“…Our perspective of process management also differs from that of Benner and Tushman (2003), who contend that exploitation is a set of routines, while exploration consists of non-routinized activities. We argue that both can be routines in light of the duality of change (e.g., Cunha and Cunha, 2003;Farjoun, 2010;Sutcliffe et al, 2000).…”
“…Our perspective of process management also differs from that of Benner and Tushman (2003), who contend that exploitation is a set of routines, while exploration consists of non-routinized activities. We argue that both can be routines in light of the duality of change (e.g., Cunha and Cunha, 2003;Farjoun, 2010;Sutcliffe et al, 2000).…”
“…As such, we acknowledge that exploration is resource-consuming in entrepreneurial firms to maintain continuity and avoid learning traps and helps maintain Bstability, safety, and robustness, usually in the face of persistent perturbations ( Farjoun 2010: 207). Exploration helps improvise responses to limit destabilization (Farjoun 2010;Perrow 1999). Exploration allows entrepreneurial firms to adapt decisions, rules, and actions to establish procedural rationality to assure stakeholders and investors of the fruition of future exchanges and increases trustworthiness, which are central to the conditions they face in the establishment process (Hannan and Carroll 1995).…”
Section: Ambidexterity and Performance Reliability In Entrepreneurialmentioning
confidence: 99%
“…Miller and Friesen 1982). In pursuing exploration, therefore, exploitation mitigates building blocks to Bgreatly reduce the need for trial and error, thereby economizing on cognition^ (Farjoun 2010(Farjoun : 2012. It also limits resource accumulation necessary to undertake riskier exploration initiatives.…”
Section: Ambidexterity and Performance Reliability In Entrepreneurialmentioning
A challenge young entrepreneurial firms usually face is reducing variability in firm performance in order to mitigate survival difficulties. This paper suggests ventures should have a clear preference for either exploration or exploitation, because such an approach to ambidexterity reduces variability in firm performance. We specifically concentrate on the moderation effects of firm size and environmental dynamism in a sample of young entrepreneurial firms. We found evidence for the effects of lower performance variability in dynamic environments. This is an important insight, because environmental dynamism is a contingency where performance variance is considered problematic for entrepreneurial firms. Our research has implications for the establishment phase of entrepreneurial firms as it suggests they should carefully consider how much they explore to be as different as possible and how much they exploit to be as effective as possible. This is particularly important when they are younger and exposed to dynamic environments.
“…What are the endogenous and exogenous factors that would lead to one orientation or another? The final question focuses on a discussion of duality (Farjoun, 2010) or specialization. Does this mean that the company must simultaneously be the explorer and exploiter, or must it focus on one of these orientations?…”
Section: Exploitation and Exploration In The Context Of Different Appmentioning
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