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Article
Publication date: 31 December 2018

Yu Wang, Tao Jia, Jinliang Chen and Hongyi Sun

The purpose of this paper is to investigate the individual effects of boundary-spanning search from suppliers (supplier-side search (SS)). It is proposed that SS contributes to…

Abstract

Purpose

The purpose of this paper is to investigate the individual effects of boundary-spanning search from suppliers (supplier-side search (SS)). It is proposed that SS contributes to innovation ambidexterity (IA) and then business performance (BP). Further, this paper includes buyer–supplier relationships (BSRs) and competitive intensity (CI) as moderators to clarify boundary conditions.

Design/methodology/approach

An ordinary least squares regression was employed to test hypotheses, based on 184 sets of data from Hong Kong manufacturing firms. The SPSS version of PROCESS was utilized.

Findings

The results show that IA partially mediates the relationship between SS and BP. Contingently, the direct effect is negatively moderated by BSRs and CI.

Research limitations/implications

This paper confirms the partial mediating effect of IA on the relationship between SS and BP. Additional mediators, such as organizational innovation and marketing innovation, can be examined in the future.

Practical implications

This paper contributes to practice by suggesting that suppliers are a rewarding single source for firms to undertake boundary-spanning search. IA plays a significant role in reinforcing the effects of SS on BP and should be implemented with sustaining efforts. BSRs and CI can be detrimental and should be responded to cautiously.

Originality/value

This paper highlights the individual effects of SS on BP. Furthermore, the underlying process and boundary conditions are analyzed. The exploitation-exploration framework is applied throughout the entire study.

Details

International Journal of Physical Distribution & Logistics Management, vol. 49 no. 2
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 6 November 2017

Zijie Li and Qiuling Gao

The purpose of this paper is to offer an alternative framework and solution for balancing exploitation–exploration tensions and their management.

Abstract

Purpose

The purpose of this paper is to offer an alternative framework and solution for balancing exploitation–exploration tensions and their management.

Design/methodology/approach

A case study method was adopted to uncover what underlies tensions and contradictions between exploitation–exploration that emerge for Chinese manufacturing companies due to the competitive global environment and their latecomer disadvantages when they source new technologies by cross-border mergers and acquisitions. The acquiring firm that acquires two companies is thus not a single but a cross-case study.

Findings

The authors present three contradictory points needing to be balanced and according to which three paradoxes emerge: exploitation from a similar knowledge base and innovation from a complementary knowledge base, efficiency and flexibility, as well as profit and breakthroughs. The authors theorize how paradoxical integration helps manage these interwoven tensions. Further, the assimilate-integration-apply (AIA) path suggests a new behavior logic and path choice for Chinese companies when they follow an ambidextrous strategy.

Research limitations/implications

This paper has implications for future research and for companies’ everyday practice on ambidexterity in Chinese society.

Originality/value

The authors combine ambidexterity perspective and AIA path with linkage-leverage-learning (LLL) to offer an alternative framework and solution for balancing exploitation–exploration paradoxes in EE firms’ internationalization to increase LLL’s explanatory power.

Details

Chinese Management Studies, vol. 11 no. 4
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 3 July 2017

Saša Baškarada and Jamie Watson

The purpose of this paper is to explain how leaders balance exploitation (incremental innovation) and exploration (discontinuous innovation).

Abstract

Purpose

The purpose of this paper is to explain how leaders balance exploitation (incremental innovation) and exploration (discontinuous innovation).

Design/methodology/approach

A qualitative study with 11 senior leaders in Australian Defence Force.

Findings

The study identifies a number of factors that leaders take into account when deciding whether to focus on exploitation or on exploration.

Originality/value

The study concludes that transactional leadership is appropriate in the context of exploitation, while transformational leadership is appropriate in the context of exploration.

Details

Development and Learning in Organizations: An International Journal, vol. 31 no. 4
Type: Research Article
ISSN: 1477-7282

Keywords

Book part
Publication date: 4 August 2014

Katerina Voutsina, Gaëtan Mourmant and Fred Niederman

This research expands the scope of the exploitation/exploration literature which has generally embraced a firm-level perspective by showing the theoretical and practical relevance…

Abstract

This research expands the scope of the exploitation/exploration literature which has generally embraced a firm-level perspective by showing the theoretical and practical relevance of this framework for the study of entrepreneurial behaviour from an individual-level perspective. The study exemplifies specific instances where explorative or exploitative aspects of behaviour are likely to be manifested as a response to specific types of shocks that precede and impact the decision to quit and start one’s own business. Different types of shocks or entrepreneurial events displace the individual from the inertia of existing behaviour and pave the way for the consideration of a new set of opportunities; a new set of opportunities where entrepreneurial initiatives are perceived to be both feasible and desirable (exploitation–exploitation). Drawing upon 80 semi-structured and longitudinal interviews with entrepreneurs who quitted their ‘salaried job’ in order to start their own business, the study: (a) provides an inventory of events/shocks found to precipitate the interviewees’ decision to quit, and (b) links the various types of shocks with the prospective explorative and/or exploitative entrepreneurial initiatives. In this respect, the dynamics that underlie the effects of shocks on entrepreneurial behaviour are illustrated, while blurriness and interrelatedness of exploitative and explorative aspects of entrepreneurial behaviour are exemplified. Such a detailed list of shocks may serve as reference tool for both prospective entrepreneurs who wish to make an entrepreneurial shift in their career, as well as managers who wish to be proactive in avoiding or encouraging entrepreneurial employee turnover.

Details

Exploration and Exploitation in Early Stage Ventures and SMEs
Type: Book
ISBN: 978-1-78350-655-2

Keywords

Book part
Publication date: 23 December 2005

Catherine Thomas, Renata Kaminska-Labbé and Bill McKelvey

Research on multinational corporations (MNCs) shows that they have tried various structural solutions to solve the dilemma of trying to “balance” global control and efficiency…

Abstract

Research on multinational corporations (MNCs) shows that they have tried various structural solutions to solve the dilemma of trying to “balance” global control and efficiency with local country-specific sensitivity, autonomy, and innovation, with the Transnational form preferred. Failings of the strategy-structure sequence lend credence to the emerging strategy-process perspective. To date, the best lesson for MNC strategy-process concerns pertaining to the global vs. country dilemma comes from March's classic paper on “balancing” exploitation vs. exploration. 21st century MNCs exist in a more rapidly changing world, however, where static “balance” solutions may be insufficient. The tradition of “circular organizing” is one alternative to the failing “balance” solution; it offers a dynamic strategy-process approach to MNC management. Another is Dupuy's concept of “tangled hierarchies” where top-down and bottom-up influence forces are interwoven such that global exploitation or country-specific exploration dominates in timely fashion. It calls for clearly defined control and autonomy regimes, with space given for emergent rules governing the rotation rate. Key questions are: What is the optimal rate at which they should rotate supremacy, and how to get this to happen and persist? Since normal quantitative methods can’t track complex, nonlinear, emergent phenomena, an in-depth longitudinal case analysis was conducted of a global MNC in the cosmetics industry, as it progressed through its early years of formation. Our case covers twelve years, during which the MNC goes through several kinds of tangled hierarchies. The dynamics in our case are rich enough to illustrate many aspects of the “tangled hierarchy” approach, while also offering new clues about oscillation rates. A number of implications for managers are discussed. Principal among these is the “edge of chaos” idea, in which managers have to avoid too-fast or too-slow oscillation rates. Very fast rates can degenerate into chaos and then collapse into the exploitation or exploration “traps.” Firms also fall into the traps simply because managers don’t understand or can’t tolerate the idea of oscillation dynamics.

Details

Strategy Process
Type: Book
ISBN: 978-1-84950-340-2

Article
Publication date: 9 August 2023

Sanmugam Annamalah, Pradeep Paraman, Selim Ahmed, Thillai Raja Pertheban, Anbalagan Marimuthu, Kumara Rajah Venkatachalam and Ramayah T.

This study aims to analyse the resilience strategy utilized by small and medium-sized enterprises (SMEs), enabling these businesses to effectively adapt their operations in…

Abstract

Purpose

This study aims to analyse the resilience strategy utilized by small and medium-sized enterprises (SMEs), enabling these businesses to effectively adapt their operations in response to varying conditions by providing them with essential resources. SMEs operate in marketplaces that are both dynamic and frequently tumultuous. These markets provide SMEs with a variety of obstacles, including economic ups and downs, advances in technology, evolving customer tastes and new regulatory requirements. SMEs need to create a strategic strategy to survive and grow in such situations. This strategy ought to help strengthen their resiliency and make it possible for them to make the most of emerging opportunities while simultaneously lowering the dangers.

Design/methodology/approach

The questionnaires adopted and adapted from previous research served as the basis for gathering the data. The manufacturing industry was polled through the use of questionnaires. To test the hypothesis, the data were analysed using Smart PLS. Through the use of closed-ended questions directed to the proprietors, managers or senior executives of SMEs, data were collected from each and every institution in the sample. Following the examination of the data by means of descriptive analysis and the presentation of several scenarios using information relating to SMEs, the findings were presented.

Findings

The ambidextrous strategies that are used by SMEs have a propensity to offer a constructive contribution to SMEs. In this study, it was discovered that ambidexterity, which is defined as the capacity to both seek and capitalise on possibilities, has a significant bearing on the organisational effectiveness of SMEs. The results showed that ambidextrous strategies have a propensity to work as mediators in interactions involving proactive resilience tactics and performance.

Research limitations/implications

The research expands our understanding of how SMEs in the manufacturing sector may improve their performance by concentrating on growing their ambidextrous strategies.

Practical implications

This study provides a plausible explanation of two crucial management mechanisms for enhancing the sustainability of organisational effectiveness. The relationships between ambidextrous capabilities and firm effectiveness are malleable, and this study suggests that nurturing formal and informal relationships may be the key to SMEs' long-term sustainable performance. Improving the knowledge and performance of supply chain systems for SMEs in the manufacturing sector and boosting their competitiveness in domestic and international markets are the practical contributions of this study.

Social implications

Our comprehension of monitoring, cooperation and innovation within social management was deepened as a result of these facts. In addition, the study conducted in the sector uncovered four essential connections that outline how managers should actively work towards lowering social risks, developing new possibilities and increasing business performance. These capacities and links, when taken as a whole, provide the foundation upon which an integrated framework and five research propositions are built.

Originality/value

This research offers a convincing explanation of fundamental management processes for enhancing the sustainability of organisational effectiveness. This research implies that developing formal and informal interactions may be the key to the sustainable performance of SMEs over the long run. The relationships between ambidextrous capabilities, methods and organisational effectiveness are flexible, and this study also suggests that these relationships may be shaped. The practical contributions made by this research include boosting the understanding and performance of supply chain systems for SMEs as well as the competitive power of these businesses in both local and international markets.

Details

Journal of Global Operations and Strategic Sourcing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2398-5364

Keywords

Article
Publication date: 19 June 2019

Kyuyeong Choi, Ruey-Jer Bryan Jean and Daekwan Kim

Organizational learning is a critical factor in generating firm innovation. While the firms are working with global business partners, not only does their absorptive learning…

1343

Abstract

Purpose

Organizational learning is a critical factor in generating firm innovation. While the firms are working with global business partners, not only does their absorptive learning capacity (ALC) with business partners play an important role in generating innovation from the inter-partner firm relationship, but their joint learning capacity (JLC) does as well. However, little research has simultaneously examined absorptive and JLC on innovation in global supply chain relationships. The paper aims to discuss this issue.

Design/methodology/approach

Drawing on the knowledge-based view, inter-partner learning theory and resource dependence theory, the current study investigates the effects of two organizational learning capacities on relationship-specific innovation: ALC (firm-level) and JLC (relationship level). In addition, a firm’s focus on exploitation/exploration strategy and supplier dependence is further incorporated into the study as moderators. Moreover, solutions to endogeneity issues are discussed and reported due to the usage of survey data. The model of this study was tested using data collected from 190 electronics firms in Taiwan as an emerging market.

Findings

The findings of this research reveal that JLC in the presence of absorptive capacity positively influences relationship-specific innovation. Furthermore, the exploitation focus of a firm positively moderates the effects of both absorptive and JLC on relationship-specific innovation. However, supplier dependence negatively moderates the effect of JLC.

Research limitations/implications

The research provides some theoretical implications for learning and innovation generation in global supply chains.

Practical implications

The paper provides some managerial implications for how to manage innovations in the global supply chain relationships.

Originality/value

This paper fulfills an identified need to study how innovation generation can be better managed in global supply chain contexts.

Details

International Marketing Review, vol. 36 no. 6
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 19 March 2020

Robert Ogulin, Gustavo Guzman and Subasinghage Maduka Nuwangi

This paper aims to develop a conceptual taxonomy for building requisite knowledge capabilities for different supply chain network (SCN) types. Specifically, it examines knowledge…

Abstract

Purpose

This paper aims to develop a conceptual taxonomy for building requisite knowledge capabilities for different supply chain network (SCN) types. Specifically, it examines knowledge capabilities required for three types of SCNs: efficient, collaborative and agile SCNs.

Design/methodology/approach

This paper integrates two bodies of thought (i.e. knowledge management and organisational learning) and applies them to SCNs. An abductive research process is used to develop this conceptual taxonomy.

Findings

The conceptual taxonomy details three archetypical knowledge capabilities – exploitation, exploration and ambidextrous. Those knowledge capabilities are required for efficient, collaborative and agile SCNs, respectively.

Research limitations/implications

This paper is conceptual and theory-based. The next stages of the research seek to further strengthen the explanatory value of the taxonomy through empirical validation.

Practical implications

The taxonomy developed in this paper provides a valuable and pragmatic tool for managerial decision-making in the context of SCNs. Specifically, it provides a roadmap for practitioners since the study develops an understanding of the relationship between knowledge capabilities and types of SCNs.

Originality/value

This is one of the earliest studies that attempt to unearth requisite knowledge capabilities for different types of SCNs.

Details

Journal of Knowledge Management, vol. 24 no. 3
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 4 March 2014

Liang-Hung Lin

The central concern of organizational learning and corporate strategy has, in recent decades, focused on the rational choice and appropriate balance between exploration and…

1241

Abstract

Purpose

The central concern of organizational learning and corporate strategy has, in recent decades, focused on the rational choice and appropriate balance between exploration and exploitation. Dividing mergers and acquisitions (M&As) into related and unrelated M&As, this study applies the exploration vs exploitation construct to examine how different M&A strategies affect exploration and exploitation of the combined firm, how post-acquisition integration affects exploration and exploitation of the combined firm, and how organizational ambidexterity affects post-acquisition performance. The paper aims to discuss these issues.

Design/methodology/approach

Organizational and industry level data were drawn from the top 1,000 Taiwanese electronic and computer firms reported by 2009 China Credit Information Service, an authorized credit-rating company in Taiwan. The companies are classified into four industries: computer and associated equipments manufacturing (SICs 271x, 274x, 276x); integrated circuits (SIC 261x), opto-electronics and telecommunication (SICs 264x, 272x, 277x) and electronic components (SICs 262x, 263x, 264x, 269x, 275x). Questionnaires were distributed to general managers of the top 1,000 electronics companies.

Findings

This investigation of Taiwanese electronic and computer firms revealed that related acquisitions with high degrees of acquisition integration positively affect the combined firm's exploitation; unrelated acquisitions with high degrees of R&D expenditure and acquisition experience positively affect the combined firm's exploration. The firm's ability of simultaneously pursuing exploitation and exploration positively affects its post-acquisition performance.

Originality/value

The contribution of this study is to understand how acquisitions influence exploitation and exploration. With regard to the relationship between acquisition and exploitation/exploration, this study finds that unrelated acquisitions enhance exploration, whereas related acquisitions enhance exploitation.

Details

International Journal of Organizational Analysis, vol. 22 no. 1
Type: Research Article
ISSN: 1934-8835

Keywords

Article
Publication date: 21 August 2017

Muhammad Asif

Ambidexterity is the ability of an organization to balance exploitation and exploration. Ambidextrous organizations perform better in managing productivity-innovation dilemma…

1701

Abstract

Purpose

Ambidexterity is the ability of an organization to balance exploitation and exploration. Ambidextrous organizations perform better in managing productivity-innovation dilemma. Although the literature on ambidexterity has expanded, much less attention has been paid to the antecedents of ambidexterity. The purpose of this paper is to explore the antecedents of ambidexterity and develop a multi-level taxonomy of the antecedents.

Design/methodology/approach

Based on an extensive review of the literature, the paper develops criteria for categorizing the antecedents and then develops a taxonomy of the antecedents.

Findings

Two taxonomy frameworks have been developed: one is based on infrastructural elements, including organizational structures, processes, and context, while the other is based on different organizational levels (i.e. organizational, group, and individual) at which different antecedents exist. Most of the antecedents of ambidexterity reported in the literature fall in the category of “processes” – both individual/social and technical/procedural.

Practical implications

The paper provides an enhanced understanding of the antecedents of ambidexterity, how they relate to each other, and how they can be grouped together. The framework can help managers to apply the antecedents at various organizational levels, resulting in a more structured approach to ambidexterity.

Originality/value

The key contribution of the paper is in providing a multi-level understanding of the antecedents of ambidexterity. To the best of the author’s knowledge, such a taxonomy of the antecedents of ambidexterity has not been provided in previous publications.

Details

Management Decision, vol. 55 no. 7
Type: Research Article
ISSN: 0025-1747

Keywords

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