IDEAS home Printed from https://ideas.repec.org/a/spr/intemj/v14y2018i4d10.1007_s11365-018-0496-5.html
   My bibliography  Save this article

Effect of exploitation and exploration on the innovative as outcomes in entrepreneurial firms

Author

Listed:
  • Nancy Vargas

    (Universitat Politècnica de València)

  • M. Begoña Lloria

    (Universitat de València)

  • Addisson Salazar

    (Universitat Politècnica de València)

  • Luis Vergara

    (Universitat Politècnica de València)

Abstract

The main aim of this study is to establish the effect of the Exploitation and Exploration; and the influence of these learning flows on the Innovative Outcome (IO). The Innovative Outcome refers to new products, services, processes (or improvements) that the organization has obtained as a result of an innovative process. For this purpose, a relationship model is defined, which is empirically contrasted, and can explains and predicts the cyclical dynamization of learning flows on innovative outcome in knowledge intensive firms. The quantitative test for this model use the data from entrepreneurial firms biotechnology sector. The statistical analysis applies a method based on variance using Partial Least Squares (PLS). Research results confirm the hypotheses, that is, they show a positive dynamic effect between the Exploration and the Innovative as outcomes. In the same vein, they results confirm the presence of the cyclic movement of innovative outcome with the Exploitation.

Suggested Citation

  • Nancy Vargas & M. Begoña Lloria & Addisson Salazar & Luis Vergara, 2018. "Effect of exploitation and exploration on the innovative as outcomes in entrepreneurial firms," International Entrepreneurship and Management Journal, Springer, vol. 14(4), pages 1053-1069, December.
    • Handle: RePEc:spr:intemj:v:14:y:2018:i:4:d:10.1007_s11365-018-0496-5
    DOI: 10.1007/s11365-018-0496-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11365-018-0496-5
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11365-018-0496-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Fariborz Damanpour & Shanthi Gopalakrishnan, 2001. "The Dynamics of the Adoption of Product and Process Innovations in Organizations," Journal of Management Studies, Wiley Blackwell, vol. 38(1), pages 45-65, January.
    2. Nancy Vargas & M. Begoña Lloria & Salvador Roig-Dobón, 2016. "Main drivers of human capital, learning and performance," The Journal of Technology Transfer, Springer, vol. 41(5), pages 961-978, October.
    3. Cohen, Wesley M. & Levin, Richard C., 1989. "Empirical studies of innovation and market structure," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 18, pages 1059-1107, Elsevier.
    4. Nick Bontis & Mary M. Crossan & John Hulland, 2002. "Managing An Organizational Learning System By Aligning Stocks and Flows," Journal of Management Studies, Wiley Blackwell, vol. 39(4), pages 437-469, June.
    5. Ganter, Alois & Hecker, Achim, 2014. "Configurational paths to organizational innovation: qualitative comparative analyses of antecedents and contingencies," Journal of Business Research, Elsevier, vol. 67(6), pages 1285-1292.
    6. Richard J. Boland & Ramkrishnan V. Tenkasi, 1995. "Perspective Making and Perspective Taking in Communities of Knowing," Organization Science, INFORMS, vol. 6(4), pages 350-372, August.
    7. Ikujiro Nonaka & Georg von Krogh, 2009. "Perspective---Tacit Knowledge and Knowledge Conversion: Controversy and Advancement in Organizational Knowledge Creation Theory," Organization Science, INFORMS, vol. 20(3), pages 635-652, June.
    8. Jiménez-Jiménez, Daniel & Sanz-Valle, Raquel, 2011. "Innovation, organizational learning, and performance," Journal of Business Research, Elsevier, vol. 64(4), pages 408-417, April.
    9. Paul Shrivastava, 1983. "A Typology Of Organizational Learning Systems," Journal of Management Studies, Wiley Blackwell, vol. 20(1), pages 7-28, January.
    10. Herman Wold, 1980. "Model Construction and Evaluation When Theoretical Knowledge Is Scarce," NBER Chapters, in: Evaluation of Econometric Models, pages 47-74, National Bureau of Economic Research, Inc.
    11. Gerald C. Kane & Maryam Alavi, 2007. "Information Technology and Organizational Learning: An Investigation of Exploration and Exploitation Processes," Organization Science, INFORMS, vol. 18(5), pages 796-812, October.
    12. Mary M. Crossan & Iris Berdrow, 2003. "Organizational learning and strategic renewal," Strategic Management Journal, Wiley Blackwell, vol. 24(11), pages 1087-1105, November.
    13. Fariborz Damanpour & Deepa Aravind, 2012. "Managerial Innovation: Conceptions, Processes, and Antecedents," Management and Organization Review, The International Association for Chinese Management Research, vol. 8(2), pages 423-454, July.
    14. Mary M. Crossan & Marina Apaydin, 2010. "A Multi‐Dimensional Framework of Organizational Innovation: A Systematic Review of the Literature," Journal of Management Studies, Wiley Blackwell, vol. 47(6), pages 1154-1191, September.
    15. Veland Ramadani & Hyrije Abazi-Alili & Léo-Paul Dana & Gadaf Rexhepi & Sadudin Ibraimi, 2017. "The impact of knowledge spillovers and innovation on firm-performance: findings from the Balkans countries," International Entrepreneurship and Management Journal, Springer, vol. 13(1), pages 299-325, March.
    16. Tsun Jin Chang & Shang Pao Yeh & I‐Jan Yeh, 2007. "The effects of joint reward system in new product development," International Journal of Manpower, Emerald Group Publishing Limited, vol. 28(3/4), pages 276-297, June.
    17. Aragon-Mendoza, Juan & del Val, Manuela Pardo & Roig-Dobón, Salvador, 2016. "The influence of institutions development in venture creation decision: A cognitive view," Journal of Business Research, Elsevier, vol. 69(11), pages 4941-4946.
    18. Damanpour, Fariborz & Aravind, Deepa, 2012. "Managerial Innovation: Conceptions, Processes and Antecedents," Management and Organization Review, Cambridge University Press, vol. 8(2), pages 423-454, July.
    19. David J. Teece, 2012. "Dynamic Capabilities: Routines versus Entrepreneurial Action," Journal of Management Studies, Wiley Blackwell, vol. 49(8), pages 1395-1401, December.
    20. Jan Kmenta & James B. Ramsey, 1980. "Evaluation of Econometric Models," NBER Books, National Bureau of Economic Research, Inc, number kmen80-1, January.
    21. Tracy A. Jenkin, 2013. "Extending the 4I Organizational Learning Model: Information Sources, Foraging Processes and Tools," Administrative Sciences, MDPI, vol. 3(3), pages 1-14, August.
    22. Vinit Parida & Tom Lahti & Joakim Wincent, 2016. "Exploration and exploitation and firm performance variability: a study of ambidexterity in entrepreneurial firms," International Entrepreneurship and Management Journal, Springer, vol. 12(4), pages 1147-1164, December.
    23. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    24. Gopalakrishnan, S. & Damanpour, F., 1997. "A review of innovation research in economics, sociology and technology management," Omega, Elsevier, vol. 25(1), pages 15-28, February.
    25. Shenggang Ren & Rui Shu & Yongchuan Bao & Xiaohong Chen, 2016. "Linking network ties to entrepreneurial opportunity discovery and exploitation: the role of affective and cognitive trust," International Entrepreneurship and Management Journal, Springer, vol. 12(2), pages 465-485, June.
    26. Lloria, M. Begoña & Moreno-Luzon, Maria D., 2014. "Organizational learning: Proposal of an integrative scale and research instrument," Journal of Business Research, Elsevier, vol. 67(5), pages 692-697.
    27. Tenenhaus, Michel & Vinzi, Vincenzo Esposito & Chatelin, Yves-Marie & Lauro, Carlo, 2005. "PLS path modeling," Computational Statistics & Data Analysis, Elsevier, vol. 48(1), pages 159-205, January.
    28. Hsiu-Fen Lin, 2007. "Knowledge sharing and firm innovation capability: an empirical study," International Journal of Manpower, Emerald Group Publishing, vol. 28(1), pages 315 - 332, April.
    29. Anika Laperrière & Martine Spence, 2015. "Enacting international opportunities: The role of organizational learning in knowledge-intensive business services," Journal of International Entrepreneurship, Springer, vol. 13(3), pages 212-241, September.
    30. Ganter, Alois & Hecker, Achim, 2013. "Deciphering antecedents of organizational innovation," Journal of Business Research, Elsevier, vol. 66(5), pages 575-584.
    31. Robert G. Cooper & Elko J. Kleinschmidt, 2000. "2 New Product Performance: What Distinguishes the Star Products," Australian Journal of Management, Australian School of Business, vol. 25(1), pages 17-46, June.
    32. Hsiu‐Fen Lin, 2007. "Knowledge sharing and firm innovation capability: an empirical study," International Journal of Manpower, Emerald Group Publishing Limited, vol. 28(3/4), pages 315-332, June.
    33. Luuk Klomp & George Van Leeuwen, 2001. "Linking Innovation and Firm Performance: A New Approach," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(3), pages 343-364.
    34. Tsun Jin Chang & Shang Pao Yeh & I-Jan Yeh, 2007. "The effects of joint reward system in new product development," International Journal of Manpower, Emerald Group Publishing, vol. 28(1), pages 276 - 297, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ingrid R. Epezagne Assamala & Wenyuan Li & Sheikh Farhan Ashraf & Nausheen Syed & He Di & Mehrab Nazir, 2022. "Mediation-Moderation Model: An Empirical Examination of Sustainable Women Entrepreneurial Performance towards Agricultural SMEs in Ivory Coast," Sustainability, MDPI, vol. 14(10), pages 1-21, May.
    2. María Rodríguez-García & María Guijarro-García & Agustín Carrilero-Castillo, 2019. "An Overview of Ecopreneurship, Eco-Innovation, and the Ecological Sector," Sustainability, MDPI, vol. 11(10), pages 1-16, May.
    3. Samuel Adomako & Mai Dong Tran, 2022. "Stakeholder management, CSR commitment, corporate social performance: The moderating role of uncertainty in CSR regulation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1414-1423, September.
    4. Carlos D. Valladares & Sung Mo Kang & Phoebe Haemin Pahng, 2025. "Movers or thinkers: the effect of new venture teams’ regulatory mode on innovation," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-22, December.
    5. Wenhong Zhao & Te Yang & Karen D. Hughes & Yixin Li, 2021. "Entrepreneurial alertness and business model innovation: the role of entrepreneurial learning and risk perception," International Entrepreneurship and Management Journal, Springer, vol. 17(2), pages 839-864, June.
    6. Aleem Ahmad Qader & Jingwei Zhang & Sheikh Farhan Ashraf & Nausheen Syed & Khaoula Omhand & Mehrab Nazir, 2022. "Capabilities and Opportunities: Linking Knowledge Management Practices of Textile-Based SMEs on Sustainable Entrepreneurship and Organizational Performance in China," Sustainability, MDPI, vol. 14(4), pages 1-26, February.
    7. Sidney Mangenda Tshiaba & Nianxin Wang & Sheikh Farhan Ashraf & Mehrab Nazir & Nausheen Syed, 2021. "Measuring the Sustainable Entrepreneurial Performance of Textile-Based Small–Medium Enterprises: A Mediation–Moderation Model," Sustainability, MDPI, vol. 13(19), pages 1-19, October.
    8. Samuel Adomako & Mai Dong Tran, 2023. "Doing well and being responsible: The impact of corporate social responsibility legitimacy on responsible entrepreneurship," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 1794-1804, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nancy Vargas & M. Begoña Lloria & Salvador Roig-Dobón, 2016. "Main drivers of human capital, learning and performance," The Journal of Technology Transfer, Springer, vol. 41(5), pages 961-978, October.
    2. Ferreira, Jorge & Coelho, Arnaldo & Moutinho, Luiz, 2020. "Dynamic capabilities, creativity and innovation capability and their impact on competitive advantage and firm performance: The moderating role of entrepreneurial orientation," Technovation, Elsevier, vol. 92.
    3. Arranz, N. & Arroyabe, M.F. & Li, Jun & de Arroyabe, J.C. Fernandez, 2019. "An integrated model of organisational innovation and firm performance: Generation, persistence and complementarity," Journal of Business Research, Elsevier, vol. 105(C), pages 270-282.
    4. Achim Hecker & Alois Ganter, 2016. "Organisational And Technological Innovation And The Moderating Effect Of Open Innovation Strategies," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(02), pages 1-31, February.
    5. Dimitrios Kafetzopoulos & Evangelos Psomas, 2016. "ORGANISATIONAL LEARNING, NON-TECHNICAL INNOVATION AND CUSTOMER SATISFACTION OF SMEs," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(03), pages 1-28, April.
    6. Georgios Giotis & Evangelia Papadionysiou, 2022. "The Role of Managerial and Technological Innovations in the Tourism Industry: A Review of the Empirical Literature," Sustainability, MDPI, vol. 14(9), pages 1-20, April.
    7. Andreas Kallmuenzer & Ursula Scholl-Grissemann, 2017. "Disentangling antecedents and performance effects of family SME innovation: A knowledge-based perspective," International Entrepreneurship and Management Journal, Springer, vol. 13(4), pages 1117-1138, December.
    8. Ganter, Alois & Hecker, Achim, 2014. "Configurational paths to organizational innovation: qualitative comparative analyses of antecedents and contingencies," Journal of Business Research, Elsevier, vol. 67(6), pages 1285-1292.
    9. Aboobucker Ilmudeen, 2022. "Leveraging IT-enabled dynamic capabilities to shape business process agility and firm innovative capability: moderating role of turbulent environment," Review of Managerial Science, Springer, vol. 16(8), pages 2341-2379, November.
    10. Tristan Blick & Ine Paeleman & Eddy Laveren, 2024. "Financing constraints and SME growth: the suppression effect of cost-saving management innovations," Small Business Economics, Springer, vol. 62(3), pages 961-986, March.
    11. Rachel Bocquet & Sandra Dubouloz, 2020. "Firm Openness and Managerial Innovation: Rebalancing Deliberate Actions and Institutional Pressures," Journal of Innovation Economics, De Boeck Université, vol. 0(2), pages 43-74.
    12. Cobo-Benita, José Ramón & Rodríguez-Segura, Enrique & Ortiz-Marcos, Isabel & Ballesteros-Sánchez, Luis, 2016. "Innovation projects performance: Analyzing the impact of organizational characteristics," Journal of Business Research, Elsevier, vol. 69(4), pages 1357-1360.
    13. Bezdrob, Muamer, 2019. "Long-Term Performance Implications of Management Innovation," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 24(2), pages 210-234.
    14. Sheehan, Maura & Garavan, Thomas N. & Morley, Michael J., 2020. "Transformational leadership and work unit innovation: A dyadic two-wave investigation," Journal of Business Research, Elsevier, vol. 109(C), pages 399-412.
    15. Salem AlAbri & Seyedeh Khadijeh Taghizadeh & Golam Mostafa Khan & Syed Abidur Rahman, 2022. "Exploratory innovation, exploitative innovation and operational performance: influence of informal social relations in environmental competitiveness," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(3), pages 1223-1244, June.
    16. Khosravi, Pouria & Newton, Cameron & Rezvani, Azadeh, 2019. "Management innovation: A systematic review and meta-analysis of past decades of research," European Management Journal, Elsevier, vol. 37(6), pages 694-707.
    17. Forés, Beatriz & Camisón, César, 2016. "Does incremental and radical innovation performance depend on different types of knowledge accumulation capabilities and organizational size?," Journal of Business Research, Elsevier, vol. 69(2), pages 831-848.
    18. Pino, Cesar & Felzensztein, Christian & Zwerg-Villegas, Anne Marie & Arias-Bolzmann, Leopoldo, 2016. "Non-technological innovations: Market performance of exporting firms in South America," Journal of Business Research, Elsevier, vol. 69(10), pages 4385-4393.
    19. Černe, Matej & Kaše, Robert & Škerlavaj, Miha, 2016. "Non-technological innovation research: evaluating the intellectual structure and prospects of an emerging field," Scandinavian Journal of Management, Elsevier, vol. 32(2), pages 69-85.
    20. Marc Janka & Xaver Heinicke & Thomas W. Guenther, 2020. "Beyond the “good” and “evil” of stability values in organizational culture for managerial innovation: the crucial role of management controls," Review of Managerial Science, Springer, vol. 14(6), pages 1363-1404, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:intemj:v:14:y:2018:i:4:d:10.1007_s11365-018-0496-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.