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The Effect of Firm-specific Factors on Firms' Decisions to Invest in Exploration and Exploitation

Ke, Yi (2017) The Effect of Firm-specific Factors on Firms' Decisions to Invest in Exploration and Exploitation. PhD thesis, University of Leeds.

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Abstract

Prior theoretical and empirical research emphasizes the importance of allocating investment between exploratory and exploitative R&D (March, 1991; Mudambi & Swift, 2014). However, the firm-specific factors that determine exploratory and exploitative R&D investment have remained largely unexplored. We attempt to address this research gap by examining the effects of inter-organizational relationships (innovation collaboration and external information sourcing), R&D personnel educational level and internationalization statuses (exporting and geographic scope) on firm investment in exploratory and exploitative R&D. Building on the organizational learning theory, we argue that different firm-specific factors generate different effects on firm investment in exploratory and exploitative R&D because they stimulate different learning mechanisms. We empirically test the model by using panel data on more than 4000 firms from Technological Innovation Panel, which is a Community Innovation Survey-based data, for the period 2006-2011. Our findings show that the influence of a determinant on exploratory R&D investment may be different from its influence on exploitative R&D investment, and the determinants of exploratory R&D investment may differ from the determinants of exploitative R&D investment. These findings stress on the need for future research to be careful in extrapolating conclusions from analysis that studies a specific type of R&D investment into studies that analyze on another type of R&D investment or into studies that analyze on the overall R&D investment. The study contributes to organizational learning theory by identifying direct factors and moderators that facilitate firm investment in activities of organizational learning.

Item Type: Thesis (PhD)
Keywords: Firm-specific Factors, Exploration, Exploitation, R&D Investment, Organizational Learning,
Academic Units: The University of Leeds > Leeds University Business School > Centre for International Business University of Leeds (CIBUL)
Identification Number/EthosID: uk.bl.ethos.736499
Depositing User: Miss Y. KE
Date Deposited: 20 Mar 2018 17:09
Last Modified: 11 Apr 2020 09:53
URI: http://etheses.whiterose.ac.uk/id/eprint/19619

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