Revisiting James March (1991): Whither Exploration and Exploitation

We revisit March’s seminal 1991 article, “Exploration and exploitation in organizational learning”, and analyze the impact it has had on scholarly thinking, providing a comprehensive and structured review of the extensive and diverse research inspired by this publication. We show that although this influence has changed significantly over the years, there are still unexplored opportunities left by this seminal work. Our approach enables us to identify promising directions for future research that reinforce the themes anchored in March’s article. In particular, we call for reconnecting current research to the behavioral roots of this article and uncovering the microfoundations of exploration and exploitation. Our analysis further identifies opportunities for integrating this framework with resource-based theories and considering how exploration and exploitation can be sourced and integrated within and across organizational boundaries. Finally, our analysis reveals prospects for extending the notions of exploration and exploitation to new domains, but we caution that such domains should be clearly delineated. We conclude with a call for further research on the antecedents of exploration and exploitation and for studying their underexplored dimensions

Diffusion in supersonic, turbulent, compressible flows

We investigate diffusion in supersonic, turbulent, compressible flows. Supersonic turbulence can be characterized as network of interacting shocks. We consider flows with different rms Mach numbers and where energy necessary to maintain dynamical equilibrium is inserted at different spatial scales. We find that turbulent transport exhibits super-diffusive behavior due to induced bulk motions. In a comoving reference frame, however, diffusion behaves normal and can be described by mixing length theory extended into the supersonic regime.Comment: 11 pages, incl. 5 figures, accepted for publication in Physical Review E (a high-resolution version is available at http://www.aip.de./~ralf/Publications/p21.abstract.html

Control of star formation by supersonic turbulence

Understanding the formation of stars in galaxies is central to much of modern astrophysics. For several decades it has been thought that stellar birth is primarily controlled by the interplay between gravity and magnetostatic support, modulated by ambipolar diffusion. Recently, however, both observational and numerical work has begun to suggest that support by supersonic turbulence rather than magnetic fields controls star formation. In this review we outline a new theory of star formation relying on the control by turbulence. We demonstrate that although supersonic turbulence can provide global support, it nevertheless produces density enhancements that allow local collapse. Inefficient, isolated star formation is a hallmark of turbulent support, while efficient, clustered star formation occurs in its absence. The consequences of this theory are then explored for both local star formation and galactic scale star formation. (ABSTRACT ABBREVIATED)Comment: Invited review for "Reviews of Modern Physics", 87 pages including 28 figures, in pres

The effects of sensing and seizing of market opportunities and reconfiguring activities on the organisational resource base

This study has important implications for marketing theory and practice. In an era of turbulent market environments, the organisational ability to sense and seize market opportunities and to reconfigure the resource base accordingly, has significant effects on performance. This paper uses a dynamic capability framework to explain more explicitly the intricacies of the relationship between sensing and seizing of market opportunities and reconfiguring the resource base (i.e. dynamic capabilities) and the resource base. We investigate how the attributes of dynamic capability deployment, timing, frequency and speed, influence the resource base. We test the proposed framework using survey data from 228 large organisations. Findings show that the timing and frequency of dynamic capability deployment have significant effects on the resource base

Service-dominant orientation, dynamic capabilities and firm performance

Purpose: The purpose of this paper is to investigate the effects of a firm’s service-dominant orientation on marketing and technological capabilities, and its performance. It outlines how a service-dominant orientation offers guidance for the development and deployment of ordinary capabilities, and indirectly affects performance. Additionally, it delineates how dynamic capabilities affect the impact of a service-dominant orientation on ordinary capabilities. Design/methodology/approach: Partial least squares structural equation modeling drawing on data from 228 firms serves to assess hypotheses relating service-dominant orientation and dynamic capabilities with firm performance. Findings: The results indicate that marketing and technological capabilities fully mediate the relationship between a firm’s service-dominant orientation and firm performance. Furthermore, the positive marginal effect of a firm’s service-dominant orientation on its marketing capabilities increases with the firm displaying a stronger service-dominant orientation. In addition, the positive effect of service-dominant orientation on marketing capabilities reduces the more the firm deploys dynamic capabilities. Research limitations/implications: Because of the cross-sectional sample, future studies could adopt longitudinal research designs to explore the impact of a service-dominant orientation on ordinary capabilities and performance, or investigate the applicability of the findings in other contexts. Practical implications: The findings imply that implementing a service-dominant orientation can be beneficial for firms. However, because the impact of such an orientation weakens the greater a firm’s dynamic capabilities, managers need to be mindful of this trade-off. Originality/value: The study is the first to establish a link between the dynamic capability view, originating from strategy research, and service-dominant logic, stemming from marketing thinking

How do Dynamic Capabilities and Market Orientation Drive Ambidextrous Business Models?

Despite both business models and market orientation being relevant to value creation and firm performance, little research has investigated their relationship. Importantly, designing a business model often requires adjustments, which rests on the deployment of dynamic capabilities. Yet, we know little about the role of dynamic capabilities in fostering business model innovation. Thus, in this study we aim to understand the particular processes through which firms in general, and SMEs in particular, produce innovations to their business model in line with their market orientation. We develop process framework of business model innovation of an SME from start-up to scale-up, enabled by dynamic capabilities. More specifically, the paper clarifies the kind of dynamic capability deployment that is necessary for transforming a business model from market-driving to market-driven, and ultimately to one that reflects an ambidextrous market-orientation. Drawing on an in-depth longitudinal case study, this paper outlines that SMEs deploy dynamic capabilities that align with the SME’s type of market orientation to innovate the design and architecture of their business models.

The impact of dynamic capabilities on operational marketing and technological capabilities: investigating the role of environmental turbulence

Marketing and technological capabilities are primary drivers of a firm’s performance and thus of central interest to managers. Yet the way in which these two capabilities align with changing environments to secure superior performance remains unclear. Drawing on the dynamic capability view and data from a survey of 228 firms, this study proposes a model of how frequent dynamic capability utilization, assessed through its underlying processes of sensing and reconfiguring, relates to marketing and technological capabilities, as well as how market, technological, and competitor turbulence might affect these relationships. The results show that frequent sensing and reconfiguring have stronger positive effects in environments characterized by high competitor turbulence; however, frequent sensing can have negative relationships with marketing and technological capabilities in stable environments. Furthermore, marketing capabilities are positively associated with firm performance in highly competitive environments, whereas technological capabilities enhance performance in stable competitive environments

Employer branding: strategic implications for staff recruitment

In many developed economies, changing demographics and economic conditions have given rise to increasingly competitive labour markets, where competition for good employees is strong. Consequently, strategic investments in attracting suitably qualified and skilled employees are recommended. One such strategy is employer branding. Employer branding in the context of recruitment is the package of psychological, economic, and functional benefits that potential employees associate with employment with a particular company. Knowledge of these perceptions can help organisations to create an attractive and competitive employer brand. Utilising information economics and signalling theory, we examine the nature and consequences of employer branding. Depth interviews reveal that job seekers evaluate: the attractiveness of employers based on any previous direct work experiences with the employer or in the sector; the clarity, credibility, and consistency of the potential employers’ brand signals; perceptions of the employers’ brand investments; and perceptions of the employers’ product or service brand portfolio

Only senior managers lead business model innovation, or do they? : Levels of management and dynamic capability deployment

Funding Information: This view was also supported by the Vice President Global Market Access and Health Economics: Publisher Copyright: © 2023Previous research has provided valuable insights into the connection between market-driving strategies, business model innovation, and dynamic capabilities. However, several open questions remain. In this abductive study of a leading medical devices manufacturer, we investigate the roles various employees play in market-driving firms. We focus on how senior and middle managers as well as non-managers contribute to a firm's sensing, seizing, and reconfiguring to drive business model changes towards digital servitization and customer centricity. Our primary contributions lie in filling the knowledge gap in understanding the role employees at different levels of management play in market-driving strategies, as enacted through dynamic capability deployment, to support BMI. Second, we advance knowledge by stressing that a sole focus on senior managers provides an incomplete understanding of how firms engage in market-driving strategies.Peer reviewe