Digital ambidexterity in project-based organisations: The art of balancing short-term profitability and long-term competitiveness

This application focuses on the challenges that arise when project-based organizations work with digitalization driven transformation.

In such situations, organizations must engage in exploitation in terms of having the ability to use their existing technologies to be profitable and competitive here and now.

At the same time, they must engage in exploration in terms of experimenting and exploring new technologies in order to be competitive in the long run.

Simultaneously engaging in exploitation and exploration is called ambidexterity and has proved to be very challenging, but at the same time crucial for the delivery of quality and competitiveness in both short and long term.

For project-based organization in the built environment sector, there are special challenges associated with achieving and maintaining this balance.

Examples are the dependence on other organizations that vary over time, limited resources, low margins, and structural conditions at industry level that encourage exploitation of existing opportunities rather than the exploration of new ones.Against this background, the proposed study aims to increase understanding of how actors in project-based organizations can develop and maintain ambidexterity for digital transformation.

The study will be carried out as a case study of a major construction project (investment SEK 450 million) that involves about 15 different industry actors with Skanska as the main contractor.

Following this project and studying how involved actors handle the balance between exploration and exploitation provides unique opportunities to generate knowledge about how a digitalization-driven change can be implemented in an economically sustainable and competitive way.

To ensure the connection to key stakeholders, the study is carried out in close collaboration with Skanska and Jönköpings läns byggmästareförening, as well as a reference group consisting of representatives from owners, consultants, contractors, and subcontractors.