The Effective Ambidextrous Organization: A Model of Integrative Strategy Making Processes

Torben Juul Andersen*, Bo Bernhard Nielsen

*Corresponding author for this work

    Research output: Working paperResearch

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    Abstract

    There is general consensus that coordination and integration are needed to achieve efficient outcomes while distributed decision power and autonomous actions are essential to develop innovative responses. These dual requirements for operational optimization and ongoing business innovation capture the essence of organizational ambidexterity as the means to sustain performance over time when environmental conditions change. This paper incorporates strategic management and organization theoretical rationales in a model that combines elements of integration and experimentation in the strategy making process and thereby extends the evolving literature on the ambidextrous organization. The performance relationships of the ambidextrous integrative strategy making model are investigated on the basis of a cross-sectional sample of 185 business entities operating in different manufacturing industries. Results of structural equation analyses indicate that superior performance in the ambidextrous organizations is associated with efficiencies derived from adherence to centralized strategic planning and effectiveness generated by decentralized innovative behavior through participation and autonomous actions. The study enhances our understanding of ambidexterity as the result of combined strategy making processes that balance the needs for economic efficiency and organizational adaptability.
    Original languageEnglish
    Place of PublicationKøbenhavn
    PublisherCenter for Strategic Management and Globalization
    Number of pages40
    ISBN (Print)9788791815133
    Publication statusPublished - Nov 2007
    SeriesSMG Working Paper
    Number12/2007

    Keywords

    • Ambidexterity
    • Dispersed decision-making
    • Innovation
    • Participatory decision-making
    • Strategic planning

    Cite this

    Andersen, T. J., & Nielsen, B. B. (2007). The Effective Ambidextrous Organization: A Model of Integrative Strategy Making Processes. Center for Strategic Management and Globalization. SMG Working Paper, No. 12/2007