An analysis of 1981–2012 data from the Korean SMEs in IT industry reveals an inverted U-shaped curvilinear relationship between the extent of exploratory innovation and organizational longevity, providing support for the ambidexterity perspective. We further examine the moderating effects of financial slack and environmental dynamism on the relationship between exploratory innovation and organizational longevity. The results indicate that financial slack moderated the exploration–longevity relationship and call for a contingency approach for a better understanding of performance implications of the exploration–exploitation balance.
This work was supported by the National Research Foundation of Korea Grant funded by the Korean Government (NRF-2013S1A5A2A01018077) and by Kyungpook National University Research Fund, 2013.
Kim, G. and Huh, M.-G. (2014), "Ambidexterity and Organizational Survival: Evidence from Korean SMEs", Exploration and Exploitation in Early Stage Ventures and SMEs (Technology, Innovation, Entrepreneurship and Competitive Strategy, Vol. 14), Emerald Group Publishing Limited, Bingley, pp. 123-148. https://doi.org/10.1108/S1479-067X20140000014003
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