. 201. See C. J. G. Gersick (1991), p. 22. See T. K. Lant and S. J. Mezias (1992), pp. 48f. 41 Forces promoting status quo (organizational inertia) Organizational performance Forces promoting organizational change (internal or external) If organizational performance is less than the aspired performance level Organizational evolution discontinuity FIGURE 11: Dynamics in the Punctuated Equilibrium Model. To conclude, the evolution of successful organizations is characterized by long periods of incremental change that are punctuated by major discontinuities.