Coping with uncertainty - Exploration, exploitation, and collaboration in R&D

International Journal of Business Innovation and Research

Volumn 7, Issue 3, 2013, Pages 340-361

  Kuittinen, Hanna ^a   Puumalainen, Kaisu ^b   Jantunen, Ari ^b   Kyläheiko, Kalevi ^b   Pätäri, Satu ^b  

^a TECNALIA RESEARCH AND INNOVATION   (Spain)

^b LAPPEENRANTA UNIVERSITY OF TECHNOLOGY   (Finland)

Author keywords

Environmental dynamism; Exploitation; Exploration; Innovation performance; Knowledge sharing; R D; R D cooperation; Research and development; Survey

Indexed keywords

EID: 84877262282     PISSN: 17510252     EISSN: 17510260     Source Type: Journal    
DOI: 10.1504/IJBIR.2013.053635     Document Type: Article

References (86)

1. Akerlof, G.A. (1970) 'The market for 'lemons': quality uncertainty and the market mechanism', Quarterly Journal of Economics, Vol. 84, No. 3, pp.488-500.
2. Andriopoulos, C.M. and Lewis, M.W. (2009) 'Exploitation-exploration tensions and organizational ambidexterity: managing paradoxes of innovation', Organization Science, Vol. 20, No. 4, pp.696-717.
3. Armstrong, J.S. and Overton, T.S. (1977) 'Estimating nonresponse bias in mail surveys', Journal of Marketing Research, Vol. 14, No. 3, pp.396-402.
4. Aschhoff, B. and Schmidt, T. (2008) 'Empirical evidence on the success of R&D cooperation - happy together?', Review of Industrial Organization, Vol. 33, No. 1, pp.41-62.
5. Balakrishnan, S. and Wernerfelt, B. (1986) 'Technical change, competition and vertical integration', Strategic Management Journal, Vol. 7, No. 4, pp.347-359.
6. Baron, R.M. and Kenny, D.A. (1986) 'The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations', Journal of Personality and Social Psychology, Vol. 51, No. 6, pp.1173-1182.
7. Belderbos, R., Carree, M. and Lokshin, B. (2004) 'Cooperative R&D and firm performance', Research Policy, Vol. 33, No. 10, pp.1477-1492.
8. Benner, M.J. and Tushman, M. (2002) 'Process management and technological innovation: a longitudinal study of the photography and paint industries', Administrative Science Quarterly, Vol. 47, No. 4, pp.676-706.
9. Blomqvist, K., Kyläheiko, K. and Virolainen, V-M. (2002) 'Filling a gap in traditional transaction cost economics: towards transaction benefits-based analysis', International Journal of Production Economics, Vol. 79, No. 1, pp.1-14.
10. Boujelben, S. and Fedhila, H. (2010) 'The effect of internal R&D efforts and external technology sourcing on achieving innovations in developing countries: the case of Tunisian manufacturing firms', International Journal of Business Innovation and Research, Vol. 4, No. 4, pp.338-357.
11. Calantone, R.J., Cavusgil, S.T. and Zhao, Y. (2002) 'Learning orientation, firm innovation capability, and firm performance', Industrial Marketing Management, Vol. 31, No. 6, pp.515-524.
12. Caloghirou, Y., Kastelli, I. and Tsakanikas, A. (2004) 'Internal capabilities and external knowledge sources: complements or substitutes for innovative performance?', Technovation, Vol. 24, No. 1, pp.29-39.
13. Carson, S.J., Madhok, A. and Wu, T. (2006) 'Uncertainty, opportunism, and governance: the effects of volatility and ambiguity on formal and relational contracting', Academy of Management Journal, Vol. 49, No. 5, pp.1058-1077.
14. Cavusgil, S.T., Calantone, R.J. and Zhao, Y. (2003) 'Tacit knowledge transfer and firm innovation capability', Journal of Business & Industrial Marketing, Vol. 18, No. 1, pp.6-21.
15. Chandrasekaran, A., Linderman, K. and Schroeder, R. (2012) 'Antecedents to ambidexterity competency in high technology organizations', Journal of Operations Management, Vol. 30, Nos. 1-2, pp.134-151.
16. Chesbrough, H.W. (2002) Open Innovation: The New Imperative for Creating and Profiting from Technology, Harvard Business School Press, Boston.
17. Coase, R.H. (1937) 'The nature of the firm', Economica, Vol. 4, No. 16, pp.386-405.
18. Cohen, J., Cohen, P., West, S.G. and Aiken, L.S. (2003) Applied Multiple Regression/Correlation Analysis for the Behavioral Sciences, 3rd ed., Lawrence Erlbaum Associates, New Jersey.
19. Cohen, W.M. and Levinthal, D.A. (1990) 'Absorptive capacity: a new perspective on learning and innovation', Administrative Science Quarterly, Vol. 35, No. 1, pp.128-152.
20. Czuchry, A.J., Yasin, M.M. and Peisl, T.C. (2009) 'A systematic approach to promoting effective innovation: a conceptual framework and managerial implications', International Journal of Business Innovation and Research, Vol. 3, No. 6, pp.575-595.
21. Danneels, E. (2002) 'The dynamics of product innovation and firm competences', Strategic Management Journal, Vol. 23, No. 12, pp.1095-1121.
22. Das, T.K. and Teng, B-S. (2000) 'A resource-based theory of strategic alliances', Journal of Management, Vol. 26, No. 1, pp.31-62.
23. David, R.J. and Han, S-K. (2004) 'A systematic assessment of the empirical support for transaction cost economics', Strategic Management Journal, Vol. 25, No. 1, pp.39-58.
24. Dershin, H. (2010) 'A framework for managing innovation', International Journal of Business Innovation and Research, Vol. 4, No. 6, pp.598-613.
25. Folta, T.B. (1998) 'Governance and uncertainty: the trade-off between administrative control and commitment', Strategic Management Journal, Vol. 19, No. 11, pp.1007-1028.
26. Fosfuri, A. and Tribó, J.A. (2008) 'Exploring the antecedents of potential absorptive capacity and its impact on innovation performance', Omega, Vol. 36, No. 2, pp.173-187.
27. Foss, N.J. and Roemer, E. (2010) 'Real options, resources and transaction costs: advancing the strategic theory of the firm', International Journal of Strategic Change Management, Vol. 2, No. 1, pp.73-92.
28. Garg, V.K., Walters, B.A. and Priem, R.L. (2003) 'Chief executive scanning emphases, environmental dynamism, and manufacturing firm performance', Strategic Management Journal, Vol. 24, No. 8, pp.725-744.
29. Gibson, C.B. and Birkinshaw, J. (2004) 'The antecedents, consequences, and mediating role of organizational ambidexterity', Academy of Management Journal, Vol. 47, No. 2, pp.209-226.
30. Hagedoorn, J. and Wang, N. (2012) 'Is there complementarity or substitutability between internal and external R&D strategies?', Research Policy, Vol. 41, No. 6, pp.1072-1083.
31. Holmstrom, B. (1999) 'The firm as a subeconomy', The Journal of Law, Economics, & Organization, Vol. 15, No. 1, pp.74-102.
32. Hughes, M., Martin, S.L., Morgan, R.E. and Robson, M.J. (2010) 'Realizing product-market advantage in high-technology international new ventures: the mediating role of ambidextrous innovation', Journal of International Marketing, Vol. 18, No. 4, pp.1-21.
33. Hult, G.T.M., Ketchen, D.J. Jr. and Slater, S.F. (2002) 'A longitudinal study of the learning climate and cycle time in supply chains', Journal of Business & Industrial Marketing, Vol. 17, No. 4, pp.302-323.
34. Hurmelinna, P., Kyläheiko, K. and Jauhiainen, T. (2007) 'The Janus face of appropriability regime in the protection of innovations: theoretical re-appraisal and empirical analysis', Technovation, Vol. 27, No. 3, pp.133-144.
35. Jansen, J.J.P., Tempelaar, M.P., van den Bosch, F.A.J. and Volberda, H.W. (2009) 'Structural differentiation and ambidexterity: the mediating role of integration mechanisms', Organization Science, Vol. 20, No. 4, pp.797-811.
36. Jaworski, B.J. and Kohli, A.K. (1993) 'Market orientation: antecedents and consequences', Journal of Marketing, Vol. 57, No. 3, pp.53-70.
37. Kang, K.H. and Kang, J. (2009) 'How do firms source external knowledge for innovation? Analysing effects of different knowledge sourcing methods', International Journal of Innovation Management, Vol. 13, No. 1, pp.1-17.
38. Klomp, L. and van Leeuwen, G. (2001) 'Linking innovation and firm performance: a new approach', International Journal of the Economics of Business, Vol. 8, No. 3, pp.343-364.
39. Kogut, B. (1988) 'Joint ventures: theoretical and empirical perspectives', Strategic Management Journal, Vol. 9, No. 4, pp.319-332.
40. Kyläheiko, K. (1995) 'Coping with technology: a study on economic methodology and strategic management of technology', Research Papers 48/1995, Academic dissertation in economics, Lappeenranta University of Technology, Lappeenranta, Finland.
41. Kyläheiko, K., Sandstöm, J. and Virkkunen, V. (2002) 'Dynamic capability view in terms of real options', International Journal of Production Economics, Vol. 80, No. 1, pp.65-83.
42. Laursen, K. and Salter, A. (2006) 'Open for innovation: the role of openness in explaining innovation performance among UK manufacturing firms', Strategic Management Journal, Vol. 27, No. 2, pp.131-150.
43. Loasby, B.J. (1998) 'The organization of capabilities', Journal of Economic Behavior & Organization, Vol. 35, No. 2, pp.139-160.
44. Love, J.H. and Roper, S. (2002) 'Internal versus external R&D: a study of R&D choice with sample selection', International Journal of the Economics of Business, Vol. 9, No. 2, pp.239-255
45. Mahoney, J.T. (1992) 'The choice of organizational form: vertical financial ownership versus other methods of vertical integration', Strategic Management Journal, Vol. 13, No. 8, pp.559-584.
46. March, J.G. (1991) 'Exploration and exploitation in organizational learning', Organization Science, Vol. 2, No. 1, pp.71-87.
47. McDonough, E.F. III, Athanassiou, N. and Barczak, G. (2006) 'Networking for global new product innovation', International Journal of Business Innovation and Research, Vol. 1, Nos. 1-2, pp.9-26.
48. Miller, D. and Dröge, C. (1986) 'Psychological and traditional determinants of structure', Administrative Science Quarterly, Vol. 31, No. 4, pp.539-560.
49. Monjon, S. and Waelbroeck, P. (2003) 'Assessing spillovers from universities to firms: evidence from French firm-level data', International Journal of Industrial Organization, Vol. 21, No. 9, pp.1255-1270.
50. Mudambia, R. and Swift, T. (2011) 'Proactive R&D management and firm growth: a punctuated equilibrium model', Research Policy, Vol. 40, No. 3, pp.429-440.
51. O'Reilly, C.A. III and Tushman, M.L. (2004) 'The ambidextrous organization', Harvard Business Review, Vol. 82, No. 4, pp.74-81.
52. Pavitt, K. (1984) 'Sectoral patterns of technical change: towards a taxonomy and a theory', Research Policy, Vol. 13, No. 6, pp.343-373.
53. Penrose, E.T. (1959) The Theory of the Growth of the Firm, 3rd ed., Oxford University Press, Oxford.
54. Pierce, J.L., O'Driscoll, M.P. and Coghlan, A-M. (2004) 'Work environment structure and psychological ownership: the mediating effects of control', The Journal of Social Psychology, Vol. 144, No. 5, pp.507-534.
55. Piperopoulos, P. (2007) 'Barriers to innovation for SMEs: empirical evidence from Greece', International Journal of Business Innovation and Research, Vol. 1, No. 4, pp.365-386.
56. Piperopoulos, P. and Scase, R. (2009) 'Competitiveness of small and medium sized enterprises: towards a two dimensional model of innovation and business clusters', International Journal of Business Innovation and Research, Vol. 3, No. 5, pp.479-499.
57. Pisano, G.P. (1990) 'The R&D boundaries of the firm: an empirical analysis', Administrative Science Quarterly, Vol. 35, No. 1, pp.153-176.
58. Pisano, G.P. (1997) 'R&D performance, collaborative arrangements and the market for know-how: a test of the 'lemons' hypothesis in biotechnology', Harvard Business School Working paper 97-105.
59. Podmetina, D., Väätänen, J., Torkkeli, M. and Smirnova, M.M. (2011) 'Open innovation in Russian firms: an empirical investigation of technology commercialisation and acquisition', International Journal of Business Innovation and Research, Vol. 5, No. 3, pp.298-317.
60. Robins, J.A. and Atuahene-Gima, K. (2003) 'The effects of external relationships on innovative activities within firms', Proceedings of the 63rd Annual Meeting of the Academy of Management Conference, pp.G1-G6, Best paper, Seattle, USA.
61. Rothaermel, F.T. and Deeds, D.L. (2004) 'Exploration and exploitation alliances in biotechnology: a system of new product development', Strategic Management Journal, Vol. 25, No. 3, pp.201-221.
62. Salmi, P. and Torkkeli, M. (2009) 'Success factors of interorganisational knowledge transfer: a case of a collaborative public-private R&D project', International Journal of Business Innovation and Research, Vol. 3, No. 2, pp.109-125.
63. Santoro, M.D. and McGill, J.P. (2005) 'The effect of uncertainty and asset co-specialization on governance in biotechnology alliances', Strategic Management Journal, Vol. 26, No. 13, pp.1261-1269.
64. Santos, F.M. and Eisenhardt, K.M. (2005) 'Organizational boundaries and theories of organization', Organization Science, Vol. 16, No. 5, pp.491-508.
65. Shervani, T.A., Frazier, G. and Challagalla, G. (2007) 'The moderating influence of firm market power on the transaction cost economics model: an empirical test in a forward channel integration context', Strategic Management Journal, Vol. 28, No. 6, pp.635-652.
66. Sparrow, J., Mooney, M. and Lancaster, N. (2006) 'Perceptions of a UK university as a knowledge-intensive business service enhancing organisational and regional service innovation', International Journal of Business Innovation and Research, Vol. 1, Nos. 1/2, pp.191-203.
67. Spithoven, A., Frantzen, D. and Clarysse, B. (2010) 'Heterogeneous firm-level effects of knowledge exchanges on product innovation: differences between dynamic and lagging product innovators', Journal of Product Innovation Management, Vol. 27, No. 3, pp.362-381.
68. Steenkamp, J-B.E.M. and Geyskens, I. (2012) 'Transaction cost economics and the roles of national culture: a test of hypotheses based on Inglehart and Hofstede', Journal of the Academy of Marketing Science, Vol. 40, No. 2, pp.252-270.
69. Sundqvist, S., Kyläheiko, K., Kuivalainen, O. and Cadogan, J.W. (2012) 'Kirznerian and Schumpeterian entrepreneurial-oriented behavior in turbulent export markets', International Marketing Review, Vol. 29, No. 2, pp.203-219.
70. Sutcliffe, K.M. and Zaheer, A. (1998) 'Uncertainty in the transaction environment: an empirical test', Strategic Management Journal, Vol. 19, No. 1, pp.1-23.
71. Teece, D.J. (1986) 'Profiting from technological innovation: implications for integration, collaboration, licensing and public policy', Research Policy, Vol. 15, No. 6, pp.285-305.
72. Teece, D.J. (1998) 'Capturing value from knowledge assets: the new economy, markets for know-how, and intangible assets', California Management Review, Vol. 40, No. 3, pp.55-79.
73. Teece, D.J. (2000) Managing Intellectual Capital: Organizational, Strategic, and Policy Dimensions, Oxford University Press, Oxford.
74. Teece, D.J. (2006) 'Reflections on 'profiting from innovation'', Research Policy, Vol. 53, No. 8, pp.1131-1146.
75. Teece, D.J. (2007) 'Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance', Strategic Management Journal, Vol. 28, No. 13, pp.1319-1350.
76. Teece, D.J. (2010) 'Business models, business strategy and innovation', Long Range Planning, Vol. 43, Nos. 2-3, pp.172-194.
77. Teece, D.J., Pisano, G. and Shuen, A. (1997) 'Dynamic capabilities and strategic management', Strategic Management Journal, Vol. 18, No. 7, pp.509-533.
78. Ulset, S. (1996) 'R&D outsourcing and contractual governance: an empirical study of commercial R&D projects', Journal of Economic Behavior & Organization, Vol. 30, No. 1, pp.63-82.
79. van de Vrande, V., Vanhaverbeke, W. and Duysters, G. (2009) 'External technology sourcing: the effect of uncertainty on governance mode choice', Journal of Business Venturing, Vol. 24, No. 1, pp.62-80.
80. von Hippel, E. (1986) 'Lead users: a source of novel product concepts', Management Science, Vol. 32, No. 7, pp.791-805.
81. von Hippel, E. (1988) The Sources of Innovation, Oxford University Press, New York.
82. Wang, H. and Chen, W-R. (2010) 'Is firm-specific innovation associated with greater value appropriation? The roles of environmental dynamism and technological diversity', Research Policy, Vol. 39, No. 1, pp.141-154.
83. Williamson, O.E. (1975) Markets and Hierarchies: Analysis and Antitrust Implications - A Study in the Economics of Internal Organization, Free Press, New York.
84. Williamson, O.E. (1985) The Economic Institution of Capitalism, Free Press, New York.
85. Williamson, O.E. (2008) 'Outsourcing: transaction cost economics and supply chain management', Journal of Supply Chain Management, Vol. 44, No. 2, pp.5-16.
86. Woerter, M. (2011) 'Driving forces for research and development strategies: an empirical analysis based on firm-level panel data', Economics of Innovation and New Technology, Vol. 20, No. 7, pp.611-636.