Abstract
PurposeEstablishing a competitive advantage in today's dynamic environment involves optimizing an organization's exploration and exploitation strategy. This paper aims to explore how an open innovation strategy complements the organization's ambidextrous strategy in attaining a competitive advantage. Organizational ambidexterity and dynamic capability theories are also explored to investigate the impact of open innovation on the organization's ambidextrous strategy and competitive advantage – especially inbound and outbound open innovation.Design/methodology/approachThe authors conducted a systematic literature review using Boolean search techniques, which was focused on the research fields of the sub-areas of general management, strategy, innovation, organization studies, information management, entrepreneurship, international business, marketing, and economics, supplemented by the snowball technique.FindingsOrganizations that combine their ambidextrous strategy with open innovation attributes achieve a competitive advantage through developing their dynamic capabilities by which organizations change their value proposition. This study also shows that an ambidextrous strategy should no longer be viewed as a structural solution implemented by management, but also as a bottom-up intervention. Additionally, the authors found that the organization's dynamic capabilities establish a feedback loop, which changes the organization's ambidextrous strategy to resolve the efficiency–agility paradox.Originality/valuePrevious research has focused on strategic orientation; however, hardly any research has investigated how the interrelatedness of open innovation, organizational ambidexterity and dynamic capabilities support a competitive advantage. The authors present a conceptual model that inspires new research avenues.
Highlights
An organization’s competitive advantage can be viewed as the ability, gained through resources and attributes, to perform at a higher level than competitors in the same market© Johannes W.F.C. van Lieshout, Jeroen M. van der Velden, Robert J
We offer a conceptual model that visualizes the relationships between organizational ambidexterity, open innovation practices, and the microfoundational activities of dynamic capabilities that underpin the organization’s strategy and process for securing a competitive advantage
Our analysis and conceptual model both clearly show that organizational ambidexterity adapts to new market circumstances over time, and that organizational ambidexterity first starts as an antecedent of dynamic capabilities, where the organization first chooses its ambidextrous model, after which it proceeds to develop dynamic capabilities that fit with this ambidextrous model
Summary
An organization’s competitive advantage can be viewed as the ability, gained through resources and attributes, to perform at a higher level than competitors in the same market. © Johannes W.F.C. van Lieshout, Jeroen M. van der Velden, Robert J. Published in European Journal of Management Studies. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode
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