Exploration vs. Exploitation: An Empirical Test of the Ambidexterity Hypothesis
Organization Science
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The paper employs a case to explore and explain the relative propositions of tie modality of interfirm network and different technological innovation. The impact of different network tie strengths on exploratory and exploitative innovation success is analyed in detail. A key point is that strong ties are valuable in environments that require exploitation, while weak ties would be more appropriate for exploration. Therefore, the benefits of each type of firm tie not only vary across each other but will be moderated by market uncertainty such that certain types of ties will matter more or less under certain conditions. The paper claims that exploration and exploitation are two essential innovative models, under which firms need make a reasonable choice between them according the development stage, market environment and innovative targets.