The Importance of Management Innovation (original) (raw)

2018, Research-Technology Management

AI-generated Abstract

This paper discusses the necessity of management innovation in contemporary organizations. It highlights the resistance to change within established businesses and critiques traditional solutions that attempt to work around such resistance. It argues for a fundamental shift in organizational assumptions and practices, defining management innovation as essential to adapting to rapid changes in market dynamics and fostering both public and business value.

Ambidexterity as a Solution for the Challenge of Organizing Innovation

Organisations are facing the dilemma on how to innovate. To pursue exploratory and exploitative activities simultaneously, firms must choose from two different approaches to ambidexterity: creating a different unit within the organisation or embedding the innovation through the firm. After having researched in different size and sector companies, we have found that large firms tend to organize innovation through a separate unit whilst small-medium size firms prefer to embed innovation in the firm. Our research also shows that the selected approach will vary according to the sector: industrial firms prefer to set up a different unit, technological firms prefer embedding innovation in the organization and financial firms are changing from one model to the other without a clear tendency.

THE AMBIDEXTROUS ORGANIZATION IN PRACTICE: BARRIERS TO INNOVATION WITHIN RESEARCH AND DEVELOPMENT

Academy of …, 2008

Research and development activities need an ambidextrous organization as they are both, explorative and exploitative. Building on multiple case studies, we are able to identify the specific challenges of different organizational forms to support ambidexterity by applying a barriers approach to innovation. We discuss possible underlying reasons for these challenges and suggest solutions based on different roles in innovation management.

Innovation through Ambidexterity: How to Achieve the Ambidextrous Organization Constantinos Markides

It has long been recognized in the literature that the pursuit of radical or disruptive innovation by established firms poses an organizational challenge for the firm. This is because the skills, structures, processes and mindsets required for exploiting the existing business are fundamentally different and often conflict with those required for radical innovation (i.e. exploration). This has led researchers to propose the need for "ambidextrous" organizations-companies capable of achieving efficiency in their existing business while at the same time having the strategic foresight to innovate and explore new businesses. Past research has found some support for a positive relationship between performance and the ability to be ambidextrous. There is, however, little evidence on how a firm can actually achieve ambidexterity. In this paper, we explore the issue of ambidexterity in the context of diversified firms. Specifically, we examine diversified firms that need to manage divisions that face conflicting demands for integration and responsiveness. Not all divisions of a diversified firm face such conflicting demands, so we focus on only those divisions that do. These divisions must be given autonomy to be locally responsive but must also be centrally controlled to allow for the efficient exploitation of interdependencies with the parent (and other divisions in the diversified firm). We use theory to propose ways by which a diversified firm could achieve such ambidexterity in its handling of these divisions. We then utilize questionnaire data from the 100 biggest business Groups in Taiwan to empirically test our hypotheses. We find that granting operational autonomy to separate divisions while centralizing strategic and financial controls promotes the achievement of ambidexterity. We also find that ambidexterity could be promoted through the use of strong values, rotation of managers and internal training programs.

Innovation Streams and Ambidextrous Organizational Designs: On Building Dynamic Capabilities

2004

This article empirically explores the relations between alternative organizational designs and a firm's ability to explore as well as exploit. We operationalize exploitation and exploration in terms of innovation streams; incremental innovation in existing products as well as architectural and/or discontinuous innovation. Based on in-depth, longitudinal data on 13 business units and 22 innovations, we describe the consequences of organization design choices on innovation outcomes as well as the ongoing performance of existing products. We find that ambidextrous organization designs are relatively more effective in executing innovation streams than functional, cross-functional, and spinout designs. Further, transitions to ambidextrous designs are associated with increased innovation outcomes, while shifts away from ambidextrous designs are associated with decreased innovation outcomes. We describe the nature of ambidextrous organizational designs-their characteristics, underlying processes, and boundary conditions. More broadly, we suggest that the locus of integration and degree of structural differentiation together affect a firm's ability to explore and exploit. We suggest that the senior team's ability to attend to and deal with contradictory internal architectures is a crucial determinant of a firm's ability to exploit in the short term and explore over time.

Organizing for Continuous Innovation: On the Sustainability of Ambidextrous Organizations

Creativity and Innovation Management, 2005

Organizing for innovation does not present itself as a straightforward exercise. The complexities entailed when implementing an innovation strategy can be related directly to the multitude of objectives it comprises. Recently, several scholars have advanced the notions of semi-or quasi-structures and ambidextrous organizations to handle these multiple requirements. These organizational forms imply the simultaneous presence of different activities, exhibiting differences in technology and market maturation. As a consequence, financial returns will reflect this diversified resource allocation pattern. Moreover, as higher levels of complexity are being introduced; ambidextrous organizations will encounter additional, organizational, costs. Compared to organizations that focus on the most profitable part of the portfolio, ambidextrous organizations -ceteris paribus -tend to be inferior in terms of financial returns. Within this contribution we explore under which conditions ambidextrous organizations can outperform focused firms; considered a prerequisite for their sustainability. In order to do so, we develop an analytical framework depicting the differential value dynamics, focused and ambidextrous firms can enact. Our findings reveal the relevancy of adopting extended time frames as well as introducing interface management practices aimed at cross-fertilization. Finally, the synergetic potential of (underlying) technologies comes to the forefront as necessary in order for ambidextrous organizations to become sustainable.

Ambidextrous structures paving the way for disruptive business models: a conceptual framework

Review of Managerial Science

Today companies are facing challenges to survive due to substantial transformations induced by digital technologies, ever-changing consumer demands, and environmental uncertainties. Thus, companies need to be innovative to sustain competitive advantages. Scholars and practitioners have recognized the potential of disruptive innovations as a key factor for a company’s competitiveness. Yet, such innovations often challenge established companies due to the tensions between their traditional business model and the newly emerging business model required for disruptive change. The theory of ambidextrous organizations has offered a variety of solutions to tackle these barriers referring to the alignment of exploration and exploitation within an organization’s structure. Current literature, however, faces inconsistencies regarding how this can be achieved. With this study, we therefore aim to provide a comprehensive understanding of how ambidextrous structures enable incumbent companies to ...

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