Organizational Designs And Innovation Streams

Topics:
Organizational Effectiveness
Tags:
Human Resources,
Innovation Outcome,
Innovation Stream,
Organization Design,
Organizational Structure
Source:
President and Fellows of Harvard College

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Overview: This paper empirically explores the relations between alternative organizational designs and a firm's ability to explore as well as exploit. We operationalize exploitation and exploration in terms of innovation streams; incremental innovation in existing products as well as exploring into architectural and/or discontinuous innovation. Based on in-depth, longitudinal data on 13 business units and 22 innovations, we investigate the consequences of organization design choices on innovation outcomes as well as the ongoing performance of existing products. We find that ambidextrous organization designs are significantly more effective in executing innovation streams than functional, cross-functional, and spinout designs. Further, transitions to ambidextrous designs were associated with significantly increased innovation outcomes, while shifts away from ambidextrous designs were associated with decreases in innovation outcomes.

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Format: PDF | Size: 416KB | Date: Sep 2006 | Pages: 57

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