Explorative and Exploitative Learning from External Corporate Ventures

Abstract

493This study examines the antecedents of explorative and exploitative learning of technological knowledge from external corporate ventures. We compare different forms of external corporate venturing, namely corporate venture capital investments, alliances, joint ventures, and acquisitions, as alternative avenues for interorganizational learning. Furthermore, we test the effects of multiple relational characteristics on the type of learning outcomes. Our empirical analysis is based on citations in patents filed by a sample of 110 largest U.S. public information and communications technology companies during the years 1992-2000. We find that corporate venturing mode and technological relatedness have significant effects on the likelihood of explorative learning.

Properties of balance: A pendulum effect in corporate entrepreneurship

“…In this context, exploration finds resources devoted to search, discovery, experimentation, and innovation, while exploitation involves an emphasis on refinement, adaptation, selection, implementation, and efficiency (He & Wong, 2004;March, 1991;Schildt, Maula, & Keil, 2005). There are companies quite adept at exploration, such as Xerox--which, however, struggles with the exploitation of many of its breakthroughs (Cooper, 2003).…”

Organizational Choices and Venturing Modes: An Analysis of Corporate Venture Capital Activities in Legacy Media

“…Nevertheless, many studies have concentrated on the exploratory character of CVC activities (Dushnitsky & Lenox, 2006;Schildt et al, 2005;Wadhwa & Basu, 2013). In general, the pursuit of exploration is especially important for corporations nitsky, 2012).…”

“…In evaluating explorative and exploitative learning outcomes of CVC investments, various studies have found the latter to be closely interlinked with the units' overall organizational structure, investment decisions, and stage or focus of investment (Dauderstädt, 2013;Keil et al, 2004;Schildt et al, 2005;Wadhwa, Basu, & Kotha, 2005). Considering the relationship between exploitation and exploration with the general objectives of CVC units (strategic vs. financial), Dauderstädt (2013) indicates that financially oriented CVC adds value by following the concept of exploitation, while strategic benefits may be equally achieved through exploration and exploitation.…”

“…Depending on the objectives and overall strategy a corporation pursues, investments and their underlying objectives are often of exploratory or exploitative nature (Keil, Zahra, & Maula, 2004;Schildt, Maula, & Keil, 2005). According to March (1991), exploitation is the "refinement and extension of existing competences" (p. 85).…”

Learning: The interface of quality management and strategic alliances

“…Arino et al (2001) stated that the interactions between partners led to constantly evolving relationships where the tests of loyalty and fidelity occurred periodically. Levinthal and March (1993) asserted that strong ties with partners in alliances resulted in exploitative learning-learning activities that include refinement, choice, production, efficiency, selection, implementation, and execution (March, 1991;Schildt et al, 2005). Through relational processes partners learn about each other's competency and develop confidence in one another (Muthusamy and White, 2005).…”