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Ambidexterity under scrutiny: Exploration and exploitation via internal organization, alliances, and acquisitions
Author(s) -
Stettner Uriel,
Lavie Dovev
Publication year - 2014
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.2195
Subject(s) - ambidexterity , scrutiny , exploit , alliance , industrial organization , business , balance (ability) , mergers and acquisitions , mode (computer interface) , knowledge management , computer science , political science , psychology , computer security , finance , law , operating system , neuroscience
Prior research on ambidexterity has limited its concern to balancing exploration and exploitation via particular modes of operation. Acknowledging the interplay of tendencies to explore versus exploit via the internal organization, alliance, and acquisition modes, we claim that balancing these tendencies within each mode undermines firm performance because of conflicting routines, negative transfer, and limited specialization. Nevertheless, by exploring in one mode and exploiting in another, i.e., balancing across modes, a firm can avoid some of these impediments. Thus, we advance ambidexterity research by asserting that balance across modes enhances performance more than balance within modes. Our analysis of 190 U.S .‐based software firms further reveals that exploring via externally oriented modes such as acquisitions or alliances, while exploiting via internal organization, enhances these firms' performance . Copyright © 2013 John Wiley & Sons, Ltd.