Combining Productivity and Renewal in a Production Organisation: the Case Study on Organisational Ambidexterity

Abstract

This case study examined how productivity and renewalare combined in a production organization operating in process industry through the antecedents of organizational ambidexterity; structure, culture, and management. The empirical material consisted of semistructured interviews, observations and case organization documents. The findings suggest that the case organization structurally separates exploitation and exploration toseparate units. However, it was found that the units focusing on exploration also devote resources to exploitation. External networks, such as customers, suppliers, and other factories seemed to play a role in the exploration activities, as well as in learning activities, which were connected to renewal. Productivity was seen as a natural part of a production organization and pursued at manufacturing units. Process management techniques appeared to be spread across the organization and having positive impact on exploitation and negative impact on exploration. The managerial culture and management’s capability to communicate goals, vision and strategy was found to be unsatisfactory. This thesis contributes to the new research paradigm of organizational ambidexterity by providing unique results on how the antecedents of organizational ambidexterity are accomplished in a production organization. Furthermore, the thesis extends the previous research of organizational renewalcapability by connecting it to the ambidexterity theory.