scholarly journals The effect of acquisitions on exploration and exploitation in China

2019 ◽  
Vol 12 (2) ◽  
pp. 174-188
Author(s):  
Yulia Muratova ◽  
Damiana Rigamonti ◽  
Jesper N. Wulff

Purpose The mechanisms of knowledge acquisition and their impact on innovation are particularly relevant in the context of rapidly growing emerging markets. The purpose of this paper is to investigate the relationship between firm acquisition characteristics and post-acquisition knowledge exploration and exploitation in the Chinese domestic acquisition market. Design/methodology/approach By using patent and company data of 188 domestic Chinese deals completed between 2002 and 2013, the paper replicates the measurements and analytical methods of the US-based study by Phene, Tallman and Almeida (2012) to address the acquirer’s opportunity to explore and/or exploit external knowledge, its ability to absorb and effectively assimilate such knowledge and thus establish innovations in new technologies. Findings The paper finds support for a positive effect of knowledge uniqueness of the target on the bidder’s post-acquisition exploration. The findings also support that the post-acquisition exploitation is facilitated by the commonality of technological knowledge between the bidder and the target, a result that, although expected, was not be supported in the US-based study. Originality/value This paper qualifies the generalizability of US-based findings about post-acquisition exploration and exploitation in the context of China. It also responds to the call for China-focused knowledge management research by capturing innovation capability building by Chinese firms through domestic acquisitions. Finally, it contributes to the nascent literature on replication in management studies.

2018 ◽  
Vol 22 (4) ◽  
pp. 781-801 ◽  
Author(s):  
Dehong Li ◽  
Jun Lin ◽  
Wentian Cui ◽  
Yanjun Qian

Purpose This study aims to clarify the effect of team effort allocation between knowledge exploration and exploitation on the generation of extremely good or poor innovations. The influence of previous collaborative experience among team members on the effect of team effort allocation is also investigated to understand the relationship between team members’ collaboration networks and knowledge learning. Design/methodology/approach This study uses data of all patents granted by the US Patent and Trademark Office between 1984 and 2010. The inventors involved in a patent are regarded as members of the focal team. Logistic regression is used to analyze the data. Findings Allocating greater effort to exploration than to exploitation is beneficial to achieving breakthrough innovations despite the risk of generating particularly poor innovations. This benefit increases with collaborative experience among team members. Placing an equal emphasis on knowledge exploration and exploitation is not particularly effective in achieving breakthrough innovations; it is, however, the best strategy for avoiding particularly poor innovations. Originality/value This research not only provides valuable insights for research on innovation and knowledge management by studying the team effort allocation strategy used to achieve breakthroughs and avoid particularly poor innovations but also represents an advancement in bridging two streams of research – knowledge learning and social networks – by highlighting the influence of the team members’ collaborative networks on the effect of team effort allocation between knowledge exploration and exploitation.


2014 ◽  
Vol 21 (3) ◽  
pp. 368-384 ◽  
Author(s):  
Lidija Breznik ◽  
Robert D. Hisrich

Purpose – The purpose of this paper is to provide insights into the relationship between dynamic capabilities and innovation capabilities. It links dynamic capability with innovation capability and indicates the ways they can be related. Design/methodology/approach – The relationships between dynamic and innovation capability were investigated through a systematic literature review. Findings – The review indicates that common characteristics exist between of the both fields, which demonstrate six relationships. Additionally, findings show some inconsistencies and even contradictions. Originality/value – In this paper, the authors have compared dynamic capabilities, a relatively new approach in the field of strategic management, with innovation capabilities, a widely recognised crucial domain for sustained competitiveness. Since both areas address issues that are essential to today's environment, future research should seek to clarify both concepts, by undertaking some new research and developing comprehensive and unambiguous framework.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lucy Sojung Lee ◽  
Weiguo Zhong

Purpose This paper aims to investigate the importance and prevalence of Guanxi in business interactions in network-based societies such as China, few studies have the phenomenon from a dyadic view. In a business dyad, one partner may not value Guanxi and take it as a template for actions as the other does. Design/methodology/approach The authors propose that such collective and asymmetric Guanxi orientation influence both the creation and distribution of relational rent in a Guanxi dyad. Furthermore, relationship-specific investments (RSIs) moderate the relationship between dyadic Guanxi orientation and relational rent creation and distribution. Findings Based on a matched sample of supplier-buyer dyads in China, the authors find that joint Guanxi orientation is positively related to joint pie creation, whereas Guanxi orientation imbalance has a positive effect on the pie distribution imbalance. Originality/value These results contribute to the literature by revealing how dyadic Guanxi dynamics and practices affect dyadic performance and providing managers with meaningful implications for dyadic Guanxi management.


2018 ◽  
Vol 56 (7) ◽  
pp. 1559-1580 ◽  
Author(s):  
César Camisón ◽  
Montserrat Boronat-Navarro ◽  
Beatriz Forés

PurposeThe purpose of this paper is to enrich the explanation of the interplay between internal and external – or district shared – exploration and exploitation capabilities as antecedents of a firm’s radical and incremental innovation. Previous studies do not differentiate between exploration and exploitation in district shared capabilities and how they interact with internal capabilities.Design/methodology/approachThe paper uses hierarchical regression analysis to test the quadratic and moderating effects in a sample of 1,019 Spanish firms.FindingsResults show an increasingly positive effect on radical innovation of exploration capabilities, enhanced by shared capabilities in exploration. In the case of incremental innovation, the study finds evidence of an increasingly positive influence of exploitation capabilities and a concave relationship of exploration capabilities. Moreover, shared exploitation capabilities weaken the effect of internal exploitation capabilities and also have a direct effect on incremental innovation. Therefore, the two capabilities are interchangeable in the effect they have on incremental innovation.Practical implicationsDepending on the firm’s innovation strategy, intra-district firms should develop specific capabilities and/or concentrate on adopting the shared capabilities in the destination.Originality/valueThe study furthers the understanding of the relationship between exploration and radical innovation, and between exploitation and incremental innovation, which is more complex than previously depicted. The study also differentiates between exploration and exploitation in shared capabilities, enriching understanding of the competitiveness of district firms.


2019 ◽  
Vol 13 (4) ◽  
pp. 840-859 ◽  
Author(s):  
Yong Wu ◽  
Linqian Zhang ◽  
Zelong Wei ◽  
Mingjun Hou

Purpose This paper aims to explore the effects of holistic cognition frame on novelty-centered business model design and efficiency-centered business model design. Moreover, the authors consider how these effects differ in new ventures vs established firms. Design/methodology/approach The authors use survey data to testify the hypotheses based on a database of 204 firms in China. Then, regression analysis is used to examine the relationship between holistic cognition frame and business model design. They also explore the contingency effects of new ventures and established firms on the relationships. Findings The authors find that the holistic cognition frame has a positive effect on efficiency-centered business model design, whereas it has an inverse U-shaped effect on novelty-centered business model design. Furthermore, they find that the effects of holistic cognition frame on efficiency-centered business model design and novelty-centered business model design are different in established firms and new ventures. Originality/value This work offers new insights into the effects of holistic cognition frame on business model design and provides useful suggestions for firms to promote business model design.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rhiannon Firth ◽  
Andrew Robinson

PurposeThis paper maps utopian theories of technological change. The focus is on debates surrounding emerging industrial technologies which contribute to making the relationship between humans and machines more symbiotic and entangled, such as robotics, automation and artificial intelligence. The aim is to provide a map to navigate complex debates on the potential for technology to be used for emancipatory purposes and to plot the grounds for tactical engagements.Design/methodology/approachThe paper proposes a two-way axis to map theories into to a six-category typology. Axis one contains the parameters humanist–assemblage. Humanists draw on the idea of a human essence of creative labour-power, and treat machines as alienated and exploitative form of this essence. Assemblage theorists draw on posthumanism and poststructuralism, maintaining that humans always exist within assemblages which also contain non-human forces. Axis two contains the parameters utopian/optimist; tactical/processual; and dystopian/pessimist, depending on the construed potential for using new technologies for empowering ends.FindingsThe growing social role of robots portends unknown, and maybe radical, changes, but there is no single human perspective from which this shift is conceived. Approaches cluster in six distinct sets, each with different paradigmatic assumptions.Practical implicationsMapping the categories is useful pedagogically, and makes other political interventions possible, for example interventions between groups and social movements whose practice-based ontologies differ vastly.Originality/valueBringing different approaches into contact and mapping differences in ways which make them more comparable, can help to identify the points of disagreement and the empirical or axiomatic grounds for these. It might facilitate the future identification of criteria to choose among the approaches.


Author(s):  
Anil Kumar Goswami ◽  
Rakesh Kumar Agrawal

Purpose The purpose of this paper is to examine the relationship between ethical leadership and employee learning orientation in organizations. Design/methodology/approach This paper uses a quantitative methodology to analyze data collected from 160 faculty members from universities, using a survey questionnaire. Findings The finding of this study reveals that ethical leadership has a positive effect on learning orientation of faculty members in universities. Originality/value This study adds to the field of ethical leadership by investigating the influence of ethical leadership on learning orientation of faculty members in universities.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Cheng Yi ◽  
Runge Zhu ◽  
Qi Wang

PurposeQuestion-answering (QA) systems are being increasingly applied in learning contexts. However, the authors’ understanding of the relationship between such tools and traditional QA channels remains limited. Focusing on question-answering learning activities, the current research investigates the effect of QA systems on students' learning processes and outcomes, as well as the interplay between two QA channels, that is, QA systems and communication with instructors.Design/methodology/approachThe authors designed and implemented a QA system for two university courses, and collected data from questionnaires and system logs that recorded the interaction between students and the system throughout a semester.FindingsThe results show that using a QA system alone does not improve students' learning processes or outcomes. However, the use of a QA system significantly improves the positive effect of instructor communication.Originality/valueThis study contributes to the literature on learning and education technology, and provides practical guidance on how to incorporate QA tools in learning.


2018 ◽  
Vol 24 (5) ◽  
pp. 1255-1270 ◽  
Author(s):  
Nicola Miglietta ◽  
Enrico Battisti ◽  
Elias Carayannis ◽  
Antonio Salvi

Purpose The purpose of this paper is to investigate the relationship between capital structure and business process management (BPM) within ambidextrous firms. In particular, referring to the listed companies in the Mercato Telematico Azionario (MTA) and Mercato degli Investment Vehicles (MIV) markets with large- and mid-sized capitalization, divided into ambidextrous and non-ambidextrous companies, the authors examined the capital structure to fill a gap in the current literature. Design/methodology/approach This study uses a mixed-method sequential exploratory design. In particular, a qualitative study was conducted to identify some Italian-listed companies, called ambidextrous firms, which have implemented incremental (exploitative) and radical (explorative) innovations in an ambidexterity perspective of process management. A quantitative study was designed to provide insights into the different degrees of leverage of the listed companies selected by the qualitative analysis. Findings The research is based on an empirical analysis undertaken with 69 companies listed on Italian markets (starting from the MTA and MIV Italy 100 – large- and mid-sized capitalization). In particular, the authors highlight 11 companies that, based on the literature, can be defined as ambidextrous organizations. These firms, in each year analyzed (2014, 2015, and 2016), have more leverage than non-ambidextrous ones. Considering that firms today need to constantly revisit their portfolio of debt and equity, ambidextrous organizations could evaluate the largest debt available in order to implement new BPM tools. Originality/value To the authors’ knowledge, this is the first exploratory study based on capital structure and the simultaneous exploration and exploitation of knowledge (ambidexterity) that also is informed by a BPM perspective. The paper presents evidence from Italian-listed companies that are referred to as ambidextrous and have different degrees of leverage.


Author(s):  
Roger Martin ◽  
Richard Florida ◽  
Melissa Pogue ◽  
Charlotta Mellander

Purpose – This paper aims to marry Michael Porter’s industrial cluster theory of traded and local clusters to Richard Florida’s occupational approach of creative and routine workers to gain a better understanding of the process of economic development. Design/methodology/approach – Combining these two approaches, four major industrial-occupational categories are identified. The shares of US employment in each – creative-in-traded, creative-in-local, routine-in-traded and routine-in-local – are calculated, and a correlation analysis is used to examine the relationship of each to regional economic development indicators. Findings – Economic growth and development is positively related to employment in the creative-in-traded category. While metros with a higher share of creative-in-traded employment enjoy higher wages and incomes overall, these benefits are not experienced by all worker categories. The share of creative-in-traded employment is also positively and significantly associated with higher inequality. After accounting for higher median housing costs, routine workers in both traded and local industries are found to be relatively worse off in metros with high shares of creative-in-traded employment, on average. Social implications – This work points to the imperative for the US Government and industry to upgrade routine jobs, which make up the majority of all employment, by increasing the creative content of this work. Originality/value – The research is among the first to systematically marry the industry and occupational approaches to clusters and economic development.


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