Projecting as a Dynamic Capability in Contextually Ambidextrous Organizations

Dynamic capabilities and ambidexterity research lacks in-depth studies that explain how firms routinize the modification of their exploration/exploitation-balance. Based on empirical case study data, we show in this paper how contextually ambidextrous firms use projecting as a dynamic capability to direct their learning efforts. By doing so, we also distinguish between the strategic and the operational aspect of projecting. The strategic aspect of the projecting dynamic capability refers to the organization’s strategic project portfolio-management via seizing and abandoning projects in diverse areas. The operational aspect refers to the concrete implementation of those strategic decisions. Further, our data indicate that these strategic decisions rely on the results of capability monitoring. Capability monitoring can therefore be regarded as a meta-dynamic capability of organizations, because it enables them to reflect about the exploration-exploitation-balance prior to decision-making. Finally, we emphasize focus-setting, modularity, and temporality as key features of projecting in contextually ambidextrous organizations that serve to modify the balance of exploration and exploitation, to regulate conflicts between heterogeneous learning demands, and to function as integration mechanisms and „bridges“ between knowledge generation and knowledge application.