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Ambidextrous organization


Organizational ambidexterity refers to an organization’s ability to be efficient in its management of today’s business and also adaptable for coping with tomorrow’s changing demand. Just as being ambidextrous means being able to use both the left and right hand equally, organizational ambidexterity requires the organizations to use both exploration and exploitation techniques to be successful.

Organizational ambidexterity was defined as an organization’s ability to be aligned and efficient in its management of today’s business demands as well as being adaptive to changes in the environment at the same time. This term of organizational ambidexterity was first used by Duncan, however, it was March that had been credited for developing and generating greater interest in this concept, especially in the late 20th and early 21st century. Ambidexterity in an organization is achieved by balancing exploration and exploitation, which allows the organization to be creative and adaptable, while also continuing to rely on more traditional, proven methods of business.Exploration includes things such as search, variation, risk taking, experimentation, flexibility, discovery or innovation, whereas exploitation includes such things as refinement, choice, production, efficiency, selection, implementation, and execution. Companies that focus only on exploration face the risk of wasting resources on ideas that may not prove useful or never be developed. On the other hand, companies that focus only on exploitation may accept status quo performance and products and fail to reach optimal levels of success.


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