Explorative versus Exploitative Alliances

Evidence from the Glass Industry in China

Vincent K. K. Leung, Marco Chi Keung Lau, Zhe Zhang, Flora F. Gu

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

How do firms learn from their alliance partners? Do alliance learning outcomes vary among different types of alliances? Are the learning differentials contingent upon contextual factors in an emerging economy? To address these important questions, this study empirically delineates the nature of explorative and exploitative alliances, examines how they affect product and process innovations, and investigates how such effects vary in different contexts. Using a sample of 220 Chinese firms in the glass industry, we use the structural equation modeling procedure to analyze the data. We find that explorative alliances have a stronger impact on both product and process innovations than do exploitative alliances, product, and process innovations are positively related to both market and efficiency performance, and environmental turbulence enhances the impact of product and process innovations. Our findings provide implications for choosing between explorative and exploitative alliances in line with alliance objectives and firms’ resources, and environmental contexts.
Original languageEnglish
Pages (from-to)127-146
Number of pages20
JournalJournal of Chinese Economic and Business Studies
Volume13
Issue number2
DOIs
Publication statusPublished - 1 Apr 2015
Externally publishedYes

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Alliances
Industry
China
Product and process innovation
Environmental turbulence
Firm resources
Structural equation modeling
Chinese firms
Emerging economies
Learning outcomes
Contextual factors

Cite this

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abstract = "How do firms learn from their alliance partners? Do alliance learning outcomes vary among different types of alliances? Are the learning differentials contingent upon contextual factors in an emerging economy? To address these important questions, this study empirically delineates the nature of explorative and exploitative alliances, examines how they affect product and process innovations, and investigates how such effects vary in different contexts. Using a sample of 220 Chinese firms in the glass industry, we use the structural equation modeling procedure to analyze the data. We find that explorative alliances have a stronger impact on both product and process innovations than do exploitative alliances, product, and process innovations are positively related to both market and efficiency performance, and environmental turbulence enhances the impact of product and process innovations. Our findings provide implications for choosing between explorative and exploitative alliances in line with alliance objectives and firms’ resources, and environmental contexts.",
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Explorative versus Exploitative Alliances : Evidence from the Glass Industry in China. / Leung, Vincent K. K.; Lau, Marco Chi Keung; Zhang, Zhe; Gu, Flora F.

In: Journal of Chinese Economic and Business Studies, Vol. 13, No. 2, 01.04.2015, p. 127-146.

Research output: Contribution to journalArticle

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