Dynamic ambidexterity: How innovators manage exploration and exploitation |
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Affiliation: | 1. Kelley School of Business, Indiana University, 1309 E. Tenth Street, Bloomington, IN 47405, U.S.A.;2. Bloch School of Management, University of Missouri—Kansas City, Kansas City, MO 64110, U.S.A.;3. College of Business Administration, Kansas State University, Manhattan, KS 66506, U.S.A.;1. University of Sannio, Via delle Puglie, 82, 82100 Benevento, Italy;2. College of Business, Iowa State University, 2167 Union Drive, Ames, IA 50011-1350, U.S.A.;3. Copenhagen Business School, Porcelænshaven 18A, DK-2000 Frederiksberg, Denmark;1. Darden School of Business, University of Virginia, 100 Darden Boulevard, Charlottesville, VA 22903, U.S.A.;2. College of Business, James Madison University, Harrisonburg, VA 22807, U.S.A.;3. Kelley School of Business, Indiana University, Bloomington, IN 47405, U.S.A. |
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Abstract: | Firms must excel at both exploration and exploitation to ensure long-term survival and prosperity. However, firms often have difficulties in doing so because they have to accommodate the contradictory logics of exploration and exploitation. This article examines the logics of exploration and exploitation, evaluates the difficulties of accommodating both logics, and identifies dynamic ambidexterity as a new way to overcome these difficulties. To achieve dynamic ambidexterity, firms need to support structural ambidexterity at the corporate level, contextual ambidexterity at the business-unit level, and sequential ambidexterity at the project level. I believe that the notion of dynamic ambidexterity and its managerial practices can help firms manage exploration and exploitation and ensure long-term survival and prosperity. |
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Keywords: | Exploration and exploitation Organizational ambidexterity Strategic management Innovation culture Market orientation |
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