Dynamic capabilities for opportunity exploration: insights from an explorative case study

Digital technologies offer organisations new opportunities. However, unlike well-defined problem-response strategies (e.g., Lean Management), it remains elusive how to identify and leverage opportunities, particularly for public sector organisations. As extant knowledge lacks corresponding theory-guided and empirically validated opportunity management practices, this study provides insights on opportunity management practices through an exploratory case study. The case of interest is Queensland Urban Utilities, a utility provider which developed a strong focus on opportunity exploration despite operating in a low-competition environment. Building upon organisational ambidexterity and dynamic capabilities as theoretical lenses, we present a conceptual framework distinguishing two opportunity types, namely core and new business opportunities. Along this framework, we present 15 practice areas and actionable practices, supported by real-life examples. Thereby, we identify two facets of exploration demanding divergent capabilities to sense and seize opportunities. Our study contributes to the understanding of exploration capabilities and supports practitioners in developing opportunity management practices.