Catherine L. Wang and Mohammed Rafiq (2009) Organizational diversity and shared vision: resolving the paradox of exploratory and exploitative learning. European Journal of Innovation Management, 12 (1). pp. 86-101.. ISSN 1460-1060
Full text access: Open
Purpose: The objectives of this paper are: (i) to address the issue of the tensions pertinent to exploratory and exploitative innovation activities from the organizational learning perspective; (ii) to conceptualize how organizational diversity and shared vision, as two core components of organizational culture, help resolve these tensions; and (iii) to discuss the organizational configurations necessary for instilling organizational diversity and shared vision for achieving innovation goals. Design/methodology/approach: This is a conceptual paper that focuses on the role of organizational culture in promoting corporate entrepreneurship from the organizational learning perspective. Findings: Organizational diversity and shared vision are important for a balanced approach to exploratory and exploitative learning. Organizational parameters must be aligned to instill the two types of organizational culture to achieve either simultaneous or sequential ambidexterity. Research limitations/implications: The key theoretical arguments regarding the role of organizational diversity and shared vision in entrepreneurial learning may be adopted for empirical testing in future research. Practical implications: The arguments of the paper caution that organizations must focus not only on entrepreneurial values in terms of diversity and creativity, but also promote goaloriented behavior through instilling a shared vision to integrate individual learning in organizational learning and to balance the need for different types of learning in the corporate entrepreneurship process. Originality/value: The paper articulates the different learning styles and mechanisms involved in the exploratory and exploitative learning and then elaborates on the role of organizational diversity and shared vision on resolving the paradox of exploration and exploitation. Paper type: Conceptual paper
This is a Published version This version's date is: 2009 This item is peer reviewed
https://repository.royalholloway.ac.uk/items/d081dd64-36ce-8161-fb9c-788204039802/1/
Deposited by Al Dean (ZSRA118) on 09-Mar-2010 in Royal Holloway Research Online.Last modified on 07-Jan-2011
(C) 2009 Emerald, whose permission to mount this version for private study and research is acknowledged. The repository version is the author's final draft.
Aldrich, H and Wiedenmeyer, C. (1993). "From traits to rates: An ecological perspective onorganizational foundings". Advances in Entrepreneurship, Firm Emergence, and Growth, 1,145-195.
Alvarez, S. A and Busenitz, L.W. (2001). "The entrepreneurship of resource-based theory".Journal of Management, 27, 755-775.
Amabile, T.M., Conti, R., Coon, H., Lazenby, J. and Herron, M. (1996). Assessing the workenvironment for creativity. Academy of Management Journal, 39,1154-1184.
Ancona, D.G. and Caldwell, D.F. (1992). "Demography and design: Predictors of newproduct team creativity". Organization Science, 3, 321-341.
Argyris, C. and Schön, D. (1978). Organizational learning: A theory of action perspective.Addison-Wesley, Reading, MA
Atuahene-Gima, K. (2005). "Resolving the capability-rigidity paradox in new productinnovation". Journal of Marketing, 69, 61-83.
Bantel, K. A. and Jackson, S. E. (1989). "Top management and innovations in banking".Strategic Management Journal, 10, 107-129.
Barringer, B.R. and Bluedorn, A.C. (1999). "The relationship between corporateentrepreneurship and strategic management". Strategic Management Journal, 20, 421-444.
Blau, P. M. (1977). Inequality and heterogeneity. New York: Free Press.
Bröring, S. and Herzog, P. (2008). "Organising new business development: open innovationat Degussa". European Journal of Innovation Management, 11(3), 330-348.
Burgelman, R. A. (1991). "Intraorganizational ecology of strategy making and organizationaladaptation: theory and field research". Organization Science, 2, 239-262.
Burgelman, R. A. (2002). "Strategy as vector and the inertia of coevolutionary lock-in".Administrative Science Quarterly, 47, 325-357.
Choi, Y.R. and Shepherd, D. A. (2004). "Entrepreneurs' decisions to exploit opportunities".Journal of Management, 30, 377-395.
Chrisman, J.J. and McMullan, W.E. (2000). "A preliminary assessment of outsider assistanceas a knowledge resource: The longer-term impact of new venture counseling".Entrepreneurship Theory and Practice, 24, 37-53.
Chung, L.H. and Gibbons, P.T. (1997). Corporate entrepreneurship: The roles of ideologyand social capital. Group & Organization Studies, 22, 10-30.
Cohen, M. D. and Levinthal, D. A. (1990). "Absorptive capacity: A new perspective onlearning and innovation". Administrative Science Quarterly, 35, 128-152.
Cooper, A.C. (1995). "Challenges in predicting new venture performance". In Bull I, ThomasH, Willard G (Eds.). Entrepreneurship: Perspectives on Theory Building. London: ElsevierScience Ltd.
Covin, J.G., Green, K.M. and Slevin, D.P. (2006). "Strategic process effects on theentrepreneurial orientation-sales growth rate relationship". Entrepreneurship Theory andPractice, 30, 57-81.
Cox, T. (1994). Cultural diversity in organizations: Theory, research, and practice. SanFrancisco: Berrett-Koehler.
Dass, P. and Parker, B. (1999). "Strategies for managing human resource diversity: Fromresistance to learning". Academy of Management Executive, 13, 68-80.
De Wit, B. and Meyer, R. (2004). Strategy: Process, content, context. Thomson Learning,London.
Drazin, R., Glynn, M.A. and Kazanjian, R.K. (1999). "Multilevel theorizing about creativityin organizations: A sensemaking perspective". Academy of Management Review, 24, 286-307.
Dunne, T., Roberts, M. and Samuelson, L. (1988). "Patterns of firm entry and exit in U.S.manufacturing industries". Rand Journal of Economics, 19, 495-515.
Dutta, D.K. and Crossan, M. M. (2005). "The nature of entrepreneurial opportunities:Understanding the process using the 4I organizational learning framework".Entrepreneurship Theory and Practice, 29, 425-449.
Garvin, D.A. (1993). "Building a learning organization". Harvard Business Review, 7, 78-91.
Gregory, K.L. (1983). "Native-view paradigms: Multiple cultures and culture conflicts inorganizations". Administrative Science Quarterly, 28, 359-376.
Guilford, J.P. (1967). The nature of human intelligence. New York : McGraw-Hill.
Guth, W.D. and Ginsberg, A. (1990). "Guest Editors' introduction: Corporateentrepreneurship". Strategic Management Journal, 11, Special issue, 5-15.
Hambrick, D.C., Cho, T.S. and Chen, M.J. (1996). "The influence of top management teamheterogeneity on firms' competitive moves". Administrative Science Quarterly, 41, 659-684.
Hannan, M. and Freeman, J. (1984). "Structural inertia and organizational change". AmericanSociological Review, 49, 149-164.
Harrison, R. T., and Leitch, C. M. (2005). "Entrepreneurial learning: Researching theinterface between learning and the entrepreneurial context". Entrepreneurship Theory andPractice, 29, 351-371.
Hartenian, L. and Gudmundson, D. E. (2000). "Cultural diversity in small business:Implications for firm performance". Journal of Developmental Entrepreneurship, 5, 209-219.
He, Z. L. and Wong, P. K. (2004). "Exploration vs. exploitation: An empirical test of theambidexterity hypothesis". Organization Science, 15, 481-494.
Hendry, C., Arthur, M. B. and Jones, A. (1995). Strategy through people: Adaptation andLearning in the SME. Routledge, London.
Hitt, M. A., Ireland, R. D., Camp, S.M. and Sexton, D.L. (2001). "Guest Editors' introductionto the Special Issue strategic entrepreneurship: Entrepreneurial strategies for wealthcreation". Strategic Management Journal, 22, 479-491.
Huber, G.P. (1991). "Organizational learning: The contributing processes and the literatures".Organization Science, 2, 88-115.
Hult, G.T.M. (2003). "An integration of thoughts on knowledge management". DecisionSciences, 34, 189-196.
Ireland, R. D., Hitt, M. A., Camp, S. M. and Sexton, D. L. (2001). "Integratingentrepreneurship and strategic management actions to create firm growth". Academy ofManagement Executive, 15, 49-63.
Ivancevich, J. (2000). "Diversity management: Time for a new approach". Public PersonalManagement, 29, 75-92.
Kaish, S. and Gilad, B. (1991). "Characteristics of opportunities search of entrepreneursversus executives: Sources, interests, and general alertness". Journal of Business Venturing,6, 45-61.
Kirk, D. (1998). "Entrepreneurial context and behaviour in SMEs: An investigation of twocontrasting manufacturing firms". International Journal of Entrepreneurial Behaviour &Research. 4, 88-100.
Kirzner, I. (1979). Perception, opportunity, and profit. Chicago: University of Chicago Press.
Kirzner, I. (1997). "Entrepreneurial discovery and the competitive market process: AnAustrian approach". Journal of Economic Literature, 35, 60-85.
Knight, D., Pearce, C.L., Smith, K.G., Olian, J.D., Sims, H.P., Smith, K.A. and Flood, P.(1999). "Top management team diversity, group process, and strategic consensus". StrategicManagement Journal, 20, 445-465.
Knight, F. (1921). Risk, uncertainty, and profit. Boston, Mass.: Houghton Mifflin.
Kolb, D. A. (1976). Learning-Style Inventory, Boston, MA: McBer and Company.
Kolb, D.A. (1984). Experiential learning: Experience as the source of learning anddevelopment. Englewood Cliffs, NJ: Prentice Hall.
Leana, C.R. and Van Buren, H.J. III. (1999). Organizational social capital and employmentpractices. Academy of Management Review, 24, 538-555.
Lumpkin, G.T. and Dess, G.G. (1996). "Clarifying the entrepreneurial orientation constructand linking it to performance". Academy of Management Review, 97, 135-172.
Lumpkin, G.T. and Lichtenstein, B.B. (2005). „The role of organizational learning in theopportunity-recognition process". Entrepreneurship Theory and Practice, 29, 451-472.
March, J. (1991). Exploration and exploitation in organizational learning. OrganizationScience, 2, 71-87.
McGrath, R,, Venkataraman, S. and MacMillan, I. (1994). "The advantage chain:Antecedents to rents from internal corporate venture". Journal of Business Venturing, 9, 351-369.
McGrath, R.G. (2001). "Exploratory learning, innovative capacity, and managerialoversight". Academy of Management Journal, 44, 118-131.
Menguc, B. and Auh, S. (2005). "A test of strategic orientation formation versus strategicorientation implementation: The influence of TMT functional diversity and inter-functionalcoordination". Journal of Marketing Theory and Practice, 13, 4-19.
Miller, D. and Friesen, P. H. (1983). "Strategy-making and environment: The third link".Strategic Management Journal, 4, 221-235.
Miller, D. and Friesen, P. H. (1982). "Innovation in conservative and entrepreneurial firms:Two models of strategic momentum". Strategic Management Journal, 3, 1-25.
Mitchell, R.K., Busenitz, L., Lant, T., McDougall, P.P., Morse, E.A. and Smith, J.B. (2002)."Toward a theory of entrepreneurial cognition: Rethinking the people side ofentrepreneurship research". Entrepreneurship Theory and Practice, 27, 93-104.
Murray, J.A. (1984). "A concept of entrepreneurial strategy". Strategic Management Journal,5, 1-13.
Oldham, G.R. and Cumming, A. (1996). "Employee creativity: Personal and contextualfactors at work". Academy of Management Journal, 39, 607-634.
Orton, J.D. and Weick, K.E. (1990). "Loosely coupled systems: A reconceptualization".Academy of Management Review, 15, 203-223.
Ouchi, W. G. (1980). "Markets, bureaucracies, and clans". Administrative Science Quarterly,25, 129-141.
Pettigrew, A.M. (1979). "On studying organizational culture". Administrative ScienceQuarterly, 24, 570-581
Popper, M. and Lipshitz, R. (1998). "Organizational learning mechanisms: A structural andcultural approach to organizational learning". Journal of Applied Behavioral Science, 34,161-179.
Quinn, J.B. (1985). "Managing innovation: Controlled chaos". Harvard Business Review, 63,73-84.
Rice, M. (2002). "Co-production of business assistance in business incubators: Anexploratory study". Journal of Business Venturing, 17, 163-187.
Richard, O. (2000). "Racial diversity, business strategy, and firm performance". Academy ofManagement Journal, 43, 164-177.
Richard, O.C., Barnett, T., Dwyer, S. and Chadwick, K. (2004). "Cultural diversity inmanagement, firm performance, and the moderating role of entrepreneurial orientationdimensions". Academy of Management Journal, 47, 255-266.
Schein, E. (1985). Organizational culture and leadership. Jossey-Bass, San Francisco, CA.
Schildt, H. A., Maula, M. V. J. and Keil, T. (2005). „Explorative and exploitative learningfrom external corporate ventures". Entrepreneurship Theory and Practice, 29, 493-515.
Schumpeter, J. (1934). Capitalism, socialism, and democracy. New York: Harper & Row.
Selznick, P. O. (1957). Leadership in administration. New York: Row Peterson.
Senge, P. (1990). The fifth discipline: The art and practice of the learning organization.Doubleday, New York, NY.
Shane, S. (2003). A general theory of entrepreneurship. Cheltenham: Edward Elgar.
Shane, S. and Venkataraman, S. (2000)."The promise of entrepreneurship as a field ofresearch". Academy of Management Review, 25, 217-226.
Shane, S. (1996)."Explaining variation in rates of entrepreneurship in the United States:1899-1988". Journal of Management, 22, 747-781.
Sinkula, J.M., Baker, W.E. and Noordewier, T. (1997). "A framework for market-basedorganizational learning: Linking values, knowledge, and behavior". Journal of the Academyof Marketing Science, 25, 305-318.
Sinkula, J. M. (1994). "Market information processing and organizational learning". Journalof Marketing, 58, 35-45.
Sitkin, S. B. and Roth, N. L. (1993). "Explaining the limited effectiveness of legalistic"remedies" for trust / distrust". Organization Science, 4, 367-392.
Slater, S.F. and Narver, J. C. (1995). "Market orientation and the learning organization".Journal of Marketing, 59, 63-74.
Stevenson, H.H. and Jarillo, J. C. (1990). "A paradigm of entrepreneurship: Entrepreneurialmanagement". Strategic Management Journal, 11, Summer Special Issue, 17-27.
Thompson, J.D. and Tuden, A. (1959). "Strategies, structure and processes of organizationaldecision." In Thompson JD et al. (Eds). Comparative studies in administration. Pittsburgh,PA: University of Pittsburgh Press. pp.195-216.
Torrance, E.P. (1988). "The nature of creativity as manifest in its testing". In Sternberg RJ(Ed.), The nature of creativity: Contemporary psychological views. Cambridge, England:Cambridge University Press, pp.43-75.
Tsai, W. and Ghoshal, S. (1998). "Social capital and value creation: The role of intra-firmnetworks". Academy of Management Journal, 41, 464-476.
Tushman, M. L. and O'Reilly, C. A. (1996). "Ambidextrous organizations: Managingevolutionary and revolutionary change". California Management Review, 38, 8-30.
Utterback, J. (1994). Mastering the dynamics of innovation. Cambridge, MA: HarvardBusiness School Press.
Van de Ven, A.H., Polley, D.E., Garud, R.and Venkataraman, S. (1999). The innovationjourney. New York, NY: Oxford University Press.
Ward, T.B. (2004). "Cognition, creativity, and entrepreneurship". Journal of BusinessVenturing, 19, 173-188.
Wiklund, J. (1999). "The sustainability of the entrepreneurial orientation-performancerelationship". Entrepreneurship Theory and Practice, 24, 37-48.
Wilkins, A. L. and Ouchi, W.G. (1983). "Efficient cultures: Exploring the relationshipbetween culture and organizational performance". Administrative Science Quarterly, 28, 468-481.
Zahra, S.A. (1993). "A conceptual model of entrepreneurship as firm behavior: A critiqueand extension". Entrepreneurship Theory and Practice, 17, 5-21.
Zahra, S.A., Kuratko, D.F. and Jennings, D.F. (1999). „Entrepreneurship and the acquisitionof dynamic organizational capabilities". Entrepreneurship Theory and Practice, 23, 5-10.