Let's explore with a divided team! The effects of top management team demographic faultlines on technological exploration

Research on top management team (TMT) diversity suggests that diverse backgrounds improve technological exploration. However, this diversity may also cause demographic faultlines that break a team into subgroups and undermine team performance, and the status difference between CEO and top managers may change inter-subgroup dynamics. We predicted that TMT faultline had an inverted U-shape relationship with technological exploration. Further, we predicted that the effects of TMT faultline were more prominent when the CEO is in the minority subgroup than when the CEO was in the majority subgroup. Using a longitudinal sample from the US IT services industry, the results found that TMT faultline exhibited an inverted U-shape relationship with technological exploration only when the CEO was in the minority subgroup, and such relationship disappeared when the CEO was in the majority subgroup.

How do different types of interorganizational ties matter in technological exploration?

Purpose Boundary-spanning exploration through establishing alliances is an effective strategy to explore technologies beyond local search in innovating firms. The purpose of this paper is to argue that it is useful to make a distinction in boundary-spanning exploration between what a firm learns from its alliance partners (explorative learning from partners (ELP)) and what it learns from other organisations (explorative learning from non-partners (ELN)). Design/methodology/approach The authors contend that alliances play a role in both types of exploration. More specifically, the authors discern three types of alliances (inside ties, clique-spanning ties and outside ties) based on their role vis-à-vis existing alliance cliques. Clique members are highly embedded, and breaking out of the cliques through clique-spanning and outside alliances is crucial to improving explorative learning. Thereafter, the authors claim that clique-spanning ties and outside ties have a different effect on ELN and ELP. Findings The empirical analysis of the “application specific integrated circuits” industry indicates that inside ties have negligible effects on both types of explorative learning. Clique-spanning ties have a positive effect on ELP, but not on ELN. The reverse is true for outside ties. The results show that research on explorative learning should devote greater attention to the various roles alliance partners and types of alliances play in advancing technological exploration. Originality/value The literature only emphasises the learning from partners, focussing mainly on accessing their technology. In sum, alliance partners play different roles in exploration, and their network position influences the role they are able to play.