Abstract
While knowledge exploration and exploitation represent two distinct activities requiring corresponding organizational arrangements, new product development calls for a dynamic combination of the two. Based on a systematic review of the paradox between knowledge exploration and exploitation and various resolving strategies, this research extends the construct of organizational ambidexterity from dual structure to ambidextrous capabilities, and suggests a dialectical method for reconciling this paradox at lower organizational levels. Based on a case study on the development teams of air conditioner in Haier, we find that ambidexterity is a multi-level construct existing not only at the organization level but also at lower levels such as teams and individuals like model managers.
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