A literature-derived entrepreneurial framework for organizational development towards ambidexterity

Abstract

Entrepreneurship is a challenging undertaking where uncertainty and fast evolving dynamics are complexifying the process of taking a company from its seed stage to market entry, growth and commercialization with competitive advantage and commercial success through market leadership, sustainable performance, or exit through acquisition or initial public offering (IPO). A broad literature base addresses entrepreneurship, startup business, venture capital, including in the biotech sector. Innovative approaches to entrepreneurship are centered around a “lean startup” approach based on build-test-learn cycles via minimum viable products (MVPs). When it comes to the complexity associated with bringing a tech startup from its foundation through growth investments to market and commercialization, entrepreneurs are challenged. While success is based on the fit between organizational competencies, technology, product, and market need, environmental dynamics render competitive advantage temporary, and call for adaptive dynamic capabilities, especially regarding the competence base. Strategy is defined as “how firms create, capture and sustain economic value”, for which a competence base is essential. Successful revenue generation and capture are essential for sustainable commercial success. A “tension field” exists between efficient use of existing versus establishing new competencies. Towards “ambidexterity”, exploitation of existing capabilities for revenue generation must be managed in synergy with the exploration of new technology and product. The quest towards effective ambidexterity should be a core focus of entrepreneurs’ managerial strategy, requiring experience, skill and capability. A critical priority for tech startup companies lies in translation of R&D into innovations through transformation of inventions into products with market value. Combining exploration with commercial capability and exploitation of know-how and product sets the basis of organizational ambidexterity. Similar approaches are driving later phases of commercialization, where ambidexterity becomes crucial during continued business in face of competition. Frequently, advisory boards, business angels and network-proximal mentors are consulted on strategic business decisions. Suitable guidelines and actionable frameworks towards achieving organizational ambidexterity, value generation, innovation, and sustainable competitive advantage, however, are scarce. This thesis presents results from a systematic and broad review of the scientific and business literature on ambidexterity, and the extraction, clustering and prioritization of core concepts and key success factors into a contextual “Entrepreneurial Framework for Organizational Development towards Ambidexterity”. This framework is discussed as a supporting practical guide for entrepreneurs and managers in strategic decision-making when it comes to managing dynamic capabilities and competence development towards achieving ambidexterity and sustainable business success.