Organizational Ambidexterity and Open Innovation: A Case Analysis of Michelin

The tire industry, as a long-established and mature sector, is undergoing a profound transformation driven by electrification, smart manufacturing, and sustainability. In this context, efficiency-oriented strategies and incremental improvements can no longer ensure long-term competitiveness. Using Michelin as a case study, this paper examines how open innovation operates as an organizational mechanism for fostering ambidexterity by balancing exploitation with the development of exploration capabilities. The findings reveal that Michelin integrates external knowledge through inbound, outbound, and coupled open innovation, while employing structural and domain separation to absorb, recombine, and institutionalize exploratory initiatives within core operations. This dual approach enables the firm to preserve efficiency advantages while cultivating adaptive capacity under technological and regulatory uncertainty. The study extends theories of open innovation and organizational ambidexterity to a mature manufacturing context and highlights the organizational conditions under which openness supports, rather than undermines, strategic renewal. It also offers practical implications for incumbent firms pursuing strategic transformation under uncertain technological and policy environments.