Exploitation versus exploration: Getting the mix right

摘要: My dissertation examines in three essays how firms utilize exploitation and exploration strategies, independently combination, for competitive advantage. The first essay whether can gain advantage by the simultaneous pursuit of (i.e., an ambidextrous strategy). Utilizing a cross-industry survey marketing executives, I demonstrate that outpace non-ambidextrous ones across several performance dimensions. Importantly, implementation strategy at function level mediates relationship between firm's its performance. Finally, differences mediating manufacturing services are found. Essay two conceptualizes as capabilities. Drawing on longitudinal objective data from publicly-traded pharmaceutical companies, this study maintain capabilities over time. Stochastic frontier estimation is used to create capability measures each firm period. then linked historical forward-looking performance, measured Return Assets Tobin's q respectively. results show with stronger have higher values. Stronger capabilities, however, negatively affect q. In contrast, has positive effect while no effect. Surprisingly, both significant given difficulty managing exploration, third investigates improve their focus these strategies. Specifically, it customer divestment, or strategically terminating relationships. Research notes most customers offer little value firm. This means investments potentially greatly misapplied. use archival explore prevalence divestment industries. investigate concept managers customers, yielding broad framework key experiment begin empirically test better not provide warning prior creates more negative attitudes toward