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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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    References listed on IDEAS

    as
    1. Wu, Fang & Cavusgil, S. Tamer, 2006. "Organizational learning, commitment, and joint value creation in interfirm relationships," Journal of Business Research, Elsevier, vol. 59(1), pages 81-89, January.
    2. Takehiko Isobe & Shige Makino & David Montgomery, 2008. "Technological capabilities and firm performance: The case of small manufacturing firms in Japan," Asia Pacific Journal of Management, Springer, vol. 25(3), pages 413-428, September.
    3. Robert M. Grant & Charles Baden-Fuller, 2004. "A Knowledge Accessing Theory of Strategic Alliances," Journal of Management Studies, Wiley Blackwell, vol. 41(1), pages 61-84, January.
    4. Simpson, Penny M. & Siguaw, Judy A. & Enz, Cathy A., 2006. "Innovation orientation outcomes: The good and the bad," Journal of Business Research, Elsevier, vol. 59(10-11), pages 1133-1141, October.
    5. Emden, Zeynep & Yaprak, Attila & Cavusgil, S. Tamer, 2005. "Learning from experience in international alliances: antecedents and firm performance implications," Journal of Business Research, Elsevier, vol. 58(7), pages 883-892, July.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

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

    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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