Research

G. Duysters, D. Lavie, A. Sabidussi, U. Stettner: What Drives Exploration? Convergence and Divergence of Exploration Tendencies Among Alliance Partners and Competitors

October 10, 2019

Management research has alluded to organizational and environmental conditions that drive firms’ tendencies to explore versus exploit. We complement this research by developing theory on vicarious learning to explain how a firm adjusts its own exploration level based on the exploration levels of its alliance partners and competitors. Using panel data on 180 electronics firms publicly traded in the U.S., we reveal an inverted U-shaped association between the firm’s exploration tendency and the exploration levels of its partners and competitors.