Ambidextrous product development - An investigation into the tension between exploration and exploitation

Abstract: Purpose: The purpose of this study is to investigate what drives the tension between exploration and exploitation in a product development process (PDP) as well as trying to understand if and how it can be managed. Research questions: What drives the tension between exploration and exploitation in a product development process? How can the tension between exploration and exploitation be managed in a product development process? Methodology: A single case study with both deductive and inductive elements was used. Data mainly from interviews support our findings. Theory: Theoretical perspectives consist of ambidexterity and product development. Empirical foundation: The empirical foundation provides a thorough overview of the case company’s product development process and insights into the how decisions are taken and priorities are set throughout the process. Analysis: We identified the mode(s) of ambidexterity that characterizes the innovation department and different decision situations, which have an impact on the tension between exploitation and exploration. Conclusions: Our findings show that explicit and implicit choices made by management and employees affect the tension between exploitation and exploration in a product development process. Further, we identify a number of ‘tools’ that managers can use to manage the tension, which may help the firm to achieve ambidexterity.