Managing the semiformal organization: A hybrid design for ambidextrous innovation

In this study, we investigate an alternative approach to foster ambidextrous innovation through a hybrid design between formal and informal organization: the semiformal organization. This exploration challenges the traditional ambidexterity literature that focuses on the isolated roles of formal and informal ties in innovation activities. Addressing this gap, our paper uncovers the significant role of semiformal organizations in balancing exploitation and exploration activities. Central to our study is a two-year and a half investigation of a leading company in the space industry, drawing insights from 41 detailed interviews. Our findings significantly expand our comprehension of hybrid designs between formal and informal organizations, based on three managerial practices: (a) cultivating a paradoxical dynamic for the social network, (b) harnessing the polyvalence of the spaces, and (c) influence brokering between the semiformal and the formal organization. This research underscores the necessity of maintaining a paradox-embracing perspective to stimulate ambidexterity.