The role of competitive strategy in the performance impact of exploitation and exploration quality management practices
ISSN: 0955-534X
Article publication date: 9 April 2020
Issue publication date: 7 January 2021
Abstract
Purpose
This study aims to advance understanding about quality management (QM) practices by clarifying how competitive strategy conditions the impacts of exploitative and explorative QM practices on performance.
Design/methodology/approach
The authors apply partial least squares structural equation modeling to data from a sample of German pharmaceutical firms.
Findings
The results show that the impact of exploitative and explorative QM practices on firm performance is contingent on the competitive strategy pursued. Explorative QM practices are significantly more relevant for firms following a differentiation strategy, whereas exploitative QM practices are significantly more relevant for cost leaders. Furthermore, for strategically ambidextrous firms that follow simultaneously a cost and a differentiation focus, the interplay of the two QM practices matters.
Originality/value
This paper contributes to understanding which kind of management practices, exploitative and/or explorative, have greater performance impacts under certain competitive strategy conditions.
Keywords
Acknowledgements
The authors appreciate the financial support received from the Fundación Emilio Soldevilla para la Investigación y el Desarrollo en Economía de la Empresa (FESIDE) foundation and the Unidad de Formación e Investigación en Dirección Empresarial y Gobernanza Territorial y Social (UFI 11/51) research and training unit.
Citation
Castillo Apraiz, J., Richter, N.F., Matey de Antonio, J. and Gudergan, S. (2021), "The role of competitive strategy in the performance impact of exploitation and exploration quality management practices", European Business Review, Vol. 33 No. 1. https://doi.org/10.1108/EBR-09-2019-0182
Publisher
:Emerald Publishing Limited
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