Understanding the Practice of Ambidexterity through Cognitive Leadership In Family Firm

Abstract

Ambidexterity refers to conditions where an organization performs innovation learning activities in both explorative and exploitative way. Exploitative innovations activities are related to deepening capabilities currently exist, while explorative activities related to pursuit new opportunities. The research objective is to analyze social capital that leads to innovation capability of the family firm. Family firm is chosen based on the uniqueness nature of business that interplays with family and business value. The study showed that innovation learning activities process in family firm conducted by founder who acts as both owner and manager exercised in strategic and contextual way. In this sense, the owner provides social support, trust, and remuneration systems that support the innovation activities learning of their employees. Social capital of innovation learning activities in family firm becomes important because value of family business overlaps between value as a business entity and value as a family. Family businesses chosen are in beauty parlour, culinary, and fashion area. Data in this research are collected through in-depth interview with selected informants in 2017.