The Role of MCS in Supporting Different Ways of Organizing Ambidexterity - A case study of IKEA

Abstract: Purpose: The purpose of this paper was to discover the different ways to organize ambidexterity, and investigate what role MCS plays in the contribution of achieving the balance of organizational ambidexterity. We sought to create a theoretical framework that conceptualizes the relations between MCS and different forms of ambidexterity, based on both previous literature and a case study of IKEA focusing on the organization of ambidexterity and the role of MCS to support it. Theoretical framework: The theoretical framework of this paper was comprised from theory concerning innovation, ambidexterity and management control systems. Methodology: A qualitative approach was chosen to answer the research questions of this paper. First, a structured literature review was conducted, followed by a multiple case study. Empirical foundation: The empirical data was gathered through seven semi-structured interviews within different entities in IKEA. The results were complemented with secondary data such as internal document and official websites. Conclusions: The results of this paper suggest that even when exploiting, informal controls such as cultural controls, belief systems and interactive controls can be used to support exploitation. It was found that both exploitation and exploration may be controlled and managed through a set of informal controls and by incorporating trust and encouragement in the workplace. Whereas, formal controls were viewed as a hindrance and not implemented in the process of innovation. Furthermore, three different ways to organize ambidexterity (structural, sequential, contextual) were represented in the cases.