Incremental and 'radical' innovation in an emergent country automotive subsidiary: is there any organisational ambidexterity there

Abstract

Organisational ambidexterity is the capacity to simultaneously perform 'exploitation' and 'exploration', that is to exploit existing skills, for instance through incremental innovation, without abandoning the exploration of new opportunities, e.g., through radical or major innovation. This paper aims to analyse how an emergent country automotive subsidiary organises itself for innovation and undertook exploration and exploitation efforts in the context of a multinational group over time. Research was done from a single retrospective, qualitative study. Results showed the existence of 'parallel structures', 'contextual ambidexterity' and 'temporal balancing' for ambidexterity. The relation between organisational ambidexterity and the trajectory of the subsidiary concerning international division of innovative labour was analysed, thus providing a conceptual contribution in order to understand the dynamics of organisation for innovation and, particularly, ambidexterity in the context of multinational companies. Managerial and theoretical implications are discussed especially regarding the impacts of organisational ambidexterity on subsidiaries' capability upgrading processes.