Exploring Value from Opportunities: A Paradoxical Endeavor

Abstract

In the rapidly changing business environment, organizations are pressured to continually exploit their existing operations while exploring innovative processes to avoid disruption. Research on organizations and management refers to the ability to pursue both exploitation and exploration as organizational ambidexterity. Yet, this intrinsic task can create tensions, resulting in a paradox. This study provides a new perspective on the paradoxical phenomena by applying a theoretical framework based on values and valuation practices, a previously overlooked perspective in the previous studies on organizational ambidexterity. To capture how this tension is managed in practice, a qualitative case study was conducted by interviewing employees from various departments of an automotive company. Revealed by the interviews, there is an ongoing trade-off between what is considered valuable closer to the company's core and for the explorative departments. The findings showed that the company's core operations use metrics and quantification for value assessment. In contrast, the company's innovative departments perceive value as multiple and co-created with other actors, hence not limited to the boundaries of metrics. This study presents a framework for identifying and exploring opportunities that incorporate both measurable and non-measurable value. It provides a practice-based perspective to enhance organizational ambidexterity, enabling organizations to overcome their current boundaries and realize more value from opportunities.