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Summary Smith, W. K., & Tushman, M. L. (2005). Managing Strategic Contradictions: A Top Management Model for Managing Innovation Streams. Organization Science, 16(5), 522–536. https://doi.org/10.1287/orsc.1050.0134 $5.96   Add to cart
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Summary Smith, W. K., & Tushman, M. L. (2005). Managing Strategic Contradictions: A Top Management Model for Managing Innovation Streams. Organization Science, 16(5), 522–536. https://doi.org/10.1287/orsc.1050.0134
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  • Course
  • Strategic Entrepreneurship & Organizational Renewal
  • Institution
  • Vrije Universiteit Amsterdam (VU)

Full summary of Smith, W. K., & Tushman, M. L. (2005). Managing Strategic Contradictions: A Top Management Model for Managing Innovation Streams. Organization Science, 16(5), 522–536.

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Document information

  • October 7, 2021
  • 5
  • 2021/2022
  • Summary

Subjects

  • strategic contradictions
  • top management model
  • innovation streams

Written for

  • Vrije Universiteit Amsterdam (VU)
  • M.Sc. Business Administration - Strategy & Organization
  • Strategic Entrepreneurship & Organizational Renewal
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Smith & Tushman (2005) – Managing Strategic Contradictions: A top
management model for managing innovation streams
Summary

 Strategic contradictions need to be managed in order to be successful
 Balancing contradiction in decision-making is rooted in senior team cognitions
 Balanced strategic decision making in context of contradiction is rooted in paradoxical
cognition – paradoxical frames that allow embracing rather than avoiding tensions
 Depending on the locus of integration, these cognitions appear either with the senior leader
or the entire leadership team



_______________________________________________________________________________



Research basis

 Its important for performance to engage in both exploitation and exploration
 These strategic agendas are contradictory
 Goal: develop a model of managing strategic contradictions that is associated with
paradoxical cognition
 Method: conceptual, using literature on paradox, contradictions, and conflict



Innovation streams

 = the portfolio of products simultaneously managed by an organization or strategic business
unit
 Consists of continued incremental innovation in the extant product as well as min. 1
nonincremental innovation
 Building an innovation stream is challenging because exploration and exploitation are
contradictory:
o Exploration = experimentation & flexibility
o Exploitation = focus & efficiency

, Top Management Teams & Innovation

Mgt teams balance short-term performance and long-term adaptability through resource allocation
trade-offs and org design decisions

Balancing involves 2 aspects of resource-allocation:

Distributive aspect of resource allocation Integrative aspect of resource allocation
= dividing resources between the existing = recognition of opportunities, linkages and
product and the innovation synergies that might arise from the exploitative
and exploratory activities


Barriers to balancing

Top Mgt faces structural, psychological, and social psychological barriers

 Structural: e.g. managers strive for internally aligned structures
 Psychological: e.g. managers are risk-averse in situations of gains
 Social psychological: e.g. team drive for consistency and uncertainty reduction

 These structural & psychological forces for inertia tip the balance of resource trade-offs
towards the existing product rather than the innovation

 The social need for consistency stems from a fundamental belief in unitary truth – however,
hosting both exploration as well as exploitation means that conflict is unavoidable



Managing strategic contradictions - Components of the management model

Senior leaders and/or their teams:

 Articulate a paradoxical frame
 Differentiate between strategy (& architectures) for the existing product and strategy for
innovation
 Integrate those strategies (and architectures)




Cognitive frames & paradoxical frames

 Cognitive frames = Stable constructs (“mental templates”) that provide a lens to understand
a situation

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