Definition: A type of organization that is capable of exploiting its existing assets to maximize efficiencies and profitability while simultaneously exploring new opportunities and innovations to ensure future growth. This dual capability allows the organization to manage current business demands and innovate without compromising either.

Process:

Structural Separation: Creating separate units or divisions within the organization, one focused on the exploitation of current capabilities and the other on exploring new opportunities.
Strategic Balance: Maintaining a balance between the allocation of resources, management support, and cultural development for both exploration and exploitation activities.
Leadership Support: Top management fosters a culture that supports both aspects, ensuring alignment with the organization’s overall strategic objectives.
Integration Mechanisms: Establishing processes and communication channels that facilitate knowledge sharing and collaboration between the explorative and exploitative units.
Contextual Ambidexterity: Encouraging individual employees to engage in both exploratory and exploitative activities, often through flexible roles or cross-functional teams.

Types:

Structural Ambidexterity: Involves creating distinct structures within the organization for different types of activities.
Contextual Ambidexterity: Relies on the context set by management that allows employees to switch between exploration and exploitation modes as needed.

Application Example: A large technology firm operates an R&D division tasked with innovating and developing new products (explorative), while another division focuses on refining current products and improving operational efficiencies (exploitative). This setup allows the company to continue improving its core offerings while also pursuing potentially disruptive innovations.

Further Reading:

Harvard Business Review: https://hbr.org/ – Search for articles on ambidexterity in organizations to find a range of discussions and case studies.
The Academy of Management Journal: https://aom.org/ – Offers academic papers and research findings on organizational behavior, including studies on ambidextrous organizations.