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

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.

2016 ◽  
Author(s):  
◽  
Fengxia Zhu

[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.


Author(s):  
Muhammad Jawad ◽  
Saqib Anwar Siddiqui ◽  
Munazza Naz ◽  
Nauman Waheed ◽  
Sohail Rizan ◽  
...  

This research study is based on the investigation and validation of Organizational Learning Capacity with regards to leaders in educational sector as source of Competitive Advantage to the Higher Education Institutions and testing the impact of leader’s Emotional Intelligence (EI) and Resistance to Change to enhance Organizational Learning Capacity (OLC). This study can be the hallmark for the HEI’s for gaining competitive advantage through their human capital.The results shows that EI has significant contribution towards the OLC and when measured together with the trait of resistance to change the results significantly transformed which suggest that RTC negatively and significantly affect the relationship between EI and OLC therefore, to control and reduce the aspect of resistance to change by enhancing and investing in the trait of Emotional Intelligence of the individuals and leaders is suggested to gain the benefits of OLC to become superior in the industry.


2005 ◽  
Vol 24 (3) ◽  
pp. 215-222
Author(s):  
William Li Chang ◽  
Peirchyi Lii

Guanxi is an important source of competitive advantage; managers in Chinese enterprises have especially placed enormous emphasis on it. The purpose of this study is to investigate the relationship between managers' initiative toward a Guanxi formation and their transactional decisions within the network. Findings of this study suggest that managers' initiative in setting up a Guanxi network has important impact on their perceptions toward members in the network; and in turn, the perception has an impact on their transactional decisions within the Guanxi network. More specifically, managers would employ relational mark-down and compensatory mark-up to differentiate Guanxi members from non-Guanxi members in making transactional decisions.


2020 ◽  
Vol 12 (6) ◽  
pp. 2407 ◽  
Author(s):  
Jaffar Abbas ◽  
Qingyu Zhang ◽  
Iftikhar Hussain ◽  
Sabahat Akram ◽  
Aneeqa Afaq ◽  
...  

This current study is among the very few investigations, which seeks the relationship between knowledge management and sustainable organizational innovation in garment business firms. This investigation focused on examining how organizational learning mediates the relationship between knowledge management and sustainable organizational innovation. This research establishes that knowledge management and organizational innovation procedures are integral parts of the progress and survival of the organizations. The received data of this population reports on the garment firms, operating their businesses in Lahore and Gujranwala. The study applied a stratified random sampling method for data collection and employed structural equation modeling (SEM) to examine the hypothesized relationships. The results specify that knowledge management shows a significant positive association with organizational learning, which in turn reveals a positive linkage to sustainable organizational innovation in SMEs of the garment industry. The study results also specify that organizational learning mediates the relationship between knowledge management and sustainable organizational innovation. This research survey identifies the significance of knowledge management and organizational learning in executing the process of organizational innovation, and it helps business managers to understand organizational learning as a mediator, which in turn indicates the benefits of knowledge management in achieving sustainable organizational innovation. This review provides an empirical indication of original data to investigate the linkage between knowledge management, sustainable innovation process, and organizational learning culture in the Pakistani garment sector. The generalizability of the study fallouts is restricted to the garment industry, and it offers valuable insights for imminent researchers.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yongyi Shou ◽  
Jinan Shao ◽  
Weijiao Wang

PurposeAs a popular supply chain finance (SCF) strategy, reverse factoring has been widely adopted by buyer firms. However, the extant literature provides scant empirical evidence on the performance effect of reverse factoring. The purpose of this study is to seek to narrow this gap by empirically examining the relationship between reverse factoring and operating performance and the contingency conditions of this relationship.Design/methodology/approachBased on a sample of 167 announcements of reverse factoring implementation made by publicly listed Chinese manufacturing firms between 2014 and 2018, this paper employs a long-term event study approach to analyze the operating performance effect of reverse factoring as well as the moderating effects of production and innovation capabilities.FindingsThe event study results indicate that reverse factoring has a positive effect on buyer firms' operating performance in terms of cost efficiency and operating margin. In addition, both production and innovation capabilities positively moderate the relationship between reverse factoring and operating margin. However, neither of them moderates the relationship between reverse factoring and cost efficiency.Originality/valueThis is the first study that empirically examines the impact of reverse factoring on operating performance based on secondary data. Furthermore, it sheds light on the SCF literature by providing insights into the contingency effects of production and innovation capabilities, which also extends our understanding of the application of extended resource-based view in SCF research.


2016 ◽  
Vol 6 (1) ◽  
pp. 70-84 ◽  
Author(s):  
Özlem Yaşar Uğurlu ◽  
Mustafa Kurt

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.


2021 ◽  
Vol 9 (2) ◽  
pp. 465-480 ◽  
Author(s):  
Thi Minh Thu Vu ◽  
Khashayar Yazdani

The objective of this paper is to evaluate the impact of transformational leadership on individual academy performance through knowledge sharing, organizational learning, organizational commitment in higher education Vietnam. The study conducts the research on 500 lecturers at 10 universities in Vietnam. The study uses Smart pls 3.6 software to analyze the data. The results show that transformational leadership had a positive effect on knowledge sharing, organizational learning and organizational commitment. Ultimately, employee engagement and social support play a moderate role in the relationship between transformational leadership and knowledge sharing statistically. However, organizational learning and organizational commitment did not play any mediate role on the relationship between transformational leadership and knowledge sharing.


2009 ◽  
Author(s):  
James G. March

- This paper considers the relation between the exploration of new possibilities and the exploitation of old certainties in organizational learning. It examines some complications in allocating resources between the two, particularly those introduced by the distribution of costs and benefits across time and space, and the effects of ecological interaction. Two general situations involving the development and use of knowledge in organizations are modeled. The first is the case of mutual learning between members of an organization and an organizational code. The .second is the case of learning and competitive advantage in competition for primacy. The paper develops an argument that adaptive processes, by refining exploitation more rapidly than exploration, are likely to become effective in the short run but self-destructive in the long run. The possibility that certain common organizational practices ameliorate that tendency is assessed.


Author(s):  
Tingting (Rachel) Chung ◽  
Ting-Peng Liang ◽  
Chih-Hung Peng ◽  
Deng-Neng Chen

This chapter examines the roles of organizational creativity and organizational learning effectiveness in explaining the processes through which knowledge creation capabilities help firms to obtain and sustain competitive advantage. The proposed model specifies that organizational learning effectiveness plays a pivotal role in the relationship between knowledge creation and creativity. New knowledge develops better routines that make operations more efficient and effective. As organizations learn from newly generated knowledge, not only do they improve existing processes, but dynamic capabilities also develop to integrate knowledge into creative ideas, novel solutions, and new products and services. This theoretical examination leads to the proposition that organizational learning effectiveness mediates the relationship between knowledge creation capabilities and organizational creativity. This chapter also examines whether the effect of knowledge creation processes on organizational creativity exists in all organizations or is contingent on the nature of the organization’s knowledge. Based on the common understanding that tacit and explicit knowledge differ substantially in their codifiability and transferability, the authors specify the moderating role of knowledge characteristics in the process of using knowledge management to foster organizational creativity. The theoretical examination leads to the proposition that the degree of tacitness of the organization’s critical knowledge moderates the effect of knowledge creation capabilities on organizational creativity mediated by organizational learning effectiveness. Finally, the authors argue that the degree of institutionalization of the organization’s critical knowledge moderates the effect of knowledge creation capabilities on organizational creativity, which is in turn mediated by organizational learning effectiveness. Implications for research and managerial practices are discussed.


2019 ◽  
Vol 28 (2) ◽  
pp. 79-90
Author(s):  
Maryono Maryono ◽  
Imam Ghozali ◽  
Amie Kusumawardhani ◽  
Mahelan Prabantariksa

This study aims to develop a comprehensive integrated model which helps in explaining the impact of value chain integration’s (VCI)’s and relational capability impact on co-innovation in a network and competitive advantage. It also explores the role of value network-based co-innovation as a mediator in the relationship between supply chain integration and competitive advantage, and in the relationship between relational capabilities and competitive advantage of a housing bank sector. The study suggests that firm gains competitive advantage by utilizing value chain integration and relational capability. It is argued here that co-innovation based on value network has mediating role to create competitive advantage. The paper provides a discussion and implication on where value lies and how value is co-created in network of interdependent relationship and illustrate this by sketching a value map in network relationship and possible innovations that can be co-created in housing bank ecosystem. The study involved a single government owned bank located in different cities, therefore the results should be generalized cautiously. This paper constitutes an attempt to stimulate efforts and provide directions on the further conceptual development of value network-based co-innovation (VNBC). The newly developed measure of VNBC and CA exempt from past conceptual streams of the determinant of CA, could be used for valid measurements in future empirical studies in the field of strategic management. The paper provides a practical implications for managers to identify value and utilize new way of analyzing value-chain to create co-innovation within housing bank ecosystem. It also allows manager to practicing relational capability which gives the most impact to competitive advantage..


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