The Cognitive Microfoundations and Supportive Dynamic Capabilities of Innovation Ambidexterity in IT Companies

Today, organizations need to enhance their capacities to manage the tensions between exploration and exploitation. The purpose of this research is to study the cognitive microfoundations and supportive dynamic capabilities of innovation ambidexterity. To conduct research, multiple-case study and classic grounded theory methods are used. Five IT companies in Iran are selected as cases in point. Interviews with top executives are conducted and several organizational documents are analyzed. The findings show that successful IT companies, nurture special capabilities within themselves to manage the ambidexterity tensions. These capabilities include the asymmetric balancing of the corporate portfolio, cuddling and admonition of human resources, flexibility of structure, adaptation of performance appraisal, managerial stabilization, physical and professional liveliness, and innovation acceleration. Moreover, the CEOs of successful companies were equipped with the cognitive frames of spectral forecasting, accelerated analytical orientation, Progressive time orientation, and Emotional ambivalence orientation, while using the cognitive mechanisms of preference, sequence, and verification. Therefore, the recruiting and training of cognitively capable CEOs, and developing and reinforcing the organizational capabilities which are supportive of ambidexterity, can facilitate the emergence and continuance of explorative and exploitative innovations in IT companies.