Tales of serial exploration

Abstract

In this paper, we examine the firm and ecological factors that affect the long-term sustainability of exploration. We analysed the investment decisions by US venture capital firms to enter new technological domains over a 43-year period. Our results suggest that in addition to the well studied effects of inertia and slack, exploration is affected by an organization´s knowledge specialization, is conducive to repetitive momentum, and affects an organization´s subsequent exploration when occurring early in an organization´s life. We contribute to the literature on organizational learning by identifying some of the antecedents of exploration and its sustenance over time.