Introduction Fow - Important Theories

Describes how companies can simultaneously manage their efficiency and innovativeness in order to remain adaptable

• Exploitation (The management of the daily business)

• Exploration (Experementing with new ways of working)

• Integration (Of Exploitation and Exploration)

Degree, to which companies are able to manage their daily business. Control, efficiency and security are important for this.

Degree, to which companies test new concepts. Important for this are the opening up of new knowledge, knowledge acquisition and diversity. Central driver for innovations and the company's ability to change.

Degree, to which companies integrate exploitation and exploration.

Different alignments held together through senior-team integration, common vision and values, and common senior-team rewards.

Opening leadership behavior to encourage explorative behavior, closing leadership behavior to encourage exploitative behavior, and flexibility over time to switch between both behaviors on a situational basis.

Ability of companies to integrate, build and reconfigure internal and external competencies in order to adequately adapt to rapidly changing environmental and market factors.

• Sensing: The company continuously scans its environment and identifies future opportunities and threats early and continuously.

• Seizing: The company mobilizes resources to seize the opportunities and generates value from them. (Company is “ambidextrous”)

• Transforming: The company is undergoing continuous adaptation.