Exploration and Exploitation in Latin American Firms: The Determinants of Organizational Ambidexterity and The Country Effect

Acevedo, J.; Diaz-Molina, I., 2019. Exploration and Exploitation in Latin American Firms: The Determinants of Organizational Ambidexterity and The Country Effect. Journal of Technology Management and Innovation, Vol. 14, Issue 4.

11 Pages Posted: 10 Feb 2021 Last revised: 15 Jun 2022

See all articles by Juan Acevedo

Juan Acevedo

Universidad de los Andes, Chile - School of Business and Economics

Ivan Diaz-Molina

ESE Business School

Date Written: November 6, 2019

Abstract

In this article, we explore the determinants of organizational ambidexterity across Latin American countries -Chile, Ecuador, and Peru- from innovation surveys of 2,786 manufacturing companies. The study introduces valuable information on ambidextrous organizations in emerging economies, contrasting to traditional literature frequently focusing on developed countries. Findings confirm the importance to measure ambidexterity in a multidimensional perspective, relating exploration to radical innovation, and breaking down exploitation into incremental exploitation, related to incremental innovation and repetitive exploitation related to operational efficiency. This work also finds that higher GDP per capita relates to higher exploration and exploitation ability of firms and supported our hypotheses that political and economic uncertainty of each country impact on organizational ambidexterity. Additionally, we expand on Diaz-Molina´s model (2018), on the relationship between strategic and operational absorptive capacity on ambidexterity by validating his findings across several countries and uncovering a positive interaction term between strategic and operational absorptive capacity when both impact on ambidexterity.

Keywords: ambidexterity; innovation; absorptive capacity; country environment; emerging economies

Suggested Citation

Acevedo, Juan and Diaz-Molina, Ivan, Exploration and Exploitation in Latin American Firms: The Determinants of Organizational Ambidexterity and The Country Effect (November 6, 2019). Acevedo, J.; Diaz-Molina, I., 2019. Exploration and Exploitation in Latin American Firms: The Determinants of Organizational Ambidexterity and The Country Effect. Journal of Technology Management and Innovation, Vol. 14, Issue 4., Available at SSRN: https://ssrn.com/abstract=3742191

Juan Acevedo (Contact Author)

Universidad de los Andes, Chile - School of Business and Economics ( email )

Chile

Ivan Diaz-Molina

ESE Business School ( email )

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las condes
Santiago, 7620074
Chile
+56226181535 (Phone)

HOME PAGE: http://www.ese.cl

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