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Exploration and Exploitation Alliances in Biotechnology: A System of New Product Development. (2004)

by F T Rothaermel, D L Deeds
Venue:Strategic Management Journal,
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Organizational ambidexterity: Balancing exploitation and exploration for sustained performance

by Sebastian Raisch, Julian Birkinshaw, Michael L. Tushman - Organization Science , 2009
"... doi 10.1287/orsc.1090.0428 ..."
Abstract - Cited by 62 (2 self) - Add to MetaCart
doi 10.1287/orsc.1090.0428
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...on and exploration has been to externalize one or another set of activities through outsourcing or by establishing alliances (Baden-Fuller and Volberda 1997, Holmqvist 2004, Lavie and Rosenkopf 2006, =-=Rothaermel and Deeds 2004-=-). Conversely, research on organizational ambidexterity has focused on how organizations address exploitation and exploration internally. Benner and Tushman (2003), for example, conclude that the exte...

Past success and creativity over time: A study of inventors in the hard disk drive industry.

by P Audia, J Goncalo - Management Science, , 2007
"... ..."
Abstract - Cited by 23 (8 self) - Add to MetaCart
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... literatures, while complementary, do not speak to each other. On the one hand, researchers have applied theories of exploration-exploitation to the study of strategic alliances (Beckman et al. 2004, =-=Rothaermel and Deeds 2004-=-), product development (Holmqvist 2004), organizational innovation (Sorensen and Stuart 2000, Benner and Tushman 2002), and organizational performance (Lee et al. 2003, He and Wong 2004). However, the...

Internationalising in small, incremental or larger steps? Harry G Barkema and Rian Drogendijk

by Harry G Barkema, Rian Drogendijk, Department Of Organisation - Journal of International Business Studies , 2002
"... We argue that companies may enter foreign environments either incremen-tally, as suggested by long-established theory, or by taking larger steps that may result in lower initial performance but, through learning and experience, lead to increased performance in future expansions. This idea is corrobo ..."
Abstract - Cited by 21 (0 self) - Add to MetaCart
We argue that companies may enter foreign environments either incremen-tally, as suggested by long-established theory, or by taking larger steps that may result in lower initial performance but, through learning and experience, lead to increased performance in future expansions. This idea is corroborated by the experience of Dutch companies entering into Central and Eastern Europe. We also find that expansion steps may be too large, thereby limiting the exploration of foreign environments. Our study suggests that sequential internationalisation strategies do still matter, and that companies have to balance exploitation and exploration in internationalisation. Journal of International Business Studies (2007), doi:10.1057/palgrave.jibs.8400315
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...sed the exploitation/exploration lens on the development of new technologies (Rosenkopf and Nerkar, 2001), on new businesses (McGrath, 2001), on new products (Katila and Ahuja, 2002; Holmqvist, 2004; =-=Rothaermel and Deeds, 2004-=-), on newly established companies (Baum et al., 2000; Winter and Szulanski, 2001), and on the issue of whether or not firms should establish separate units specialising in exploitation or exploration ...

Fishing Upstream: Firm Innovation Strategy and University Research Alliances

by Janet E L Bercovitz , Maryann P Feldman - Research Policy , 2007
"... Abstract This paper examines how innovation strategy influences firms' level of involvement with university-based research. Our results suggest that firms with internal R&D strategies more heavily weighted toward exploratory activities allocate a greater share of their R&D resources to ..."
Abstract - Cited by 18 (0 self) - Add to MetaCart
Abstract This paper examines how innovation strategy influences firms' level of involvement with university-based research. Our results suggest that firms with internal R&D strategies more heavily weighted toward exploratory activities allocate a greater share of their R&D resources to exploratory university research and develop deeper multifaceted relationships with their university research partners. In addition, firms with more centralized internal R&D organizations spend a greater share of their R&D dollars on exploratory research conducted at universities. In contrast to other external partners, we find evidence suggesting that universities are preferred when the firm perceives potential conflicts over intellectual property.
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...irm lliances and tends to investigate these alliances from he perspective of the university, rather than from the erspective of the commercial partner. When universities re considered as strategic partners, the focus is typically n start-up firms, not the large corporations that account or three-quarters of R&D funding in the economy nd fund the majority of industry-sponsored research onducted at academic institutions. Moreover, the typcal conceptualization of innovation, the linear model, laces universities at the earliest stage of knowledge reation and upstream from firms’ more applied R&D Rothaermel and Deeds, 2004). Yet, in practice, univerity research involves a rich mix of scientific discovery, linical trials, beta testing, and prototype development. hile many university breakthroughs address fundaental scientific questions, they may simultaneously rovide practical implications for current commercial roducts (Stokes, 1997). The university–firm dyad is particularly unique mechanism for cross-boundary earning for firms as universities operate with different ncentives, goals, routines, decision-making structures han for-profit entities. An open question is if, or how, he balance a firm maintains with the...

The performance consequences of ambidexterity in strategic alliance formations: empirical investigation and computational theorizing. Management Science 53(10

by Zhiang (john Lin, Haibin Yang, Irem Demirkan , 2007
"... doi 10.1287/mnsc.1070.0712 ..."
Abstract - Cited by 16 (4 self) - Add to MetaCart
doi 10.1287/mnsc.1070.0712
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... improve a firm’s performance. Specifically, we look into firms’ alliance formation behavior, which can be classified as a form of exploration and exploitation (Koza and Lewin 1998, Park et al. 2002, =-=Rothaermel and Deeds 2004-=-). On the one hand, alliances can be used to exploit complementary resources between alliance partners, reduce risks, and promote stability (Inkpen 2001); on the other hand, they can be used to access...

Determinants and archetype users of open innovation

by Oliver Gassmann - R&D Management, V , 2009
"... Extant research on open innovation (OI) offers no systematic insight of how and why firms differ regarding the extent to which they conduct OI activities. Whereas past theoretical contributions have focused on explaining the externalisation of R&D activities as a result of firm-external factors, ..."
Abstract - Cited by 14 (0 self) - Add to MetaCart
Extant research on open innovation (OI) offers no systematic insight of how and why firms differ regarding the extent to which they conduct OI activities. Whereas past theoretical contributions have focused on explaining the externalisation of R&D activities as a result of firm-external factors, we focus on explaining this externalisation as a result of firm-internal weaknesses, specifically, impediments to innovation. Using the exploration–exploitation dichotomy as our theoretical framework, we develop hypotheses on how impediments to innovation influence the breadth and depth of OI. We then test these hypotheses by using an exceptionally large and detailed data set to estimate population-averaged panel models. Our results provide support for most of the hypothesised relationships. Further, they allow to identify four ‘archetypes ’ of firms that differ significantly regarding the breadth and depth of OI and the importance of impediments. Finally, we discuss the significance of these findings for both academics and managers. 1.
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...reements by which the exploration of new opportunities is conducted in close collaboration with partnering firms that provide external knowledge and capabilities (Rothaermel, 2001; Park et al., 2002; =-=Rothaermel and Deeds, 2004-=-; Lavie and Rosenkopf, 2006; Wadhwa and Kotha, 2006). Thus, to integrate such external partners into the innovation process – i.e., OI – may provide a way for the firm to overcome overwhelming interna...

The structure of R&D collaboration networks in the European Framework Programmes

by Thomas Roediger-schluga, Michael J. Barber, Thomas Roediger-schluga, Michael J. Barber
"... * ) corresponding author ..."
Abstract - Cited by 13 (5 self) - Add to MetaCart
* ) corresponding author

Balance within and across domains: The performance implications of exploration and exploitation in alliances

by Dovev Lavie, Jingoo Kang, Lori Rosenkopf - Organization Science , 2011
"... Organizational research advocates that firms balance exploration and exploitation, yet it acknowledges inherent chal-lenges in reconciling these opposing activities. To overcome these challenges, such research suggests that firms establish organizational separation between exploring and exploiting u ..."
Abstract - Cited by 11 (1 self) - Add to MetaCart
Organizational research advocates that firms balance exploration and exploitation, yet it acknowledges inherent chal-lenges in reconciling these opposing activities. To overcome these challenges, such research suggests that firms establish organizational separation between exploring and exploiting units or engage in temporal separation whereby they oscillate between exploration and exploitation over time. Nevertheless, these approaches entail resource allocation trade-offs and conflicting organizational routines, which may undermine organizational performance as firms seek to balance explo-ration and exploitation within a discrete field of organizational activity (i.e., domain). We posit that firms can overcome such impediments and enhance their performance if they explore in one domain while exploiting in another. Studying the alliance portfolios of software firms, we demonstrate that firms do not typically benefit from balancing exploration and exploitation within the function domain (technology versus marketing and production alliances) and structure domain (new versus prior partners). Nevertheless, firms that balance exploration and exploitation across these domains by engaging in research and development alliances while collaborating with their prior partners, or alternatively, by forming marketing and production alliances while seeking new partners, gain in profits and market value. Moreover, we reveal that increases in firm size that exacerbate resource allocation trade-offs and routine rigidity reinforce the benefits of balance across domains and the costs of balance within domains. Our domain separation approach offers new insights into how firms can benefit
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...t relevant for alliance formation decisions (e.g., Beckman et al. 2004, Grant and Baden-Fuller 2004, Koza and Lewin 1998, Lavie and Rosenkopf 2006, Lin et al. 2007, Park et al. 2002, Rothaermel 2001, =-=Rothaermel and Deeds 2004-=-). We argue that in the context of a firm’s alliances, resource allocation trade-offs and conflicting organizational routines result in negative performance implications when firms balance exploration...

BEHIND ACQUISITIONS OF ALLIANCE PARTNERS: EXPLORATORY LEARNING AND NETWORK EMBEDDEDNESS

by Haibin Yang, Zhiang (john Lin, Mike W. Peng, Guidance David Deeds, Seung-hyun Lee, Steve Borgatti
"... Acquisition research has traditionally been dominated by economic and atomistic assumptions. This study extends acquisition research by integrating behavioral learning and social network perspectives to examine the acquisitions of alliance partners. Specifically, we examine, at the dyadic level, how ..."
Abstract - Cited by 10 (3 self) - Add to MetaCart
Acquisition research has traditionally been dominated by economic and atomistic assumptions. This study extends acquisition research by integrating behavioral learning and social network perspectives to examine the acquisitions of alliance partners. Specifically, we examine, at the dyadic level, how firms ’ alliance learning approaches (exploration versus exploitation) and their joint and relative embeddedness in alliance networks (joint brokerage positions and relative centrality) can interact to drive subsequent acquisitions of alliance partners. Our analyses of the U.S. computer industry support our theoretical framework, highlighting the unique and previously underexplored behavioral and relational drivers of acquisitions. Alliances and acquisitions are two important organizational activities for accessing external resources (Wang & Zajac, 2007). Although the literature generally treats them as parallel in nature, firms often acquire alliance partners (Folta & Miller, 2002; Porrini, 2004; Zollo & Reuer, 2010). Then, what drives acquisitions of alliance partners? Prior research has primarily relied on economic or financial explanations such as transaction costs, agency conflicts, and real options (Folta & Miller, 2002; Hagedoorn & Sadowski, 1999; Kogut, 1991), and paid relatively little attention to behavioral and network drivers. A stream of recent work has increasingly recognized that firms often draw on behavioral learning to make acquisition decisions
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...n’s (1998) extension of March’s (1991) concepts into the alliance literature, researchers have explored the nature and implications of exploration and exploitation alliances (Lavie & Rosenkopf, 2006; =-=Rothaermel & Deeds, 2004-=-). Specifically, in exploration alliances, partner firms capitalize on their joint capabilities to discover new opportunities, build up new competencies, and adapt to environmental changes. In exploit...

Friends and foes: The dynamics of dual social structures

by Maxim Sytch, Adam Tatarynowicz - ACADEMY OF MANAGEMENT JOURNAL , 2014
"... This paper investigates the evolutionary dynamics of a dual social structure encom-passing collaboration and conflict among corporate actors. We apply and advance structural balance theory to examine the formation of balanced and unbalanced dyadic and triadic structures, and to explore how these dyn ..."
Abstract - Cited by 6 (1 self) - Add to MetaCart
This paper investigates the evolutionary dynamics of a dual social structure encom-passing collaboration and conflict among corporate actors. We apply and advance structural balance theory to examine the formation of balanced and unbalanced dyadic and triadic structures, and to explore how these dynamics aggregate to shape the emergence of a global network. Our findings are threefold. First, we find that existing collaborative or conflictual relationships between two companies engender future relationships of the same type, but crowd out relationships of the different type. This results in (a) an increased likelihood of the formation of balanced (uniplex) relationships that combine multiple ties of either collaboration or conflict, and (b) a reduced likelihood of the formation of unbalanced (multiplex) relationships that combine collaboration and conflict between the same two firms. Second, we find that network formation is driven not by a pull toward balanced triads, but rather by a pull away from unbalanced triads. Third, we find that the observed micro-level dynamics of dyads and triads affect the structural segregation of the global network into two separate collaborative and conflictual segments of firms. Our empirical analyses used data on strategic partnerships and patent infringement and antitrust lawsuits in biotechnology and pharmaceuticals from 1996 to 2006. A considerable body of research has examined the implications of social structures for actors’ behaviors and outcomes. (For a review, see Brass,
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