Managing the interaction of exploration and exploitation: Ambidexterity as a high-order dynamic capability

Abstract

The dynamic capabilities perspective focuses on the ability of an organization to develop its resource base in order to meet environmental expectations. Therefore, it is closely interrelated to the issue of managing the interaction of exploration and exploitation. The competence of continuously optimizing the interaction of exploration and exploitation has been referred to as organizational ambidexterity. Managing this interaction implies resolving a firm's permanent struggle to overcome the barriers related to the right configuration between exploration and exploitation.

By incorporating the concept of combinative capabilities as balancing routines into the conceptualization of ambidexterity we distinguish structural, interaction, and socialization capabilities that are deployed in overcoming these barriers to resource (re)configuration.

Drawing on knowledge management and barriers to resource configuration we expect that the way organizations deploy combinative capabilities to manage the interaction between exploration and exploitation depends on the observed barriers to resource (re)configuration. By combining the constructs of barriers to resource reconfiguration, ambidexterity, and combinative capabilities we intend to gain more insight in the way organizations manage the actual interaction between exploration and exploitation. Our paper will introduce a set of propositions indicating the relationship between ambidexterity, barriers to resource (re)configuration, and combinative capabilities as balancing routines.

Citation

Sfirtsis, T. and Moenaert, R. (2010), "Managing the interaction of exploration and exploitation: Ambidexterity as a high-order dynamic capability", Sanchez, R., Heene, A. and Ede Zimmermann, T. (Ed.) A Focussed Issue on Identifying, Building, and Linking Competences (Research in Competence-Based Management, Vol. 5), Emerald Group Publishing Limited, Leeds, pp. 35-57. https://doi.org/10.1108/S1744-2117(2010)0000005005