The relationship between internal and external exploration orientation: the moderating role of the vertical scope of a firm

Werner H. Hoffmann, Roman Wörner

Publication: Working/Discussion PaperWU Working Paper

Abstract

Using data from the biopharmaceutical industry, this study analyzes the relationship between internal and external exploration (exploitation) and the moderating role of firm characteristics. We argue that the characteristics of a firm - in particular a firm's vertical scope - are an important but so far overlooked contingency factor determining the relationship between internal and external exploration (exploitation). Our findings indicate that differences in vertical scope result in alternative combinations of internal and external exploration. While specialized firms tend to focus either on exploration or exploitation both within the firm as well as with their alliance portfolio, vertically integrated firms prefer to balance exploration and exploitation across firm boundaries. (authors' abstract)
Original languageEnglish
Place of PublicationVienna
PublisherWU Vienna University of Economics and Business
Publication statusPublished - 3 Jul 2013

Publication series

NameWorking Papers / Institute for Strategic Management
No.02/2013

WU Working Paper Series

  • Working Papers / Institute for Strategic Management

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