Business Ambidexterity Report: Exploring, Exploiting, and Management

This report provides an in-depth analysis of ambidexterity within a business context. It explores how organizations can effectively balance exploring new opportunities and exploiting existing ones across various functions, including leadership, operational management, and management accounting. The report examines the processes of exploration, such as searching for new markets and designing innovative products, and exploitation, focusing on selling and reselling products to increase profitability. It also highlights the challenges organizations face in implementing ambidexterity, such as balancing long-term and short-term goals, and offers recommendations for improvement. The report draws on various academic sources to support its arguments and concludes that ambidexterity is a valuable approach for businesses aiming to adapt to changing market demands and achieve sustainable success. The report also analyzes challenges that organizations face during exploration and exploitation and provides recommendations for improvements.

AMBIDEXTIRITY

EXECUTIVE SUMMARY
This assignment assesses the concept of ambidexterity within a business
situation. It has studied the abilities of exploring designs that is produced and created
by a company, by searching new markets, making decisions and implementing
actions. It has also identified way through which exploiting these products are done,
so that it can be sold or resold to other businesses, in such a way that there is increase
in profits. It has also examined how innovations can be achieved and their impact on
productivity of organization. The study of ambidexterity allows organizations to study
their capabilities, which will enable them to operate business operations as well as
adapt to future demands by efficiently exploring and exploiting different techniques to
sell their products. This assignment has also analyzed the challenges that an
organization has faced during this process and recommendations for improvements
have been given as well.

TABLE OF CONTENTS
EXECUTIVE SUMMARY............................................................................................2
INTRODUCTION.........................................................................................................4
EXPLORING BUSINESS SITUATION.......................................................................4
EXPLOITATION OF BUSINESS SITUATION..........................................................5
MANAGEMENT OF AMBIDEXTERITY...................................................................6
CHALLENGES FACED DURING EXPLORING AND EXPLOITING.....................7
CONCLUSION..............................................................................................................8
RECOMMENDATIONS...............................................................................................9
REFERENCES.............................................................................................................11

INTRODUCTION
Ambidexterity refers to organizations creating a balance between exploring
and exploiting available opportunities, so that they are able to effectively utilize their
skills, ultimately leading to accomplishment of goals. It is involved during the process
of leadership, operations and accounting management (Oehmichen and et.al., 2017).
While exploration includes searching for new opportunities, exploitation consists of
many factors such as experimentation during production, execution and
implementation of plans. This assignment will discuss ambidexterity within an
organization’s business situation, so that profits and productivity can be increased. It
will further understand challenges that are faced during this process and
recommendations for successfully executing it in areas of management will be
provided as well.
EXPLORING BUSINESS SITUATION
As per the views of Kitapçi and Çelik, (2014) organizations can use
ambidexterity while searching for new opportunities within their business. It will
enable them to increase their productivity so that they are able to stay ahead in the
competitive industry. Leaders can enhance their leadership skills by exploring areas in
which they are able to lead followers in complex business situations. Various
practices can allow them to explore challenges that they face during activities done
towards achieving organizational goals. This will allow them to maintain efficiency
while doing their job. Papachroni, Heracleous and Paroutis, (2016) stated that,
Ambidexterity plays an important role in helping leaders to understand how they can
use their skills, in an optimal manner, and increase overall productivity of employees
in an organization. this process uses transformational leadership theory for performing
such functions, which ensures that there is discipline and trust between everyone.
According to O'Reilly III and Tushman, (2013) Operational management has
many key functions and ambidexterity can be used by an organization, so that they are
able to explore situations in which maximum efficiency can be attained. It will enable
practice of flexibility, so that managers can use their capabilities to search for new
opportunities. It can aid organizations in development of competitive advantage so
that they can effectively achieve their goals and stay successful. Operations can run

smoothly, due to assessment of different factors done by management and
implementation of innovative designs into chain supply and logistics. Nieto-
Rodriguez, (2014) Argued that there are various strategies that can be used in
operational management, so that there is correct exploration of ideas and innovations,
which can help in systematic manufacturing of products and services. They can
analyze various uncertainties that may arise in the environment as well as enhance
performance of operations. Overall, it will allow organizations to embrace the
changes that occur, so that business situations can be managed properly.
As per the view of Gschwantner and Hiebl, (2016) Management accounting
can be controlled using ambidexterity concept, as it can help accountants in
effectively managing situations in a business that may arise in the dynamic
environment. They will be able to ascertain costs and methods of controlling it, so that
there is maximum efficiency present. Analysis and exploration of opportunities is
beneficial as it can aid in making estimates for budget planning within the
organization. Duval, (2016) Stated that designing of new products will require
management accountants to determine certain costs, so that they are able to create
financial plans accordingly and estimate how their organizational capabilities can be
used to its full potential.
EXPLOITATION OF BUSINESS SITUATION
In the view of Baškarada, Watson and Cromarty, (2016) exploitation is the
second part of ambidexterity and it mainly focuses on how effectively can an
organization sell their products and services to other businesses. This can be done by,
ensuring coordination and integration of activities that are done in order to achieve
organizational objectives. Leadership can successfully exploit the opportunities that
have been explored by management, so that they are able to influence followers
through encouragement of brainstorming. Havermans and et.al., (2015) Argued that
leaders can experiment and make errors while using available opportunities, so that
there can be a creation of routines that will lead to effective management, overall
increase in productivity and profits in the organization. It will also enable leaders to
switch leadership styles, so that they can change they way they lead, when the
environment changes.

Kortmann and et.al., (2014) stated that operational management is key when it
comes to achievement of objectives in an organization. There has to be full
exploitation of resources that have been identified, as it allows managers to make
proper decisions regarding production and sales of products that is begin
manufactured and sold. In order to do so, there has to be exploration done beforehand.
It can give an idea to management on how supply chain and other factors of
operations can be created so that there is increase in productivity and profits.
According to Nieto-Rodriguez, (2014) Operational management needs to establish a
balance between exploring and exploiting, as it will enable them to make strategic
plans that have values and visions of the organization, which can be communicated
with every manager. This can help in significantly achieving efficiency in operations,
as analysis of opportunities in this field can be beneficial in creating smooth logistics
of products and services that have to be delivered.
Manneri, (2016) argued that exploitation in the area of management
accounting can help managers to exercise control by utilizing existing resources as
well as the new ones that have been explored. Ambidexterity in organizations allows
action-orientated approaches that can be used by accountants, as they will be able to
ascertain the plans of financials that have to be made. While Walrave, B. and et.al.,
(2017) stated that exploitation can help management in effectively creating budgets
through utilization of new and old resources at the same time. It will ensure that there
is long-term survival of organization. However, there is not much clarity present and
this can cause confusion in managers or accountants when they prepare or analyze
financial records.
MANAGEMENT OF AMBIDEXTERITY
Organizations that use ambidexterity while performing functions such as
leadership, operations and management accounting can have an advantage in
competition. According to Oehmichen and et.al., (2017) the balance that is created
between exploring and exploiting can help management when dealing with complex
situations that arise in a business. This systematic process utilizes organizational,
social and human resources in such a way that there is optimum usage of new
opportunities. The skills and competence in employees present in an organization can
be exploited, which will lead to achievement of objectives that have been created by

managers. Wan and et.al., (2017) Stated that structural ambidexterity can help balance
exploring and exploiting at the same time, through common values, targets and
strategies which include increasing profits and overall productivity. While contextual
ambidexterity gives emphasis on employees that are present in the organization, in
which these workers individually balance exploration and exploitation of various
factors.
According to Papachroni, Heracleous and Paroutis, (2015), leaders can use any
approach to explore and exploit resources that can be used to create new designs for
their products. This will allow them to evaluate opportunities that can help in
enhancement of productivity in the organization. New ideas can help in increasing
innovations as well. For this, leaders have to use frameworks that are comprehensive
in nature, so that it can be effectively implemented. But Kitapçi and Çelik, (2014)
argued that managers and leaders will have to make adjustments in order to meet
changes when ascertaining exploration and exploitation of various factors in a
business situation. The environment regularly demands strategies that can be
implemented in complex areas of an organization. This allows them to understand the
uncertainties that they will have to face when creating short and long-term goals.
As per the views of Manneri, (2016) Ambidexterity has a positive impact
towards operational management in an organization. This area requires innovations
because of high changes of change in supply chain and logistics. Management is able
to create new strategies, which leads to increase in sales and profits. There are various
organizations that have adopted processes of exploration and exploitation, which has
made them successful in delivering their products and services efficiently. Oehmichen
and et.al., (2017) Stated that the technique of ambidexterity has 4 different
approaches, which include separating, switching, self-organizing and external eco
systems. These can help in exploring and exploiting various elements of operations
management, so that there is decrease in operational costs.
CHALLENGES FACED DURING EXPLORING AND
EXPLOITING
Ambidexterity involves balancing of exploration and exploitation, but at this
cannot be achieved by most organizations, due to its complexity. Papachroni,

Heracleous and Paroutis, (2016) states that managers are not skilled with the practice
of this approach, which can cause challenges while implementing it. There are various
dimensions present in it, which can cause lack of focus on long-term goals.
Weightage can be only given to either the future or present of organization. Leaders
may not be able to link strategies and exploration of opportunities or exploitation of
old resources due to vast differences. It is difficult to divide both of these aspects, as
their demand cannot be met at the same time. On the other hand, Havermans and
et.al., (2015) argued that ambidexterity can cause problems in operational
management, as this approach only focuses on one area and managers are unable to
make proper decisions regarding choices that have to be made on operations of the
organization. This is mainly because they have lack of understanding about how they
can use their old capabilities and explore for new ones simultaneously.
Another challenge of exploration is that sometimes, there are not enough
opportunities available for some organizations and this can cause issues while
management accounting is done. Kitapçi and Çelik, (2014) states that due to extreme
uncertainties, accountants are unable to create correct budgets and financial estimates
that are required for running business operations. There is lack of control in the hands
of these managers, which can lead to decrease in profitability. There is no assurance
that exploring can help in creating new designs of products and this can only be done
through exploitation of certain skills that are present in employees. While Walrave, B.
and et.al., (2017) argued that there are certain areas such as market and technological
changes that require exploitation rather than exploration and making decisions depend
upon the organization’s industry. There is insufficient energy to exploit capabilities
and this is a great challenge for managers. Overall, this practice can only be opted by
those, who are ready to change systems in a rapid manner. There are less chances of
gaining innovations in a dynamic environment and it may not be cost efficient for
such organizations, as they will have to invest in heaving research and development
teams.
CONCLUSION
This assignment can conclude that ambidexterity is considered to be a good
approach for organizations, as they are able to create a balance between exploring
new options and ideas while exploiting old ones. This can be used in leadership,

operational management and management accounting as leaders and managers will be
able to identify opportunities as well as learn how to control different elements of
business functions. This assignment further infers that there are many challenges that
are arise when ambidexterity is implemented in organizations and this can cause them
to be less successful during tough competitions. This can lead to decrease in overall
productivity as well as profits of the organization. Management will not be able to
effectively utilize capabilities that are present in them.
RECOMMENDATIONS
Ambidexterity can have an extremely positive impact if proper
implementations are done in organizations. Innovation is key, when it comes to
exploration of new ideas and opportunities. It is important for management to keep
brainstorming so that they are able to create new innovations for designing their
products and services. This will help them to build unique thing, which will
eventually lead to increase in their sales and profits (Kitapçi and Çelik, 2014). While
leaders can use exploitation to bring out their best abilities as well as enhance
capabilities of employees. It will aid in maximizing productivity levels in the
organization. However, management has to first successfully set them in the market in
which they operate. This will help in establishing an organization by developing their
culture, structure and other systems. If they are setting operations in new markets,
then they will have to explore opportunities that are available. Then only will they be
able to grow, increase their overall productivity and profits.
Another recommendation includes training and development of employees, so
that they are able to understand ambidexterity and how it has to be applied. This can
help them in quickly adapting to changes, so that they are well aware of how
exploring and exploiting can be done within the organization. It will also aid in
enhancing their capabilities, so that it can be exploited to its fullest potential. This will
allow them to increase their productivity as well, eventually leading to high
profitability (Manneri, 2016). These training programs will enable managers and
leaders to effective create and accomplish organizational goals. It will also give them
a chance to make new innovations, which can be used for their benefit. They can
work on present strategies as well as focus on future ones. They will be able to
survive even during tough competitions.

Finally, capabilities of organization and individuals present in it can extend
their abilities and skills so that proper exploration and exploitation is done. They can
also develop new capabilities so that there is efficiency in business operations in new
markets. It will ensure that management adapts to zones outside their comfort level.
They can also use current capabilities so that managers can address operational
management, leadership and management accounting. This will help in promotion of
exploration and exploitation, which can further enable managers to ascertain threats
that can be harmful for organization as well as strengthen skills of the company to
achieve goals in an effective manner (Pop, 2014). They can identify assets that can be
beneficial for them and support managers at senior level by resolving challenges and
conflict that may arise during the process of ambidexterity. Overall, they can separate
aspects of exploring and exploiting, so that achievement of gaining high profits can be
done.

REFERENCES
Books and Journals
Baškarada, S., Watson, J. and Cromarty, J., 2016. Leadership and organizational
ambidexterity. Journal of Management Development. 35(6). pp.778-788.
Duval, L., 2016. Organisational Ambidexterity and the Management Accountant: A
Review. Journal of Applied Management Accounting Research. 14(2).
Gschwantner, S. and Hiebl, M.R., 2016. Management control systems and
organizational ambidexterity. Journal of Management Control. 27(4). pp.371-
404.
Havermans, L.A. and et.al., 2015. Exploring the role of leadership in enabling
contextual ambidexterity. Human Resource Management. 54(S1). pp.s179-
s200.
Kitapçi, H. and Çelik, V., 2014. The relationship between ambidexterity,
organizational learning capacity and firm quality performance: An empirical
study. Procedia-Social and Behavioral Sciences. 109. pp.827-836.
Kortmann, S. and et.al., 2014. Linking strategic flexibility and operational efficiency:
The mediating role of ambidextrous operational capabilities. Journal of
Operations Management. 32(7-8). pp.475-490.
Manneri, V., 2016. Management control in exploitation, exploration and
organizational ambidexterity–The use and formalization of management
control systems as antecedents for different modes of innovation.
O'Reilly III, C.A. and Tushman, M.L., 2013. Organizational ambidexterity: Past,
present, and future. Academy of management Perspectives. 27(4). pp.324-338.
Oehmichen, J. and et.al., 2017. Boards of directors and organizational ambidexterity
in knowledge-intensive firms. The International Journal of Human Resource
Management. 28(2). pp.283-306.
Papachroni, A., Heracleous, L. and Paroutis, S., 2015. Organizational ambidexterity
through the lens of paradox theory: Building a novel research agenda. The
Journal of Applied Behavioral Science. 51(1). pp.71-93.
Papachroni, A., Heracleous, L. and Paroutis, S., 2016. In pursuit of ambidexterity:
Managerial reactions to innovation–efficiency tensions. human
relations. 69(9). pp.1791-1822.
Tushman, M. and Euchner, J., 2015. The challenges of ambidextrous
leadership. Research-Technology Management. 58(3). pp.16-20.
Walrave, B. and et.al., 2017. Managerial attention to exploitation versus exploration:
toward a dynamic perspective on ambidexterity. Industrial and Corporate
Change. 26(6). pp.1145-1160.
Wan, X. and et.al., 2017. Unraveling platform strategies: A review from an
organizational ambidexterity perspective. Sustainability. 9(5). p.734.
Online
Nieto-Rodriguez, A., 2014. Organizational ambidexterity. [Online]. Available
through: < https://www.london.edu/faculty-and-research/lbsr/organisational-
ambidexterity >

Pop, O. M., 2014. Organizational ambidexterity- a glimpse at the state-of-the-art.
[Online]. Available through: <
https://blog.hypeinnovation.com/organizational-ambidexterity-a-glimpse-at-
the-state-of-the-art>