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Article

Jorge Ferreira and Arnaldo Coelho

The purpose of this paper is to understand the impact of dynamic capabilities (DC) (in the view of exploration and exploitation) on competitiveness and performance…

Abstract

Purpose

The purpose of this paper is to understand the impact of dynamic capabilities (DC) (in the view of exploration and exploitation) on competitiveness and performance, considering the mediating role the innovation capability (IC) and branding capabilities (BC)on competitive advantage and firm’s performance and the moderating role of entrepreneurial orientation (EO).

Design/methodology/approach

This investigation proposes a theoretical model tested using structural equation modelling (SEM). Multi-group analysis was performed to understand the moderating role of. A questionnaire survey was developed to explore the relations between DC and innovation variable. For this study, 387 valid questionnaires were collected from a sample of Portugal SME’ firms. A 90-item questionnaire which consists to study the relationships among all the variables.

Findings

The results show that exists a positive direct and indirect influence of DC on competitive advantage and performance variables and mediating impact the IC and BC.

Research limitations/implications

This study has some methodological limitations affecting its potential contributions. As a cross-sectional study that captures one image in time, its ability to identify strict causality between variables is limited. Furthermore, the results are based on log collected from a key respondent, rather than broader actual data. The results are restricted to one country, Portugal. Some variables, such as ICs, may play a different role in other countries. Future research should initially target different countries. Such research could then test the generalizability of the results.

Practical implications

This study has important implications for the managers. It highlights the necessity of firms to develop superior strategic orientation of all their members and to invest in better resources and consequently superior capabilities as a way of achieving high levels of firm performance. Another implication from the study is that the firms should develop their marketing programs by focusing on developing innovativeness.

Originality/value

This study contributes to the understanding of the indirect and direct impact of exploration and exploitation variables, and the mediating role of ICs and BC on the competitive advantage and performance and the moderating effect of EO.

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Article

Jorge Ferreira, Arnaldo Coelho and Luiz Moutinho

This study delves in the controversy about the nature and the sign of the effect of strategic alliances and exploration and exploitation capabilities on innovation and new…

Abstract

Purpose

This study delves in the controversy about the nature and the sign of the effect of strategic alliances and exploration and exploitation capabilities on innovation and new product development. The paper analyses the effects of knowledge sharing and strategic alliances relationships at the firm level. Specifically, we study the influence of strategic alliances relationships in new product development and the mediating role of exploration and exploitation as dynamic capabilities.

Design/methodology/approach

This investigation proposes a theoretical model tested using structural equation modeling (SEM). The multigroup analysis was performed to understand the moderating role of. A questionnaire survey was developed to explore the relations between strategic alliances and innovation and new product development variables. For this study, 387 valid questionnaires were collected from a sample of Portugal SME' firms. A 90-item questionnaire was submitted to employees managers of a large number of Portuguese SMEs, which consists to study the relationships among all the variables.

Findings

The results show that exists a positive direct influence of strategic alliances on innovation and new product development, and mediating impact the exploration and exploitation by the moderating role of knowledge sharing.

Research limitations/implications

This study has some methodological limitations affecting its potential contributions. A cross-sectional study that captures one image in time and its ability to identify strict causality between variables is limited. Furthermore, the results are based on log collected from a key respondent, rather than broader actual data. The results are restricted to one country, Portugal. Future research should initially target different countries. Such research could then test the generalizability of the results.

Practical implications

To fill this managerial relevance gap, we propose a process model in which the main antecedents of alliance stability will be examined. We argue that an alliance's evolutionary dynamics depend on these factors and variables that the partners must assess and manage over its developmental stages. In this sense, managers have significant scope to influence the ultimate success of strategic alliances. This study highlights the need to actively manage the cooperation – competition (coopetition) tension with the alliance partner and to apply the knowledge acquired from the partner to create new knowledge to enhance innovative performance

Originality/value

This paper contributes to fill the gap between strategic alliances and new product development mediated by exploration and exploitation in the dynamic capabilities view.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

Keywords

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Article

César Camisón, Montserrat Boronat-Navarro and Beatriz Forés

The purpose of this paper is to enrich the explanation of the interplay between internal and external – or district shared – exploration and exploitation capabilities as…

Abstract

Purpose

The purpose of this paper is to enrich the explanation of the interplay between internal and external – or district shared – exploration and exploitation capabilities as antecedents of a firm’s radical and incremental innovation. Previous studies do not differentiate between exploration and exploitation in district shared capabilities and how they interact with internal capabilities.

Design/methodology/approach

The paper uses hierarchical regression analysis to test the quadratic and moderating effects in a sample of 1,019 Spanish firms.

Findings

Results show an increasingly positive effect on radical innovation of exploration capabilities, enhanced by shared capabilities in exploration. In the case of incremental innovation, the study finds evidence of an increasingly positive influence of exploitation capabilities and a concave relationship of exploration capabilities. Moreover, shared exploitation capabilities weaken the effect of internal exploitation capabilities and also have a direct effect on incremental innovation. Therefore, the two capabilities are interchangeable in the effect they have on incremental innovation.

Practical implications

Depending on the firm’s innovation strategy, intra-district firms should develop specific capabilities and/or concentrate on adopting the shared capabilities in the destination.

Originality/value

The study furthers the understanding of the relationship between exploration and radical innovation, and between exploitation and incremental innovation, which is more complex than previously depicted. The study also differentiates between exploration and exploitation in shared capabilities, enriching understanding of the competitiveness of district firms.

Details

Management Decision, vol. 56 no. 7
Type: Research Article
ISSN: 0025-1747

Keywords

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Article

Karma Sherif, Lucy Tsado, Weijun Zheng and Bosede Airhia

This article aims to explore how organizational architecture (OA) for an information technology organization can balance between exploring new information technologies

Abstract

Purpose

This article aims to explore how organizational architecture (OA) for an information technology organization can balance between exploring new information technologies (IT) that promise significant but uncertain growth opportunities, and exploiting already existing IT that guarantee immediate survival.

Design/methodology/approach

The literature on organizational architecture (OA) and the balance between the exploitation and exploration of knowledge is reviewed. Data collected from in-depth case study of a global IT consulting firm highlights the importance of OA in balancing exploitation and exploration.

Findings

Four elements of OA emerged as critical in balancing exploitation and exploration: embedding autonomous exploratory units within large exploitative sectors; creating organizational roles to integrate between exploration and exploitation; developing technology solutions that support the interplay between exploitation and exploration; and establishing a reward structure that fosters the cooperation between exploring and exploitative agents.

Practical implications

Results of the study suggest that the switch between exploration and exploitation is key to emerging dynamic capabilities in IT firms. It is important for organizations to define: strategic goals that highlight the importance of both exploration and exploitation for the organization; roles that specifically focus on exploration, exploitation and the coordination between the two capabilities, technologies that support both exploration and exploitation; and reward both capabilities. These four elements of the architecture interact together to support a structure of large exploitative units with embedded small explorative units to support recombination and innovation at the project, the department, and the organization levels.

Originality/value

There is limited research on the effect of organizational design on IT development capabilities. Organizational architecture that balances between exploiting stable domain knowledge and emerging new technologies is crucial in today's global and competitive environment. In this study, a new framework emerges that provides a starting point for future quantitative research on how OA can balance conflicting organizational capabilities for firms engaging in IT development. The paper provides a foundation for future studies to test five propositions on the effect of strategy, structure, roles, technology, and reward on the dynamic capabilities of exploitation and exploration.

Details

VINE: The journal of information and knowledge management systems, vol. 43 no. 4
Type: Research Article
ISSN: 0305-5728

Keywords

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Article

Shabahat Ali, Weiwei Wu and Sadaqat Ali

This study aims to offer and validate an integrated marketing capability-product innovations framework. Particularly, it aims to examine the role of adaptive marketing…

Abstract

Purpose

This study aims to offer and validate an integrated marketing capability-product innovations framework. Particularly, it aims to examine the role of adaptive marketing capability in enabling market ambidexterity and incremental as well as radical product innovation. Also it intends to investigate the moderating role of transformational leadership between adaptive marketing capability and market ambidexterity.

Design/methodology/approach

Manufacturing firms in Pakistan, an emerging economy, are taken as the context for this study. A designed survey questionnaire is used for data collection. Partial least square technique is employed to empirically validate and test the hypothesized model with a sample of 192 manufacturing firms. Particularly, the two-stage approach in SmartPLS is used to validate measurement models, and structural equation modeling technique is used to test the proposed hypothesis.

Findings

The findings not only confirm that adaptive marketing capability is instrumental to both incremental and radical product innovations but also reveal that adaptive marketing capability serves an important antecedent to market ambidexterity shedding new lights on its mediating role in the relationship of adaptive marketing capability with incremental and radical product innovations. Moreover, the results find that the effectiveness of adaptive marketing capability to support market ambidexterity may involve a possible trade-off between exploitation and exploration when the leaders exhibit a low or high level of transformational leadership behavior.

Originality/value

This study contributes to outside-in strategic perspective and contextual ambidexterity literature by revealing the role of adaptive marketing capability as an important enabler of market ambidexterity which, in turn, allows the firm to simultaneously introduce incremental and radical product innovations. In this way, this study advances the current understanding of the antecedents and consequences of contextual ambidexterity. Also, this study provides insight into the types of capabilities needed for the firm's contextual and employees' behavioral adaptation to simultaneously manage exploitation and exploration within the same business unit which was lacking in the previous literature. Further, this study also offers a novel understanding of the conditional role of transformational leadership between adaptive marketing capability and market ambidexterity.

Details

European Journal of Innovation Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1460-1060

Keywords

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Article

Xiaofeng Shi, Lixun Su and Annie Peng Cui

This study aims to fill three theoretical gaps in previous literature on exploration and exploitation: the relationship between exploration and exploitation is…

Abstract

Purpose

This study aims to fill three theoretical gaps in previous literature on exploration and exploitation: the relationship between exploration and exploitation is inconclusive; the influences of exploration and exploitation on firm performance are not consistent; and no empirical studies have integrated the antecedents of exploration and exploitation from the different research fields.

Design/methodology/approach

The study conducted a meta-analysis to quantitatively synthesize 143 studies with 257 independent samples to understand the relationship between exploration and exploitation and their consequences and antecedents.

Findings

The results show that exploration and exploitation are positively correlated with each other, and both of them can boost firm performance. Moreover, firm capabilities, firm size, firm age, competitive intensity, market orientation and entrepreneurial orientation positively influence exploration, and firm resources, firm capabilities, firm size, firm age, market orientation and entrepreneurial orientation positively influence exploitation. Competitive intensity negatively influences exploitation. Surprisingly, market turbulence does not significantly influence exploration or exploitation.

Originality/value

The results not only contribute to the theories by reconciling the inconsistent results but also provide insight for firms with guidance about under what conditions they should use what strategies.

Details

Journal of Business & Industrial Marketing, vol. 35 no. 1
Type: Research Article
ISSN: 0885-8624

Keywords

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Article

Emmanuel Tetteh Teye, Beatrice Ayerakwa Abosi, Alexander Narh Tetteh, Seth Yeboah Ntim, Abraham Teye, Offeibea Love Aseidua-Ayeh and Sophia Agyeiwaa Dubi

Previous research has considered human motivation as a determinant of inquisitiveness, learning and innovation. However, how student’s motivation affects both…

Abstract

Purpose

Previous research has considered human motivation as a determinant of inquisitiveness, learning and innovation. However, how student’s motivation affects both exploitative/exploratory research outcomes has not yet been sufficiently addressed. The purpose of this paper is to examine self-determination theory (SDT) as a conceptual tool to understand post-graduate student’s academic motivation and how it affects two types of ambidextrous outcomes (exploitative and exploratory), and thus posit relational capital as an important mediator in the motivation–innovation process.

Design/methodology/approach

The authors draw conclusions using 331 valid post-graduate foreign scholars data collected via online survey in three Chinese Universities and conduct data analysis using the structural equation modeling technique (AMOS).

Findings

Results indicate that: academic motivation and perceived collaboration capability both has a significant effect on exploitation behavior; there was no significant relationship between academic motivation and tendency to collaborate with actors within their networks; collaboration capability and exploitation behavior mediate the relationship between academic motivation and exploration behavior; and further a complementary link was found to exist between exploitation behavior and exploration behavior in students attempt to be ambidextrous.

Originality/value

The authors advance innovation research by expanding SDT to include relational perspective as an antecedent of ambidexterity (exploration/exploitation behaviors) and provide new insights into current understanding of research engagement in higher education settings. The authors highlight some implications for educational agencies seeking to promote the emergence of psychological and relational conditions to enhance novelty in post-graduate internationalized education.

Details

Journal of Applied Research in Higher Education, vol. 11 no. 4
Type: Research Article
ISSN: 2050-7003

Keywords

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Article

Laure Ambroise, Céline Bérard and Isabelle Prim-Allaz

This paper aims to explore the complex relationships between knowledge strategies (i.e. exploration and exploitation) and the performance of manufacturing SMEs by testing…

Abstract

Purpose

This paper aims to explore the complex relationships between knowledge strategies (i.e. exploration and exploitation) and the performance of manufacturing SMEs by testing the mediating role of customer relationship management capabilities, which are defined as a firm’s level of interaction orientation in this study.

Design/methodology/approach

Following a hypothetical deductive approach and using data collected from 793 French manufacturing SMEs, the measurement model and relationships among the constructs were examined with structural equation modelling, using the partial least squares approach.

Findings

The results support the expected mediating role of interaction orientation between exploitation and performance, and stress a competitive mediating role between exploration and performance. Complementary analyses demonstrate that while both exploration and exploitation are effectively antecedents of interaction orientation, which also acts as a lever to performance, they exhibit specific effects on the different dimensions of interaction orientation.

Originality/value

The results specifically highlight that interaction orientation counterbalances the negative impact of exploration on performance. Moreover, the findings underline the key role that customer interaction processes and tools play in making exploration and exploitation singularly effective. This is a real issue, as SMEs broadly tend to adopt opportunistic tools, not necessarily as part of a clearly defined strategic focus.

Details

Journal of Business & Industrial Marketing, vol. 35 no. 12
Type: Research Article
ISSN: 0885-8624

Keywords

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Article

Yi‐Fen Huang

The purpose of this paper is to develop an understanding of the effects of existing capabilities, by exploration and exploitation, on the choice between internal corporate…

Abstract

Purpose

The purpose of this paper is to develop an understanding of the effects of existing capabilities, by exploration and exploitation, on the choice between internal corporate venturing and external corporate venturing.

Design/methodology/approach

Data from 259 Taiwanese firms in the information technology (IT) sector are collected. The study period is four years: 2003 to 2006. Information on corporate financial data and new ventures from the Taiwan Economic Journal (TEJ) database are collected, as well as patent information from the Taiwan Intellectual Property Office (TIPO). Poisson regression is used to test the hypotheses.

Findings

There exists a positive relationship between a firm's existing capabilities and corporate venturing activities. The findings indicate that exploration is a better predictor of internal corporate venturing, while exploitation is better at predicting external corporate venturing.

Research limitations/implications

Empirical results are derived from a sampling of information technology firms in Taiwan thus raising issues about their generalizability to other empirical contexts.

Practical implications

That internal and external corporate venturing could be complementary is clarified; meaning that each could contribute to a particular type of strategic renewal. For firms that engaged much more in exploration, internal corporate venturing is a better for growth than external corporate venturing; it can leverage existing technologies and keep valuable breakthrough technologies in‐house. In contrast, for firms that focus much more on exploitation, learning externally is a better renewal strategy than venturing internally; it can access and integrate resources trans‐organizationally to create novelty that may serve as avenues for further growth.

Originality/value

This is the first study that compares the effects of exploration and exploitation with regard to the decision to engage in internal or external corporate venturing.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 15 no. 5
Type: Research Article
ISSN: 1355-2554

Keywords

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Article

Daniel Jiménez-Jiménez, Micaela Martinez-Costa, Angel R. Martínez-Lorente and Hammady Ahmed Dine Rabeh

Multinational corporations face a more intense competence and a higher number of changes in the different countries they operate. In this regard, organizational learning…

Abstract

Purpose

Multinational corporations face a more intense competence and a higher number of changes in the different countries they operate. In this regard, organizational learning and quality management are key elements that could help them to survive in the market. Convinced by the numerous benefits and competitive potential of total quality management (TQM) programmes, corporations have promoted its implementation. The purpose of this paper is to analyse the interaction between these programmes and organizational learning, more precisely with exploitation and exploration capabilities, in order to understand the way in which quality management programmes could help to develop learning in the companies.

Design/methodology/approach

Structural equation modelling was used to test the proposed model. The sample comprised 111 medium-sized Spanish companies, with four different responses each. Constructs are measured with Likert scales previously tested in the literature.

Findings

The results show that TQM is positively and strongly related to both exploitation and exploration and that the relationship between TQM and exploitation is higher. Concerning the effects of exploitation and exploration on firm performance; results of the analysis show that only exploration capability positively affects organizational performance. It is also confirmed a positive effect of a TQM system in performance.

Originality/value

This research covers a gap in the literature regarding the relationship between organizational learning and TQM, particularly with the concepts of exploitation and exploration in the context of multinational companies.

Details

The TQM Journal, vol. 27 no. 3
Type: Research Article
ISSN: 1754-2731

Keywords

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