Explorative and exploitative learning strategies in technology-based alliance networks

Abstract

This paper aims to improve our understanding of how exploitative and explorative learning of firms is enhanced through their social capital. Both types of learning differ coniderably from each other and we argue that the distinction between them may be an important contingency factor in explaining the value of direct, indirect and (non-)redundant technology-based alliances. In particular we argue that, since companies have to find a balance between explorative and exploitative learning (March, 1991), redundant and non-redundant links play a complementary role in inter-organizational learning processes : redundant information improves exploitative learning, non-redundant information enhances a firm's explorative learning. The empirical results support the predictions about the contingency of the value of redundant information for both types of learning. Direct and indirect ties improve both types of learning but the impact on explorative learning is much larger. We find that direct ties have a moderating effect on indirect ties only in the case of exploitative learning. Firm size and technological distance between a firm's partners also have a differential effect on explorative and exploitative learning.