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Summary Articles SEOR week 1-6
- Instelling
- Vrije Universiteit Amsterdam (VU)
This document contains a summary of all articles which are needed for the exam
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SEORSummary Articles Week 1
Article 1
Gibson, C. B., & Birkinshaw, J. (2004). The Antecedents, Consequences, and Mediating Role of
Organizational Ambidexterity. Academy of Management Journal, 47(2), 209–226
This article investigated contextual organizational ambidexterity, defined as the capacity
to simultaneously achieve alignment and adaptability at a business-unit level; aligned and
efficient in their management of today's business demands, while also adaptive enough to
changes in the environment that they will still be around tomorrow. They argue that a context
characterized by a combination of stretch, discipline, support, and trust facilitates
contextual ambidexterity (antecedents). The simple idea behind the value of ambidexterity is
that the demands on an organization in its task environment are always to some degree in
conflict (for instance, investment in current versus future projects). The most successful
organizations reconcile them to a large degree, and in doing so enhance their long-term
competitiveness (consequences). Thus, The purpose of this study is to empirically
investigate the antecedents to give rise to contextual ambidexterity and the consequences of
organizational contextual ambidexterity for business unit performance.
→ Scholars have up until now focused on structural ambidexterity, in this article, we focus
on contextual ambidexterity.
2 kinds of ambidexterity:
➢ Structural ambidexterity; Organizations manage trade-offs between conflicting
demands by putting in place "dual structures," so that certain business units, or
groups within business units, focus on alignment, while others focus on adaptation.
➢ Contextual ambidexterity; Organizations shift their focus from trade-off (either/or) to
paradoxical (both/and) thinking. Contextual ambidexterity is the behavioral capacity
to simultaneously demonstrate alignment and adaptability across an entire business
unit. Alignment refers to coherence among all the patterns of activities in the
business unit; they are working together toward the same goals. Adaptability refers to
the capacity to reconfigure activities in the business unit quickly to meet changing
demands in the task environment.
→ Task partitioning: Within a single business unit, whereby, for example, one group
adopts an "organic" structure while another takes on a "mechanistic" structure
→ Temporal separation: System in which an entire unit focuses on one set of tasks
one day, then on a different set of tasks the next day.
Antecedents and outcomes of ambidexterity
Contextual ambidexterity emerges when leaders in a business unit develop a supportive
organizational context. This encourages individuals in the units to make their own
judgements as how to best divide their time between the conflicting demands for alignment
and adaptability. They argue that the capacities of alignment and adaptability develop
through the creation of a particular type of organization context at the business-unit level.
Broadly defined, organization context is the systems, processes, and beliefs that shape
individual-level behaviors in an organization → avoids coordination problems between
business units.
H1: The higher the level of ambidexterity in a business unit, the higher the level of
performance. Confirmed
H2: The more that a business-unit context is characterized by an interaction of stretch,
discipline, support, and trust, the higher the level of ambidexterity. Confirmed
H3: Ambidexterity mediates the relationship between context - as captured by the interaction
of discipline, stretch, support and trust - and business-unit performance. Confirmed
,Results
The results indicate that organizational ambidexterity can act as a mediator between the
antecedents (like leadership and structure) and outcomes (like competitive advantage and
performance). For instance, effective leadership might lead to increased ambidexterity, which
in turn results in improved performance. In conclusion, for organizations to thrive in dynamic
environments, achieving ambidexterity is crucial. By understanding its antecedents and
consequences, organizations can better position themselves for success in both the long
and short term.
, Article 2
O’Connor, G. C. (2008). Major Innovation as a Dynamic Capability: A Systems Approach. Journal of
Product Innovation Management, 25(4), 313–330.
This article offers a framework for building an Major Innovation (MI) dynamic capability.
The framework is composed of seven elements that together form a management system
rather than a process-based approach to nurturing radical innovation. The framework
doesn't merely focus on step-by-step processes or procedures to follow for generating
innovations. Instead, it's broader and more holistic, addressing how innovation should be
strategically managed and integrated into the organization as an ongoing, evolving
capability. A set of propositions is offered regarding how each element should play out in this
parallel management system. The purpose of this article is to leverage systems theory and
recent advances in dynamic capability theory to increase our understanding of how firms
can evolve a capability for enabling major innovations.
→ Systems theory refers to an approach that views innovation as an interconnected and
dynamic system composed of various interdependent components, rather than isolated
elements.
→ Dynamic capability refers to the organization’s ability to purposefully create, extend, or
modify its resources base to respond to rapidly changing environments and enable major
innovations.
The 7 elements:
1.) A clearly identified organizational structure; Establishing an identified group to
develop and sustain MI. A separate organization is needed to allow competencies to
develop without being stamped out by reified rules.
2.) Internal and external interface mechanisms; Refers to the structures, processes, and
systems that facilitate communication, coordination, and collaboration both within the
organization (internal interfaces) and with outside entities (external interfaces).
These mechanisms are crucial for enabling the organization to successfully manage
major innovations. Internal interface mechanisms ensure that various internal parts
of the organization (such as different departments or teams) work together effectively
to support innovation through collaboration, communication, and resource sharing.
External interface mechanisms refer to how the organization engages with external
entities (such as customers, partners, or research institutions) to integrate outside
knowledge, resources, and capabilities into its innovation processes.
3.) Exploratory process; Effective dynamic capabilities in high-uncertainty environments
require new, situation-specific knowledge, which accumulates as project members
engage in experiential activities to learn quickly, to evaluate, and to redirect. It refers
to the activities and behaviors that an organization engages in to search for,
experiment with, and develop new opportunities, ideas, and technologies that have
the potential to lead to breakthrough innovations.
4.) Requisite Skills; Because risk, uncertainty, and novelty are so high, knowledge
cannot be proceduralized as a fixed response. MI thus requires broadly skilled
employees who can be flexible as circumstances require. The inability to cope with
uncertainty is a major reason managers are inhibited in high-velocity markets.
5.) Appropriate governance and decision-making mechanisms and criteria; Systems
theorists have shown that to produce creative, innovative, continually changeable
behavior, systems must operate far from equilibrium. The governance model
associated with this changing system, then, is a necessary element of an MI dynamic
capability since it oversees the execution of breakthrough innovations and
determines, through positive and negative feedback, whether the MI system is
delivering on its mandate (naar behoren). There are three levels of governance to
consider: (1) the portfolio of MI projects; (2) specific projects within the portfolio; and
(3) the MI system itself.
, 6.) Appropriate metrics; To allow for differential processes and expectations across
innovation and operating systems, differential budgeting systems and performance
metrics must also be established. Both activity- and performance based measures
may be needed since commercial success can be infrequent. → Example; a metric
might include whether the MI obtained new partnerships.
7.) Cultural and leadership context; The ideal organizational culture and leadership team
values MI as a key component of their efforts, acts as caretakers of the firm’s future
health, and understands the risks inherent in MI.
4 requirements must be met to prove that these seven elements coprice a system
rather than a simple list:
1.) System is identifiable and elements are interdependent; Taken separately, these
seven elements do not affect an organization’s MI capability. Without alignment
among them, the system is suboptimal.
2.) The whole is greater than the sum of its parts; If you absent any one of the 7
elements, the system will not enable MI.
3.) Interaction and networking with the larger environment to achieve homeostasis; The
internal and external interface mechanisms described as critical to an MI
management system ensure that the MI subsystem operates as an open system and
achieves homeostasis (balance) within and in connection to its larger system, the
firm.
4.) Purpose in the larger system in which it is embedded; The MI system’s purpose is
innovation aimed at providing new platforms for growth by leveraging novel
technologies in unique ways.
Results
The results provide insights into how organizations can build the dynamic capabilities
necessary for driving major innovations and sustaining long-term competitive advantage.
The reason why this often fails, may be the incomplete understanding of the MI dynamic
capability as a complex system of interdependent elements. As we consider the
challenges of major innovation and its associated high uncertainty, seven elements emerge
that, it is proposed, must be in place for the dynamic capability to become effective. It is
argued that all these elements must be brought into internal consistency and into
alignment with the requirements of operating in a highly uncertain environment. Together,
they make up a formidable system.
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