Separate Units or Parallel Networks: The Role of Innovation Types in Balanced Structures' Success

This study aims at contributing to the emerging debate on how structural solutions are able to reconcile exploitation and exploration's conflicting organizational requirements. Based on a thorough evaluation of the existing literature, we identify separate units and parallel network structures as two distinct patterns of balanced organizational designs that seem to be able to simultaneously achieve both objectives. In several hypotheses, we argue that the type of innovation is a central contingency for the structural solutions' success. While separate units can be expected to be more successful under radical innovation conditions, parallel network structures presumably deliver superior results in a context of more incremental innovation. We suggest a detailed research design for our hypotheses' upcoming validation.