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Paradoxes and the Nature of Ambidexterity in IT Transformation Programs

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  • Robert Wayne Gregory

    (IESE Business School, University of Navarra, 08034 Barcelona, Spain)

  • Mark Keil

    (J. Mack Robinson College of Business, Georgia State University, Atlanta, Georgia 30303)

  • Jan Muntermann

    (University of Göttingen, 37073 Göttingen, Germany)

  • Magnus Mähring

    (Stockholm School of Economics, SE-113 83 Stockholm, Sweden)

Abstract

Though information technology (IT) transformation programs are gaining in importance, we know little about the nature of the challenges involved in such programs and how to manage them. Using grounded theory methodology, we conducted a multiyear case study of a large IT transformation program in a major commercial bank, during which we encountered the interrelated themes of paradoxes and ambidexterity. Grounded in our case, we construct a substantive theory of ambidexterity in IT transformation programs that identifies and explains the paradoxes that managers need to resolve in IT transformation programs. The ambidexterity areas we identified are (1) IT portfolio decisions (i.e., IT efficiency versus IT innovation), (2) IT platform design (i.e., IT standardization versus IT differentiation), (3) IT architecture change (i.e., IT integration versus IT replacement), (4) IT program planning (i.e., IT program agility versus IT project stability), (5) IT program governance (i.e., IT program control versus IT project autonomy), and (6) IT program delivery (i.e., IT program coordination versus IT project isolation). What weaves these six areas together is the combined need for IT managers to employ ambidextrous resolution strategies to ensure short-term IT contributions and continuous progress of IT projects while simultaneously working toward IT transformation program success as a foundation for IT-enabled business transformation. However, in addition to this commonality, we find that the nature of paradoxical tensions differs across the six areas and requires slightly different management strategies for paradox resolution. Ambidexterity areas (1), (2), and (3) are associated with IT transformation strategizing and, in addition to balancing short- and long-term goals, require the mutual accommodation and blending of business and IT interests in the spirit of IT-business partnering to achieve IT-enabled business change and IT-based competitiveness. Ambidexterity areas (4), (5), and (6) are associated with IT program and project execution and, in addition to balancing short- and long-term requirements, require a recurrent and dynamic act of balancing “local” needs at the IT project level and “global” needs at the IT program level.

Suggested Citation

  • Robert Wayne Gregory & Mark Keil & Jan Muntermann & Magnus Mähring, 2015. "Paradoxes and the Nature of Ambidexterity in IT Transformation Programs," Information Systems Research, INFORMS, vol. 26(1), pages 57-80, March.
    • Handle: RePEc:inm:orisre:v:26:y:2015:i:1:p:57-80
    DOI: 10.1287/isre.2014.0554
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    References listed on IDEAS

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    2. Robert Keller & Philipp Ollig & Patrick Rövekamp, 2022. "Pathways to Developing Digital Capabilities within Entrepreneurial Initiatives in Pre-Digital Organizations," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 64(1), pages 33-46, February.
    3. Qincheng Zhang & Mingzeng Yang & Shanshan Lv, 2022. "Corporate Digital Transformation and Green Innovation: A Quasi-Natural Experiment from Integration of Informatization and Industrialization in China," IJERPH, MDPI, vol. 19(20), pages 1-21, October.
    4. Delin Zeng & Jingbo Hu & Taohua Ouyang, 2017. "Managing Innovation Paradox in the Sustainable Innovation Ecosystem: A Case Study of Ambidextrous Capability in a Focal Firm," Sustainability, MDPI, vol. 9(11), pages 1-15, November.
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    6. He, Tong & Liu, Martin J & Phang, Chee Wei & Luo, Jun, 2022. "Toward social enterprise sustainability: The role of digital hybridity," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
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    8. Huigang Liang & Nianxin Wang & Yajiong Xue, 2022. "Juggling Information Technology (IT) Exploration and Exploitation: A Proportional Balance View of IT Ambidexterity," Information Systems Research, INFORMS, vol. 33(4), pages 1386-1402, December.
    9. Holmström, Jonny, 2022. "From AI to digital transformation: The AI readiness framework," Business Horizons, Elsevier, vol. 65(3), pages 329-339.
    10. Ashay Saxena & Shankar Venkatagiri & Rajendra K. Bandi, 2023. "Conflict management in agile distributed development: evidence from product development and services engagements," Information Technology and Management, Springer, vol. 24(3), pages 247-266, September.
    11. Anne-Laure Delaunay, 2023. "IT ambidexterity operationalization in the public sector: the case of the SNCF [Opérationnaliser le concept d'ambidextrie IT dans le secteur public : le cas de la SNCF]," Post-Print hal-04120583, HAL.
    12. Michal Doležel, 2017. "The 25th European Conference on Information Systems (ECIS 2017) [Dvacátá pátá evropská konference o informačních systémech (ECIS 2017)]," Acta Informatica Pragensia, Prague University of Economics and Business, vol. 2017(2), pages 230-235.
    13. Anne-Laure Fayard & Emmanouil Gkeredakis & Natalia Levina, 2016. "Framing Innovation Opportunities While Staying Committed to an Organizational Epistemic Stance," Information Systems Research, INFORMS, vol. 27(2), pages 302-323, June.
    14. Jie Zhen & Cejun Cao & Hanguang Qiu & Zongxiao Xie, 2021. "Impact of organizational inertia on organizational agility: the role of IT ambidexterity," Information Technology and Management, Springer, vol. 22(1), pages 53-65, March.
    15. Lieselot Danneels & Stijn Viaene, 2022. "Identifying Digital Transformation Paradoxes," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 64(4), pages 483-500, August.
    16. Rogier van de Wetering & Rachelle Bosua & Cornelis Boersma & Daan Dohmen, 2022. "Information Technology Ambidexterity-Driven Patient Agility, Patient Service- and Market Performance: A Variance and fsQCA Approach," Sustainability, MDPI, vol. 14(7), pages 1-21, April.
    17. Shuhao Liang & Tingting Li, 2022. "Can Digital Transformation Promote Innovation Performance in Manufacturing Enterprises? The Mediating Role of R&D Capability," Sustainability, MDPI, vol. 14(17), pages 1-20, September.
    18. Abayomi Baiyere & Varun Grover & Kalle J. Lyytinen & Stephanie Woerner & Alok Gupta, 2023. "Digital “x”—Charting a Path for Digital-Themed Research," Information Systems Research, INFORMS, vol. 34(2), pages 463-486, June.
    19. Jan Jöhnk & Philipp Ollig & Patrick Rövekamp & Severin Oesterle, 2022. "Managing the complexity of digital transformation—How multiple concurrent initiatives foster hybrid ambidexterity," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 547-569, June.
    20. Martin Wiener & Magnus Mähring & Ulrich Remus & Carol Saunders & W. Alec Cram, 2019. "Moving IS Project Control Research into the Digital Era: The “Why” of Control and the Concept of Control Purpose," Information Systems Research, INFORMS, vol. 30(4), pages 1387-1401, December.
    21. Zhen, Jie & Xie, Zongxiao & Dong, Kunxiang, 2021. "Impact of IT governance mechanisms on organizational agility and the role of top management support and IT ambidexterity," International Journal of Accounting Information Systems, Elsevier, vol. 40(C).
    22. YoungKi Park & Paul A. Pavlou & Nilesh Saraf, 2020. "Configurations for Achieving Organizational Ambidexterity with Digitization," Information Systems Research, INFORMS, vol. 31(4), pages 1376-1397, December.
    23. Sam Ruiqing Cao & Marco Iansiti, 2022. "Organizational Barriers to Transforming Large Finance Corporations: Cloud Adoption and the Importance of Technological Architecture," CESifo Working Paper Series 10142, CESifo.

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