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Managing Strategic Contradictions: A Top Management Model for Managing Innovation Streams

Summary for agile leaders

Theoretical paper about how organizations (top management teams) manage contradictions.

Develops the concept of "paradoxical cognition." Eg. existing product is an "innovation stream" needing both incremental improvement (exploitative innovation) and exploration of new markets and/or technologies. Managing both activities successfully requires the TMT to recognise and embrace contradiction.
TMTs use:

  • "Cognitive framing" to create a safe space for positive conflict so win-win combinations can emerge.
  • "Cognitive processing" helps overcome inertia by differentiation then explores synergies through integration.

Integration can be leader-centric or team-centric. Each has its own requirements (antecedents) in particular, the team-centric path depends on multi-level roles, goals, rewards, coaching, and analysis.

Reviewed: 02 Jan 2023 by Russ Lewis
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Authors: 
Wendy K. Smith, Michael L. Tushman
Publication date: 
2005
DOI: 
10.1287/orsc.1050.0134

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Abstract

Sustained organizational performance depends on top management teams effectively exploring and exploiting. These strategic agendas are, however, associated with contradictory organizational architectures. Using the literature on paradox, contradictions, and conflict, we develop a model of managing strategic contradictions that is associated with paradoxical cognition--senior leaders and/or their teams (a) articulating a paradoxical frame, (b) differentiating between the strategy and architecture for the existing product and those for innovation, and (c) integrating between those strategies and architectures. We further argue that the locus of paradox in top management teams resides either with the senior leader or with the entire team. We identify a set of top management team conditions that facilitates a team's ability to engage in paradoxical cognitive processes.

Cite as (Harvard referencing)

Smith, W.K., Tushman, M.L., 2005. Managing Strategic Contradictions: A Top Management Model for Managing Innovation Streams. Organization Science 16, 522–536
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