Title: Coping with uncertainty - exploration, exploitation, and collaboration in R&D

Authors: Hanna Kuittinen; Kaisu Puumalainen; Ari Jantunen; Kalevi Kyläheiko; Satu Pätäri

Addresses: Tecnalia, Strategy and Innovation Unit, Parque Tecnológico de Bizkaia, Edificio 204, E-48170 Zamudio, Spain ' School of Business, Lappeenranta University of Technology, P.O. Box 20, FI-53851 Lappeenranta, Finland ' School of Business, Lappeenranta University of Technology, P.O. Box 20, FI-53851 Lappeenranta, Finland ' School of Business, Lappeenranta University of Technology, P.O. Box 20, FI-53851 Lappeenranta, Finland ' School of Business, Lappeenranta University of Technology, P.O. Box 20, FI-53851 Lappeenranta, Finland

Abstract: This paper studies the formation of and the motives for research and development (R&D) activities. In it, we explore the linkages between explorative and exploitative R&D activities and the different types of governance structures firms use when organising R&D. Additionally, we analyse the relationship between different kinds of firm-external uncertainties arising from the operating environments and the organisation of R&D activities. Finally, we scrutinise the impact of the collaboration mode on a firm's innovative performance, and stress the important role of knowledge sharing as a generator of success in innovative performance. We employ survey data from our sample of 299 Finnish companies. The findings indicate that a firm's choice of R&D governance structure is partly affected by the selection of an explorative or exploitative strategy, which in turn depends on the degree of firm-internal uncertainty. External dynamism is an additional factor affecting the choice of the preferred governance structure.

Keywords: research and development; R&D; survey; research exploration; research exploitation; environmental dynamism; research cooperation; innovation performance; knowledge sharing; governance structures; collaboration; Finland; uncertainty; organisational structure.

DOI: 10.1504/IJBIR.2013.053635

International Journal of Business Innovation and Research, 2013 Vol.7 No.3, pp.340 - 361

Published online: 27 Dec 2013 *

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