Exploratory and Exploitative Knowledge Sharing in Interorganizational Relationships

A growing body of research investigates the role that organizational learning plays in generating superior firm performance. Researchers, however, have given limited attention to this learning effect in the context of long-term interorganizational relationships. This paper focuses on a specific aspect of learning, that is, explorative and exploitative knowledge sharing, and examines its impacts on sustained performance. We examine interorganizational design mechanisms and digitally-enabled knowledge representation as antecedents of knowledge sharing. The empirical context is dyadic relationship between a supply chain solutions vendor and its customers for two major classes of supply chain services. Our theoretical predictions are tested by using data collected from both sides of this customer-vendor dyad. The findings suggest that dual emphasis on exploration and exploitation is important for sustained relationship performance for customers. The customer evaluates balancing exploration and exploitation important whereas the vendor emphasizes only on exploitation

Exploratory and Exploitative Knowledge Sharing in Interorganizational Relationships

A growing body of research investigates the role that organizational learning plays in generating superior firm performance. Researchers, however, have given limited attention to this learning effect in the context of long-term interorganizational relationships. This paper focuses on a specific aspect of learning, that is, explorative and exploitative knowledge sharing, and examines its impacts on sustained performance. We examine interorganizational design mechanisms and digitally-enabled knowledge representation as antecedents of knowledge sharing. The empirical context is dyadic relationship between a supply chain solutions vendor and its customers for two major classes of supply chain services. Our theoretical predictions are tested by using data collected from both sides of this customer-vendor dyad. The findings suggest that dual emphasis on exploration and exploitation is important for sustained relationship performance for customers. The customer evaluates balancing exploration and exploitation important whereas the vendor emphasizes only on exploitation

TMT diversity and innovation ambidexterity in family firms

Purpose – Family firms that simultaneously engage in multiple levels of innovation – incremental andradical – are likely to enjoy performance advantages across generations. The purpose of this paper is to research under which management conditions (i.e. top management team (TMT) diversity in terms of generational or non-family involvement) family firms are more likely to achieve innovation ambidexterity. Also, the paper addresses the mediating role of open innovation (OI) breadth in this relationship. Design/methodology/approach – A large cross-sectional sample of 335 small- and medium-sized family firms is used. The hypotheses were tested in a mediation model. The relationship between TMT diversity andambidexterity is measured using a binominal regression analysis, the one between TMT diversity and OIbreadth using a Tobit model. Findings – Drawing on the family firm upper echelon perspective, the results indicate that TMT diversity induced through external managers and multiple generations is positively related to innovation ambidexterity. As the mediation analysis reveals, the relationship can be explained by the higherpropensity of diverse TMTs to get involved in OI breadth. The findings add to the discussion on family firm heterogeneity and its influence on different kinds of innovation. Originality/value–So far, few studies have been concerned with ambidextrous family firms. Contrary totheir reputation, this study identifies family firms as radical as well as open innovators. As such, this research takes account not only of the heterogeneity of family firms, but also of the heterogeneity of family firm innovation

Technological activities and their impact on the financial performance of the firm: Exploitation and exploration within and between firms.

This article analyzes the financial performance consequences of technology strategies categorized along two dimensions: (1) explorative versus exploitative and (2) solitary versus collaborative. The financial performance implications of firms’ positioning along these two dimensions has important managerial implications, but has received only limited attention in prior studies. Drawing on organizational learning theory and technology alliances literature, a set of hypotheses on the performance implications of firms’ technology strategies are derived. These hypotheses are tested empirically on a panel dataset (1996-2003) of 168 R&D-intensive firms based in Japan, the US and Europe and situated in five different industries (chemicals, pharmaceuticals, ICT, electronics, non-electrical machinery). Patent data are used to construct indicators of explorative versus exploitative technological activities (activities in new or existing technology domains) and collaborative versus solitary technological activities (joint versus single patent ownership). The financial performance of firms is measured via a market value indicator: Tobin’s Q index. The analyses confirm the existence of an inverted U-shape relationship between the share of explorative technological activities and financial performance. In addition, it is observed that most sample firms do not reach the optimal level of explorative technological activities. These findings point to the relevance of creating a balance between exploitation and exploration in the context of technological activities. Moreover, they suggest that, for the majority of R&D intensive firms, reaching such a balance between exploration and exploitation implies investing additional efforts and resources in exploring new knowledge domains. The analyses also show that firms, engaging more intensively in collaboration, perform relatively stronger in explorative activities. At the same time, a negative relationship between the share of collaborative technological activities and a firm’s market value is observed. Contrary to our expectations, it is collaboration in explorative technological activities, rather than collaboration in exploitative technological activities, that leads to a reduction in firm value. These findings question the relevance of open business models for technological activities. In particular, they suggest that the potential advantages of collaboration for (explorative) technological activities (i.e. access to complementary knowledge from other partners, sharing of technological costs and risks) might not compensate for the potential disadvantages, such as the incurred increase in coordination costs and the need to share innovation rewards across innovation partners.

Leveraging Open-standard Interorganizational Information Systems for Process Adaptability and Alignment: An Empirical Analysis

PurposeThe purpose of this paper is to understand the value creation mechanisms of open-standard inter-organizational information system (OSIOS), which is a key technology to achieve Industry 4.0. Specifically, this study investigates how the internal assimilation and external diffusion of OSIOS help manufactures facilitate process adaptability and alignment in supply chain network.Design/methodology/approachA survey instrument was designed and administrated to collect data for this research. Using three-stage least squares estimation, the authors empirically tested a number of hypothesized relationships based on a sample of 308 manufacturing firms in China.FindingsThe results of the study show that OSIOS can perform as value creation mechanisms to enable process adaptability and alignment. In addition, the impact of OSIOS internal assimilation is inversely U-shaped where the positive effect on process adaptability will become negative after an extremum point is reached.Originality/valueThis study contributes to the existing literature by providing insights on how OSIOS can improve supply chain integration and thus promote the achievement of industry 4.0. By revealing a U-shaped relationship between OSIOS assimilation and process adaptability, this study fills previous research gap by advancing the understanding on the value creation mechanisms of information systems deployment

The Role of Human Resource and Organizational Factors in Ambidexterity

Ambidexterity is a growing field of management research. However, the role of human resources (HR) and organizational factors needs further exploration because of the fragmented nature of prior work and the subsequent lack of a unifying framework. Our review of 41 empirical studies identifies distinct research streams that relate to the effects of employee characteristics, leader characteristics, organizational structure, culture, social relationships, and organizational environment on ambidexterity. We discuss the most important findings within each stream, which contributes to the HR and ambidexterity literature by addressing the current state of our knowledge. To move forward research in this area, we identify important, yet underexplored areas in each stream. This contributes to the literature by highlighting specific gaps in our current knowledge that represent new avenues for future research. We also identify important interrelationships between different streams that need further clarification. We summarize our findings into an integrative model that elucidates the role of HR and organizational factors in ambidexterity. This contributes to a more comprehensive understanding of ambidexterity from the HR and organizational perspectives

Technological activities and their impact on the financial performance of the firm: Exploitation and exploration within and between firms

This paper analyzes the consequences for financial performance of technology strategies categorized along two dimensions: (1) explorative versus exploitative and (2) solitary versus collaborative. The financial performance implications of firms’ positioning along these two dimensions has important managerial implications, but has received only limited attention in prior studies. Drawing on organizational learning theory and technology alliances literature, a set of hypotheses on the performance implications of firms’ technology strategies are derived. These hypotheses are tested empirically on a panel dataset (1996-2003) of 168 R&D-intensive firms based in Japan, the US and Europe and situated in five different industries (chemicals, pharmaceuticals, ICT, electronics, non-electrical machinery). Patent data are used to construct indicators of explorative versus exploitative technological activities (activities in new or existing technology domains) and collaborative versus solitary technological activities (joint versus single patent ownership). The financial performance of firms is measured via a market value indicator: Tobin’s Q index.Innovation, Tobin’s q, R&D collaboration, exploration & exploitation