The paradox of product portfolio ambidexterity: Determinants and consequences
O'Dwyer, Clare R.
O'Dwyer, Clare R.
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Publication Date
2021-04-18
Keywords
Ambidexterity, Paradox, Performance measurement systems, Project portfolio, Cognitive conflict, Competence ambidexterity, Innovation ambidexterity, New product development (NPD), Portfolio management, Meeting forum, Project selection, Innovation, Project portfolio selection, Functional diversity, Informal meeting, Business, Public Policy and Law, Business and Economics, Accountancy and Finance
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Thesis
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Abstract
Competence ambidexterity and innovation ambidexterity play crucial roles in organisations’ strategic new product innovation activities and their long-term success. Ambidexterity is especially relevant in high technology companies operating in competitive and ever-changing environments. Performance measurement systems (PMSs) are ubiquitous in companies and while some research has shown a role for them in innovation generally, little research attention has been given to their role in ambidexterity. No research addresses if and how PMSs used during project portfolio selection, influence ambidexterity. Moreover, differences of opinion, disagreements and conflict inevitably arise during new product portfolio selection (NPPS) where resources are constrained and individuals from different functional backgrounds convene to make portfolio selection decisions. Yet, literature that focusses on these issues is scant. NPPS decisions are pivotal to achieving portfolio ambidexterity and are therefore highly influential in organisations’ success. This study, therefore, investigates the antecedent and consequence roles of PMSs and associated organisational factors, for portfolio ambidexterity and performance, in the challenging and also paradoxical setting of NPPS. More specifically, the study examines the types of PMS and levels of functional diversity employed during NPPS and it investigates how debate, conflict, and type of meeting forum affect portfolio ambidexterity and performance. Building on the literature in management accounting, organisational science and ambidexterity, along with theories of paradox and conflict, data are collected for this study in two phases. Using a positivist, functional approach and a mixed method design, the first research phase captures qualitative findings from interviews with 12 managers expert in NPPS. The resultant findings form the basis for the second, quantitative research phase. Survey data are drawn from a senior manager in each of 77 cross-functional teams involved in NPPS across high technology companies operating in the medical devices and information technology industries in Ireland. Using structural equation modelling, several insights emerge. Overall, this research contributes rare, empirical evidence and it delivers antecedent and consequence models for ambidexterity that provide guidance for the design and use of PMSs and for the use of other organisational factors, to foster portfolio ambidexterity and improve performance in contemporary challenging and intensely competitive markets. Findings add valuable new insights to the literature on innovation and portfolio management, on conflict, and on informal management control. The study also extends the ambidexterity and paradox literatures to the management of portfolio ambidexterity. Moreover, the credibility and value of the mixed method approach is advanced as it uncovers important nuances associated with the identification of a new construct, meeting forum. In conclusion, the study contributes a deeper comprehension of the complex links between PMSs, debate, cognitive conflict, meeting forum, portfolio ambidexterity and performance.
Publisher
NUI Galway
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Rights
Attribution-NonCommercial-NoDerivs 3.0 Ireland