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Explorative Versus Exploitative Alliances—Evidence From The Glass Industry In China

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  • Leung, Vincent K.K.
  • Lau, Chi Keung Marco
  • Zhang, Zhe

Abstract

This study empirically delineates the nature of explorative and exploitative alliances, examines how they affect product and process innovations, and investigates how such effects vary in different contexts. Using a sample of 220 Chinese firms in the glass industry, we find that explorative alliances have a stronger effect on both product and process innovations than exploitative alliances. Product and process innovations are positively related to both market and efficiency performance and environmental turbulence enhances the effect of product and process innovations. Our findings provide implications on how to choose between explorative and exploitative alliances relative to the alliance objectives and firm resources and environmental contexts.

Suggested Citation

  • Leung, Vincent K.K. & Lau, Chi Keung Marco & Zhang, Zhe, 2013. "Explorative Versus Exploitative Alliances—Evidence From The Glass Industry In China," MPRA Paper 47065, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:47065
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    More about this item

    Keywords

    China; exploration versus exploitation; structural equation modeling; process innovation; product innovation; small-and-medium-sized enterprises;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • N60 - Economic History - - Manufacturing and Construction - - - General, International, or Comparative

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