Boards of Directors and organizational ambidexterity in knowledge intensive firms
Journal
The International Journal of Human Resource Management
ISSN
0958-5192
ISSN-Digital
1466-4399
Type
journal article
Date Issued
2016-11
Author(s)
Abstract
We examine the relation between boards of directors’
knowledge heterogeneity and organizational ambidexterity
(OA) (i.e. simultaneous exploration and exploitation) in
knowledge-intensive firms (KIFs). Although the literature on
OA has started to emphasize its antecedents, the role of the
board remains unaddressed. This is an important omission, as
boards have become increasingly involved in strategy-making.
In turn, studies on boards have looked at their influence on
either exploration- or exploitation-type strategies. Yet, KIFs
particularly need to balance both exploration and exploitation
to renew their knowledge base. We draw on knowledgebased
perspectives to disentangle the benefits and costs
of board knowledge heterogeneity for driving OA in KIFs.
Our empirical analysis based on a longitudinal panel of UK
pharmaceutical firms provides support for our hypothesized
U-shaped relation. Our findings suggest that the benefits of
knowledge heterogeneity only outweigh the costs beyond
a particular threshold. Overall, our theoretical approach
and allied findings advance the literature by introducing
boundary conditions to the resource provision role of boards
in KIFs. We discuss contributions for organizational learning,
strategic leadership, and human resource management. We
conclude with implications for theory and practice, as well as
key opportunities for future research.
knowledge heterogeneity and organizational ambidexterity
(OA) (i.e. simultaneous exploration and exploitation) in
knowledge-intensive firms (KIFs). Although the literature on
OA has started to emphasize its antecedents, the role of the
board remains unaddressed. This is an important omission, as
boards have become increasingly involved in strategy-making.
In turn, studies on boards have looked at their influence on
either exploration- or exploitation-type strategies. Yet, KIFs
particularly need to balance both exploration and exploitation
to renew their knowledge base. We draw on knowledgebased
perspectives to disentangle the benefits and costs
of board knowledge heterogeneity for driving OA in KIFs.
Our empirical analysis based on a longitudinal panel of UK
pharmaceutical firms provides support for our hypothesized
U-shaped relation. Our findings suggest that the benefits of
knowledge heterogeneity only outweigh the costs beyond
a particular threshold. Overall, our theoretical approach
and allied findings advance the literature by introducing
boundary conditions to the resource provision role of boards
in KIFs. We discuss contributions for organizational learning,
strategic leadership, and human resource management. We
conclude with implications for theory and practice, as well as
key opportunities for future research.
Language
English
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Business Innovation
Refereed
Yes
Publisher
Routledge
Publisher place
London
Volume
28
Number
2
Start page
283
End page
306
Subject(s)
Division(s)
Eprints ID
249880
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