How ambidextrous are they actually? An empirical test of exploration and exploitation as innovation capabilities using data envelopment analysis

Zhou, Q; Dekkers, R; Chia, R

Abstract

The study of ambidexterity has been attracting research attention since March’s (1991) seminal work on exploration and exploitation. The possible reason behind this is that successful organisations should be able to handle both radical and incremental innovation well. Such organisations have often been categorised as ambidexterity. After reviewing the literature, this paper propose that there is still confusion around conceptualising the key concepts and previous studies did not provide adequate ways to identify ambidextrous organisations. To fill theses gaps, this study will take exploration and exploitation as R&D capabilities and aim to identify ambidexterity on a capability based approach. To achieve that this paper takes an alternative approach by applying data envelopment analysis as its method of measuring innovation capabilities, using data sets of companies within the same sectors to calculate possible capability frontier. The results suggest that the organisation that are on the capability frontier can be considered as ambidexterity within each of the three selected sectors. Moreover, the results provide a benchmark set for each organisation that are not on the frontier to move towards this frontier. Based on the results, this paper proposes that organisations with high R&D expenditure or large number of patents are not necessarily be ambidextrous; rather, it is how effective certain innovation input is transferred to output that defines ambidextrous organisations. This has provided a way of benchmarking for managers. Future studies could build on and expend the research framework proposed by this research to get more comprehensive results.

• Presentation Conference Type: Conference Paper (unpublished)
• Conference Name: 25th Innovation and Product Development Management Conference, 2018
• Start Date: Jun 10, 2018
• End Date: Jun 13, 2018
• Deposit Date: May 16, 2023
• Publicly Available Date: May 17, 2023
• Keywords: Exploration, Exploitation, Innovation Capability, Ambidexterity, Data Envelopment Analysis
• Public URL: https://uwe-repository.worktribe.com/output/10778615