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Exploration and exploitation in crisis environment: Implications for level and variability of firm performance
Exploration and exploitation are two generic strategies of firms' adaptation to their environments. However, the effectiveness and reliability of these approaches are not fully understood when the business environment is undergoing a major crisis. Building on organizational adaptation, strategi...
Autores principales: | , , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Elsevier Inc.
2020
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7180043/ https://www.ncbi.nlm.nih.gov/pubmed/32341610 http://dx.doi.org/10.1016/j.jbusres.2020.04.015 |
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author | Osiyevskyy, Oleksiy Shirokova, Galina Ritala, Paavo |
author_facet | Osiyevskyy, Oleksiy Shirokova, Galina Ritala, Paavo |
author_sort | Osiyevskyy, Oleksiy |
collection | PubMed |
description | Exploration and exploitation are two generic strategies of firms' adaptation to their environments. However, the effectiveness and reliability of these approaches are not fully understood when the business environment is undergoing a major crisis. Building on organizational adaptation, strategic fit, and organizational decline streams of literature, we develop a framework that examines exploration and exploitation in crisis contexts. We argue that the severity of crisis a firm is exposed to acts as a positive contingency for the impact of exploration on firm performance level and variability, and as a negative contingency for exploitation’s level and variability effects. Employing the multiplicative heteroscedasticity regression model on the data from 500 Russian SMEs, we test the proposed theoretical framework linking exploration and exploitation activities to the distribution of firm performance under different conditions of the firm-specific crisis severity. The results provide an improved understanding of strategic management approaches under economic crises and related turbulence. |
format | Online Article Text |
id | pubmed-7180043 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2020 |
publisher | Elsevier Inc. |
record_format | MEDLINE/PubMed |
spelling | pubmed-71800432020-04-24 Exploration and exploitation in crisis environment: Implications for level and variability of firm performance Osiyevskyy, Oleksiy Shirokova, Galina Ritala, Paavo J Bus Res Article Exploration and exploitation are two generic strategies of firms' adaptation to their environments. However, the effectiveness and reliability of these approaches are not fully understood when the business environment is undergoing a major crisis. Building on organizational adaptation, strategic fit, and organizational decline streams of literature, we develop a framework that examines exploration and exploitation in crisis contexts. We argue that the severity of crisis a firm is exposed to acts as a positive contingency for the impact of exploration on firm performance level and variability, and as a negative contingency for exploitation’s level and variability effects. Employing the multiplicative heteroscedasticity regression model on the data from 500 Russian SMEs, we test the proposed theoretical framework linking exploration and exploitation activities to the distribution of firm performance under different conditions of the firm-specific crisis severity. The results provide an improved understanding of strategic management approaches under economic crises and related turbulence. Elsevier Inc. 2020-06 2020-04-23 /pmc/articles/PMC7180043/ /pubmed/32341610 http://dx.doi.org/10.1016/j.jbusres.2020.04.015 Text en © 2020 Elsevier Inc. All rights reserved. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active. |
spellingShingle | Article Osiyevskyy, Oleksiy Shirokova, Galina Ritala, Paavo Exploration and exploitation in crisis environment: Implications for level and variability of firm performance |
title | Exploration and exploitation in crisis environment: Implications for level and variability of firm performance |
title_full | Exploration and exploitation in crisis environment: Implications for level and variability of firm performance |
title_fullStr | Exploration and exploitation in crisis environment: Implications for level and variability of firm performance |
title_full_unstemmed | Exploration and exploitation in crisis environment: Implications for level and variability of firm performance |
title_short | Exploration and exploitation in crisis environment: Implications for level and variability of firm performance |
title_sort | exploration and exploitation in crisis environment: implications for level and variability of firm performance |
topic | Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7180043/ https://www.ncbi.nlm.nih.gov/pubmed/32341610 http://dx.doi.org/10.1016/j.jbusres.2020.04.015 |
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