Impacts of explorative and exploitative strategic alliances on firm performance : a study of small and medium enterprises in China

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Impacts of explorative and exploitative strategic alliances on firm performance : a study of small and medium enterprises in China

 

Author: Leung, Kin-keung Vincent
Title: Impacts of explorative and exploitative strategic alliances on firm performance : a study of small and medium enterprises in China
Degree: D.B.A.
Year: 2010
Subject: Hong Kong Polytechnic University -- Dissertations
Strategic alliances (Business)
Competition
Small business -- China -- Case studies.
Department: Graduate School of Business
Pages: x, 209 leaves : ill. (some col.) ; 30 cm.
InnoPac Record: http://library.polyu.edu.hk/record=b2394265
URI: http://theses.lib.polyu.edu.hk/handle/200/6003
Abstract: An explorative strategic alliance is a non-equity-based interfirm alliance that focuses on searching for new knowledge, whereas an exploitative strategic alliance is a non-equity-based interfirm alliance that focuses on refining and extending existing knowledge. Building on previous research on organizational learning, this study attempts to delineate the nature of the two types of alliance, to examine how they differentially influence product and process innovation, and to assess their contingent performance outcomes under different environmental conditions. Using a sample of 220 Chinese firms in the glass industry, we found that explorative strategic alliances have a stronger impact on both product and process innovation than exploitative strategic alliances; product and process innovation are positively related to both market and efficiency performance; and environmental turbulence enhances the impact of product innovation. This research contributes to theoretical studies by establishing the paradigms of explorative strategic alliances and exploitative strategic alliances. It identifies how different types of alliances have introduced innovations and how these innovations have influenced market performance and efficiency performance. Similarly, it contributes to the understanding of the impact of environmental factors on performance. The findings of this research contribute to managerial work by clarifying the differences between an explorative strategic alliance and an exploitative strategic alliance, thus helping firms choose between the different types of strategic alliance based on their objectives and resources, and on the environment in which they operate.

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