A Case Study on Organizational Ambidexterity Implemented in Amoeba Management

Abstract

Many previous studies have shown that Amoeba Management is effective in creating incremental innovations and improving short-term efficiency and productivity through micro-profit center systems (as a management accounting system). However, pursuing only short-term goals may neglect the creation of radical innovations for future growth. How Amoeba Management encourages the creation of radical innovations that lead to future growth has not been widely discussed. This paper focuses on organizational ambidexterity, which promotes both incremental innovations and radical innovations. We view Amoeba Management as a package of management accounting and management philosophy, and then investigate through case study to clarify how organizational ambidexterity can be implemented in Amoeba Management. The results of the study revealed that (1) management accounting promotes the exploitation of existing knowledge, (2) management philosophy promotes the exploration of new knowledge, and (3) the outcome from the exploitation of existing knowledge support the exploration of new knowledge.