Middle managers’ construing of exploitative and exploratory innovation projects in two large high-tech corporations
Abstract
This research examines middle-managers’ construing of exploratory and exploitative
innovation projects in two large US high-tech companies. The theoretical basis for this
research is that of organizational ambidexterity and agency theory. Answering a call from
multiple researchers, this research focuses on ambidexterity at the individual level.
The research follows a phenomenological paradigm with its focus on individual experiences
as evidence, and constructivism as epistemological stance. It is based on a case study design,
with data collection completed in two stages, using Repertory Grid Technique in stage 1 and
Key Informant Interviews in stage 2.
Emergent findings indicate that a) prior experience type (exploitative/exploratory) and
function (Engineering / Product management) are the key leading indicators of differences in
the construing of project success; b) there is mostly alignment in how managers from
different levels construe what is important for exploratory and exploitative innovation
projects; c) there is a difference in the extent to which managers apply approaches to these
two types of project; and d) managers rarely apply exploratory-innovation specific
approaches even when merited.
The emergent root cause for lack of exploratory innovation specific approaches appears to be
a result of inertia, and of the expectations of the extant corporate culture. A model is
developed to indicate how a change can be introduced in an organization to address this
finding.
This research contributes to study of ambidexterity, managerial sensemaking, and project
management by offering an insight into how managers from the Product Management and
Engineering functions think about project success. It offers possible explanations for the lack
of distinction between exploration and exploitation when it comes to selection of approaches
and metrics; it presents implications to practice and makes recommendations for improving
chances of success of exploratory innovation projects.