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Organizational Ambidexterity in Action:
How Managers explore and exploit
Charles A. O’Reilly III Michael L. Tushman
he life span of the average American is 79. Japanese can expect to live to age 83, Liberians to only 46. The average age of a large company is much less than any of these. Research has shown that only a tiny fraction of firms founded in the U.S. are likely to make it to age 40, probably less than 0.1 percent.1 In this study, for firms founded in 1976, only 10% survived 10 years later, leading the authors to conclude that “Despite their size, their vast financial and human resources, average large firms do not ‘live’ as long as ordinary Americans.”2 While this is partly understandable because of the high mortality rates among newly founded companies, other research has estimated that even large, well-established companies can only expect to live, on average, between another 6 to 15 years.3 Ormerod, in a study of firm failure, noted that... [continues]
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(2012, 01). Managers Explore and Exploit. StudyMode.com. Retrieved 01, 2012, from http://www.studymode.com/essays/Managers-Explore-And-Exploit-898530.html
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