Reaching organizational
ambidexterity in the merger
process: a temporal switching
Anne-Sophie Thelisson
Department of Strategy, ESDES, Lyon, France and
The Catholic University of Lyon, Lyon, France
Audrey Missonier
Department of Strategy, Montpellier Business School, Montpellier, France, and
Gilles Guieu
Department of Strategy, Aix-Marseille University, Aix-en-Provence Cedex, France
Abstract
Purpose – The purpose of this paper is to explore how a company reaches organizational ambidexterity
during a merger process. Organizational ambidexterity refers to the proactive adaptations of an organization
to simultaneously explore and exploit.
Design/methodology/approach – The paper presents a longitudinal case study of a public-private merger
of two listed French companies. The data were collected from participant observation, interviews and archival
documentation over two years.
Findings – The balance between autonomy and control by the parent companies evolves during the post-
merger integration. The findings reveal that there was no concordance between the oscillations between
autonomy and control on the part of the parent companies and the new organization’s exploration/exploitation
strategies. However, the progressive evolution of control and autonomy from the parent companies engendered
organizational ambidexterity during the third phase integration.
Practical implications – The study adds insight into how organizations can develop ways to manage
organizational ambidexterity dynamics by employing temporal mechanisms, referring to an organization’s
shifting sequentially between exploration and exploitation. The case highlights how temporal switching
between exploration and exploitation occurs to ultimately enable ambidexterity.
Originality/value – Although organizational ambidexterity is recognized as a key element for post-merger
integration, how it is achieved over the course of the merger process has received little attention. The study
highlights that in the case of public-private mergers, the parent companies influence exploration and/or
exploitation strategies. The paper adds insights on whether exploration and exploitation can be differentiated
over time and whether exploration and exploitation can be reconciled at the same time.
Keywords Longitudinal case study, Organizational ambidexterity
Paper type Research paper
Introduction
Organizational ambidexterity is a proactive adaptation that enables an organization to
simultaneously exploit and explore (O’Reilly and Tushman, 2008; Carmeli and Halevi, 2009).
Some scholars even consider it to be a necessary condition for performance and survival
(March, 1991; He and Wong, 2004; Papachroni et al., 2015), especially in the mergers and
acquisitions (M&As) context (Meglio et al., 2015). Companies usually grow through M&As,
and during the process, organizational ambidexterity is a key competency to ensure high
performance (Nemanich and Vera, 2009). It is especially crucial in the integration period
(Nemanich and Vera, 2009). According to Nemanich and Vera (2009), successful acquisition
integrations require the ability to combine “the old” and “the new,” achieving consistency
while enabling new ideas.
Despite the high number of M&As, their failure rate remains high (Bauer and Matzler,
2014). Postmerger integration (PMI) is the stage in the merger process when the new
organization must show its ability to create value (Haspeslagh and Jemison, 1991).
Management Decision
Vol. 58 No. 5, 2020
pp. 879-896
© Emerald Publishing Limited
0025-1747
DOI 10.1108/MD-10-2017-0947
Received 7 October 2017
Revised 19 December 2018
12 April 2019
17 April 2019
Accepted 7 June 2019
The current issue and full text archive of this journal is available on Emerald Insight at:
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879
Reaching
organizational
ambidexterity