The Bright and Dark Sides of Domestic and International Collaborations: The Effects of Exploitation-Focused and Exploration-Focused Innovations on Export Performance

Abstract

This study questioned whether exploitation and exploration were both “panaceas” for export performance by developing an integrated theoretical model that drew on explanations from innovation ambidexterity and the internationalization process literature. It was assumed that exploitation- and exploration-focused innovation follow two distinctive paths: efficiency-enhancing versus demand-expansion, which help explain their export performance heterogeneities. The study further investigated the implications of the geographical (i.e. domestic vs. international) proximity of knowledge-sourcing strategies in influencing the effects of exploitation- and exploration-focused innovations on export performance. Based on 852 exporting firms from the UK Community Innovation Survey (CIS) between 2010 and 2014, the investigation found opposing relationships with regards to the impact of exploitation-versus exploration-focused innovations on export performance and significant interactions in terms of the breadth of domestic and international collaborations.