Organizational Ambidexterity in SMEs

Ambidextrous organization: designing dual structures for digital innovation in SME

Digital innovations offer new business opportunities and thus great potential for established companies in all industries. In order to successfully transform their businesses, firms need to integrate these new technologies into their organizations. They are forced to leave old “paths” and create new structures and processes. This project aims to understand how SMEs that constitute the backbone of the Viennese economy can succeed in overcoming the challenges of this transformation.

Sponsor: City of Vienna MA23 – Economy, Labor and Statistics
Project period: 01.04.2022 to 31.03.2025
Project duration: 36 months

Gefördert von Stadt Wien

Contact

Institute for Digital Transformation and Strategy (IDS)

Dr. techn. Patrick Rupprecht, MSc, MSc, MA

Project Leader

Tel.: +43 690 40 476 128

Downloads

To the study "Organizational Ambidexterity in SMEs" (in German)

Project Description

Organizational ambidexterity can be described as a firm’s ability to create and balance exploitative and explorative activities within the organization, i.e. to use existing competences in order to become more efficient and develop innovations simultaneously.

How can companies find the balance between innovation and efficiency?

The research project “Organizational Ambidexterity in SMEs” focuses on this perspective and utilizes it to analyze SMEs in Vienna. The project aims to answer the following questions:

How do SMEs currently implement organizational ambidexterity on the levels of strategy, organization and leadership?
Which challenges and problems do managers of SMEs face during implementation?
How should processes and structures for organizational ambidexterity be designed in SMEs?

Project Goals

In a first step, a quantitative analysis will be conducted in order to understand whether and how organizational ambidexterity has been implemented on the levels of strategy, organization, and leadership in Austrian SMEs. Based on the results, a more in-depth qualitative analysis will be undertaken in order to examine the possibilities of designing types of ambidexterity and investigate the role of the top management for implementation. Finally, the quantitative and qualitative findings will be used to develop a theoretically and empirically founded management concept for organizational ambidexterity in SMEs.

The results of the research project will be presented at scientific conferences and published in scientific journals. In addition, the findings will be communicated to students and interested parties from corporate practice via courses, lectures and articles in business journals.

Project results & recommended actions

Developing efficiency and innovation

The results of the research project show that many SMEs focus primarily on efficiency, while innovation activities are often not systematically anchored. Digital technologies such as social media and cloud computing are widespread, but there is often a lack of comprehensive digitalization strategies. Family businesses usually use acquisitions to strengthen their core business rather than to promote innovation.

The team led by project manager Patrick Rupprecht recommends promoting organizational ambidexterity in a targeted manner by developing both efficiency and the ability to innovate. This requires changes in strategy, organization and management culture. The recommendations for action provided support SMEs in strengthening their digital future viability.

Anchoring ambidexterity strategically: Pursuing and coordinating innovation and efficiency goals simultaneously.
Expand understanding of leadership: Educate managers as drivers of change and innovation.
Create structural conditions: Clearly define time, resources and responsibilities for innovative projects.
Develop an organizational culture: Encourage error-friendliness and a willingness to learn to leverage innovation potential.
Actively use external impulses: Expand cooperation with start-ups, universities and innovation networks.
Strengthen digital skills: Provide employees with targeted training in key digital skills.
Use acquisitions strategically: Use acquisitions not only to increase efficiency, but also specifically to promote innovation.

Digital change in SMEs

The project results were presented at the “Digital change in SMEs” event at FHWien der WKW. Guest speaker Sandra Rothenberger from the Solvay Brussels School of Economics and Management impressively demonstrated that tradition connects companies with their history, transformation enables the active shaping of change and innovation paves the way to a successful future.

On her visit to Vienna, Ms. Rothenberger also gave a radio interview on the topic of “How does digital change succeed in companies?”. (in German)

Publications & Presentations

Article in scientific journal

Schulz, A.C., Rupprecht, P. (2024). Development of digital technologies and skills in Austrian SMEs. In: Austrian Management Review, ISBN 978-3-7560-2315-8
Schulz, A.-C., Sera, J., Busch, A. (2023). Out of the dead end. Overcoming organizational path dependency with corporate cooperation. In: Organizational Development, 2, pp. 85-89
Schulz, A.-C., Worek, M. (2023) Serial acquisitions in family businesses. In: Medium: Austrian Management Review, 13: 111−117, ISBN 978-3-98542-055-1, ISBN online: 978-3-95710-430-4

White Papers / Article in industry media / Anthologies

Schulz, A.C., Eschenbach, S., Busch, A. (2024). How can smaller, established companies seize the opportunity of digital transformation? (in German)
Rupprecht, P., Schulz, A-C. (2023). Organizational Ambidexterity in Austrian SMEs: Managing Digital Transformation through Exploration and Exploitation. Technical Report/White Paper (in German)
Schulz, A.C., Eschenbach, S. (2023) Mastering digital levels. In: the economy (in German)
Schulz, A.-C., Sera, J. & Busch, A. (2023). Overcoming organizational path dependency with corporate cooperation. In: Organizational Development, 2, pp. 89-92 (in German)
Schulz, A.-C. (2023) Strategy creates added value. In: it&t business 03/23, In: it&t business Future Talk: Digital Transformation by Michaela Ortis, pp. 26-31 (in German)

Presentation & Podium at scientific conference

“Development of digital technologies and skills in Austrian SMEs” 27th Annual Interdisciplinary Conference on Entrepreneurship, Innovation and SMEs (G-Forum), presented by Patrick Rupprecht (2024)
“Organizational anchoring of ambidexterity for innovation success” 17th Research Forum of the Austrian Universities of Applied Sciences 2024, IMC Krems, presented by Patrick Rupprecht
„The impact of CEOs’ time perspectives on exploration and exploitation efforts“ (2024) 40th EGOS Colloquium, präsentiert von Ann-Christine Schulz und Patrick Rupprecht
„Organizational ambidexterity in SMEs in response to the digital transformation: A temporal perspective“ (2023) EGOSColloquium 2023 Cagliary, Italy, präsentiert von Ann-Christine Schulz
„It’s about time! Investigating the impact of temporal perceptions and family ownership on organizational ambidexterity in SMEs“ (2023) 18th EIASM Workshop on Family Firm Management Research“ 2023, Neapel präsentiert von Ann-Christine Schulz
“Strategic changes through serial acquisitions in family businesses”, G-Forum Annual Conference 2023, Darmstadt, presented by Ann-Christine Schulz & Maija Worek
“Digitalization in Austrian SMEs: Strategy and Capabilities”, G-Forum Annual Conference 2023, Darmstadt, presented by Ann-Christine Schulz
“Serial acquisitions in family businesses: Overcoming path dependency with exploration and exploitation” 16th Research Forum of Austrian Universities of Applied Sciences 2023, St. Pölten UAS, presented by Ann-Christine Schulz & Maija Worek

Presentation, Workshop & Podium at practice oriented event

“Digital change in SMEs” Closing event of the project “Organizational ambidexterity in SMEs” (2025)
Research colloquium at the FHWien: “It’ about time! Impact of temporal aspects on explorative and exploitative efforts” (2024)
Event on succession in family businesses “Strategic challenges of the NextGen” (2023)
Brown bag seminar at the FHWien: “Organizational ambidexterity in SMEs” (2023)
It&t Future Talk Digital Transformation: Presentation of the project as part of an online expert discussion (2023)
Strategy Morning at the FHWien: “Digital skills in Austrian SMEs” (2023)

Follow-Up Project “HybrAId”

With the research project “HybrAId”, which was launched in April 2025 and is also funded by the City of Vienna (MA 23), the Institute for Digital Transformation and Strategy (IDS) is entering a new research phase. The focus is on researching the potential applications of generative AI and hybrid intelligence – i.e. the collaboration of human and artificial intelligence – to promote innovation in SMEs.