Abstract
It is generally accepted within management studies that the balancing of exploration and exploitation (ambidexterity) within organizations has a positive impact on firm performance and competitiveness. However, research has shown that in networked competition the sources of competitive advantage extend beyond the firm’s boundaries to involve the strategic suppliers. This paper identifies the micro-foundations enabling the development of ambidexterity within dyadic alliances with strategic suppliers aimed at developing innovative technological solutions and components. Our results based on a multiple case study in the Lamborghini supply network show the balancing of exploratory and exploitative dyadic inter-organizational micro-routines improve project’s innovation and as well as relational rents.