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Background Ambidexterity

Enhancing the experience for Chinese tourists through exploitative and explorative innovation (ambidexterity ). Alexandra Kriz (Uni. Sydney) & Anton Kriz (Uni. Newcastle). Background Ambidexterity

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Background Ambidexterity

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  1. Enhancing the experience for Chinese tourists through exploitative and explorative innovation (ambidexterity) Alexandra Kriz (Uni. Sydney) & Anton Kriz (Uni. Newcastle) • Background • Ambidexterity • Organisations can adopt ambidexterity in markets characterised by dynamic competition (Jansen, Van Den Bosch, & Volberda, 2005). Ambidexterity (Duncan, 1976) outlines the ability for an organisation to simultaneously explore and exploit (O’Reilly & Tushman, 2008). • Exploration entails radical innovation, whereas exploitation encompasses incremental improvement to existing processes (March, 1991). • Ambidextrous Innovation in Chinese Outbound Tourism • The Chinese outbound tourism market to Australia is one such dynamically competitive market known to be under extreme price pressure from discounting around shopping tours. Relying on exploiting incremental additions to the Australian product is likely to be insufficient to achieve the expected benefits of increased numbers. Increased yield and multiple visits are also at stake if Chinese tourists are less than satisfied. • The Chinese outbound tourism market to Australia is expected to increase considerably in the next decade. Moving to FIT travel has the potential to open up more innovative practices among providers. A key to this success will be offering a product that is ambidextrous and internationally competitive. • Project Aims • The project aims to address the following research proposition: • Explorative innovation is likely to be limited in Australia due to price pressures around Chinese ADS group tours, and ambidextrous innovation may provide the tipping point for success in the Chinese outbound tourism market. • Proposed Methodology • Potential future steps will be to undertake over 60 in-depth interviews with companies in the field to see whether the proposition introduced earlier is empirically valid. • Contributions • This study offers insights into the nature of innovation in the tourism sector and investigates key elements essential to Australia’s future success. Furthermore it investigates ambidexterity from a conceptual perspective and integrates documented research studies in the tourism domain.

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