Article: Structure-Based Alliance Ambidexterity: An Empirical Study of the American Motion Picture Industry Journal: Journal of Business and Management (JBM) 2013 Vol.19 No.3 pp.19 - 40 Abstract: A central and recurring theme in organizational scholarship is the importance of recognizing and dealing with stability and change, along with accommodating the conflicting demands they often present. March and Simon (1958) argued that organizations can improve their performance by separating units that are taking advantage of existing successes from those that are trying to discover new opportunities. Burns and Stalker (1961) argued that mechanistic structures are better in a stable environment and organic structures are more effective under conditions of change. Thompson (1967) considered that both efficiency in established practices and flexibility in developing new practices were cornerstones of organizational effectiveness. He argued that without efficiency, organizations' competitive advantage would suffer, and without flexibility, organizational inertia could lead to fatal entrapment in outmoded routines and procedures. Duncan (1976) agreed that firms should strive for a blend of efficiency and flexibility, and he coined the term 'organizational ambidexterity' for that combination. Tushman and O'Reilly (1996) followed a similar approach when they defined ambidexterity as a firm's ability to be both efficient in the short term as well as flexible in the long term. Achieving efficiency and flexibility, as March (1991) suggested, requires organizations to perform two types of competing and complementary activities: exploitation and exploration. Exploitation aims at improving organizational alignment, stability, and control. Exploration focuses on increasing learning scope, experimentation, and adaptation. March noted that an organization should 'engage in sufficient exploitation to ensure its current viability and, at the same time, devote enough energy to exploration to ensure its future viability' (March, 1991, p. 105). Inderscience Publishers - linking academia, business and industry through research

Title: Structure-Based Alliance Ambidexterity: An Empirical Study of the American Motion Picture Industry

Authors: Chailin Cummings

Addresses: Author address listing can be found in the "About the Authors" section at the end of the article.

Abstract: A central and recurring theme in organizational scholarship is the importance of recognizing and dealing with stability and change, along with accommodating the conflicting demands they often present. March and Simon (1958) argued that organizations can improve their performance by separating units that are taking advantage of existing successes from those that are trying to discover new opportunities. Burns and Stalker (1961) argued that mechanistic structures are better in a stable environment and organic structures are more effective under conditions of change. Thompson (1967) considered that both efficiency in established practices and flexibility in developing new practices were cornerstones of organizational effectiveness. He argued that without efficiency, organizations' competitive advantage would suffer, and without flexibility, organizational inertia could lead to fatal entrapment in outmoded routines and procedures. Duncan (1976) agreed that firms should strive for a blend of efficiency and flexibility, and he coined the term 'organizational ambidexterity' for that combination. Tushman and O'Reilly (1996) followed a similar approach when they defined ambidexterity as a firm's ability to be both efficient in the short term as well as flexible in the long term. Achieving efficiency and flexibility, as March (1991) suggested, requires organizations to perform two types of competing and complementary activities: exploitation and exploration. Exploitation aims at improving organizational alignment, stability, and control. Exploration focuses on increasing learning scope, experimentation, and adaptation. March noted that an organization should 'engage in sufficient exploitation to ensure its current viability and, at the same time, devote enough energy to exploration to ensure its future viability' (March, 1991, p. 105).

Keywords: Alliance ambidexterity; organizational structure; American motion picture industry; exploration and exploitation; organizational flexibility.

DOI: 10.1504/JBM.2013.141213

Journal of Business and Management, 2013 Vol.19 No.3, pp.19 - 40

Published online: 05 Sep 2024 *

Title: Structure-Based Alliance Ambidexterity: An Empirical Study of the American Motion Picture Industry

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