A theoretical model of organizational ambidexterity in hospitals

TABLE OF CONTENTS

ABSTRACT

................................ ................................ ................................ ........................

ii

ACKNOWLEDGEMENTS

................................ ................................ ...............................

iv

LIST OF TABLES AND FIGURES ................................ ................................ ...............

xvii

CHAPTER 1: INTRODUCTION

................................ ................................ ........................ 1

OA –

Grounding in the Literature

................................ ................................ 3

The Problem

................................ ................................ ................................ ............. 5

Problem Statement

................................ ................................ ....................... 5

Purpose of the S tudy

................................ ................................ ................................ 6

Purpose Statement

................................ ................................ ........................ 6

Lynham‘s (2002) General Method of Theory Building Research

............... 6

Research Questions

................................ ................................ ................................ .. 7

Delimitations

................................ ................................ ................................ ............ 8

Limitations

................................ ................................ ................................ .............. 9

Significance of the Study

................................ ................................ ....................... 10

Researcher‘s Perspective

................................ ................................ ....................... 11

CHAPTER 2: LITERATURE REVIEW

................................ ................................ ........... 13

Introduction

................................ ................................ ................................ ............ 13

History of OA

................................ ................................ ................................ ........ 13

Theoretical Frameworks That Inform OA

................................ ............................. 16

vii

Organizational Learning

................................ ................................ ............ 16

The Learner

................................ ................................ .................... 16

The Learning Process

................................ ................................ ..... 18

The Learning Product

................................ ................................ .... 18

Mental Models

................................ ................................ ........................... 19

Strategic Management

................................ ................................ ............... 19

Competitive Advantage

................................ ................................ ............. 20

Marketing

................................ ................................ ................................ ... 21

HRD

................................ ................................ ................................ ........... 2 3

Paradox and Dialectic

................................ ................................ ................ 23

OA Theory

................................ ................................ ................................ ............. 26

Need for Unification

................................ ................................ .................. 26

Decreasing the Dysfunction

................................ ................................ ....... 27

Review of OA Case Study Research

................................ ................................ ..... 30

New United Motors Manufacturing, Inc.

................................ ................... 30

Scandinavian PC Systems

................................ ................................ .......... 31

Information Systems at Mercy Health Partner s

................................ ......... 33

Product Design Companies

................................ ................................ ........ 34

Multi - Unit Research Firms in Europe ................................ ........................ 36

Alternative Work Arrangements in the Professional and Management Services Industry

................................ ................................ ........................ 39

Review of OA Empirical Studies

................................ ................................ ........... 40

Two Foundational Empirical Studies ................................ ................................ ..... 40

The Jansen et al . Studies

................................ ................................ ............ 42

viii

The Balanced/Combined View of OA

................................ ...................... 44

OA and Performance in Small Manufacturing Firms

................................ 46

Exploration in Three Dimensions

................................ .............................. 48

Exploration with Exploitation Added

................................ ........................ 50

Market Orientation and OA

................................ ................................ ....... 51

OA and Customer Capital

................................ ................................ .......... 52

OA a nd Behavioral Integration of Top Leaders

................................ ........ 53

OA and Interorganizational Relationships

................................ ................. 54

OA and Alliance Formation

................................ ................................ ....... 56

Current State of OA Knowledge Supported by Empirical Evidence

..................... 57

CHAPTER 3: METHOD

................................ ................................ ................................ ... 61

Critical Realist Paradigm

................................ ................................ ....................... 61

Ontology

................................ ................................ ................................ .... 61

Epistemology

................................ ................................ ............................. 62

Axiology

................................ ................................ ................................ .... 62

Methodology

................................ ................................ .............................. 63

Teleology

................................ ................................ ................................ ... 63

Theory - Building Research Design and Rationale ................................ .................. 63

Conceptual Development: Answers to Research Questions 1 –

4

............. 64

Key Elements of Proposed OA Theory

................................ ..................... 64

How the Key Elements of Pro posed OA Theory Inter - relate

.................... 66

What Explains the Interdependence of the Elements?

............................... 67

General Limitations or Conditions for the Proposed OA Theory

.............. 68

ix

Operationalization: Answer to Research Question 1

................................ ............. 70

Instrument Development

................................ ................................ ........................ 70

Interviews

................................ ................................ ................................ ... 70

Survey Items

................................ ................................ .............................. 71

Survey Length

................................ ................................ ............................ 72

Validity

................................ ................................ ................................ ...... 73

Content Validity

................................ ................................ ............. 73

Response Process Validity

................................ ............................. 73

Internal Structure Validity

................................ ................................ ..................... 73

Factor Analysis

................................ ................................ .......................... 73

Products of Exploratory Factor Analysis (EFA)

................................ ........ 74

Principal Components Analysis (PCA)

................................ ..................... 75

Factor Rotation ................................ ................................ ........................... 76

Eigenvalues

................................ ................................ ................................ 77

Communality Coefficients

................................ ................................ ......... 78

Confirmatory Factor Analysis (CFA)

................................ ........................ 78

CFA Model Fit Statistics

................................ ................................ ........... 79

External Validity

................................ ................................ ................................ .... 80

External Ecological Validity

................................ ................................ ...... 80

External Population Validity ................................ ................................ ...... 80

Reliability

................................ ................................ ................................ ... 8 1

Relationship between Theoretical Constructs: Basic Regression

.......................... 82

Background

................................ ................................ ................................ 83

x

Slopes and Intercepts

................................ ................................ ................. 84

Pilot - Testing

................................ ................................ ................................ ........... 85

Demographic Data

................................ ................................ ..................... 86

Sample Setting and Characteristics

................................ ................................ ........ 87

Response Rate

................................ ................................ ............................ 88

Software Package

................................ ................................ ....................... 88

Descriptive St atistics

................................ ................................ .................. 89

Factor Analytic Method and Rotation ................................ ........................ 89

Correlation Tables

................................ ................................ ...................... 90

Internal Consistency Reliabilities –

Cronbach‘s Alpha

............................. 92

Basic Regression

................................ ................................ ........................ 92

Pilot Study: Results, Analysis and Discussion

................................ ...................... 93

The Main Study ................................ ................................ ................................ ...... 94

Survey Questionnaire Rev isions

................................ ................................ ............ 94

Statistical Design

................................ ................................ ................................ ... 95

Nested Data

................................ ................................ ................................ 95

Importance of MLM to Study of OA

................................ ......................... 97

Two Levels of Analysis: Implications for Sample Selection ..................... 97

Sample Setting and Sample Selection ................................ ................................ .... 98

Randomization Method Used to Obtain Level - Two Sampling Un its

........ 99

Data Collection

................................ ................................ ................................ ...... 99

Mail Surveys

................................ ................................ .............................. 99

Summary

................................ ................................ ................................ .............. 100

xi

CHAPTER 4: RESULTS

................................ ................................ ................................ . 102

Demographic Data of Respondents

................................ ................................ ..... 102

Overall Response Rate

................................ ................................ ............. 102

Descriptive Statistics

................................ ................................ ............................ 103

Comments Received

................................ ................................ ............................ 103

Estimation Method

................................ ................................ ............................... 104

Exploratory Statistics –

Normal ity and Shape

................................ ..................... 104

Frequency Histograms, Box Plots, Normal Probability Plots .................. 105

Factor Analysis

................................ ................................ ................................ .... 107

Principal Components Analysis (PCA)

................................ ................... 108

PCA –

Oblique Variance Rotation

................................ ........................... 108

Correlations

................................ ................................ ................................ .......... 108

Confirmatory Factor Analysis (CFA)

................................ ................................ .. 109

Q - Type Factor Analysis and Correlations

................................ ........................... 109

Intraclass Correlations

................................ ................................ ......................... 115

Covariance Parameter Estimates –

Differences by Hospital

Ownership

................................ ................................ ................................ 116

Covariance Parameter Estimates –

Differences by Number of

Hospital Beds

................................ ................................ ........................... 118

Cronbach‘s Alpha

................................ ................................ .................... 118

Analysis of V ariance

................................ ................................ ................ 119

MLM

................................ ................................ ................................ ........ 119

Empirical Data Analysis

................................ ................................ ...................... 121

Research Hypothesis 1

................................ ................................ ............. 121

xii

Two - Factor PCA Solution

................................ ........................... 121

Three - Factor PCA Solution

................................ ......................... 121

Four - Factor PCA Solution

................................ ........................... 122

Five - Factor PCA Solution ................................ ............................ 122

Review of PCA Solutions

................................ ............................ 122

PCA Correlation s

................................ ................................ ......... 123

CFA Models

................................ ................................ ................. 123

Statistical Significance

................................ ................................ . 124

Practical Relevance

................................ ................................ ...... 124

Research Hypothesis 2

................................ ................................ ............. 125

Statistical Significance

................................ ................................ . 125

Practical Relevance

................................ ................................ ...... 127

Research Hypothesis 3

................................ ................................ ............. 127

Statistical Significance

................................ ................................ . 127

Practical Relevance

................................ ................................ ...... 129

Research Hypothesis 4

................................ ................................ ............. 130

Statistical Significance

................................ ................................ . 130

Practical Relevance

................................ ................................ ...... 131

Research Hypothesis 5

................................ ................................ ............. 131

Statistical Significance

................................ ................................ . 131

Practical Relevance

................................ ................................ ...... 132

Surprises

................................ ................................ ................................ ............... 132

Finance

................................ ................................ ................................ ..... 132

xiii

ICCs Related to Finance

................................ .............................. 133

Finance Variables: Correlations at the Individual Level

......................... 134

HR Directors‘ Responses Compared to Other Job Title Responses

........ 134

CHAPTER 5: DISCUSSION

................................ ................................ ........................... 136

Theory - Building Research Questions

................................ ...................... 136

Evaluation Criteria

................................ ................................ ................... 136

Swanson‘s (2007) Evaluation Criteria

................................ ................................ . 139

Boundary o f OA Theory

................................ ................................ .......... 139

Assumption #1

................................ ................................ ......................... 140

OA: The First Step of a Theoretical Model

................................ . 140

Assumption #2

................................ ................................ ......................... 140

OA: Like Water ................................ ................................ ............ 140

Assumption #3

................................ ................................ ......................... 141

Boundaries of OA: One Type, No Typologies

............................ 141

Assumption #4

................................ ................................ ......................... 141

OA Levels of Analysis and Conditions of Operation

.................. 141

Assumption #5

................................ ................................ ......................... 143

OA Produces Wellsprings of Knowledge and Expands Mental

Models ................................ ................................ .......................... 143

Assumption #6

................................ ................................ ......................... 144

OA is a Virtuous Cycle

................................ ................................ 144

Where Does OA Fall Within Swanson‘s (2007) Framework?

............................ 144

Whetten‘s (1989) Criteria for Evalua ting OA Theory

................................ ......... 147

Comparison of Research Findings with Previous Findings

................................ . 148

xiv

OA: Implications for HRD Research, Theory, and Practice

................................ 150

Limitations of the Study ................................ ................................ ....................... 152

Summary and Conclusion

................................ ................................ .................... 153

REFERENCES

................................ ................................ ................................ ................ 154

APPENDIX A: Permissions

................................ ................................ ............................ 172

APPENDIX B: Jan sen‘s Summary of Reliabilities and Validities

................................ .. 178

APPENDIX C: Interview Protocol

................................ ................................ .................. 182

APPENDIX D: IRB Approval 087 - 09H

................................ ................................ .......... 185

APPENDIX E: Atuahene - Gima OA Instrument (2005)

................................ ................. 187

APPENDIX F: Bierly & Daly OA Instrument (2007)

................................ .................... 188

APPENDIX G: Cao et al. OA Inst rument (2009)

................................ ........................... 189

APPENDIX H: Gibson & Birkinshaw OA Instrument (2004)

................................ ....... 190

APPENDIX I: He & Wong OA Instrument (2004)

................................ ........................ 191

APPENDIX J: Jansen et al. OA Instrument (2008, 2009)

................................ .............. 192

APPENDIX K: Lubatkin et al. OA Instrument (2006)

................................ ................... 193

APPENDIX L: Hospita l Survey

................................ ................................ ...................... 194

APPENDIX M: Hospital Survey Coded for Research Analyses

................................ ..... 195

APPENDIX N: IRB 008 - 10H

................................ ................................ .......................... 196

APPENDIX O: IRB 016 - 10H

................................ ................................ .......................... 198

APPENDIX P: Factor Solutions for Pilot Data

................................ ............................... 200

APPENDIX Q: Revised Survey Instrument Post Pilot Study

................................ ......... 206

APPENDIX R: Example of Randomized Hospital List

................................ .................. 207

APPENDIX S: AHA Random Sample Document ................................ ........................... 208

xv

APPENDIX T: Survey Mailer: Memo to Executive Assistant

................................ ........ 209

APPENDIX U: Survey Cover Letter

................................ ................................ ............... 210

APPENDIX V: Survey Mailer: Content of Self - Addressed Stamped Envelope

............. 211

APPENDIX W: Response Distributions

................................ ................................ .......... 213

APPENDIX X: Comments Received ................................ ................................ ............... 220

APPENDIX Y: Exploratory Statistics for Variable ‗Explore‘: Frequency Histogram, Box Plot, and Normal Probability Plot

................................ ................................ ........ 227

APPENDIX Z: Exploratory Statistics for Variable ‗Exploitation‘: Frequenc y Histogram, Box Plot, and Normal Probability Plot

................................ ................................ 228

APPENDIX A1: Exploratory Statistics for Variable ‗OA‘: Frequency Histogram,

Box Plot, and Normal Probability Plot

................................ ................................ 229

APPENDIX A2: Exploratory Statistics for Variable ‗Quality‘: Frequency Histogram ,

Box Plot, and Normal Probability Plot

................................ ................................ 230

APPENDIX A3: Exploratory Statistics for Variable ‗Finance No Tools‘: Frequency Histogram, Box Plot, and Normal Probability Plot

................................ ............. 231

APPENDIX A4: Exploratory Statistics for Variable ‗Financial Tools‘: Frequency

Histogram, Box Plot, and Normal Probability Plot

................................ ............. 232

APPENDIX A5: Exploratory Statistics for Variable ‗Finance‘: Frequency Histogram, Box Plot, and Normal Probability Plot

................................ ................................ 233

APPENDIX A6: new tables (3) from Chapter 4

................................ .............................. 234

APPENDIX A7: former tables 3. 5 –

3.11 ................................ ................................ ........ 236

APPENDIX A8: Plot of Residuals, Y = Quality, X = OA

................................ .............. 246

APPENDIX A9: Frequency Histogram, Box Plot, Probability Plot, Y = Quality,

X =

OA

................................ ................................ ................................ ................. 247

APPENDIX A10: Plot of Residuals, Y = Finance, X = OA

................................ ............ 248

APPENDIX A11:

Frequency Histogram, Box Plot, Probability Plot, Y = Finance,

X =

OA

................................ ................................ ................................ ................. 249

xvi

LIST OF TABLES AND FIGURES

Table 1.1 Classifications of Exploration and Exploitation (EE) ................................ .......... 1

Table 1.2 Selected OA Definitions

................................ ................................ ...................... 2

Table 1.3 Matrix of OA Descriptions

................................ ................................ .................. 3

Figure 1.1 Lynham‘s General Method of

Theory Building Research in Applied Disciplines ................................ ................................ ................................ ................ 6

Table 1.4 OA Theory Building Research Questions, Theory Building OA Research

Question, and Empirical OA Research Hypotheses

................................ ................ 8

Figure 2.1 Literature Review Schematic (History, Conceptual Papers, and Cas e Study Research

................................ ................................ ................................ ................. 14

Figure 2.2 Literature Review Schematic (Statistical Empirical Studies)

.......................... 15

Table 2.1 OA Studies Sorted by Country

................................ ................................ .......... 15

Table 2.2 OA Studies Sorted by Firm Type

................................ ................................ ...... 16

Table 2.3 Characteristics of the Business Environment

................................ .................... 20

Figure 2.3 Typolog y of Organizational Ambidexterity

................................ ..................... 29

Table 2.4 OA Archetypes

................................ ................................ ................................ .. 29

Table 2.5 Scope of the Ambidextrous Organization

................................ .......................... 30

Table 2.6 Four Core Processes of Intra and Interorganizational Learning

........................ 33

Table 2.7 Ambidexterity Competency

................................ ................................ ............... 34

Figure 2.4 Data Structure:

Paradoxes of Innovation

................................ .......................... 36

Table 2.8 Summary of Enabling Practices for ‗Contextual‘ Ambidexterity

..................... 39

Table 2.9 Interview Questions Asked to Explore AWA ................................ .................... 39

xvii

Table 2.10 He and Wong‘s Hypotheses: Supported by the Evidence

............................... 41

Figure 2.5 He and Wong‘s (2004) Mo del of OA

................................ ............................... 41

Table 2.11 Gibson and Birkinshaw‘s Hypotheses: Supported by the Evidence

................ 42

Figure 2.6 Gibson and Birkinshaw‘s (2004) Model of OA

................................ ............... 42

Table 2.12 Summary of Findings from all Jansen et al. Studies ................................ ........ 43

Figure 2.7 Jansen et al.‘s (2009) Model of OA

................................ ................................ .. 44

Table 2.13 Cao et al.‘s (2009) Summary of Reliability and Validity Evidence

................ 45

Table 2.14 Summary of Findings –

Cao et al. (2009)

................................ ........................ 46

Table 2.15 Bierly and Daly‘s (2007) Statistical Support for Hypotheses .......................... 47

Figure 2.8 Exploration –

Performance and Expl oitation –

Performance Relationships

.... 47

Table 2.16 Sidhu et al.‘s (2004) Statistical Support for Hypotheses

................................ . 49

Table 2.17 Sidhu et al.‘s (2007) Statistical Support for Hypotheses

................................ . 51

Table 2.18 Atuahene - Gima‘s (2005) Statistical Support for Selected Hypothe ses

........... 52

Table 2.19 Cegarra - Navarro and Dewhurst‘s (2007) Statistical Support for

Hypotheses

................................ ................................ ................................ ............. 53

Table 2.20 Lubatkin et al.‘s (2006) Statistical Support for Research Hypotheses

............ 54

Table 2.21 Definitions for Im and Rai‘s (2008) Constructs

................................ .............. 55

Figure 2.9 Knowl edge Sharing Ambidexterity in Long - Term Interorganzational Relationships

................................ ................................ ................................ .......... 55

Table 2.22 Findings from Im and Rai‘s (2008) Study

................................ ....................... 56

Table 2.23 Description of EE According to Lavie and Rosenkopf‘s (2006) Three Domains

................................ ................................ ................................ ................. 57

Figure 3.1 Theoretical Model Organiz ational Ambidexterity

................................ ........... 69

Table 3.1 Guidelines for Identifying Significant Factors

................................ .................. 76

Table 3.2 Hospital OA Survey Instrument: Summary of Validity and Reliability

............ 82

xviii

Figure 3.2 Gender Frequency Distribution in Pilot Study

................................ ................. 86

Figure 3.3 Age Frequency Distrib ution in Pilot Study

................................ ...................... 87

Figure 3.4 Frequency Histogram According to Job Title

................................ .................. 87

Table 3.3 Pilot Study Sample Sizes and Response Rates

................................ .................. 88

Table 3.4 Pilot Study Descriptive Statistics

................................ ................................ ....... 89

Table 3.5 Pilot Study Correlation Matrix (Structure Coefficients)

................................ .... 91

T able 3.6 Pilot Study Cronbach‘s Alpha

................................ ................................ ........... 92

Table 3.7 Model Summary with Fit Statistics

................................ ................................ ... 93

Table 3.8 Revised Survey items ................................ ................................ ......................... 95

Table 4.1 Descriptive Statistics

................................ ................................ ........................ 103

Table 4.2 Exploratory Statistics

................................ ................................ ....................... 106

Table 4.3 Exploratory Statistics

................................ ................................ ....................... 107

Table 4. 4 . Descriptive Statistics: Responses to Constructs by Strategy and Quality Directors

................................ ................................ ................................ ............... 110

Table 4.5

Q - type Correlation Matrix: Similarity of Responses between Strategy

and Quality Directors

................................ ................................ ........................... 111

Table 4.6

Descriptive Statistics: Responses to Constructs by HR and Quality

Directors

................................ ................................ ................................ ............... 112

Table 4.7

Response Correlation Matrix: HR and Quality Directors

................................ 113

Table 4.8

Descriptive Statistics: Responses to Constructs by HR and Strategy

Directors

................................ ................................ ................................ ............... 114

Table 4.9

Response Correlation Matrix: Strategy and Human Resources Director s

....... 115

Table 4.1 0

Intraclass Coefficients (ICC)

................................ ................................ ......... 116

Table 4.11

NFP = Not - for - Profit, FP = For - Profit, NS = Not Significant

....................... 117

Table 4.12

Intraclass Coefficient (ICC) Variance Related to General Ownership

Status

................................ ................................ ................................ .................... 117

xix

Table 4.13

OA Means by Hospital Bed Siz e

................................ ................................ ... 118

Table 4.14

Comparisons of OA Means and Significance Levels According to

Bed Size

................................ ................................ ................................ ............... 118

Table 4.15

Cronbach‘s Alphas for Each Survey Item

................................ ..................... 118

Table 4.16

ANOVA, Y = Quality, X = OA

................................ ................................ ..... 119

Table 4.17

ANOVA, Y = Finance, X = OA

................................ ................................ .... 119

Table 4.19

MLM, Y = Qual ity, X = OA

................................ ................................ .......... 120

Table 4.19

MLM, Y = Finance, X = OA

................................ ................................ ......... 120

Table 4.20

Finance Variables: ICCs

................................ ................................ ................ 133

Table 4.21

Mean Levels Reported by Job Title

................................ ............................... 135

Table 5.1 Seven Criteria for Evaluating a Theory

................................ ........................... 137

Table 5.2 Selected Formal Criteria for Evaluating

a Theo ry

................................ ................................ ................................ ............... 138

Table 5.3 Six - Component Theory for Applied Disciplines

................................ ............. 139

Figure 5.1 Swanson‘s (2007) Six - Component Theoretical Components of a Core

Discipline

................................ ................................ ................................ ............. 145

Figure 5.2 Swanson‘s (2007) Six - Component Theoretical Components of a Core

Discipline

................................ ................................ ................................ ............. 146

Table 5.4 Seven Criteria for Evaluating a Theory

................................ ........................... 147

Table 5.5 Criteria Selected Formal Criteria for Evaluating a Theory

.............................. 148

1

CHAPTER 1: INTRODUCTION

Organizational ambidexterity (OA) is defined in March‘s (1991) seminal paper as the ability of companies to simultaneously explore and exploit. Exploration is defined as knowledge for search, novelty, experimentation, innovation, radical change and creation of new products, processes, and services (March, 1991, 1999; O‘Reilly & Tushman, 2008). Exploitation is defined as knowledge for continuous improvement, modification, refinement, and incremental change of current products, processes, and services (March, 1991, 1999; O‘Reilly & Tushman, 2008). Exploration and exploitation (EE) are components of OA describ ed by different scholars in Table 1.1. Various definitions of OA are shown in Table 1.2. A matrix of OA descriptions is displayed in Table 1.3.

Table 1.1. Classifications of Exploration and Exploitation (EE)

Author

What is EE?

Andriopoulos & L ewis, 2009

Knowledge processes

Atuahene - Gima, 2005

Two types of competences

Benner & Tushman, 2002

Two learning routines which pull in opposite directions

Bierly & Daly, 2007

Two types of knowledge strategies

Cao, Gedajlovic, & Zhang, 20 09

Knowledge sharing activities

Cegarra - Navarro & Dewhurst, 2007

Guttel & Konlechner, 2009

Two key factors of organizational learning

Two antagonistic learning modes

He & Wong, 2004

Two types of learning logics

Holmqvist, 2004

Two types of learn ing logics

Litrico & Lee, 2008

Two basic dynamics of organizational learning

March, 1991

Two types of learning activities

Miller, Zhao, & Calantone, 2006

Two organizational tensions

Peretti & Negro, 2006

Two types of knowledge

Prange &

Schlegelmilch, 2010

Two innovation archetypes

Taylor & Greve, 2006

Practices for combining knowledge

Uotila, Maula, Keil, & Zahra, 2009

Two orientations of firms' activities

Vera & Crossan, 2004

Tensions of novelty and continuity

2

Table 1.2. Selected OA Definitions

Author

OA Definition

Atuahene - Gima, 2005

"The interactive effect of competence exploitation and exploration determines the nature of their balance, which ensures the firm's simultaneous pursuit of incremental and

radical innovations" (p. 62).

Cegarra - Navarro & Dewhurst, 2007

"Ambidexterity is an organization's context to achieve alignment and adaptability simultaneously within the organization learning processes" (p. 1720).

Gupta, Smith, & Shalley, 2006

"Ambid exterity refers to the synchronous pursuit of both exploration and exploitation via loosely coupled and differentiated subunits or individuals, each of which specializes in either exploration or exploitation" (p. 693).

He & Wong, 2004

"OA is the need f or firms to achieve a balance between exploration and exploitation innovation strategies" (p. 481).

Holmqvist, 2004

"Ambidexterity may be one strategy through which certain organizations can manage exploitation and exploration. However, this strategy does not address the fundamental problem for all organizations of balancing exploitation and exploration; rather it proposes how these forces coexist...'coexistence' does not mean that the two process of exploitation and exploration have similar importance , while 'balancing' does" (p. 277).

Im & Rai, 2008

"Simultaneously pursuing innovation and short - term operational objectives in interorganizational relationships (IORs)" (p. 1281).

Jansen et al., 2009

"OA is a dynamic capability referring to the ro utines and processes by which ambidextrous organizations mobilize, coordinate, and integrate dispersed contradictory efforts, and allocate, reallocate, combine, and recombine resources and assets across differentiated exploratory and exploitative units" (p . 797).

Lubatkin, Simsek, Ling, & Veiga, 2006

"Ambidextrous firms are capable of exploiting existing competencies as well as exploring new opportunities with equal dexterity" (p. 647).

Raisch & Birkinshaw, 2008

"OA is defined as an organization's abili ty to be aligned and efficient in its management of today's business demands while simultaneously being adaptive to changes in the environment" (p. 375).

Simsek, Heavey, Veiga, & Souder, 2009

"Ambidexterity refers to an organization's ability to perform differing and often competing, strategic acts at the same time" (p. 865).

Taylor & Helfat, 2009

"OA is how firms can compete in both existing and new businesses, and simultaneously explore new businesses while exploiting existent ones"(p. 718).

3

Table 1.3. Matrix of OA Descriptions

Author(s)

Framework Strategic Management = SM Organizational Learning = OL

Components of OA Exploration Exploitation = EE

Component Sequence & Type

Component Relationship

Level of Analysis

Atuahene - Gima (2005)

SM

& Marketing Theory

EE

Simultaneous Orthogonal

Multiplicative E*E

Firm

Bierly & Daly (2007)

SM

EE

Simultaneous Orthogonal

Multiplicative E*E

Firm

Cao, Gedajlovic & Zhang (2009)

SM

E - E = Balanced Dimension E*E Combined Dimension

Simultaneous Bipolar Simul taneous Orthogonal

Subtractive E - E Multiplicative E*E

Firm

Cegarra - Navarro & Dewhurst (2007)

OL

EE

Simultaneous Orthogonal

Not stated

Firm

Gibson & Birkinshaw (2004)

Organizational Behavior

AA (similar to EE)

Simultaneous Orthogonal

Multiplicative E*E

Bu siness Unit

He & Wong (2004)

OL

EE

Simultaneous Orthogonal

Multiplicative E*E & Subtractive E - E

Firm

Im & Rai (2008)

OL

EE

Simultaneous Orthogonal

Additive E+E

Inter - Firm Relationships

Jansen, et al. (2005)

SM & OL

EE

Simultaneous Orthogonal

Multiplicat ive E*E

Business Unit

Jansen, et al. (2006)

SM & OL

EE

Simultaneous Orthogonal

Multiplicative E*E

Business Unit

Jansen, et al. (2008)

SM & OL

EE

Simultaneous Orthogonal

Multiplicative E*E & Additive E+E

Firm

Jansen, et al. (2009)

SM

EE

Simultaneous Ort hogonal

Additive E+E

Firm

OA -

Grounding in the Literature

EE have been discussed within an organizational learning (OL) framework (Auh & Menguc, 2005; Brown & Duguid, 1991; Cegarra - Navarro & Dewhurst, 2007; Crossan, Lane, & White, 1999; Huber, 1991; Kat ila & Ahuja, 2002; March, 1991). OL is ―the

4

capability for organizations to create, disseminate, and act upon generated knowledge‖ (Auh & Menguc, 2005, p. 1652). March (1991) was first to declare EE the learning activities needed to produce OA. March he ld that EE are bipolar ends of the same continuum, which must be balanced along that continuum for firms to successfully adapt to environmental changes. March‘s seminal views of OA are sometimes called the ―received framework‘ of OA (Sidhu et al., 2007).

EE have also been grounded in the strategic management (SM) literatures where they are referred to as dynamic capabilities or innovation processes (Jansen, Tempelaar, Van den Bosch, & Volberda, 2009; Jansen, Van den Bosch, & Volberda, 2005, 2008; Judge & Blocker, 2008; O‘Reilly & Tushman, 2008). Dynamic capabilities are operational and strategic processes and routines internal to firms that ―use resources -

-

specifically the processes to integrate, reconfigure, gain and release resources -

-

to match and

even create market change‖ (Eisenhardt & Martin, 2000, p. 1107). Dynamic capabilities ―enhance congruence between the firm‘s strategy and the changing business environment by helping firms create innovative strategic value‖ (Judge & Blocker, 2008, p. 915 ).

These theoretical groundings have produced consensus that OA provides firms with competitive advantage. Competitive advantage enhances the bottom line and contributes to firm survival (Andriopoulos & Lewis, 2009; Markman, Gianiodis, & Phan, 2009; Smi th & Tushman, 2005). Most conceptual papers and research studies in this field have tried to understand how and why OA provides competitive advantage.

5

The Problem

Problem Statement:

The problem is there is presently no widely accepted definition or the oretical model of OA. As a result, what OA is and how it works is not fully understood.

Human Resource Development (HRD) research is problem - focused (Chermack, 2008; Chermack & Swanson, 2008). Since March‘s seminal 1991 paper, OA has been well - studied.