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Article
Publication date: 9 April 2020

The role of competitive strategy in the performance impact of exploitation and exploration quality management practices

Julen Castillo Apraiz, Nicole Franziska Richter, Jesus Matey de Antonio and Siegfried Gudergan

This study aims to advance understanding about quality management (QM) practices by clarifying how competitive strategy conditions the impacts of exploitative and…

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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.

Details

European Business Review, vol. 33 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/EBR-09-2019-0182
ISSN: 0955-534X

Keywords

  • Pharmaceutical industry
  • Contingency
  • Quality management
  • Competitive strategy
  • Exploitative
  • Explorative

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Article
Publication date: 4 September 2017

Explorative learning strategy and its impact on creativity and innovation: An empirical investigation among ICT-SMEs

Naser Valaei, Sajad Rezaei and Maryam Emami

The purpose of this paper is to examine the structural relationships among explorative learning strategy, improvisational creativity, compositional creativity, and…

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Abstract

Purpose

The purpose of this paper is to examine the structural relationships among explorative learning strategy, improvisational creativity, compositional creativity, and innovation in information and communication technology small- and medium-sized enterprises (ICT-SMEs).

Design/methodology/approach

In total, 213 valid questionnaires from SMEs’ top management positions were evaluated to investigate the proposed model of the research empirically. As a methodological approach, partial least square (PLS) path modeling approach, a variance-based structural equation modeling was employed.

Findings

The statistical results imply that explorative learning has a positive impact on improvisational creativity and innovation while improvisational creativity has a positive influence on compositional creativity and innovation as well. Compositional creativity and innovation are also positively associated. Surprisingly, improvisational creativity mediates the relationship between explorative learning and innovation. Furthermore, PLS-multi group analysis reveals that heterogeneity exists in the collected data and number of employees is a moderating variable. The results of the research indicate that companies with number of employees between 51 and 100 are more creative and innovative in comparison with other groups. On the other hand, the positive relationship between explorative learning and compositional creativity was not supported in this research.

Originality/value

This study is one of the few research works in the realm of examining the structural relationship among explorative learning strategy, improvisational creativity, compositional creativity, and innovation in ICT-SMEs, regarding the number of employees as a moderating variable.

Details

Business Process Management Journal, vol. 23 no. 5
Type: Research Article
DOI: https://doi.org/10.1108/BPMJ-12-2015-0179
ISSN: 1463-7154

Keywords

  • Innovation
  • Malaysia
  • ICT-SMEs
  • Compositional creativity
  • Improvisational creativity
  • Explorative learning strategy

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Article
Publication date: 9 July 2020

Information technology-enabled explorative learning and competitive performance in industrial service SMEs: a configurational analysis

Louis Raymond, François Bergeron, Anne-Marie Croteau, Ana Ortiz de Guinea and Sylvestre Uwizeyemungu

As purveyors of knowledge-based and high value-added services to the manufacturing sector, industrial service small- and medium-sized enterprises (SMEs) must develop the…

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Abstract

Purpose

As purveyors of knowledge-based and high value-added services to the manufacturing sector, industrial service small- and medium-sized enterprises (SMEs) must develop the information technology (IT) capabilities that, in combination with other non-IT capabilities, enable their capacity for organizational learning (OL) and for explorative learning in particular. In this context, this study aims to identify the different causal configurations that account for the nonlinear complex interplay of IT capabilities for exploration and strategic capabilities for explorative learning as they affect these firms’ competitive performance.

Design/methodology/approach

Survey data obtained from 92 industrial service SMEs were analyzed with a configurational approach, using fuzzy set qualitative comparative analysis (fsQCA).

Findings

As it allows for equifinality, the fsQCA analysis identified two sets of causal configurations that characterize the sampled firms’ explorative learning capability as it relates to competitive performance. In the first set, two configurations were equally associated with high innovation performance, whereas in the second set, four configurations were equally associated with high productivity.

Originality/value

By viewing explorative learning as a dynamic capability that is enabled by the firm’s IT and strategic capabilities, the study contributes to OL theory by providing a more concrete or “operational” grounding, which allows for a greater practical applicability of this theory. By taking both the configurational and capability-based views of the OL-IT-performance causal framework, the authors provide an empirical basis for unraveling, explaining and understanding the complex non-linear relationships embedded within this framework.

Details

Journal of Knowledge Management, vol. 24 no. 7
Type: Research Article
DOI: https://doi.org/10.1108/JKM-12-2019-0741
ISSN: 1367-3270

Keywords

  • Explorative learning
  • IT capabilities
  • Strategic capabilities
  • Capability configuration
  • Competitive performance
  • fsQCA
  • Industrial service
  • SME

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Article
Publication date: 12 September 2019

How do different types of interorganizational ties matter in technological exploration?

Yu-Shan Su and Wim Vanhaverbeke

Boundary-spanning exploration through establishing alliances is an effective strategy to explore technologies beyond local search in innovating firms. The purpose of this…

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Abstract

Purpose

Boundary-spanning exploration through establishing alliances is an effective strategy to explore technologies beyond local search in innovating firms. The purpose of this paper is to argue that it is useful to make a distinction in boundary-spanning exploration between what a firm learns from its alliance partners (explorative learning from partners (ELP)) and what it learns from other organisations (explorative learning from non-partners (ELN)).

Design/methodology/approach

The authors contend that alliances play a role in both types of exploration. More specifically, the authors discern three types of alliances (inside ties, clique-spanning ties and outside ties) based on their role vis-à-vis existing alliance cliques. Clique members are highly embedded, and breaking out of the cliques through clique-spanning and outside alliances is crucial to improving explorative learning. Thereafter, the authors claim that clique-spanning ties and outside ties have a different effect on ELN and ELP.

Findings

The empirical analysis of the “application specific integrated circuits” industry indicates that inside ties have negligible effects on both types of explorative learning. Clique-spanning ties have a positive effect on ELP, but not on ELN. The reverse is true for outside ties. The results show that research on explorative learning should devote greater attention to the various roles alliance partners and types of alliances play in advancing technological exploration.

Originality/value

The literature only emphasises the learning from partners, focussing mainly on accessing their technology. In sum, alliance partners play different roles in exploration, and their network position influences the role they are able to play.

Details

Management Decision, vol. 57 no. 8
Type: Research Article
DOI: https://doi.org/10.1108/MD-06-2018-0713
ISSN: 0025-1747

Keywords

  • Explorative learning from partners
  • Explorative learning from non-partners
  • Boundary-spanning exploration
  • Inside ties
  • Clique-spanning ties
  • Outside ties
  • Conduits
  • Prisms

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Article
Publication date: 18 November 2019

Explorative and exploitative strategies and export performance: The moderating effects of entrepreneurial orientation

Saba Khalid

This study aims to examine the moderating effects of entrepreneurial orientation (EO) on the relationship of exploitation and exploration strategies with export…

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Abstract

Purpose

This study aims to examine the moderating effects of entrepreneurial orientation (EO) on the relationship of exploitation and exploration strategies with export performance. Drawing on the current literature, this conceptual paper develops a framework that first links the exploitative and explorative strategies with the export performance. Later, propositions are developed to indicate different combinations of individual dimensions of EO as moderating factors to this relationship.

Design/methodology/approach

This is a conceptual paper which builds on prior conceptual and empirical management research.

Findings

The preliminary conceptual findings suggest that the exploitative strategy is valuable in the short run after new entry, while explorative strategy is significant in the long run only after new entry. For the moderating effects, a combination of high innovation, high proactiveness and high risk-taking may positively influence both the strategies with export performance. While low innovativeness but high proactiveness and high risk-taking is assumed to positively moderate the exploitative strategy and export performance relationship, a negative moderating role is seen for explorative strategy and export performance. Similarly, high innovativeness but low risk-taking and low proactiveness will negatively moderate the relationship between exploitative/explorative strategy and export performance.

Originality/value

The current literature warrants research on this topic. For example, literature lacks studies regarding a better understanding of the impact of export market exploitation and exploration on export performance. Further, the impact of EO on performance is well acknowledged in the literature, but their relative influence on the performance of exporting firms remains inconclusive.

Details

Journal of Research in Marketing and Entrepreneurship, vol. 22 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/JRME-01-2018-0004
ISSN: 1471-5201

Keywords

  • Explorative
  • Exploitative
  • Export performance
  • Entrepreneurial orientation
  • Moderating effects
  • Innovation

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Article
Publication date: 3 October 2016

Averting risk or embracing opportunity? Exploring the impact of ambidextrous capabilities on innovation of Chinese firms in internationalization

Yu Zhou, Lu Lu and Xiaoxi Chang

The purpose of this paper is to examine the impacts of ambidextrous capabilities, explorative capability and exploitative capability on product innovation performance in…

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Abstract

Purpose

The purpose of this paper is to examine the impacts of ambidextrous capabilities, explorative capability and exploitative capability on product innovation performance in the context of internationalization and cross-cultural environment; and to examine the moderating effects of CEO’s preference of risks and opportunities in the international market on the relationship between ambidextrous capabilities and multinational enterprises’ (MNEs) product innovation performance.

Design/methodology/approach

Data were collected from 189 MNEs located in China, which develop international business through export, outsourcing, foreign equity investment or foreign direct investment. Measurement reliability and validity were examined and hierarchical linear regression was used to test the hypotheses.

Findings

Results indicated that both explorative and exploitative capability are positively related to MNEs’ new product development and commercialization of Chinese MNEs; and CEO’s preference of risks and opportunities in international market plays a significant moderating role in the two phases of product innovation.

Research limitations/implications

This study extends organizational ambidextrous capabilities theory to better understand the effects of explorative capability and exploitative capability on innovation performance in the context of internationalization and national cultural differences. Sample constitution is a possible limitation.

Practical implications

MNEs, especially those from emerging economies, should develop both explorative and exploitative capability to be flexible and competitive in dealing with cultural differences. fully take risks and opportunities should be taken into consideration regarding the international market and national cultural differences, and take an effective contingency strategy, driven by the ambidextrous capabilities toward new product innovation development and commercialization.

Originality/value

An empirical examination of how ambidextrous capabilities impact on Chinese MNEs’ new product development and commercialization connects the organizational ambidexterity theory to the innovation and characteristics of upper echelons.

Details

Cross Cultural & Strategic Management, vol. 23 no. 4
Type: Research Article
DOI: https://doi.org/10.1108/CCSM-07-2014-0085
ISSN: 2059-5794

Keywords

  • Product innovation
  • Risk aversion
  • Exploitative capability
  • Explorative capability
  • Opportunity preference

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Article
Publication date: 19 October 2015

Board capital and exploration: from a resource provisional perspective

Nami Kim and Eonsoo Kim

Drawing upon the resource dependence theory, the purpose of this paper is to examine how the board capital diversity influences the explorative innovation of firms…

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Abstract

Purpose

Drawing upon the resource dependence theory, the purpose of this paper is to examine how the board capital diversity influences the explorative innovation of firms, attempting to resolve the inconsistent empirical findings of the effect of outside directors on firm’s R & D strategy.

Design/methodology/approach

Using a sample of Korean manufacturing firms which consider R & D capability to be one of their core competencies, the study uses negative binomial model to test the influence of board capital diversity on explorative innovation.

Findings

Results support the value of moderate level of board diversity hypothesis by demonstrating that board capital diversity shows an inverted U-shaped relationship with explorative innovation. The results also suggest that CEO ownership positively moderates the relationship between board capital diversity and firms’ innovative performance.

Originality/value

Mainstream research has focussed on the directors’ monitoring role based on agency theory, overlooking the more positive resource provision role. Taking on the concepts of board capital and exploration, the study introduces the notion that outside directors should be selected with a view as vehicles for bringing in valuable expertise and social linkages for the firm’s explorative innovation.

Details

Management Decision, vol. 53 no. 9
Type: Research Article
DOI: https://doi.org/10.1108/MD-11-2014-0648
ISSN: 0025-1747

Keywords

  • Corporate governance
  • Resource dependence theory
  • Board capital diversity
  • Board ownership
  • CEO ownership
  • Explorative innovation

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Article
Publication date: 2 March 2015

Examining explorative and exploitative uses of smartphones: a user competence perspective

Chulmo Koo, Namho Chung and Hee-Woong Kim

The purpose of this paper is to investigate the effects of user competence on two different usage variables related to information systems (IS) infusion: explorative use…

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Abstract

Purpose

The purpose of this paper is to investigate the effects of user competence on two different usage variables related to information systems (IS) infusion: explorative use and exploitative use.

Design/methodology/approach

Structural equation modeling is used to construct a predictive model of user competence toward IS infusion. Individuals’ responses to questions about attitude and intention to use smartphone were collected and analyzed.

Findings

The results showed that all first-order factors of user competence were significantly linked to the second-order factor. User competence is then significantly related to IS infusion, both explorative use and exploitative use.

Research limitations/implications

This study discusses individual usage behavior related to IS infusion usage. The authors conceptualized that exploitative use is different from explorative use. The findings in this study suggest that user competence must be included in IS usage models, especially IS infusion model.

Practical implications

The results associated with exploitation are more certain and closer in time, while those associated with exploration are more variable. That is, users are likely to innovate through their smart devices related to IS infusion. Smartphone developers and the relevant service providers should decide which factors are more important along the stages of the information technology implementation process. As indicated in this study, knowledge-based user competence together with perceived usefulness influences the usage behavior of smartphone users. Industry players need to consider user competence when they promote their smartphone services.

Originality/value

The proposed model brings together extant research on IS use and technology acceptance.

Details

Information Technology & People, vol. 28 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/ITP-04-2013-0063
ISSN: 0959-3845

Keywords

  • Behaviour
  • Adoption
  • Human computer interaction (HCI)
  • IT/IS management

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Article
Publication date: 2 April 2020

Organisational context and behavioural complexity affecting ambidextrous behaviours among SMEs

Wai Chuen Poon and Osman Mohamad

The purpose of this paper is to examine the antecedents of exploitative and explorative behaviours and to give valuable insight into the role of ambidextrous behaviours in…

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Abstract

Purpose

The purpose of this paper is to examine the antecedents of exploitative and explorative behaviours and to give valuable insight into the role of ambidextrous behaviours in developing creativity and innovativeness among owner-managers in SMEs.

Design/methodology/approach

A review of existing literature was carried out and drawing upon owner-managers, a survey using structured questionnaires was carried out with a total of 183 useful responses received. The proposed model was analysed using SmartPLS v2.3.7.

Findings

The empirical result suggests that behavioural complexity and organisational flexibility encourages exploitative and explorative behaviours, while ambidextrous behaviours encourage creativity and innovativeness. Rigidity, on the other hand, hinders the cultivation of ambidextrous behaviours.

Originality/value

The paper entails useful implication by demonstrating that flexibility enables owner-managers to reconcile competing demands and consequently, cultivate innovative outcomes. In this regard, business owner-managers must learn implicitly how to juggle these contradictory demands, suggesting an internal balancing mechanism independent of the organisational context and individual behavioural complexity. This paper suggests that cultivation of exploitative and explorative behaviours among owner-managers is useful in encouraging ambidextrous behaviours among SMEs.

Details

International Journal of Organization Theory & Behavior, vol. 23 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/IJOTB-03-2019-0037
ISSN: 1093-4537

Keywords

  • Small and medium enterprises (SMEs)
  • Ambidextrous behaviours
  • Entrepreneurial characteristics
  • Organisational context
  • Behavioural complexity
  • Malaysia

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Article
Publication date: 3 June 2019

Human resource strategies for organizational ambidexterity

Andrea Kim

The purpose of this paper is to propose a comprehensive framework that delineates how human resource (HR) practices are differentially configured for exploitative and…

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Abstract

Purpose

The purpose of this paper is to propose a comprehensive framework that delineates how human resource (HR) practices are differentially configured for exploitative and explorative innovation as well as how the sets of HR practices support these two types of innovation.

Design/methodology/approach

Based on the structural ambidexterity approach and a bottom-up process in the multilevel theories, this research derives the need for the differential managerial structures for exploitation and exploration at the unit level. In addition, the Input–Process–Outcome model of team effectiveness and multilevel theories are employed to discuss the internal nature (e.g. resources, work styles) of exploiting and exploring units. Finally, building on strategic HR management literature, this research configures exploitation-targeted and exploration-targeted HR systems and delves into how these differentiated HR systems generate differential inputs of human capital resources and thereby foster exploitative and explorative innovation processes.

Findings

This research proposes several factors for exploitation and exploration, including: necessary inputs (i.e. commitment, narrowness, and cohesion for exploitation vs thoughtfulness, breadth, and openness for exploration), idiosyncratic innovation processes (i.e. convergent collective cognition vs divergent collective cognition), and differentiated HR systems comprised of different forms of unit staffing (homogeneity vs heterogeneity), performance appraisal, incentives, and training and development (short-term vs long-term orientation).

Originality/value

The proposed theoretical framework contributes to an improved understanding of the psychological foundation of organizational ambidexterity and systematizing how diverse HR practices work together to elicit exploitative and explorative innovation from employees.

Details

Employee Relations: The International Journal, vol. 41 no. 4
Type: Research Article
DOI: https://doi.org/10.1108/ER-09-2017-0228
ISSN: 0142-5455

Keywords

  • Exploitation
  • Ambidexterity
  • Strategic human resource management

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