Engaging in exploration and exploitation is essential to business survival and performance. While firms manage exploration and exploitation alliances for the long-term, how prepared are they for sudden shocks in the short-term? We address this question in the context of a unique and opportune natural experiment associated with the 2008 financial crisis. Our analysis of 155 new biopharmaceutical ventures over a seven-year period suggests that exploration alliances – with a long-term orientation – make a firm more vulnerable to external shocks. In contrast, exploitation alliances as well as a balance between exploration and exploitation alliances – which underlie short-term performance – enable the firm to sustain external shocks.
ASJC Scopus subject areas
- Business, Management and Accounting(all)
- Strategy and Management
- Management of Technology and Innovation
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- Management - Professor
- Institute for Policy Research (IPR)
- Strategy & Organisation
- Centre for Business, Organisations and Society (CBOS)
- Centre for Research in Entrepreneurship and Innovation at Bath
- EPSRC Centre for Doctoral Training in Cyber Security
- EPSRC Centre for Doctoral Training in Advanced Automotive Propulsion Systems (AAPS CDT)
- Institute for Advanced Automotive Propulsion Systems (IAAPS)
Person: Research & Teaching, Affiliate staff