Decoding Organizational Ambidexterity PART 4: Breaking free from illusions

Dec 3

Today, we're delving into the dynamic world of ambidexterity – the secret sauce behind an organization's long-term success and survival. No jargon, just the good stuff.

In the world of organizational juggling, let's talk about a game-changer – synergy. So, what's the noise about? This blog breaks it down, highlighting the crucial addition of synergy to the ambidexterity mix. We shake things up by suggesting that synergy, the sweet spot where learning meets performance, isn't achieved until dynamic capabilities step into the picture. We're not the first to mention synergy; it's been referred to in the literature, but we're giving it a fresh twist.

While synergy is casually tossed around in literature, often linked to the integrated knowledge from exploiting and exploring, I'm here to say: there's more to the story. Picture this: a balance between exploitation and exploration activities, resulting in learning. Traditionally, the common belief is that if you balance exploitation and exploration, you hit synergy and, voila, performance. But wait, my proposition challenges this. I say true synergy only kicks in when dynamic capabilities are in play. The real game-changer is ambidextrous learning operationalized with dynamic capabilities. It's not that ambidexterity is a dynamic capability; rather, it needs dynamic capabilities to unlock that sweet synergy leading to long-term success. Here's the gist – each element – simultaneous exploitation-exploration, organizational learning, and dynamic capabilities – can boost performance on its own. But for the magic to happen, they need to sync up, like a well-choreographed dance show.

Dynamic capabilities are the secret sauce. They're not just fancy words; they represent an employee's superpower at the organizational level. Imagine your knowledge and daily learnings being superhero-sized into organizational outcomes. Dynamic capabilities are the spider web collecting that magic: a combo of competences and processes for sensing, seizing, and transforming, adapting to the ever-changing organizational landscape. Caution though. Dynamic capabilities aren't just about routines and best practices; they're about orchestrating them into an exquisite performance that's hard to copy. While dynamic capabilities may not single-handedly give a competitive edge, when blended with organizational routines and resources, they create a source for sustainably excellent performance. It's like turning a regular Tuesday into a Broadway show – that's the power of dynamic capabilities. And guess what? Developing dynamic capabilities is a product of organizational learning, forming a crucial part of the loop for successful organizational ambidexterity.

Now, let's zoom out a bit. We suggest that when an organization can not only orchestrate ambidextrous learning and intelligence but also turn that into cold, hard cash – that's when you know dynamic capabilities are embedded at the organizational system level. It's like a well-choreographed dance that keeps looping, creating a successful ambidexterity parade. But it's not a one-person, or single individuals, show. Relying solely on individual efforts leaves the organization vulnerable. It needs to be system-wide, or the firm might end up doing the limbo under the competition bar. Teece highlights the importance of analytical systems, a fancy way of saying senior management should be testing hypotheses with data and methods. Said differently, enter entrepreneurial capacity within dynamic capabilities – the ability to break free from routines and foster innovation, organization-wide.

Now, let's talk disruption. One of my favorite words. In ambidexterity, it's not just about incremental innovations. They form a part of it, but not the only part. We're reaching for the stars, aiming for the right-hand tail of the distribution. Early adopters, we're coming for you! The organization needs to be on its toes, ready to recognize those right-hand tail innovations as well. Cue entrepreneurial sprints and bypassing the system – a superhero-sizing capacity described in dynamic capabilities.

This takes us to chat about illusions. Predictability and permanence within organizational systems? Illusions, my friend. Entrepreneurial ability is about shattering those illusions, not just in selecting individuals but across the entire organization. This ability shouldn't be confined to a selected few. Everyone in the firm needs a piece of the entrepreneurial ethos. It challenges the mirage of organizational boundaries, breaks free from the illusions of predictability and stability; that's the mantra. The system is crucial, no doubt, but every individual should know it's not an unbreakable fortress, and breaking those illusions when you see fit is supported by the organization.

In a nutshell, dynamic capabilities are the superheroes converting learning from exploitation and exploration into action, and ambidexterity is the result of the system intelligence and these dynamic capabilities, going beyond individual or combined efforts. We've demystified the dance, my friends. It's about balancing exploitation and exploration, learning, and dynamic capabilities – creating a symphony that echoes long-term success and competitive advantage.

Thank you for reading. Let me hear your thoughts.

Mari Stenberg

REVOLUTIONIZE IMPACT

www.revolutionizeimpact.com

#organizationalearning #organizationalambidexterity #dynamiccapabilities #entrepreneurship #innovation #disrupt

READ THE FULL THESIS HERE: An Integrated Literature Review of Organizational Ambidexterity: The Rise of Fusion Ambidexterity