Abstract
Engaging in exploration and exploitation is essential to business survival and performance. While firms manage exploration and exploitation alliances for the long-term, how prepared are they for sudden shocks in the short-term? We address this question in the context of a unique and opportune natural experiment associated with the 2008 financial crisis. Our analysis of 155 new biopharmaceutical ventures over a seven-year period suggests that exploration alliances—with a long-term orientation—make a firm more vulnerable to external shocks. In contrast, exploitation alliances as well as a balance between exploration and exploitation alliances—which underlie short-term performance—enable the firm to sustain external shocks.
Original language | English |
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Pages (from-to) | 362-385 |
Number of pages | 24 |
Journal | Journal of Small Business Management |
Volume | 57 |
Issue number | 2 |
Early online date | 23 Feb 2017 |
DOIs | |
Publication status | Published - Apr 2019 |
Externally published | Yes |
Profiles
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Tianjiao Xia
- Norwich Business School - Professor of International Business and Innovation
- Strategy and Entrepreneurship - Member
Person: Research Group Member, Academic, Teaching & Research