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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 and Gu, Flora F. (2015) Explorative versus Exploitative Alliances: Evidence from the Glass Industry in China. Journal of Chinese Economic and Business Studies, 13 (2). pp. 127-146. ISSN 1476-5284

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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.

Item Type: Article
Uncontrolled Keywords: Explorative alliances; Exploitative alliances; Alliance learning; Structural equation modeling; Process innovation; Small- and medium-sized enterprises
Subjects: H Social Sciences > HC Economic History and Conditions
Schools: Huddersfield Business School
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Depositing User: Jonathan Cook
Date Deposited: 15 Nov 2017 09:51
Last Modified: 15 Nov 2017 09:51
URI: http://eprints.hud.ac.uk/id/eprint/33903

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