Transforming the business behaving ambidextreously: the challenges and issues of having two different units inside the organization.

Abstract

It is becoming more critical that companies pursue exploration and exploitation activities at the same time to survive in times of past pace changes. To successfully achieve the goals of competing in the mature business excelling at efficiency and continuous improvement and in new markets with disruptive products and services, the companies must behave as an ambidextrous organization. In todays market conditions, companies that miss the opportunity to transform or fail to answer to a disruptive innovation rapidly find themselves in danger to continue the business. The analysis from researches of different firms that have succeeded as ambidextrous organizations have permitted to define six pillars that organizations must consider to change to achieve a high level of ambidexterity. This master thesis aims to determine the gap that exists between the research suggestions and the reality at a selected company. Moreover, the paper describes the consequences of such misalignment. To assess the gap, an empirical study conducted with employees of a tobacco company, which is in the journey of business transformation and has two business units: the one dedicated to competing in the mature market and the other one dedicated to the development of new disruptive innovation. The assessment considers three out of the six pillars: Structure and governance, Leadership and culture, and People and Skills. The gap assessment has helped to determine the most critical points to focus because of threads they represent to achieve ambidexterity successfully. The paper draws on the discussion of the relationship between the two units and the unifying elements that make them convey as one organization. This thesis contributes to the discourse on structural ambidexterity. Provides a better understanding of the consequences of the misalignment between literature and reality. Moreover, based on the gap found, the challenges and the relationship of the two units, questions if structural ambidexterity is the right approach for a company in the journey of transformation with the vision of cannibalizing with the new business the mature one.