strategy seminar
The Innovator's Dilemma: How to Balance Exploration and Exploitation Joint with Boris Lokshin and Geert Duysters
Anna Sabidussi, Eindhoven University of Technology.
Abstract:
We investigate the relationship between firm performance and the temporal dynamics of exploration and exploitation by examining the balance achieved between these two strategies through temporal separation and simultaneous engagement.
Integrating insights from both the dynamic capabilities view and the contingency perspective, we develop arguments on how environmental turbulence moderates the differential effects of the balance between exploration and exploitation on firm performance.
Based on a longitudinal sample of 140 pharmaceutical firms, we find support for the hypothesis that the effectiveness of a certain balance varies depending on the environmental contingency that a company faces.
