scholarly journals Moving motives: How past and present strategy influence the market

PLoS ONE ◽  
2021 ◽  
Vol 16 (12) ◽  
pp. e0259660
Author(s):  
Rick H. L. Aalbers ◽  
Killian McCarthy ◽  
Menno Huisman ◽  
Jonas Roettger
Keyword(s):  
High Tech ◽  
Exploration And Exploitation ◽  
Market Reactions ◽  
Switch Strategy

We investigate the market’s reactions to serial acquirers that switch strategy. We collect data on 204 serial acquirers in four high tech industries, and use March’s explore-exploit framework, to classify these firms’ 1,415 acquisitions. We then distinguish, for example, exploration-based acquisitions, conducted after a series of exploitation-based acquisitions. Our results suggest that the market takes a portfolio perspective when reacting to an acquisition. In support of the ambidexterity literature, we show that the market responds positively to a switch from one type of strategy to another. Zooming in on the direction of the shift, we find that the market responds more positively to a switch towards exploration after exploitation, compared with the alternative. In so doing, we contribute to the literature on acquisition motives, by showing that prior announcements matter in explaining market reactions, and we contribute to the literature on ambidexterity, by showing that the market favours firms that oscillate between exploration and exploitation.

Managing the tensions between exploration and exploitation in large construction projects

2017 ◽  
Vol 17 (4) ◽  
pp. 492-510 ◽  
Author(s):  
Per Erik Eriksson ◽  
Henrik Szentes
Keyword(s):  
Collaborative Design ◽  
Construction Projects ◽  
Current Knowledge ◽  
Practical Importance ◽  
Fine Tuning ◽  
High Tech ◽  
Exploration And Exploitation ◽  
Structured Interviews ◽  
Firm Level ◽  
Content Type

Purpose Prior studies highlight the importance of building ambidextrous capabilities to achieve both exploitation of current knowledge and technologies to make profits today, and exploration of new knowledge and technologies to adapt to and prepare for tomorrow’s demands. In spite of its theoretical and practical importance, research on organizational ambidexterity in project-based organizations is scarce. Thus, the purpose of the paper is to study how ambidexterity may be managed and how exploration and exploitation may be achieved in construction projects. The research identifies some drivers and barriers to exploration and exploitation and also sheds light on how various management approaches interact and affect exploration and exploitation activities. Design/methodology/approach The empirical material is drawn from 40 semi-structured interviews with managers representing the client, the contractor and the designer involved in each of the seven large construction projects in the sample. Findings In contrast to prior literature in high-tech industries where exploitation focuses on continuous development, exploitation in construction projects often involves adopting conventional methods and solutions based on existing knowledge without any development efforts at all. This may enhance short-term efficiency and lower risk at the project level but increase risk at the firm level. Tight time schedules hinder both radical innovations and incremental developments, and the findings also reveal that to invest in efforts on explorative solutions, it must be possible to exploit the solutions in the same project. Research limitations/implications In this empirical context, the traditional structural and sequential ambidexterity solutions are not sufficient. In construction projects, contextual ambidexterity solutions in which key project actors collaborate in developing systemic innovations and fine-tuning solutions across projects are more effective. Practical implications Sufficient project size and/or long-term contracts over a series of projects enhance both investments in explorative activities and exploitation through continuous developments from project to project. In design–bid–build contracts, the client and consultant often miss opportunities to explore new technical solutions that rely on contractor competencies. Early procurement of contractors (e.g. in collaborative design–build contracts) thereby enables the achievement of both exploration and exploitation. Originality/value This study provides important input to the authors’ understanding of how exploration and exploitation may be managed in project-based industries, which has been scarcely studied in previous ambidexterity literature.

Strategic Consistency of Exploration and Exploitation in Family Businesses

2013 ◽  
Vol 27 (1) ◽  
pp. 51-71 ◽  
Author(s):  
Todd W. Moss ◽  
G. Tyge Payne ◽  
Curt B. Moore
Keyword(s):  
Panel Data ◽  
Family Business ◽  
Family Businesses ◽  
High Tech ◽  
Complex Nature ◽  
Organizational Size ◽  
Environmental Dynamism ◽  
Business Research ◽  
Exploration And Exploitation ◽  
Main Relationship

This study advances family business research by examining how the strategic consistency with which family businesses pursue exploration and exploitation initiatives affects performance. Using panel data of 94 family businesses operating in four high-tech industries over 12 years, we find that higher strategic consistency—continuity with past exploration and exploitation strategies stemming from managerial intentionality—yields higher levels of performance. This relationship is also moderated by environmental dynamism, munificence, and organizational size, which demonstrates the contingent and complex nature of the main relationship. Furthermore, in contrast to 113 nonfamily businesses, we find that the main relationship is stronger for family businesses.

Organizational Attributes and Learning beyond the Boundaries

2008 ◽  
Vol 22 (5) ◽  
pp. 297-304
Author(s):  
Jing Zhong ◽  
Sizong Wu ◽  
Jun Li
Keyword(s):  
Sustainable Development ◽  
New Technology ◽  
External Environment ◽  
Learning Activities ◽  
Organizational Characteristics ◽  
High Tech ◽  
Exploration And Exploitation ◽  
Term Survival ◽  
Organizational Attributes

This study compares two high-tech firms in terms of their differences in organizational characteristics and learning activities beyond the boundaries. It finds that the larger company continuously develops new technology to achieve long-term survival through a balance between exploration and exploitation while the smaller enterprise grows quickly by leveraging focused technology and core business. The innovation-oriented firm gives more emphasis to learning beyond its knowledge boundary and the customer-oriented firm focuses on learning beyond its organizational boundary. The two firms' sustainable development illustrates two strategies to adapt to the complexity of the external environment.

scholarly journals Linking Organizational Ambidexterity and Performance: The Drivers of Sustainability in High-Tech Firms

2019 ◽  
Vol 11 (14) ◽  
pp. 3931 ◽  
Author(s):  
Michael Yao-Ping Peng ◽  
Ku-Ho Lin ◽  
Dennis Liute Peng ◽  
Peihua Chen
Keyword(s):  
Organizational Performance ◽  
Industrial Development ◽  
Synergistic Effects ◽  
Positive Influence ◽  
Manufacturing Firms ◽  
High Tech ◽  
Electronics Manufacturing ◽  
Organizational Ambidexterity ◽  
Exploration And Exploitation ◽  
And Performance

To strengthen national competitiveness and sustainability, the high-tech industry has been developed as the center of gravity of industrial development in each country, covering the development of new products and the expansion to new customers and markets. Although both aspects are indispensable to high-tech firms’ growth momentum and competitive advantages, it is difficult to develop them at the same time. In recent years, scholars have been paying an increasing amount of attention to the significance of organizational ambidexterity in different management fields. Importantly, transformed high-tech firms are obliged to manage the tensions and conflicts that arise from the exploration of new knowledge and the exploitation of existing knowledge to find an appropriate balance between the two to yield synergistic effects. In this study, an original method was used to measure differences in the degree of ambidexterity. The method establishes a multiplicative term of exploration and exploitation to represent the degree of effect of ambidexterity. The higher the exploration and exploitation are, the higher the degree of ambidexterity will be. This study takes as its objects electronics manufacturing firms in Taiwan that engage in the development of new high-tech products. We issued a total of 1000 questionnaires to electronics manufacturing firms in Taiwan and received 228 valid ones. The results indicate that exploitation has a positive effect on performance, and there is an inverse U-shaped correlation between exploration/exploitation and performance. Ambidexterity and its interaction with the market orientation were found to have a positive influence on organizational performance. We also investigated the extent to which an organization places emphasis on resources and the influence of resource allocation on organizational performance. We suggest that the co-existence of exploration and exploitation is important to organizational performance. Accordingly, developing the two capabilities at the same time conforms to the concept of ambidexterity.

The moderating effects of leverage and marketing intensity on alliance formation announcements

2019 ◽  
Vol 58 (4) ◽  
pp. 773-785 ◽  
Author(s):  
Malika Chaudhuri ◽  
Jay Janney ◽  
Roger J. Calantone
Keyword(s):  
Abnormal Returns ◽  
Market Model ◽  
Alliance Formation ◽  
Exploration And Exploitation ◽  
Market Reactions ◽  
Content Type ◽  
Explanatory Variables ◽  
Different Types ◽  
Marketing Activities ◽  
Marketing Intensity

Purpose March’s 1991 work on exploitation and exploration has been studied in many different industries. The purpose of this paper is to analyze signals emanating from exploration and exploitation alliances within the pharmaceutical industry context. Specifically, the authors explore market reactions to announcements of alliance formations based not only on alliance type but also in terms of their marketing intensity and leverage. Design/methodology/approach The authors employ a two-stage event-study market model using a two-day event window (event days 0, +1), creating cumulative abnormal returns (CARs). In the second stage, the authors regress the CARs against an array of control and explanatory variables. Findings Findings suggest that even though firm announcements of exploration and exploitation formations initially generate favorable market reactions, the former has a greater impact on CAR relative to the latter. Furthermore, leverage and marketing intensity moderate the relationship between firms’ alliance formation announcements and CARs generated. In particular, firms’ alliance formation announcements generate relatively greater market reactions at lower (higher) levels of the firm’s leverage (market intensity). Research limitations/implications Event studies are valuable for gauging initial impressions of management action, but they are not meant to address long-term value creation. While market reactions suggest the likelihood of an alliance’s success or failure, managers also assess the risk to a firm’s financial health should the alliance fail. As a result, announcements that signal the firm has discretionary capabilities to ameliorate the effect of a failed alliance are better received. Originality/value This study is the first to analyze the stock market’s perception and valuation of different types of risk, classified by exploration vs exploitation alliances. The study also contributes to the literature by analyzing how investors use the information about a firm’s financial leverage and marketing activities to fine-tune their valuation of different types of risk-taking activities.

Competitive or Complementary? Exploration, Exploitation and Acquisitions in the Taiwanese Electronic Industry

2011 ◽  
Vol 403-408 ◽  
pp. 5260-5264
Author(s):  
Liang Hung Lin ◽  
Yu Ling Ho ◽  
Wei Hsin Lin
Keyword(s):  
Mergers And Acquisitions ◽  
Rational Choice ◽  
Corporate Strategy ◽  
High Tech ◽  
Exploration And Exploitation ◽  
Electronic Industry ◽  
Central Concern ◽  
Exploration Exploitation

The central concern of corporate strategy for high-tech firms has focused on the rational choice and appropriate balance between exploration and exploitation. This study applies the exploration vs. exploitation construct to examine (1) how different strategies affect exploration and exploitation when firms undertake mergers and acquisitions (M&As), and (2) how ambidextrous design alters associated results. This investigation of Taiwanese electronic and computer firms reveals that M&A strategy, structure and suited matches are decisive factors, and ambidextrous design is useful for simultaneously pursuing both activities.

scholarly journals A Roadmap for Exploration and Exploitation of Mineral Raw Materials in Greece

2021 ◽  
Vol 5 (1) ◽  
pp. 80
Author(s):  
Diamantoula Lampou ◽  
Charalambos Karathanasis ◽  
Ioannis G. Zafeiratos ◽  
Petros G. Tzeferis
Keyword(s):  
Value Chain ◽  
Raw Materials ◽  
Green Energy ◽  
Raw Material ◽  
Primary Sources ◽  
Direct Access ◽  
High Tech ◽  
Exploration And Exploitation ◽  
Mineral Raw Materials ◽  
Directorate General

Despite EU climate objectives and raw material needs, there is a growing concern caused by the limited direct access to primary sources and supplies of valuable raw materials, and by the heavy reliance on imports. Member states are encouraged to design and implement effective policies to improve domestic access to raw materials and to promote green energy, thus advancing European competitiveness, particularly for high tech products, emerging innovations and quality of life. The Greek Ministry of Environment and Energy, Secretariat-General for Energy and Mineral Raw Materials (MRM), Directorate-General for MRM, as an important stakeholder in the management of the raw material value chain that focuses on developing and providing a transparent and stable regulatory framework for mining and quarrying exploration and exploitation, ensures its efficient implementation in line with the principle of sustainability and facilitates strategic investments in knowledge, technology and innovation, therefore enhancing development benefits to local communities and society more generally.

Spiritual Healing, Sick Kids and the Law: Inequities in the American Healthcare System

2003 ◽  
Vol 29 (2-3) ◽  
pp. 269-299
Author(s):  
Janna C. Merrick
Keyword(s):  
Medical Science ◽  
Spiritual Healing ◽  
Best Interests ◽  
Legal Rights ◽  
High Tech ◽  
Divine Love ◽  
Religious Minority ◽  
Human Need ◽  
East End ◽  
The Church

Main Street in Sarasota, Florida. A high-tech medical arts building rises from the east end, the county's historic three-story courthouse is two blocks to the west and sandwiched in between is the First Church of Christ, Scientist. A verse inscribed on the wall behind the pulpit of the church reads: “Divine Love Always Has Met and Always Will Meet Every Human Need.” This is the church where William and Christine Hermanson worshipped. It is just a few steps away from the courthouse where they were convicted of child abuse and third-degree murder for failing to provide conventional medical care for their seven-year-old daughter.This Article is about the intersection of “divine love” and “the best interests of the child.” It is about a pluralistic society where the dominant culture reveres medical science, but where a religious minority shuns and perhaps fears that same medical science. It is also about the struggle among different religious interests to define the legal rights of the citizenry.

Comparative Effects of High-Tech Visual Scene Displays and Low-Tech Isolated Picture Symbols on Engagement From Students With Multiple Disabilities

2019 ◽  
Vol 50 (4) ◽  
pp. 693-702 ◽  
Author(s):  
Christine Holyfield ◽  
Sydney Brooks ◽  
Allison Schluterman
Keyword(s):  
Language Learning ◽  
Augmentative And Alternative Communication ◽  
Visual Analysis ◽  
Multiple Disabilities ◽  
Visual Scene ◽  
Future Research ◽  
High Tech ◽  
Single Subject ◽  
Wide Range ◽  
The Difference

Purpose Augmentative and alternative communication (AAC) is an intervention approach that can promote communication and language in children with multiple disabilities who are beginning communicators. While a wide range of AAC technologies are available, little is known about the comparative effects of specific technology options. Given that engagement can be low for beginning communicators with multiple disabilities, the current study provides initial information about the comparative effects of 2 AAC technology options—high-tech visual scene displays (VSDs) and low-tech isolated picture symbols—on engagement. Method Three elementary-age beginning communicators with multiple disabilities participated. The study used a single-subject, alternating treatment design with each technology serving as a condition. Participants interacted with their school speech-language pathologists using each of the 2 technologies across 5 sessions in a block randomized order. Results According to visual analysis and nonoverlap of all pairs calculations, all 3 participants demonstrated more engagement with the high-tech VSDs than the low-tech isolated picture symbols as measured by their seconds of gaze toward each technology option. Despite the difference in engagement observed, there was no clear difference across the 2 conditions in engagement toward the communication partner or use of the AAC. Conclusions Clinicians can consider measuring engagement when evaluating AAC technology options for children with multiple disabilities and should consider evaluating high-tech VSDs as 1 technology option for them. Future research must explore the extent to which differences in engagement to particular AAC technologies result in differences in communication and language learning over time as might be expected.

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