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Exploration and exploitation and firm performance variability: a study of ambidexterity in entrepreneurial firms
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.ORCID iD: 0000-0003-3255-414X
Hanken School of Economics, Entrepreneurship & Management.
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.ORCID iD: 0000-0002-8770-8874
Number of Authors: 3
2016 (English)In: The International Entrepreneurship and Management Journal, ISSN 1554-7191, E-ISSN 1555-1938, Vol. 12, no 4, 1147-1164 p.Article in journal (Refereed) Published
Abstract [en]

A challenge young entrepreneurial firms usually face is reducing variability in firm performance in order to mitigate survival difficulties. This paper suggests ventures should have a clear preference for either exploration or exploitation, because such an approach to ambidexterity reduces variability in firm performance. We specifically concentrate on the moderation effects of firm size and environmental dynamism in a sample of young entrepreneurial firms. We found evidence for the effects of lower performance variability in dynamic environments. This is an important insight, because environmental dynamism is a contingency where performance variance is considered problematic for entrepreneurial firms. Our research has implications for the establishment phase of entrepreneurial firms as it suggests they should carefully consider how much they explore to be as different as possible and how much they exploit to be as effective as possible. This is particularly important when they are younger and exposed to dynamic environments

Place, publisher, year, edition, pages
2016. Vol. 12, no 4, 1147-1164 p.
National Category
Other Engineering and Technologies not elsewhere specified
Research subject
Entrepreneurship and Innovation
Identifiers
URN: urn:nbn:se:ltu:diva-60845DOI: 10.1007/s11365-016-0387-6ISI: 000387228900010OAI: oai:DiVA.org:ltu-60845DiVA: diva2:1051104
Note

Validerad; 2016; Nivå 2; 2016-12-01 (andbra)

Available from: 2016-12-01 Created: 2016-12-01 Last updated: 2016-12-12Bibliographically approved

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