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This study aims to clarify how companies should manage exploration and exploitation in the long term, and particularly whether companies should dynamically change their…
This study aims to clarify how companies should manage exploration and exploitation in the long term, and particularly whether companies should dynamically change their resource allocation related to exploration and exploitation activities.
To demonstrate the effect of shifts in focus between exploration and exploitation on financial performance and market evaluation, an empirical examination was conducted using secondary panel data for Japanese manufacturers from 2000 to 2014, which was analyzed by fixed-effect estimation with a control function approach considering the problem of endogeneity.
The empirical results suggest that companies should change their resource allocation related to exploration and exploitation in the long term. Long-term focus shifts between exploration and exploitation activities enhance not only future financial performance (return on assets and return on sales), but also future market evaluations (Tobin’s Q).
This paper showed a pathway connecting technological knowledge searches to the company’s future performance. With reference to the discussion of existing research, it remains unclear what kind of management is required for company activities related to exploration and exploitation. This study showed that companies can improve their profitability and market evaluations by changing their resource allocation for exploration and exploitation activities over time.
While most research on exploration and exploitation is from a static perspective, this study simultaneously incorporated focus balance and focus shifts into the empirical model and thereby examined exploration and exploitation from a dynamic perspective. Even when considering the effects of balancing exploration and exploitation, this study confirmed that organizational vacillation will improve financial performance and market evaluation.
Identity exploration is a central mechanism for identity formation that has been found to be associated with intense engagement, positive coping, openness to change…
Identity exploration is a central mechanism for identity formation that has been found to be associated with intense engagement, positive coping, openness to change, flexible cognition, and meaningful learning. Moreover, identity exploration in school has been associated with adaptive motivation for learning the academic material. Particularly in the fast-changing environment of contemporary society, confidence and skills in identity exploration and self-construction seems to be increasingly important. Therefore, promoting students’ identity exploration in school within the curriculum and in relation to the academic content should be adopted as an important educational goal. The purpose of this paper is to describe a conceptual framework for interventions to promote students’ identity exploration within the curriculum. The framework involves the application of four interrelated principles: (1) promoting self-relevance; (2) triggering exploration; (3) facilitating a sense of safety; and (4) scaffolding exploratory actions.
We begin the paper with a conceptual review of identity exploration. We follow by specifying the conceptual framework for interventions. We then present a methodological-intervention approach for applying this framework and describe three such interventions in middle-school contexts, in the domains of environmental education, literature, and mathematics.
In each intervention, applying the principles contributed to students’ adaptive motivation and engagement in the academic material and also contributed to students’ identity exploration, though not among all students. The findings highlight the contextual, dynamic, and indeterminate nature of identity exploration among early adolescents in educational settings, and the utility of the conceptual framework and approach for conceptualizing and intervening to promote identity exploration among students.
This paper contributes to the conceptual understanding of identity exploration in educational settings, highlights the benefits and the challenges in intervening to promote identity exploration among students, and discusses the future directions in theory, research, and practice concerned with the promotion of identity exploration in educational settings.
Despite the theoretical assumption that balancing exploration and exploitation is important for long-term performance and survival, previous studies have provided few…
Despite the theoretical assumption that balancing exploration and exploitation is important for long-term performance and survival, previous studies have provided few insights into these relationships because they have focused mainly on the short-term financial performance of organizations. In addition, balancing exploration and exploitation is a critical challenge for small- and medium-sized enterprises (SMEs) that lack the resources, capabilities, and experience necessary to achieving ambidexterity. In this regards, this study empirically explores the relationship between the exploration–exploitation balance and SMEs’ longevity in order to address two important questions from the ambidexterity perspective: (1) How does the balance between exploration and exploitation influence organizational survival? (2) How is the appropriate balance between exploration and exploitation influenced by an organization’s internal and external contexts?
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.
The dynamic capabilities perspective focuses on the ability of an organization to develop its resource base in order to meet environmental expectations. Therefore, it is…
The dynamic capabilities perspective focuses on the ability of an organization to develop its resource base in order to meet environmental expectations. Therefore, it is closely interrelated to the issue of managing the interaction of exploration and exploitation. The competence of continuously optimizing the interaction of exploration and exploitation has been referred to as organizational ambidexterity. Managing this interaction implies resolving a firm's permanent struggle to overcome the barriers related to the right configuration between exploration and exploitation.
By incorporating the concept of combinative capabilities as balancing routines into the conceptualization of ambidexterity we distinguish structural, interaction, and socialization capabilities that are deployed in overcoming these barriers to resource (re)configuration.
Drawing on knowledge management and barriers to resource configuration we expect that the way organizations deploy combinative capabilities to manage the interaction between exploration and exploitation depends on the observed barriers to resource (re)configuration. By combining the constructs of barriers to resource reconfiguration, ambidexterity, and combinative capabilities we intend to gain more insight in the way organizations manage the actual interaction between exploration and exploitation. Our paper will introduce a set of propositions indicating the relationship between ambidexterity, barriers to resource (re)configuration, and combinative capabilities as balancing routines.
Since March (1991) presented his ideas on organizational learning, hundreds of empirical tests have been conducted on relationships among the activities of exploration…
Since March (1991) presented his ideas on organizational learning, hundreds of empirical tests have been conducted on relationships among the activities of exploration, exploitation, ambidexterity, and firm performance. Despite continued interest in his ideas, there has not been a systematic assessment of extant research to reveal whether, and to what extent, these activities relate to firm performance. This study uses meta-analysis to take a next step by aggregating results of 117 studies from more than 21,000 firms. I find strong performance effects for exploration and exploitation, but contrary to received theory, I discover ambidexterity yields weaker effects than a focus on either exploration or exploitation. Thus, I leverage these findings to offer future research opportunities.
In this chapter, the authors examine the main effect of entrepreneurial orientation (EO) – a firm’s strategic entrepreneurial posture – on balancing exploration and…
In this chapter, the authors examine the main effect of entrepreneurial orientation (EO) – a firm’s strategic entrepreneurial posture – on balancing exploration and exploitation in the form of organizational ambidexterity. Resource-constrained firms face an imperative to conduct innovative activities, survive hostile environments, and compete with larger and more resource-rich firms. The authors contend that firms can address these potential impediments through achieving ambidexterity via dynamic capabilities, firm-specific resources, and institutional factors. Specifically, The authors review the EO and ambidexterity literatures and summarize extant arguments related to the relationship between EO, exploration, and exploitation. The authors also discuss the most prominent scales and measures of EO, exploration, and exploitation. Moreover, the authors discuss operationalizational challenges that should be considered when conducting EO–ambidexterity research and suggest future research directions by specifying an agenda outlining useful theoretical perspectives and various contingencies that may influence the EO–ambidexterity relationship.
Contemporary working life highlights the challenge between exploitation and exploration both on a general and a more individual level. Here, we focus on the latter, and…
Contemporary working life highlights the challenge between exploitation and exploration both on a general and a more individual level. Here, we focus on the latter, and connect the critical debate regarding self-management to March's exploitation/exploration trade-off, as this forms a useful theoretical frame to understand how employees make sense of their self-management efforts. The employee is subjected to an individual responsibility to understand and manage an exploration of the self while handling the norms of self-exploitation that a self-management culture creates. Through an empirical study of a large group of management consultants, we explore how they perform and make sense of self-exploitation and self-exploration through three specific discourses: the discourse of workload, the discourse of aspiration, and the discourse of fun. Through these, the consultants try to identify optimal amounts of work, play, and ambition, all while handling the trade-off between self-exploitation and self-exploration. We show how this keeps failing, but how it reappears as a necessary condition for avoiding future failures. In all three discourses, the trade-off therefore presents itself as the problem of as well as the solution to self-management.
In contrast to the largely functionalist and apolitical literature which dominates organisational scholarship on exploitation and exploration after March, this paper seeks…
In contrast to the largely functionalist and apolitical literature which dominates organisational scholarship on exploitation and exploration after March, this paper seeks to complement this view of exploitation and exploration with a Marxist reading which is unwittingly implied by these terms. More specifically, we combine neo-Marxist and paleo-Marxist arguments to more fully understand the conflictual relations that underpin exploitation and exploration in the management of firms. This enables us to address both the objective and subjective dimensions of exploitation and exploration which firms and workers are involved in through the contemporary capitalist labour process. We illustrate this by drawing on a case study of a large Swedish manufacturing firm which sought to improve lean production by systematically helping employees to explore their own lifestyles and possibilities for a healthier and happier life.
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…
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.
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.
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.
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.
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
This paper contributes to fill the gap between strategic alliances and new product development mediated by exploration and exploitation in the dynamic capabilities view.
Exploration and exploitation comprise one of the most well-known constructs in management and organization studies. However, there are three gaps in the extant literature…
Exploration and exploitation comprise one of the most well-known constructs in management and organization studies. However, there are three gaps in the extant literature on this topic. First, these studies focus mainly on large organizations and neglect small and medium-sized enterprises (SMEs) and new ventures. Second, when adopting a longitudinal perspective, the research typically consists of cross-sectional studies that fail to capture evolution. Third, the research focuses more on the role of antecedents and mediators of strategies that pursue exploration and exploitation than on the practices that embody such goals. In this chapter, we address these three gaps and complement the previous literature with a study of the growth of an SME from start-up to sale over a 19-year period (1993–2011). We depict the evolution of exploration and exploitation over time through an analysis of management system practices that employs a longitudinal perspective. We analyze the different roles that management systems have played in various stages of the growth paths of the organization. We show that the role of management systems in shaping exploration and exploitation only loosely depends on the design of these systems. The same management systems can fulfill an explorative function in one stage and an exploitative function in another, depending on how such systems are used. Conversely, across stages, the role of management systems typically changes from exploration to exploitation.