Exploration and Exploitation Fit and Performance in International Strategic Alliances

Bo Bernhard Nielsen, Siegfried Gudergan

    Research output: Contribution to journalJournal articleResearchpeer-review

    Abstract

    Exploration and exploitation constitute two separate, potentially conflicting strategic choices for firms engaged in international strategic alliances. Our empirical study challenges the ambidexterity argument and demonstrates that exploration and exploitation are separate (though not necessarily antithetical) strategies with different antecedents and performance consequences.

    Our results show that while competency similarity is conducive to upstream innovative performance, prior experience with the partner is potentially damaging for this type of performance and trust and cultural distance do not play significant roles. When the motive is efficiency and downstream market performance, prior experience with the partner instead is beneficial, as are high levels of trust and low levels of cultural distance. These findings have key implications for literature on strategic fit and alliance performance.
    Original languageEnglish
    JournalInternational Business Review
    Volume21
    Issue number4
    Pages (from-to)558-574
    Number of pages17
    ISSN0969-5931
    DOIs
    Publication statusPublished - 2012

    Keywords

    • Alliances
    • Trust
    • Strategic Fit
    • Performance Exploitation
    • Ambidexterity
    • Exploration

    Cite this

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    abstract = "Exploration and exploitation constitute two separate, potentially conflicting strategic choices for firms engaged in international strategic alliances. Our empirical study challenges the ambidexterity argument and demonstrates that exploration and exploitation are separate (though not necessarily antithetical) strategies with different antecedents and performance consequences.Our results show that while competency similarity is conducive to upstream innovative performance, prior experience with the partner is potentially damaging for this type of performance and trust and cultural distance do not play significant roles. When the motive is efficiency and downstream market performance, prior experience with the partner instead is beneficial, as are high levels of trust and low levels of cultural distance. These findings have key implications for literature on strategic fit and alliance performance.",
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    Exploration and Exploitation Fit and Performance in International Strategic Alliances. / Nielsen, Bo Bernhard; Gudergan, Siegfried.

    In: International Business Review, Vol. 21, No. 4, 2012, p. 558-574.

    Research output: Contribution to journalJournal articleResearchpeer-review

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    AB - Exploration and exploitation constitute two separate, potentially conflicting strategic choices for firms engaged in international strategic alliances. Our empirical study challenges the ambidexterity argument and demonstrates that exploration and exploitation are separate (though not necessarily antithetical) strategies with different antecedents and performance consequences.Our results show that while competency similarity is conducive to upstream innovative performance, prior experience with the partner is potentially damaging for this type of performance and trust and cultural distance do not play significant roles. When the motive is efficiency and downstream market performance, prior experience with the partner instead is beneficial, as are high levels of trust and low levels of cultural distance. These findings have key implications for literature on strategic fit and alliance performance.

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    KW - Trust

    KW - Strategic Fit

    KW - Performance Exploitation

    KW - Ambidexterity

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