Bridging knowledge in ambidextrous HRM systems: empirical evidence from hidden champions

Abstract

Managing the tension between efficiency and flexibility is one of the core challenges that organizations must tackle in order to survive in the global competitive environment. Ambidexterity has been identified in the literature as a key way of managing this tension. Despite the enormous popularity of the concept of ambidexterity, the questions of how HR practices influence exploration and exploitation and support organizational ambidexterity remain underexplored. Drawing on our empirical case studies of three mid-sized ‘hidden champions’ in different high-tech manufacturing industries, we show how an ambidextrous human resource management (HRM) system works. We demonstrate that ambidextrous HRM systems can be regarded as a special type of high-performance work system (HPWS) that facilitates the continuous integration of exploration and exploitation in the pursuit of flexibility and efficiency. In particular, we elucidate how firms apply integrative employment practices and integrative work practices to facilitate collaboration and to create and strengthen a common frame of reference that fosters knowledge integration. Finally, setting up an ambidextrous HRM system supports the complementary interplay between a common frame of reference and a firm's ability to integrate knowledge in order to manage the conflicting demands of exploration and exploitation.

Keywords::

• ambidexterity
• common frame of reference
• exploration/exploitation
• hidden champions
• HR practices
• HRM system
• knowledge integration

Acknowledgements

All authors have been involved in various project phases, contributed to this paper and are therefore listed in alphabetical order. We would like to thank all participants of the workshop on ‘Paradox and tensions in HRM: Exploring the field and moving ahead’ in Innsbruck 2013 for their valuable feedback. We also want to thank Charles O'Reilly for fruitful discussions and helpful suggestions on earlier versions of this paper.

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

This paper developed during a research project of the Institute of Human Resource & Change Management. This work was supported and funded by the Anniversary Fund of Oesterreichische National bank (OeNB) [grant number 13798].