Advantages Of Specialisation Theory

708 Words3 Pages

fundamental change which triggers a thought process and establishes new activity patterns and set up the basis for new equilibrium periods.
2.5.2 Specialisation theory
Specialisation theory describes exploration and exploitation as divided between two organizations. Organization A focuses on exploration while organization B focuses on exploitation (Lavie & Rosenkopf2).
However Annique1 (2007) came up with the drawback of these two theories. As against the punctuated equilibrium theory, she criticised that organizations cannot simultaneously pursue both exploration and exploitation by compromising their future advantages. She criticised the specialisation theory quoting that in this situation a hold-up can occur. If organization A is the designer and organization B the manufacturer. Organization B can refuse to produce the product as being designed by organization A or refuse to produce it so efficiently. Likewise organization A can refuse to reveal their new ideas and products to organization B.
2.5.3 Structural ambidexterity theory
As per structural …show more content…

Paying simultaneous attention to exploration and exploitation is not possible in punctuated equilibrium theory or specialisation theory. It is because of the reason that all the previous researches focussed more on structural ambidexterity, contextual ambidexterity has remained as a widely under-researched realm (S. Raisch & Birkinshaw, 2008). Recently many researchers have come up with contextual ambidexterity and its dynamisms and repercussions on organisation and businesses. Since it arises from the features of its organization context, ‘contextual ambidexterity’ is named so (Gibson and Birkinshaw9)building ambi. Structural ambidexterity arises from the structural mechanisms and process to pursue innovation. This is the main difference between the

Open Document