The strategic ambidexterity framework of competitive advantage and legitimacy

Abstract

In recent years, having the organizational capability in simultaneous management of business and institutional goals has become more important. For instance, companies are increasingly expected to minimize the detrimental effects of their activities on the environment or to meet the expectations of social institutions, concurrent with improving their growth and profitability. This issue is especially significant in developing countries due to the underdevelopment of institutional structures as well as severe turmoil in the political, economic and social environment. Considering different and heterogeneous nature of the competitive and social goals in companies, the purpose of this study is to draw a model for the successful and simultaneous management of competitive goals along with gaining social legitimacy. Accordingly, by using case-study method we chose Golrang Industrial Group (GIG) as one of the successful Iranian holdings in managing the competitive and social environment, then required data were collected by examining the related organizational documents and conducting in-depth interviews. we afterward explained the effective components on the ambidextrous pattern of competitive advantage and social legitimacy by content analysis method.The results showed that the concurrence of competitive goals and social legitimacy in a way that leads to strengthening each other, requires implementation of three key practices: 1. Creating new competitive and institutional rules (Changing the playing field), 2. Protecting the environment and gaining institutional support (Buffering strategy), and 3. Ensuring the goals operationalizing and securing the results (institutional leadership strategy).

Keywords

• strategic balance
• ambidexterity
• competitive advantage
• social legitimacy