Successful organizations often have developed several core competencies in order to outstand competitors. In a stable environment it is high likely that organizations only focus on further improving and developing the core competencies that help them to get into this comfortable situation. With this approach one could remain the market leader in such a relatively stable environment. This might have been the case in the past, but it is not the way we see the environment in the last centuries. The competitive business environment has fundamentally changed. With the globalization of markets, rapid technological change, shortening of product life cycles, and increasing aggressiveness of competitors, organizations have to face these changes (Volberda, 1996). It is not sufficient to only improve competencies one is already good at. Organizations must also explore in emerging business fields, test new products and experiment new procedures. Organizing a company in a way so that some employees are working on exploitation and others on exploration at the same is therefore a challenging balancing act. The approach of managing this balancing act of exploration and ex- ploitation is called organizational ambidexterity (O’Reilly & Tushman, 2004). This seminar paper will deal with this concept and answers the following question: How organizations use ambidextrous design to ensure innovation?
First, the concept organizational ambidexterity will be defined, and its five different literature streams presented. In addition to that, characteristics for organizations succeeding at this approach and possible implementation strategies will be discussed. Afterwards the methodological approach for the case study will be explained. The case study itself with a short company presentation of the Dr. Ing. h.c. F. Porsche AG and its findings cover chapter four. The conclusion in the last part will discuss the findings and give an overall summary with answering the research question.
Table of Contents
1 Introduction
2 Organizational ambidexterity
2.1 Definition and conceptual background
2.2 Prerequisites
2.3 Implementation strategies
3 Methodology
4 Case Study
4.1 Company presentation – Dr. Ing. h.c. F. Porsche AG
4.2 Findings
5 Conclusion
5.1 Discussion of the findings
5.2 Conclusion
Research Objectives and Key Topics
This paper examines how large organizations can effectively foster innovation by balancing the often-conflicting activities of exploitation (refining current business) and exploration (searching for new opportunities) through the lens of the organizational ambidexterity approach.
- The theoretical foundations and literature streams of organizational ambidexterity.
- Implementation strategies, including structural, interorganizational, and contextual approaches.
- Prerequisites for successful ambidextrous leadership and organizational alignment.
- A detailed case study of Dr. Ing. h.c. F. Porsche AG’s innovation management.
- Practical applications of balancing incremental and disruptive innovation.
Excerpt from the Book
2.1 Definition and conceptual background
There are different understandings of the term ambidexterity, its related aspects, dimensions and implications for organizations (O’Reilly & Tushman, 2013). Although scholars come up with such different definitions and differentiations from different areas of research, there is a basic common understanding along all differences. Organizational ambidexterity can be described with the paradox of combining exploitation of the current and exploration of new opportunities in order to be creative and adaptive while also running the current business in a proven method (O’Reilly & Tushman, 2004). Exploitation contains the refinement and extension of existing competences. It’s returns are positive, proximate and predictable (March, 1991). So it is therefore connected to a rather low risk. The perspective for exploitation is short-term and keywords for that are efficiency and improvement. Exploration on the other hand refers to experimentation and searching for new alternatives. The returns are often negative, uncertain and unpredictable (ibd.). So it is therefore connected with high risks. Exploration initiatives are conducted in a long-term perspective and keywords are innovation and creativity.
Summary of Chapters
1 Introduction: Provides an overview of the balancing act between exploitation and exploration and defines the central research question.
2 Organizational ambidexterity: Explains the conceptual background, the prerequisites for success, and various strategic approaches to implementation.
3 Methodology: Justifies the selection of the case study approach and outlines the qualitative data sources utilized.
4 Case Study: Presents the Porsche AG company context and details specific findings regarding their innovation initiatives.
5 Conclusion: Summarizes how the theoretical frameworks are applied at Porsche and offers a final synthesis on the ambidexterity approach.
Keywords
Organizational ambidexterity, Innovation, Exploration, Exploitation, Porsche AG, Lean production, Open innovation, Strategic management, Digitalization, Electromobility, Organizational design, Disruptive innovation, Incremental innovation, Process improvement, Corporate strategy
Frequently Asked Questions
What is the core subject of this paper?
The paper focuses on the concept of organizational ambidexterity—the ability of an organization to simultaneously pursue exploitation of current business models and the exploration of new, innovative opportunities.
What are the central themes covered?
The central themes include the trade-off between efficiency and flexibility, the role of leadership in fostering innovation, implementation strategies for ambidexterity, and the practical application of these concepts in the automotive industry.
What is the primary research question?
The research question is: How do organizations use ambidextrous design to ensure innovation?
Which research methodology is employed?
The author uses a qualitative case study research method, analyzing corporate reports, press releases, and media interviews to provide a deep-dive look into Porsche AG.
What is discussed in the main body of the paper?
The main body covers the theoretical definition of ambidexterity, the necessary prerequisites for an organization to be ambidextrous, different implementation strategies (separative and integrative), and a detailed empirical look at how Porsche balances legacy business with future digital mobility.
Which keywords best characterize the work?
The work is best characterized by terms such as organizational ambidexterity, exploration vs. exploitation, innovation management, and corporate strategy in the context of the automotive industry.
How does Porsche specifically implement "explorative" activities?
Porsche implements exploration through open innovation platforms (like Startup Autobahn), partnerships with universities (CODE University), and the creation of dedicated subsidiaries like Porsche Digital GmbH to drive future-oriented technologies.
How is the "exploitation" of current business maintained?
Exploitation is maintained through established instruments like the "Porsche-Verbesserungsprozess" (PVP) and lean production principles, which focus on continuous improvement, quality, and cost efficiency in existing operations.
- Arbeit zitieren
- Benjamin Keil (Autor:in), 2019, Fostering innovation in a large organization. Using the ambidexterity approach, München, GRIN Verlag, https://www.grin.com/document/505869
