Managing exploration persistency in ambidextrous organizations

Abstract

The concept of ambidextrous organization, which is allowing exploration and exploitation to coexist within an organization, has attracted considerable interest and is useful in understanding the corporate transformation process. We aim to advance the framework of ambidextrous organization by incorporating the aspect of exploration persistency. Our in-depth case study revealed the contrasting persistence of exploration for new technology and new business between Fujifilm and Kodak through analysis of patent data from 1982 to 2012. Also, we discuss how the degree of exploration persistency is influenced by the effects of exploitation and knowledge accumulation within ambidextrous organization. In this paper, exploration persistency is defined as the degree to which an organization continues exploration in a consistent direction along a particular path and the amount of resources the organization applies to or invests in the exploration activity until the organization realizes that it is headed in the wrong direction. We examine the different fates of Fujifilm and Kodak through the lens of exploration persistency.

Addressing the loss of exploratory innovation: the roles of organizational foresight and strategic orientation

“…First, we propose a greater emphasis on directing more literature toward independent research on exploratory innovation rather than the ambidexterity perspective. Because of organizational inertia and current performance pressures (Atuahene-Gima, 2005; O'Reilly and Binns, 2019; Shibata et al , 2022), enterprises frequently face dilemmas resulting in the loss of exploratory innovation, which diminishes the proportion and share of exploratory innovation in practical implementation (Randall et al , 2017; Zhu et al , 2021). Although current research focuses on how to orchestrate and balance exploration and exploitation simultaneously (Ambroise et al , 2020; O’Reilly and Tushman, 2013; Turner et al , 2013; Tushman and O'Reilly, 1996), the issue of addressing loss and enhancing exploratory innovation remains neglected.…”

“…However, this claim may not be valid in all cases. Taking Kodak as an example, although Kodak anticipated the decline of the traditional film business and explored new markets in medical care, optics, audio-visual equipment, IT and other technical fields, most new businesses failed because of a lack of persistence (Shibata et al , 2022). Another example is Siemens, which found it necessary to abandon its ingrained beliefs to reverse the continued decline in its market share in the molecular imaging market.…”

Ambidextrous organizations in and from emerging markets—Editors' special issue introduction

“…Fujifilm adopted the organizational initiative exploration processes that helped them narrow down from wider area of exploration and accumulate specific domain knowledge (by managers) which resulted in high degree of exploration persistency. Shibata, Baba, and Suzuki (2022, p. 22) defined it as “the degree to which an organization continues exploration in a consistent direction along a particular path and the amount of resources the organization applies to or invests in the exploration activity until the organization realizes that it is headed in the wrong direction.” On the other hand, Kodak adopted CEO initiative exploration process, which led to change in knowledge accumulation process depending on the CEO's decision of business exploration, which in turn resulted in lower exploration persistency (Shibata et al, 2022).…”

“…They found that frontline managers play a more central, proactive, and strategic role with respect to organizational ambidexterity through configurational practices than assumed by senior executives' initial design choices. Another example illustrating the importance of the role of managers is the case study of Fujifilm and Kodak (Shibata, Baba, & Suzuki, 2022). Fujifilm adopted the organizational initiative exploration processes that helped them narrow down from wider area of exploration and accumulate specific domain knowledge (by managers) which resulted in high degree of exploration persistency.…”

Industry 4.0 Evolutionary Framework: The Increasing Need to Include the Human Factor

“…Companies need to survive in a VUCA environment, and Industry 4.0 can help them to be constant innovators by anticipating their customers' needs(Frank, Mendes et al, 2019;Shibata et al, 2021). Industry 4.0 fosters collaboration and can benefit the environment and society(Nascimento et al, 2019;Tao & Qi, 2019).…”