The performance effects of balancing exploration and exploitation within and across governance modes

Uriel Stettner; Dovev Lavie

doi:10.5464/AMBPP.2011.18.a

The performance effects of balancing exploration and exploitation within and across governance modes

Uriel Stettner, Dovev Lavie

Data and Decision Sciences

Technion - Israel Institute of Technology

Research output: Contribution to journal › Conference article › peer-review

Abstract

Acknowledging interdependence in firms' tendencies to explore versus exploit across governance modes, we claim that balancing these tendencies within each mode undermines performance as a result of resource allocation constraints, limits to specialization, and tension between conflicting routines. Nevertheless, by exploring in one mode while exploiting in another, firms can overcome these impediments and enhance performance. Furthermore, exploration via externally-oriented modes such as acquisitions or alliances enhances performance more than exploration via internal development. Analysis of 190 publicly-traded U.S.-based software firms furnishes support to these conjectures and sheds new light on Jim March's balance hypothesis.

Original language	English
Journal	Academy of Management Annual Meeting Proceedings
DOIs	https://doi.org/10.5464/AMBPP.2011.18.a
State	Published - 2011
Event	71st Annual Meeting of the Academy of Management - West Meets East: Enlightening, Balancing, Transcending, AOM 2011 - San Antonio, TX, United States Duration: 12 Aug 2011 → 16 Aug 2011

Keywords

Ambidexterity
Exploration and exploitation
Governance mode

All Science Journal Classification (ASJC) codes

Management Information Systems
Management of Technology and Innovation
Industrial relations

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10.5464/AMBPP.2011.18.a

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abstract = "Acknowledging interdependence in firms' tendencies to explore versus exploit across governance modes, we claim that balancing these tendencies within each mode undermines performance as a result of resource allocation constraints, limits to specialization, and tension between conflicting routines. Nevertheless, by exploring in one mode while exploiting in another, firms can overcome these impediments and enhance performance. Furthermore, exploration via externally-oriented modes such as acquisitions or alliances enhances performance more than exploration via internal development. Analysis of 190 publicly-traded U.S.-based software firms furnishes support to these conjectures and sheds new light on Jim March's balance hypothesis.",

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AB - Acknowledging interdependence in firms' tendencies to explore versus exploit across governance modes, we claim that balancing these tendencies within each mode undermines performance as a result of resource allocation constraints, limits to specialization, and tension between conflicting routines. Nevertheless, by exploring in one mode while exploiting in another, firms can overcome these impediments and enhance performance. Furthermore, exploration via externally-oriented modes such as acquisitions or alliances enhances performance more than exploration via internal development. Analysis of 190 publicly-traded U.S.-based software firms furnishes support to these conjectures and sheds new light on Jim March's balance hypothesis.

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M3 - مقالة من مؤنمر

SN - 0065-0668

JO - Academy of Management Annual Meeting Proceedings

JF - Academy of Management Annual Meeting Proceedings

T2 - 71st Annual Meeting of the Academy of Management - West Meets East: Enlightening, Balancing, Transcending, AOM 2011

Y2 - 12 August 2011 through 16 August 2011

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The performance effects of balancing exploration and exploitation within and across governance modes

Abstract

Keywords

All Science Journal Classification (ASJC) codes

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