Effects of ambidextrous and specialized R&D strategies on firm performance: The contingent role of industry orientation

Eva Mavroudi, Effie Kesidou and Krsto Pandza

Journal of Business Research, 2023, vol. 154, issue C

Abstract: Innovative firms must decide whether they should specialize in either exploratory or exploitative R&D or adopt an ambidextrous R&D-strategy (pursue both). This study extends research on exploration/exploitation by explaining how the effects of ambidextrous and specialized R&D-strategies on a focal firm’s performance are influenced by the R&D-strategies adopted by other firms in its industry. Comparing a firm’s R&D-strategy with those of its intra-industry peers enables us to identify how the performance-enhancing advantages of ambidextrous and specialized R&D-strategies change across industries and which R&D-strategy is optimal for the firm. Our framework and longitudinal analysis of 32,526 observations indicate that an R&D-strategy that is similar to that of the rest of the industry decreases firm performance, whereas an R&D-strategy that differs from the industry’s dominant R&D-strategy enhances performance. The study also explains the mechanisms through which certain industry environments reduce the need to be ambidextrous and help specialized firms enhance their performance.

Keywords: Exploration; Exploitation; R&D; Ambidexterity; Specialization; Industry orientation (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:154:y:2023:i:c:s0148296322008189

DOI: 10.1016/j.jbusres.2022.113353

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