Dynamic Balancing of Exploration and Exploitation: The Contingent Benefits of Ambidexterity

Published Online:https://doi.org/10.1287/orsc.2017.1189

References

  • Andrews DW (1991) Heteroskedasticity and autocorrelation consistent covariance matrix estimation. Econometrica 59(3):817–858.CrossrefGoogle Scholar
  • Andriopoulos C, Lewis MW (2009) Exploitation-exploration tensions and organizational ambidexterity: Managing paradoxes of innovation. Organ. Sci. 20(4):696–717.LinkGoogle Scholar
  • Beckman R, Tremeling R (1972) The relationship between net premium written and policyholders surplus. Proc. Casualty Actuarial Soc. 59:203–220.Google Scholar
  • Benner MJ, Tushman ML (2003) Exploitation, exploration, and process management: The productivity dilemma revisited. Acad. Management Rev. 28(2):238–256.CrossrefGoogle Scholar
  • Boumgarden P, Nickerson JA, Zenger TR (2012) Sailing into the wind: Exploring the relationship among ambidexterity, vacillation, and organizational performance. Strategic Management J. 33(6):587–610.CrossrefGoogle Scholar
  • Bourgeois LJ III (1981) On the measurement of organizational slack. Acad. Management Rev. 6(1):29–39.CrossrefGoogle Scholar
  • Boyd BK (1995) CEO duality and firm performance: A contingency model. Strategic Management J. 16(4):301–312.CrossrefGoogle Scholar
  • Boyd JL, Bresser RKF (2008) Performance implications of delayed competitive responses: Evidence from the U.S. retail industry. Strategic Management J. 29(10):1077–1096.CrossrefGoogle Scholar
  • Breusch TS, Pagen AR (1979) A simple test for heteroscedasticity and random coefficient variation. Econometrica 47(5):1287–1294.CrossrefGoogle Scholar
  • Cao Q, Maruping LM, Takeuchi R (2006) Disentangling the effects of CEO turnover and succession on organizational capabilities: A social network perspective. Organ. Sci. 17(5):563–576.LinkGoogle Scholar
  • Cohen J (1960) A coefficient of agreement for nominal scales. Ed. Psych. Measurement 20(1):37–46.CrossrefGoogle Scholar
  • De Visser M, De Weerd-Nederhof P, Faems D, Van Looy B, Visscher K (2009) Ambidexterity in NPD: The impact of differentiated integration structures on innovation performance. Paper presented at the Academy of Management Annual Meeting, August 10, Academy of Management, Chicago, IL.Google Scholar
  • DiPietro B (2015) Improved storm modeling since Katrina changes insurance equation. Risk and Compliance Journal (blog) (August 27), http://blogs.wsj.com/riskandcompliance/2015/08/27/improved-catastrophe-modeling-since-katrina-changes-insurance-equation/.Google Scholar
  • Dlugolecki A, Crerar C, Bermingham K (2013) Climate change and its implications for catastrophe modeling. Coping with Climate Change: Risks and Opportunities for Insurers, Chap. 4 (Chartered Insurance Institute, London).Google Scholar
  • Drazin R, Van de Ven AH (1986) Alternative forms of fit in contingency theory. Admin. Sci. Quart. 30(4):514–539.CrossrefGoogle Scholar
  • Duriau VJ, Reger RK, Ndofor H (2000) Content analysis of firms’ web sites: Methodological foundations, software solutions, and implementation issues. Paper presented at the Academy of Management Annual Meeting, August 9, Academy of Management, Toronto.Google Scholar
  • Eggers J, Grajek M, Kretschmer T (2016) Experience, consumers, and fit: Performance implications of pre-entry technological and market experience in mobile telephony. Working paper, New York University, New York.Google Scholar
  • Farjoun M (2010) Beyond dualism: Stability and change as a duality. Acad. Management Rev. 35(2):202–225.CrossrefGoogle Scholar
  • Fiegenbaum A, Thomas H (1990) Strategic groups and performance: The U.S. insurance industry, 1970–84. Strategic Management J. 11(3):197–215.CrossrefGoogle Scholar
  • Fiegenbaum A, Thomas H (1995) Strategic groups as reference groups—Theory, modeling and empirical-examination of industry and competitive strategy. Strategic Management J. 16(6):461–476.CrossrefGoogle Scholar
  • Fiegenbaum A, Sudharshan D, Thomas H (1990) Strategic time periods and strategic groups research—Concepts and an empirical example. J. Management Stud. 27(2):133–148.CrossrefGoogle Scholar
  • Gerbert P, Justus J, Müller A (2016) The double game of digital management: Managing in times of big data and analytics. BCG Perspectives, Vol. 2017 (BCG, Munich, Germany).Google Scholar
  • Gibson CB, Birkinshaw J (2004) The antecedents, consequences, and mediating role of organizational ambidexterity. Acad. Management J. 47(2):209–226.CrossrefGoogle Scholar
  • Greenwood R, Hinings CR (1988) Organizational design types, tracks and the dynamics of strategic change. Organ. Stud. 9(3):293–316.CrossrefGoogle Scholar
  • Gulati R, Puranam P (2009) Renewal through reorganization: The value of inconsistencies between formal and informal organization. Organ. Sci. 20(2):422–440.LinkGoogle Scholar
  • Gupta AK, Smith KG, Shalley CE (2006) The interplay between exploration and exploitation. Acad. Management J. 49(4):693–706.CrossrefGoogle Scholar
  • Hannan MT, Freeman J (1984) Structural inertia and organizational change. Amer. Sociol. Rev. 49(2):149–164.CrossrefGoogle Scholar
  • Haunschild PR, Sullivan BN (2002) Learning from complexity: Effects of prior accidents and incidents on airlines’ learning. Admin. Sci. Quart. 47(4):609–643.CrossrefGoogle Scholar
  • Hayward MLA (2003) Professional influence: The effects of investment banks on clients’ acquisition financing and performance. Strategic Management J. 24(9):783–801.CrossrefGoogle Scholar
  • Hsu CW, Lien YC, Chen HM (2013) International ambidexterity and firm performance in small emerging economies. J. World Bus. 48(1):58–67.CrossrefGoogle Scholar
  • Iyer DN, Miller KD (2008) Performance feedback, slack, and the timing of acquisitions. Acad. Management J. 51(4):808–822.CrossrefGoogle Scholar
  • Jacquemin AP, Berry CH (1979) Entropy measure of diversification and corporate growth. J. Indust. Econom. 27(4):359–369.CrossrefGoogle Scholar
  • Jansen JJP, Simsek Z, Cao Q (2012) Ambidexterity and performance in multiunit contexts: Cross-level moderating effects of structural and resource attributes. Strategic Management J. 33(11):1286–1303.CrossrefGoogle Scholar
  • Jansen JJP, Van den Bosch FAJ, Volberda HW (2006) Exploratory innovation, exploitative innovation, and performance: Effects of organizational antecedents and environmental moderators. Management Sci. 52(11):1661–1674.LinkGoogle Scholar
  • Junni P, Sarala R, Taras V, Tarba S (2013) Organizational ambidexterity and performance: A meta-analysis. Acad. Management Perspect. 27(4):299–312.CrossrefGoogle Scholar
  • Katila R, Ahuja G (2002) Something old, something new: A longitudinal study of search behavior and new product introduction. Acad. Management J. 45(6):1183–1194.CrossrefGoogle Scholar
  • Klarner P, Raisch S (2013) Move to the beat—Rhythms of change and firm performance. Acad. Management J. 56(1):160–184.CrossrefGoogle Scholar
  • Kraatz MS, Zajac EJ (2001) How organizational resources affect strategic change and performance in turbulent environments: Theory and evidence. Organ. Sci. 12(5):632–657.LinkGoogle Scholar
  • Laamanen T, Keil T (2008) Performance of serial acquirers: Toward an acquisition program perspective. Strategic Management J. 29(6):663–672.CrossrefGoogle Scholar
  • Lavie D, Rosenkopf L (2006) Balancing exploration and exploitation in alliance formation. Acad. Management J. 49(4):797–818.CrossrefGoogle Scholar
  • Lavie D, Stettner U, Tushman ML (2010) Exploration and exploitation within and across organizations. Acad. Management Ann. 4(1):109–155.CrossrefGoogle Scholar
  • Lee E, Puranam P (2016) The implementation imperative: Why one should implement even imperfect strategies perfectly. Strategic Management J. 37(8):1529–1546.CrossrefGoogle Scholar
  • Levinthal D (1997) Adaptation on rugged landscapes. Management Sci. 43(7):934–950.LinkGoogle Scholar
  • Levinthal D, March JG (1981) A model of adaptive organizational search. J. Econom. Behav. Organ. 2(4):307–333.CrossrefGoogle Scholar
  • Levinthal D, March JG (1993) The myopia of learning. Strategic Management J. 14(2):95–112.CrossrefGoogle Scholar
  • Liedtke P, Courbage C, eds. (2002) Insurance and September 11 One Year After: Impact, Lessons and Unresolved Issues (International Association for the Study of Insurance Economics, Geneva).Google Scholar
  • Liedtke P, Schanz K, eds. (2011) September 11—Ten Years On: Lasting Impact in the World of Risk and Insurance (International Association for the Study of Insurance Economics, Geneva).Google Scholar
  • Lubatkin MH, Simsek Z, Ling Y, Veiga JF (2006) Ambidexterity and performance in small-to medium-sized firms: The pivotal role of top management team behavioral integration. J. Management 32(5):646–672.CrossrefGoogle Scholar
  • March JG (1991) Exploration and exploitation in organizational learning. Organ. Sci. 2(1):71–87.LinkGoogle Scholar
  • McCarthy IP, Gordon BR (2011) Achieving contextual ambidexterity in R&D organizations: A management control system approach. R&D Management 41(3):240–258.CrossrefGoogle Scholar
  • McGrath RG (2001) Exploratory learning, innovative capacity, and managerial oversight. Acad. Management J. 44(1):118–131.CrossrefGoogle Scholar
  • Miller D (1992) Environmental fit versus internal fit. Organ. Sci. 3(2):159–178.LinkGoogle Scholar
  • Miller KD, Bromiley P (1990) Strategic risk and corporate performance—An analysis of alternative risk measures. Acad. Management J. 33(4):756–779.CrossrefGoogle Scholar
  • Neter J, Wasserman W, Kutner MH (1985) Applied Linear Statistical Models (Irwin, Homewood, IL).Google Scholar
  • Neuhierl A, Scherbina A, Schlusche B (2013) Market reactions to corporate press releases. J. Financial Quant. Anal. 48(4):1207–1240.CrossrefGoogle Scholar
  • Nickerson JA, Zenger TR (2002) Being efficiently fickle: A dynamic theory of organizational choice. Organ. Sci. 13(5):547–566.LinkGoogle Scholar
  • O’Reilly CA III, Tushman ML (2004) The ambidextrous organisation. Harvard Bus. Rev. 82(4):74–81.Google Scholar
  • O’Reilly CA III, Tushman ML (2008) Ambidexterity as a dynamic capability: Resolving the innovator’s dilemma. Staw BM, Brief AP, eds. Research in Organizational Behavior, Vol. 28 (Elsevier, Amsterdam), 185–206.CrossrefGoogle Scholar
  • O’Reilly CA III, Tushman ML (2011) Organizational ambidexterity in action: How managers explore and exploit. California Management Rev. 53(4):5–22.CrossrefGoogle Scholar
  • O’Reilly CA III, Tushman ML (2013) Organizational ambidexterity: Past, present and future. Acad. Management Perspect. 27(4):324–338.CrossrefGoogle Scholar
  • Posen HE, Levinthal D (2012) Chasing a moving target: Exploitation and exploration in dynamic environments. Management Sci. 58(3):587–601.LinkGoogle Scholar
  • Puffer SM, Weintrop JB (1991) Corporate performance and CEO turnover—The role of performance expectations. Admin. Sci. Quart. 36(1):1–19.CrossrefGoogle Scholar
  • Puranam P, Stieglitz N, Osman M, Pillutla MM (2015) Modelling bounded rationality in organizations: Progress and prospects. Acad. Management Ann. 9(1):337–392.CrossrefGoogle Scholar
  • Raisch S, Birkinshaw J (2008) Organizational ambidexterity: Antecedents, outcomes, and moderators. J. Management 34(3):375–409.CrossrefGoogle Scholar
  • Raisch S, Tushman ML (2016) Growing new corporate businesses: From initiation to graduation. Organ. Sci. 27(5):1237–1257.LinkGoogle Scholar
  • Raisch S, Birkinshaw J, Probst G, Tushman ML (2009) Organizational ambidexterity: Balancing exploitation and exploration for sustained performance. Organ. Sci. 20(4):685–695.LinkGoogle Scholar
  • Rogan M, Mors ML (2014) A network perspective on individual-level ambidexterity in organizations. Organ. Sci. 25(6):1860–1877.LinkGoogle Scholar
  • Rothaermel FT, Deeds DL (2004) Exploration and exploitation alliances in biotechnology: A system of new product development. Strategic Management J. 25(3):201–221.CrossrefGoogle Scholar
  • Schad J, Lewis MW, Raisch S, Smith WK (2016) Paradox research in management science: Looking back to move forward. Acad. Management Ann. 10(1):5–64.CrossrefGoogle Scholar
  • Schimmer M, Levchenko A, Müller S (2015) Event Study Tools (Research Apps). Accessed November 12, 2017, http://www.eventstudytools.com/research-apps-and-services.Google Scholar
  • Schmitt A, Probst G, Tushman ML (2010) Management in times of economic crisis: Insights into organizational ambidexterity. Management 13(3):128–150.Google Scholar
  • Shapiro G, Markoff J (1997) Text Analysis for the Social Science: Methods for Drawing Statistical Inferences from Text and Transcripts (Lawrence Erlbaum Associates, Mahwah, NJ).Google Scholar
  • Sharfman MP, Wolf G, Chase RB, Tansik DA (1988) Antecedents of organizational slack. Acad. Management Rev. 13(4):601–614.CrossrefGoogle Scholar
  • Smith WK, Lewis MW (2011) Toward a theory of paradox: A dynamic equilibrium model of organizing. Acad. Management Rev. 36(2):381–403.CrossrefGoogle Scholar
  • Sørensen JB (2002) The strength of corporate culture and the reliability of firm performance. Admin. Sci. Quart. 47(1):70–91.CrossrefGoogle Scholar
  • Stettner U, Lavie D (2014) Ambidexterity under scrutiny: Exploration and exploitation via internal organizaion, alliances, and acquisitions. Strategic Management J. 35(13):1903–1929.CrossrefGoogle Scholar
  • Stieglitz N, Knudsen T, Becker MC (2016) Adaptation and inertia in dynamic environments. Strategic Management J. 37(9):1854–1864.CrossrefGoogle Scholar
  • Sutton RS, Barto AG (1998) Reinforcement Learning: An Introduction (MIT Press, Cambridge, MA).Google Scholar
  • Tushman ML, Anderson P (1986) Technological discontinuities and organizational environments. Admin. Sci. Quart. 31(3):439–465.CrossrefGoogle Scholar
  • Tushman ML, O’Reilly CA III (1996) Ambidextrous organizations: Managing evolutionary and revolutionary change. California Management Rev. 38(4):8–30.CrossrefGoogle Scholar
  • Uotila J, Maula M, Keil T, Zahra SA (2009) Exploration, exploitation, and financial performance: Analysis of S&P 500 corporations. Strategic Management J. 30(2):221–231.CrossrefGoogle Scholar
  • Voss GB, Sirdeshmukh D, Voss ZG (2008) The effects of slack resources and environmental threat on product exploration and exploitation. Acad. Management J. 51(1):147–164.CrossrefGoogle Scholar
  • Wooldridge JM (2010) Econometric Analysis of Cross Section and Panel Data (MIT University Press, Cambridge, MA).Google Scholar
  • Yang H, Atuahene-Gima K (2007) Ambidexterity in product innovation management: The direct and contingent effects on product development performance. Proc. Acad. Management Annual Meeting, Philadelphia.Google Scholar
  • Yu FF (2008) Analyst coverage and earnings management. J. Financial Econom. 88(2):245–271.CrossrefGoogle Scholar
  • Yu TY, Cannella AA (2007) Rivalry between multinational enterprises: An event history approach. Acad. Management J. 50(3):665–686.CrossrefGoogle Scholar
  • Zajac EJ, Kraatz MS, Bresser RKF (2000) Modeling the dynamics of strategic fit: A normative approach to strategic change. Strategic Management J. 21(4):429–453.CrossrefGoogle Scholar
  • Zimmermann A, Raisch S, Birkinshaw J (2015) How is ambidexterity initiated? The emergent charter definition process. Organ. Sci. 26(4):1119–1139.LinkGoogle Scholar
  • Zimmermann A, Raisch S, Cardinal LB (2017) Managing persistent tensions on the frontline: A configurational perspective on ambidexterity. J. Management Stud., ePub ahead of print September 7, https://doi.org/10.1111/joms.12311.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.