MGT 3659 Chapter Notes - Chapter 11: Ambidexterity, Organizational Culture, Groupthink
Document Summary
Absorptive capacity a firm"s ability to understand external technology developments, evaluate them, and integrate them into current products or create new ones. Ambidexterity a firm"s ability to address trade-offs not only at one point but also over time. It encourages managers to balance exploitation with exploration. Ambidextrous organization an organization able to balance and harness different activities in trade-off situations. Centralization an organization element that refers to the degree to which decision making is concentrated at the top of the organization. Exploitation applying current knowledge to enhance firm performance in the short term. Exploration searching for new knowledge that many enhance a firm"s future performance. Formalization an organizational element that captures the extent to which employee behavior is steered by explicit and codified rules and procedures. Founder imprinting a process by which the founder defines and shapes and organization"s culture, which can persist for decades after his or her departure.
