Exploitation- and exploration-based innovations: The role of knowledge in inter-firm relationships with distributors

By Miguel Hernández‐Espallardo, Manuel Sánchez-Pérez, Cristina Segovia-López. 2011

145 citations recorded by the source corpus.

Abstract Learning capacity is a critical factor for a firm’s innovation and competitiveness. This study explores the issue of how knowledge in inter-firm relationships with distributors influences manufacturers’ exploitation- and exploration-based innovations and performance. The empirical model examines the effect of three different types of knowledge-related issues in inter-firm relationships: (i) the acquisition of substantial knowledge (about products, technology, or markets) from distributors; (ii) the learning about collaborating with each distributor as the relationship evolves; and (iii) the general firm’s knowledge about managing distributors. A model of learning—innovation—performance is developed and tested in a sample of 201 firms in the food and beverages sector. The results reveal that: (i) knowledge about managing distributors promotes continuous learning from them; (ii) learning to collaborate is critical, as it favours knowledge acquisition and both types of innovations (exploitation- and exploration-based); (iii) learning from distributors weakens firms’ tendency to stress one type of innovation strategy over another; and (iv) knowledge in inter-firm relationships with distributors affects performance in a completely mediated way, that is, through innovation. Theoretical and managerial implications of these findings are discussed in the conclusion of the paper.

Subfields: Strategy and Management

View Paper: https://www.semanticscholar.org/paper/1bc22a9bab363ec33e0c19f8eb7b970b177e781e

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In Strategy and Management

Citations in the corpus

Effectiveness of technology investment: Impact of internal technological capability, networking and investment's strategic importance (2012, background): “Previous research highlights that the ability to leverage external networks can create relation specific assets and complementary capabilities (e.g. Dyer and Singh, 1998; Hernandez-Espallardo et al., 2011; Todtling et al., 2009).”
Exploratory and exploitative innovation: To what extent do the dimensions of individual level absorptive capacity contribute? (2017, background): “Hence, exploratory innovations are new technologies, products, or services that can potentially make existing ones obsolete or non-competitive (Bierly et al., 2009; Hernández-Espallardo et al., 2011).”