A novel performance management framework for innovation ambidexterity: design and field test

This paper introduces a new performance management system referred to as Innovation Ambidexterity Scorecard (IASC). The proposed framework addresses the gap in managerial approaches supporting firms to set goals and subsequently manage organizational performance in contexts characterized by the need to pursue both radical and incremental innovation. We followed a design science approach, integrating the most recent debate on ambidexterity in the performance measurement and management (PMM) literature into a revised version of the Balanced Scorecard (BSC). The proposed approach was tested in a case study involving a company within the industrial automation sector, which was facing the complexities of managing the transition towards a new digital offering while maintain its established revenue streams. This research contributes to the PMM literature by illustrating a possible integration and operationalization of ambidexterity as a meta-dimension across multiple levels of a performance management system, from individual indicators to broader strategic objectives. The study also underscores the potential of systematic and structured approaches in dynamic environments, such as those driven by Digital Transformation (DT).