Performance Effects of Exploratory and Exploitative Innovation Strategies and the Moderating Role of External Innovation Partners

Abstract

In today's dynamic environment, the involvement of external partners in the innovation process is frequently assumed to be a panacea to cut costs while improving outcomes. In this study, we scrutinize how different collaboration types influence the effects of exploitative and exploratory innovation strategies on new product development (NPD) performance. For our analyses, we draw on a survey comprising a sample of 254 technology-based German firms. Our findings indicate that exploitative strategies are best pursued without comprehensive external collaborations, while the involvement of several partners in a balanced approach is most promising for exploratory strategies. Joint exploration with competitors, in particular, shows the highest effects on NPD performance. The paper discusses the findings and provides several implications for future research.