Exploitation, exploration and the ambidextrous design choice in the transition to electric vehicles - an analysis of small and medium-sized automotive suppliers in Germany

The automotive industry will undergo a discontinuous and long-term transformation due to the transition to electric vehicles. In addition to the continuous improvement of traditional business models and existing technologies (exploitation), innovative business models and new technologies must be developed and adapted (exploration). Hence, for a successful transition to electric vehicles, a two-handed approach of exploitation and exploration – so-called ambidexterity – is essential. Although in the research literature useful propositions are represented, how to achieve exploitation and exploration sequentially or simultaneously, less is known about the ambidextrous design choice of small and medium-sized automotive companies. This article examines the ambidextrous design choice of small and medium-sized automotive suppliers headquartered in Germany in the transition to electric vehicles. Using a logistic regression analysis the article indicates important internal and external determinants of the ambidextrous design choice in the context of small and medium-sized automotive suppliers.