Exploring the paradox of managerial ambidexterity in exploitation versus exploration

Abstract

To remain competitive organisations, need to exploit their existing capabilities and knowledge bases to ensure efficiency. But, in dynamic and competitive environments the firm must also innovate, exploring new capabilities and knowledge to renew. The survival of the firm, in the long term, depends on its ability to achieve ambidexterity, to successfully achieve both activities; reconciling the dilemma of exploitation (efficiency) and exploration (innovation). Individual organisational actors are increasingly recognised as a significant source of organisational ambidexterity. Despite its importance managerial ambidexterity remains a fragmented and incompletely understood phenomenon in academic literature. This study examined how the individual manager can best resolve the dilemma of exploitation versus exploration; namely, should it be a balance through trade-off or a paradoxical combination. A qualitative, exploratory research study was conducted to examine the lived experience of the individual managersÕ quandary of balancing exploitation and exploration. Eighteen semi-structured, in-depth face to face interviews were conducted with Senior and Middle Managers. Participants were from two Multi-National Enterprises known for excelling in both exploitation and exploration globally and operating in the industrials sector, within the South African context. Each interview was analysed using combined inductive and deductive thematic content and frequency analysis techniques. The research identifies a holistic view of the multi-level factors that enable and inhibit individual managers ability to perform exploitation and exploration separately and as combined activities. A process of dynamic sense making is identified with managers resolving the tension of simultaneous demands for exploitation and exploration through dynamic self-adjustment. Managers use a combination of synthesis, temporal cycling and spatial delegation mechanisms to achieve managerial ambidexterity. The core competencies identified as necessary namely, problem solving leading to change management, team leadership, influence and persuasion and emotional intelligence are key elements in the process model.