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<p>There are two important aspects that usually influence the organizational competitive advantage, i.e. organizational capabilities and organizational change. This study aimed to frame the role of organizational capabilities and organizational change based on exploration and exploitation in the form of balancing and ambidexterity toward organizational competitive advantage, and justify that the organizational capabilities and organizational change are becoming important in organizational competitiveness, and those are becoming more effective if there are complementary relationships between exploration and exploitation. For this purpose, a systematic thematic approach is applied by collecting, synthesizing, reviewing, and understanding previous related scientific articles. Sustainable competitive advantage of firms may lay in the firm’s ability to simultaneously balancing exploration and exploitation. Organizations that focus exclusively either on exploration or exploitation, as well as neither on exploration nor exploitation, may become obsolete. Balancing both exploitation and exploration activities creates an ambidextrous organization and allows this organization to be creative and adaptable at the same time, and it can drive organizational capabilities and organizational change in generating the realization of superior competitive organizations.</p>
</abstract>

There are two important aspects that usually influence the organizational competitive advantage, i.e. organizational capabilities and organizational change. This study aimed to frame the role of organizational capabilities and organizational change based on exploration and exploitation in the form of balancing and ambidexterity toward organizational competitive advantage, and justify that the organizational capabilities and organizational change are becoming important in organizational competitiveness, and those are becoming more effective if there are complementary relationships between exploration and exploitation. For this purpose, a systematic thematic approach is applied by collecting, synthesizing, reviewing, and understanding previous related scientific articles. Sustainable competitive advantage of firms may lay in the firm’s ability to simultaneously balancing exploration and exploitation. Organizations that focus exclusively either on exploration or exploitation, as well as neither on exploration nor exploitation, may become obsolete. Balancing both exploitation and exploration activities creates an ambidextrous organization and allows this organization to be creative and adaptable at the same time, and it can drive organizational capabilities and organizational change in generating the realization of superior competitive organizations.

Exploration and Exploitation: Driving Organizational Capability and Organizational Change Toward Competitive Advantage

Management Theory and Studies for Rural Business and Infrastructure Development

This work is licensed under the Creative Commons Attribution 4.0 International License.

There are two important aspects that usually influence the organizational competitive advantage, i.e. organizational capabilities and organizational change....

Exploration and Exploitation: Driving Organizational Capability and Organizational Change Toward Competitive Advantage

Published Online: Apr 26, 2022

Page range: 39 - 51

Received: Nov 27, 2021

Accepted: Dec 29, 2021

DOI: https://doi.org/10.15544/mts.2022.05

Keywords
organizational capabilities, organizational change, exploration and exploitation, ambidexterity, competitive advantage

© 2022 Leonardus Ricky Rengkung, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Exploration and Exploitation: Driving Organizational Capability and Organizational Change Toward Competitive Advantage

Published Online: Apr 26, 2022

Page range: 39 - 51

Received: Nov 27, 2021

Accepted: Dec 29, 2021

DOI: https://doi.org/10.15544/mts.2022.05

Keywordsorganizational capabilities, organizational change, exploration and exploitation, ambidexterity, competitive advantage

© 2022 Leonardus Ricky Rengkung, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
organizational capabilities, organizational change, exploration and exploitation, ambidexterity, competitive advantage