ORGANIZATIONAL AMBIDEXTERITY: A PATH TO DIGITAL TRANSFORMATION IN SMALL AND MEDIUM ENTERPRISES
DOI:
https://doi.org/10.38087/2595.8801.207Keywords:
Organizational ambidexterity, Digital transformation, SMEsAbstract
The Organizational Ambidexterity (OA) has been perceived as an enabling capability for the Digital Transformation (DT) in organizations and includes the trade-off between its dimensions: exploration and exploitation. Its development involves management complexity and enough availability of resources, making it difficult implementation in small companies, a segment whose usual lack of organizational and cognitive assets also creates barriers to DT . Understanding such phenomena in small and medium enterprises (SMEs) contributes to identify initiatives to promote DT in this segment, which employs the majority of the world's population. Our research presents the context in the service sector, aiming to overcome the lack of studies that investigate OA in SMEs. Using multiple case studies, we investigated ambidextrous behaviors adopted by managers of small companies that favor DT. The findings identify combined characteristics of the Structural, Contextual and Leadership-Based Ambidexterity models that enable companies to satisfactorily take advantage of organizational resources in the context of DT. Our research identified a set of mechanisms whose adoption gives evidence of contribution on promoting DT in SMEs. Such aspects involve issues related to knowledge management, human resources, organizational structure and promotion of digital culture.
References
Agência Brasileira de Desenvolvimento Industrial (2021). Mapa da Digitalização das MPEs brasileiras. https://www.abdi.com.br/projetos/mapa-da-digitalizacao-das-mpes-brasileiras
Associação Brasileira de Normas Técnicas (2021). Website Associação Brasileira de Normas Técnicas. Consultado a 21 de 12 de 2021. https://www.abnt.org.br
Adler, P., Goldoftas, B. & Levine, D. (2007) Flexibility Versus Efficiency? A Case Study of Model Changeovers in the Toyota Production System. Organization Science. 10. 10.1287/orsc.10.1.43.
Agência Sebrae (2020). Pequenos negócios já representam 30% do Produto Interno Bruto do país. Website da Agência Sebrae. Consultado a 21 de 12 de 2021. https://www.agenciasebrae.com.br/sites/asn/uf/NA/pequenos-negocios-ja-representam-30-do-produto-interno-bruto-do-pais,7b965c911da51710VgnVCM1000004c00210aRCRD.
Andriopoulos, C. & Lewis, M.W. (2010) Managing innovation paradoxes: ambidexterity lessons from leading product design companies. Long Range Planning. 43 (1), 104–122. DOI:10.1016/j.lrp.2009.08.003
Bartlett, C. & Ghoshal, S. (1998). Managing Across Borders: The Transnational Solution. Harvard Business Review School. DOI:10.2307/258620
Benner, M. J., & Tushman, M. L. (2003) Exploitation, Exploration, and Process Management: The Productivity Dilemma Revisited. The Academy of Management Review, 28(2), 238–256. https://doi.org/10.2307/30040711
Bravo, M. P. C. & Eisman, L. B. (1998) Investigación Educativa (3ª ed.) Editora Sevilha.
Burguers, J.H. & Covin, J.G. (2016) The contingent effects of differentiation and integration on corporate entrepreneurship. Strategic Management Journal, 37 (3). 521-540. https://doi.org/10.1002/smj.2343
Birkinshaw, J., Zimmermann, A. & Raisch, S. (2016). How Do Firms Adapt to Discontinuous Change? Bridging the Dynamic Capabilities and Ambidexterity Perspectives. California Management Review. 58. 36-58. 10.1525/cmr.2016.58.4.36.
Cao, Q., Simek, Z. & Zhang, H. (2010). Modelling the Joint Impact of the CEO and the TMT on Organizational Ambidexterity. Journal of Management Studies 47:7 November 2010 doi: 10.1111/j.1467-6486.2009.00877.x
Carlsson, B. (1989), Flexibility and the theory of the firm. International Journal of Industrial Organization, 7,2, 179-203. https://EconPapers.repec.org/RePEc:eee:indorg:v:7:y:1989:i:2:p:179-203.
Carvalho, R.B., Reis, A.M.P., Larieira, C.L.C. & Pinochet, L.H.C. (2021). Digital Transformation: Construct Definition Challenges and Scenarios for a research agenda. Revista de Administração Mackenzie 22,6. https://doi.org/10.1590/1678-6971/eRAMD210400.
Creswell, J.W. (2007). Projeto de Pesquisa: Métodos qualitativos, quantitativos e mistos (2ª ed). Editora Artmed.
Data Sebrae (2021). Data Sebrae Indicadores. https://datasebraeindicadores.sebrae.com.br/resources/sites/data-sebrae/data
Duncan, R. (1976). The ambidextrous organization: Designing dual structures for innovation. The Management of Organization (pp. 167–188).
Eisenhardt, K.M. & Graebner, M.E. (2007) Theory Building from Cases: Opportunities and Challenges. Academy of Management Journal. Vol. 50, No. 1, 25–32. https://doi.org/10.5465/amj.2007.24160888
Fourné, S. P.L., Rosenbusch N., Mariano L.M. H. & Jansen, J.P. (2019) Structural and contextual approaches to ambidexterity: A meta-analysis of organizational and environmental contingencies, European Management Journal, Volume 37, Issue 5, Pages 564-576, https://doi.org/10.1016/j.emj.2019.04.002.
Floyd, S.W. & Lane, P.J. (2000) Strategizing throughout the Organization: Managing Role Conflict in Strategic Renewal. Academy of Management Review, 25, 154-177. https://doi.org/10.2307/259268
Garzoni, A., De Turi, I., Secundo, G. & Del Vecchio, P. (2020) Fostering digital transformation of SMEs: a four levels approach. Management Decision, Vol. 58 No. 8, pp. 1543-1562. https://doi.org/10.1108/MD-07-2019-0939
Gibson, C. B., & Birkinshaw, J. (2004) The antecedents, consequences, and mediating role of organizational ambidexterity. Academy of Management Journal, 47(2), 209–226. https://doi.org/10.2307/20159573
He, Z. & Wong, P. (2004) Exploration vs. exploitation: an empirical test of the ambidexterity hypothesis. Organization Science, 15, 481–94. https://doi.org/10.1287/orsc.1040.0078
Junni, P., Sarala, R. M., Taras, V., & Tarba, S. Y. (2013) Organizational ambidexterity and performance: A meta-analysis. The Academy of Management Perspectives, 27(4), 299–312. https://doi.org/10.5465/amp.2012.0015
Li, L., Su, F., Zhang, W. & Mao, J.Y. (2017). Digital transformation by SME entrepreneurs: a capability perspective. Information System Journal. 28 (6), 1129-1157. https://doi.org/10.1111/isj.12153
Liere-Netheler, K., Packmohr, S. & Vogelsang, K., (2018) Drivers of digital transformation in manufacturing. Hawaii International Conference on System Sciences, Waikoloa Beach, HI, pp. 3926–3935. http://hdl.handle.net/10125/50381
Lee, O., Sambamurthy, V., Lim, K. & Wei, K. (2015). How Does IT Ambidexterity Impact Organizational Agility? Information Systems Research. 26. 398-417. https://doi.org/10.1287/isre.2015.0577
Lubatkin, M. H., Simsek, Z., Ling, Y., & Veiga, J. F. (2006) Ambidexterity and performance in small- to medium-sized firms: The pivotal role of top management team behavioral integration. Journal of Management, 32(5), 646–672. https://doi.org/10.1177/0149206306290712
Luger, J., Raisch, S., & Schimmer, M. (2018) Dynamic balancing of exploration and exploitation: The contingent benefits of ambidexterity. Organization Science, 29(3), 449–470. https://doi.org/10.1287/orsc.2017.1189
March J. G. (1991) Exploration and Exploitation in Organizational Learning. Organization Science 2(1):71-87. https://doi.org/10.1287/orsc.2.1.71
Mashahadi, F., Ahmad, N. & Mohamad, O. (2016) Strategic innovation ambidexterity and the internationalization performance of small and medium enterprises: An insight into herbal-based small and medium enterprises (HbSMEs). World Journal of Entrepreneurship, Management and Sustainable Development. 12. 161-175. https://doi.org/10.1108/WJEMSD-09-2015-0036
Mckinsey (2009) Enduring Ideas: The three horizons of Growth https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/enduring-ideas-the-three-horizons-of-growth
Meirelles, F.S. (2021) 32ª Pesquisa Anual do FGVcia: Uso da TI nas Empresas. Centro de Tecnologia de Informação Aplicada da FGVCia. https://eaesp.fgv.br/sites/eaesp.fgv.br/files/u68/fgvcia2021pesti-relatorio.pdf
Mello, R. C. S., Barbosa, E. S. & Keong, S. S. (2023). Tipos de Pesquisa Científica e a Análise de Dados no Âmbito da Pesquisa na Área da Administração, Cognitionis Scientific Journal, 6(1), 108-177. https://doi.org/10.38087/2595.8801.180
Meyer, C. B., & Stensaker, I. G. (2006) Developing capacity for change. Journal of Change Management, 6(2): 217-231. https://doi.org/10.1080/14697010600693731
Montealegre, R., Iyengar, K., & Sweeney, J. (2019) Understanding Ambidexterity: Managing Contradictory Tensions Between Exploration and Exploitation in the Evolution of Digital Infrastructure, Journal of the Association for Information Systems, 20(5), 10.17705/1jais.00547
Nazareno, G. C. & Reisdofer, G. (2023). Metodologia Científica: Reflexões Sobre Pensamentos Epistemológicos, Cognitionis Scientific Journal, 6(1), 58-70. https://doi.org/10.38087/2595.8801.176
O´Reilly C. A., & Tushman, M. L. (2013) Organizational Ambidexrity Past, Present and Future. The Academy of Management Perspectives, 27(4), 324–338. http://dx.doi.org/10.5465/amp.2013.0025
Patel, P., Messersmith, J. & Lepak, D. (2013) Walking the Tightrope: An Assessment of the Relationship between High-Performance Work Systems and Organizational Ambidexterity. The Academy of Management Journal. 56. 1420-1442. https://doi.org/10.5465/amj.2011.0255
Porter, M. E. (1996) What is Strategy? Harvard Business Review, v.74, n.6, p.61-78.
Raisch S. & Birkinshaw J. (2008) Organizational Ambidexterity: Antecedents, Outcomes, and Moderators. Journal of Management.;34(3):375-409. doi:10.1177/0149206308316058
Rothaermel, F. & Alexandre, M. (2009) Ambidexterity in Technology Sourcing: The Moderating Role of Absorptive Capacity. Organization Science. 20. 759-780. 10.1287/orsc.1080.0404.
Sambamurthy, V. & Bharadwaj, A. & Grover, V. (2003). Shaping Agility Through Digital Options: Reconceptualizing the Role of Information Technology in Contemporary Firms. MIS Quarterly. 27. 237-263. 10.2307/30036530.
Sebastian, I.M., Ross, J. W., Beath, C., Mocker, M., Moloney, K.G. & Fonstad, N. O. (2017). How big old companies navigate digital transformation. MIS Quarterly Executive. 16:3. 197-213. DOI:10.4324/9780429286797-6
Silveira-Martins, E., Rosseto, C. R., Lima, N. C., & Penedo, A. S. T. (2014). Strategic Behavior and Ambidexterity: a study applied along the Brazilian wineries. RBGN - Revista Brasileira De Gestão De Negócios, 16(52), 392–415. https://doi.org/10.7819/rbgn.v16i52.1540
Scuotto, V., Nicotra, M., Giudice, M.D., Krueger, N. & Gregori, G.L. (2021). A microfoundational perspective on SMEs’ growth in the digital transformation era. Journal of Business Research, 129, 382–392. https://doi.org/10.1016/j.jbusres.2021.01.045
Smith, W. & Tushman, M. (2005) Managing Strategic Contradictions: A Top Management Model for Managing Innovation Streams. Organization Science - ORGAN SCI. 16. 522-536. 10.1287/orsc.1050.0134.
Tams, S., Grover, V., & Thatcher, J. (2014) Modern information technology in an old workforce: toward a strategic research agenda. The Journal of Strategic Information Systems, 23(4), 284–304. https://doi.org/10.1016/j.jsis.2014.10.001
Tushman, M. L., & O’Reilly, C. A. (1996) Ambidextrous organizations: Managing evolutionary and revolutionary change. California Management Review,38(4): 8–30. https://doi.org/10.2307/41165852
Venugopal, A., Krishnan, T. N., Rajesh, U. & Kumar, M. (2019). Finding the microfoundations of organizational ambidexterity - Demystifying the role of top management behavioural integration. Journal of Business Research. 106. 1-11. 10.1016/j.jbusres.2019.08.049.
Vial, G. (2019). Understanding digital transformation: A review and a research agenda, Journal of Strategic Information Systems, 28(2), 118–144. https://doi.org/10.1016/j.jsis.2019.01.003
Vinekar, V., Slinkman, C. W., & Nerur, S. (2006). Can agile and traditional systems development approaches coexist? An ambidextrous view. Information Systems Management, 23(3), 31-42. https://doi.org/10.1201/1078.10580530/46108.23.3.20060601/93705.4
Wenke, K. & Zapkau, F. & Schwens, C. (2020). Too small to do it all? A meta-analysis on the relative relationships of exploration, exploitation, and ambidexterity with SME performance. Journal of Business Research. 132. 10.1016/j.jbusres.2020.10.018.
Wessel, L., Baiyere, A., Ologeanu-Taddei R. & Cha, J. (2021). Unpacking the Difference Between Digital Transformation and IT-Enabled Organizational Transformation. Journal of the Association for Information Systems. 22(1), 102-129 doi: 10.17705/1jais.00655
WorldBank. (2021). Small and Medium Enterprises (SMEs) Finance. https://www.worldbank.org/en/topic/smefinance
Yin, R. K. (2018). Case Study Research and Applications: Design and Methods. 6ª ed. Thousand Oaks, CA: Sage.
Yoshikuni, A.C.; Favaretto, J.E.R.; Albertin, A.L. & Meirelles, F.S. (2017). Os efeitos do Strategic Information Systems na Inovação de Exploration e Exploitation: Um estudo empírico sobre a incerteza ambiental. EnAnpad.
