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2016 | OriginalPaper | Chapter

8. The Entrepreneurial Organization Is Dynamic and Ambidextrous

Authors : Annika Steiber, Sverker Alänge

Published in: The Silicon Valley Model

Publisher: Springer International Publishing

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Abstract

Whereas previous chapters of The Silicon Valley Model have dealt with human-factor aspects of the new approach to management—such as recognizing and recruiting talented people, building an entrepreneurial culture, and personal leadership—this chapter delves more deeply into the organizational aspects. The importance of having Dynamic Capabilities is explained, along with a closely allied topic: creating an Ambidextrous organization, able to innovate while optimizing current operations. Three fundamental ways of building innovation into the firm are considered: innovation inside present operations, innovation by separate innovation units, and different approaches to open innovation.

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Footnotes
2
Employment figures (as of 31 December 2014) are from the annual reports 2015 for Facebook, Google, LinkedIn, Tesla and Twitter —plus through www.​bloomberg.​com for Apigee (accessed 1 August 2015). The companies have been growing rapidly, so the numbers will not be accurate when you read this – but they will provide a picture of their relative size and founding year:
No. of empl. 31 Dec 2014
Start year
No. of empl. 31 Dec 2014
Start year
Apigee
409
2004
Facebook
9,199
2004
Twitter
3,638
2006
Tesla
10,161
2003
LinkedIn
6,897
2002
Google
53,600
1998
 
3
Schumpeter (1942), p. 132.
 
4
The question of how to pursue both exploitation and exploration had, however, been on the agendas of both researchers (Alänge 1987) and practitioners even before March (1991) stated his well-quoted dichotomy. Long before, Schumpeter had dwelled upon the issue of statics and dynamics, referring to the difference between continuous adjustments in small steps and the carrying out of new combinations, which he called innovation. (Schumpeter 1912, 1934).
 
5
Tushman and O’Reilly (1997), p. 14.
 
6
Benner and Tushman (2015), pp. 11–12.
 
7
Benner and Tushman (2015), p. 12.
 
8
Tushman and O’Reilly (1997), p. 37.
 
9
http://​onforb.​es/​qHi7ON (accessed 26 July 2015).
 
10
Schmidt and Rosenberg (2014), pp. 175–176.
 
12
Companies such as Coca-Cola are also using 70-20-10 rules for innovation. Other companies use other variants of simple rules to focus on innovation, such as 3M’s Thirty Percent Rule stipulating that 30 % of each division’s revenues must come from products introduced in the last 4 years.
 
13
Garud et al. (2011), pp. 31–32.
 
14
Sull and Eisenhardt (2015), p. 227.
 
15
Amabile and Kramer (2011).
 
16
Schumpeter (1934), pp. 93–94.
 
17
Amabile and Kramer (2011).
 
19
Steiber (2014), p. 73.
 
20
Ries (2011).
 
21
Schmidt and Rosenberg (2014), p. 234.
 
22
Ries (2011), p. 228.
 
23
Steiber and Alänge (2013a).
 
24
Schmidt and Rosenberg (2014), p. 235.
 
25
Steiber and Alänge (2013b), p. 589.
 
26
Chesbrough (2002), p. 90.
 
27
Steiber and Alänge (2013b).
 
28
www.​gv.​com (accessed 3 August 2015).
 
29
Thompson (1967).
 
30
Aldrich and Herker (1977).
 
31
Hill and Birkinshaw (2014), p. 1905.
 
32
Ibid. p. 1921.
 
33
Alänge and Steiber (2015).
 
34
Mansfield (1968), Pavitt (1984).
 
35
Rothwell and Dodgson (1991), p. 125.
 
36
Rothwell and Zegveld (1982), p. 111.
 
37
Lee and Jay (2015).
 
39
Sidhu (2010), pp. 31–32.
 
41
Hardy (2011) http://​onforb.​es/​qHi7ON (accessed 27 July 2015).
 
42
Steiber and Alänge (2013b).
 
43
Boudreau and Lakhani (2013), p. 63.
 
44
Steiber and Alänge (2013b), p. 589.
 
45
Gawer and Cusumano (2014).
 
46
Steiber and Alänge (2013b).
 
47
Altman et al. (2015), p. 353.
 
49
Schmidt and Rosenberg (2014), pp. 78–79.
 
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Metadata
Title
The Entrepreneurial Organization Is Dynamic and Ambidextrous
Authors
Annika Steiber
Sverker Alänge
Copyright Year
2016
DOI
https://doi.org/10.1007/978-3-319-24921-6_8

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