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Performance implications of incremental transition and discontinuous jump between exploration and exploitation

Title
Performance implications of incremental transition and discontinuous jump between exploration and exploitation
Authors
Kang J.Kim S.-J.
Ewha Authors
김상준
SCOPUS Author ID
김상준scopus
Issue Date
2020
Journal Title
Strategic Management Journal
ISSN
0143-2095JCR Link
Citation
Strategic Management Journal vol. 41, no. 6, pp. 1083 - 1111
Keywords
ambidexterityexploration and exploitationfirm performancefirm resourcestemporal transition
Publisher
John Wiley and Sons Ltd
Indexed
SSCI; SCOPUS WOS scopus
Document Type
Article
Abstract
Research Summary: Literature suggests that firms may approximate ambidexterity over time by alternating between periods of exploration and exploitation. We theorize and empirically test performance implications of two types of temporal transition between exploration and exploitation and their boundary conditions. We find that a discontinuous jump has a negative effect on firm performance while an incremental transition has a positive effect. We also find that the role of firm resources and particularly that of non-scale-free resources is critical in shaping the performance effects of the two types of temporal transition. Our findings indicate that the two types of temporal transition have distinct advantages and disadvantages. Managerial Summary: Firms need to make use of old ideas and search for new ideas to remain competitive. We argue that firms take different approaches to achieve this goal. We find that firms that alternate between old and new ideas in an incremental and continuous manner perform better than firms that switch abruptly between old and new ideas. We also find that the performance effects of the two approaches are more pronounced for firms with limited resources. This finding warns managers of the danger of an abrupt and discontinuous jump between old and new ideas, especially for firms with limited resources. © 2020 John Wiley & Sons, Ltd.
DOI
10.1002/smj.3119
Appears in Collections:
경영대학 > 경영학전공 > Journal papers
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