Ambidexterity Under Scrutiny: Exploration and Exploitation Via Internal Organization, Alliances, and Acquisitions

Strategic Management Journal (2014), 35(13), 1903-1929

48 Pages Posted: 19 Sep 2013 Last revised: 26 Oct 2014

See all articles by Uriel Stettner

Uriel Stettner

Tel Aviv University - Coller School of Management

Dovev Lavie

Bocconi University - Department of Management and Technology

Abstract

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.

Keywords: exploration and exploitation, internal organization, alliance, acquisition, firm performance, software industry

Suggested Citation

Stettner, Uriel and Lavie, Dovev, Ambidexterity Under Scrutiny: Exploration and Exploitation Via Internal Organization, Alliances, and Acquisitions. Strategic Management Journal (2014), 35(13), 1903-1929, Available at SSRN: https://ssrn.com/abstract=2328338

Uriel Stettner

Tel Aviv University - Coller School of Management ( email )

Ramat Aviv
Tel Aviv, 6997801
Israel

HOME PAGE: http://il.linkedin.com/in/urielstettner/

Dovev Lavie (Contact Author)

Bocconi University - Department of Management and Technology ( email )

Via Roentgen 1
Milan, MI 20136
Italy

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