Managing organizational paradoxes: a case in the financial industry

Abstract

Purpose – The purpose of this article is to contribute to studies on organizational ambidexterity by analyzing how an incumbent company is managing its innovation structures and balancing exploitation and exploration activities to generate value in a digital economy context. Design/methodology/approach – The research was designed in a qualitative format through a single case study in a Brazilian financial institution, with semi-structured interviews conducted with internal and external players. Findings – Based on the case study, two possible contributions emerged as results, to fill the research gap: the need to develop more complex innovation structures, which act in a way that is integrated to the ecosystem; and the establishment of an organizational function, with a specific mandate to seek innovation in new business platforms. Originality/value – Although the theory gives evidence about the potential that ambidexterity represents for companies, ‘how’ to orchestrate the trade-offs to achieve it is not clear, particularly in regards to first steps toward ambidexterity. This work aims to contribute to fill this gap through an empirical study in a large Brazilian company, analyzing its trajectory toward ambidexterity.

Keywords

• innovation
• ambidexterity
• exploitation
• exploration
• innovation function (if)