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Coping with uncertainty - exploration, exploitation, and collaboration in R%D

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  • Hanna Kuittinen
  • Kaisu Puumalainen
  • Ari Jantunen
  • Kalevi Kyläheiko
  • Satu Pätäri

Abstract

This paper studies the formation of and the motives for research and development (R%D) activities. In it, we explore the linkages between explorative and exploitative R%D activities and the different types of governance structures firms use when organising R%D. Additionally, we analyse the relationship between different kinds of firm-external uncertainties arising from the operating environments and the organisation of R%D activities. Finally, we scrutinise the impact of the collaboration mode on a firm's innovative performance, and stress the important role of knowledge sharing as a generator of success in innovative performance. We employ survey data from our sample of 299 Finnish companies. The findings indicate that a firm's choice of R%D governance structure is partly affected by the selection of an explorative or exploitative strategy, which in turn depends on the degree of firm-internal uncertainty. External dynamism is an additional factor affecting the choice of the preferred governance structure.

Suggested Citation

  • Hanna Kuittinen & Kaisu Puumalainen & Ari Jantunen & Kalevi Kyläheiko & Satu Pätäri, 2013. "Coping with uncertainty - exploration, exploitation, and collaboration in R%D," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 7(3), pages 340-361.
    • Handle: RePEc:ids:ijbire:v:7:y:2013:i:3:p:340-361
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    Cited by:

    1. Greco, Marco & Grimaldi, Michele & Cricelli, Livio, 2016. "An analysis of the open innovation effect on firm performance," European Management Journal, Elsevier, vol. 34(5), pages 501-516.
    2. Greco, Marco & Locatelli, Giorgio & Lisi, Stefano, 2017. "Open innovation in the power & energy sector: Bringing together government policies, companies’ interests, and academic essence," Energy Policy, Elsevier, vol. 104(C), pages 316-324.
    3. R.N. , Weerasinghe & A.K.W. , Jayawardane & U.A.S., Yapa, 2021. "The Impact Of Open Innovation Practices And Moderating Effect Of Inter-Organizational Networks On Innovation Performance Of Large Firms In Sri Lanka," Annals of Spiru Haret University, Economic Series, Universitatea Spiru Haret, vol. 21(3), pages 29-58.

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