Decoupling orientations from actions : an investigation of MNC subsidiary learning and innovation performance

2016 ◽  
Author(s):  
◽  
Fengxia Zhu
Keyword(s):  
Organizational Learning ◽  
International Marketing ◽  
Innovation Performance ◽  
Exploration And Exploitation ◽  
Market Conditions ◽  
External Market ◽  
Organizational Conditions ◽  
Different Types ◽  
The Impact ◽  
Exploration Exploitation

[ACCESS RESTRICTED TO THE UNIVERSITY OF MISSOURI AT AUTHOR'S REQUEST.] Globalization has led to a universal learning race in which organizations strive to achieve or maintain a competitive advantage through learning and innovation. Extant literature in organizational learning and international marketing, however, is often confusing and/or ambiguous on the fundamental conceptualization of different types of learning, and on the relationships between different types of learning and subsequent innovation performance. This study proposes a contingency model to examine how external market conditions and internal organizational conditions influence the learning pathways taken by subsidiaries of multinational companies (MNCs) and, in turn, how those choices affect innovation performance. Drawing on organizational learning and international marketing literatures, this study (1) explicitly distinguishes between a subsidiary's learning orientations (i.e., the exploration and exploitation orientations) and actual manifested learning actions (i.e., the exploration and exploitation activities); (2) unpacks the internal organizational conditions under which the relationships between exploration / exploitation orientations and exploration / exploitation actions become stronger or weaker; and (3) identifies the external market conditions under which exploration / exploitation actions become more effective in contributing to subsidiary innovation performance. The proposed model was empirically tested with survey data collected from 212 executive managers of subsidiaries operating in China, an emerging market with high strategic importance to foreign direct investment and offering rich opportunity for organizational learning and innovation. The results indicated that subsidiary autonomy and interdependence amplifies the impact of exploitation orientation on exploitation actions, while subsidiary internal competition amplifies the impact of exploration orientation on exploration actions. The research findings also suggested that subsidiary exploration actions are more effective on innovation performance under unique and dynamic market conditions. This study contributes to a greater clarity and better understanding of how MNC subsidiaries may effectively pursue different types of learning, under different market and internal organizational conditions, to improve innovation performance. The findings also have implications for company managers' critical resource allocation as they attempt to maximize benefits from their exploitation and exploration activities.

scholarly journals THE Impact of Disruption on the Relationship Between Exploitation, Exploration, and Organizational Adaptation

2021 ◽  
Vol 6 ◽  
Author(s):  
Yao Xiao ◽  
Jie Cen ◽  
Peder Soberg
Keyword(s):  
Organizational Learning ◽  
Competitive Advantage ◽  
Event Study ◽  
Organizational Adaptation ◽  
Exploration And Exploitation ◽  
International Firms ◽  
Moderation Model ◽  
The Impact ◽  
Exploration Exploitation ◽  
The Relationship

Firms should deploy exploration and exploitation to foster organizational adaptation. Previous research on exploration and exploitation lacked a focus on disruption implications in different contexts. This study aims to empirically test a moderation model including disruption events, exploration, exploitation, and organizational adaptation and enable a deeper understanding of organizational learning and innovation theory to yield competitive advantage and sustainability of innovative firms. Our results reveal that exploration is more effective during outside disruption events. The results do not support the concept that exploitation is more effective during inside disruptions. Disruptions also moderate the combined effect of exploration and exploitation. Although they are generally complementary in facilitating organizational adaptation, a singular focus on either exploration or exploitation is as effective as is combining exploration and exploitation during inside and outside disruption events. The results of an event study using seven Chinese international firms, including Alibaba, Meituan, Dianping, Baidu, Beibei, TP-link, and Maxio, provided 132 completed and usable questionnaires that supported our hypotheses. Our study contributes to a better understanding of disruption, exploration, exploitation, and related performance implications.

scholarly journals The Impact of Organizational Learning Capability on Product Innovation Performance: Evidence from the Turkish Manufacturing Sector

2016 ◽  
Vol 6 (1) ◽  
pp. 70-84 ◽  
Author(s):  
Özlem Yaşar Uğurlu ◽  
Mustafa Kurt
Keyword(s):  
Organizational Learning ◽  
Empirical Data ◽  
Product Innovation ◽  
Positive Relationship ◽  
Manufacturing Sector ◽  
Innovation Performance ◽  
Learning Capability ◽  
The Impact ◽  
The Relationship

This study aims to examine the effect of organizational learning capability on product innovation performance in the manufacturing sector using empirical data. A survey was conducted with 120 firms that were on the list of Top 1000 Firms of Turkey and registered with the Istanbul Chamber of Industry, to examine the relationship between the dimensions of organizational learning capability and the dimensions of product innovation performance. The findings of the study indicate a positive relationship between organizational learning capability and product innovation performance.

Entrepreneurial Orientation and Organizational Learning Ability Analysis for Innovation and Firm Performance

2017 ◽  
pp. 144-165
Author(s):  
Fakhraddin Maroofi
Keyword(s):  
Organizational Learning ◽  
Firm Performance ◽  
Entrepreneurial Orientation ◽  
Organizational Factors ◽  
Innovation Performance ◽  
Learning Ability ◽  
Organizational Conditions ◽  
Mediating Role ◽  
Research Stream ◽  
The Relationship

Organizational Learning Ability (OLA) and innovation performance playing a mediating role in the Entrepreneurial Orientation (EO) and firm performance, as per this research. Results also suggest that EO improves OLA and innovation performance, which in turn improves firm performance. Innovation performance performs as a mediating variable between EO and firm performance. Our findings make an important contribution to the recent extension of the EO–firm performance research stream focusing on the intermediate links between EO and firm performance. In this paper, we also suggest that the relationship between EO and innovation performance cannot studied ?as a direct relationship, but it is also conditional or dependent on OLA, the organizational factors that facilitate the organizational learning process. EO is a managerial attitude that must be support by certain organizational conditions that facilitate learning and have positive implications for performance. The results support our conceptual model and show its utility in illustrating differences in intra-industry firm performance.

EXPLORATION AND EXPLOITATION: A 20-YEAR REVIEW OF EVOLUTION AND RECONCEPTUALISATION

2015 ◽  
Vol 19 (01) ◽  
pp. 1550008 ◽  
Author(s):  
RANGGA ALMAHENDRA ◽  
BJÖRN AMBOS
Keyword(s):  
Organizational Learning ◽  
Learning Organization ◽  
Turning Point ◽  
Added Value ◽  
Exploration And Exploitation ◽  
Structural Pattern ◽  
Fine Grained ◽  
Organization Science ◽  
Exploration Exploitation ◽  
Leading Journals

The exploration–exploitation tension has been resonated and applied in diverse areas of management research. Its applications have deviated substantially from the scope of organisational learning as originally proposed by March [(1991). Exploration and exploitation in organizational learning. Organization Science, 2(1), 71–87]. Scholars have developed set of definitions, new conceptualisations, and varied applications in rejuvenating the concept; and literatures on this topic seem do not significantly ensure a conclusive picture. It is still also unclear what are the antecedents and following scientific breakthroughs which may have led to the divergence of this construct. This study offers an added value as it becomes the first to apply a bibliometric analysis, combined with fine-grained content analysis to attain a more comprehensive understanding on how the construct of exploration–exploitation have grown and evolved during the last 20 years. We attempt to grasp the structural pattern of citing behaviour and collective understanding among scholars, through conducting in-depth bibliographic review in a complete population of articles on this topic, published in leading journals following March [(1991). Exploration and exploitation in organizational learning. Organization Science, 2(1), 71–87]. This study identifies the intellectual base articles which form the basis of the exploration–exploitation and the turning point articles that shift the discussion into different directions.

scholarly journals Innovation outcomes of knowledge-seeking Chinese foreign direct investment

2015 ◽  
Vol 9 (1) ◽  
pp. 73-96 ◽  
Author(s):  
Xianming Wu ◽  
Nathaniel C. Lupton ◽  
Yuping Du
Keyword(s):  
Organizational Learning ◽  
Absorptive Capacity ◽  
Multinational Enterprises ◽  
Innovation Performance ◽  
Primary Data ◽  
Content Type ◽  
Chinese Multinationals ◽  
Positive Direct ◽  
Knowledge Seeking ◽  
The Impact

Purpose – The purpose of this paper is to investigates how organizational learning, absorptive capacity, cultural integration, specialization of the acquired firm and characteristics of transferred knowledge impact innovation performance subsequent to overseas acquisitions. Design/methodology/approach – Survey responses from 222 Chinese multinational enterprises engaged in overseas acquisitions. Findings – Differences between acquiring and acquired firms’ capabilities, while having a positive direct influence, suppress the positive impact of organizational learning and absorptive capacity, suggesting that multinationals require some basic level of capabilities to appropriate value from overseas acquisitions. Research limitations/implications – This paper investigates the impact of knowledge-seeking overseas acquisition of Chinese multinationals on innovation performance, as this appears to be the primary motive for making such acquisitions. Practical implications – Knowledge-seeking overseas acquisition should be based upon the absorptive capacity of the acquiring firm and complementarity between both firms. In knowledge-seeking overseas acquisitions, establishing an effective organizational learning mechanism is necessary for improving innovation performance. Originality/value – This paper reports on the behaviour and innovation performance of Chinese multinationals through analysis of primary data.

scholarly journals Organizational Ambidexterity, Exploration, Exploitation and Firms Innovation Performance

Organizacija ◽  
2015 ◽  
Vol 48 (2) ◽  
pp. 112-119 ◽  
Author(s):  
Mladenka Popadić ◽  
Matej Černe ◽  
Ines Milohnić
Keyword(s):  
Innovation Performance ◽  
Organizational Level ◽  
Organizational Ambidexterity ◽  
Exploration And Exploitation ◽  
Community Innovation Survey ◽  
Trade Offs ◽  
Single Construct ◽  
Independent Effects ◽  
Exploration Exploitation ◽  
The Relationship

Abstract Background and Purpose: The construct of organizational ambidexterity (OA) has attracted the growing attention in management research. Previous empirical research has investigated the effect of organisational ambidexterity on performance from various perspectives. This study aims to resolve the contradictory previous research findings on the relationship between organisational ambidexterity and innovation performance. We unpack this construct with combined dimension of ambidexterity, which relates to a combination of high levels of both exploration and exploitation (introduction of products or services that were new to the market and new to the firm). Methodology: We frame our ambidexterity hypothesis in terms of firm’s innovation orientation. The hypothesis is tested by using Community Innovation Survey (CIS) 2006 micro data at the organizational level in twelve countries. To operationalize an ambidexterity and firms innovation outcome, we used self-reported measures of innovativeness. Results: To test our hypothesis, we developed a set of models and tested them with multiple hierarchical linear regression analyses. The results indicate that exploration and exploitation are positively related to firm’s innovation performances which supports our assumption that both are complementary. Furthermore, we find that above and over their independent effects, through combining them into a single construct of organizational ambidexterity, this variable remains negatively and significantly related to innovation performance. Conclusion: These results provides the managers with an idea of when managing trade-offs between exploration and exploitation would be more favorable versus detrimental. For firms with lower organizational ambidexterity, the relationship between exploration-exploitation and the firm’s innovation performance is a more positive one.

Entrepreneurial Orientation and Organizational Learning Ability Analysis for Innovation and Firm Performance

2017 ◽  
pp. 607-627
Author(s):  
Fakhraddin Maroofi
Keyword(s):  
Organizational Learning ◽  
Firm Performance ◽  
Entrepreneurial Orientation ◽  
Organizational Factors ◽  
Innovation Performance ◽  
Learning Ability ◽  
Organizational Conditions ◽  
Mediating Role ◽  
Research Stream ◽  
The Relationship

Organizational Learning Ability (OLA) and innovation performance playing a mediating role in the Entrepreneurial Orientation (EO) and firm performance, as per this research. Results also suggest that EO improves OLA and innovation performance, which in turn improves firm performance. Innovation performance performs as a mediating variable between EO and firm performance. Our findings make an important contribution to the recent extension of the EO–firm performance research stream focusing on the intermediate links between EO and firm performance. In this paper, we also suggest that the relationship between EO and innovation performance cannot studied ?as a direct relationship, but it is also conditional or dependent on OLA, the organizational factors that facilitate the organizational learning process. EO is a managerial attitude that must be support by certain organizational conditions that facilitate learning and have positive implications for performance. The results support our conceptual model and show its utility in illustrating differences in intra-industry firm performance.

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