2022 Fiscal Year Annual Research Report
Exploration versus Exploitation? A Boundedly Rational Decision on Alliance Portfolio Configurations
Project/Area Number |
22K01687
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Research Institution | Waseda University |
Principal Investigator |
楊 筱恬 早稲田大学, 商学学術院, 助教 (30843940)
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Project Period (FY) |
2022-04-01 – 2023-03-31
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Keywords | bounded rationality / alliance portfolio / performance feedback / behavioral theory / CEO overconfidence / exploration / exploitation |
Outline of Annual Research Achievements |
This study investigates how firms make boundedly rational decisions in response to above-aspiration performance when configuring exploration and exploitation in an alliance portfolio. We employ behavioral heuristics to explore the role of above-aspiration performance and the influence of a CEO’s overconfidence. We also argue that the role of overconfidence is influenced by environmental factors. Three hypotheses are tested using a sample of U.S. high technology firms during 1992-2015. Results establish that above-aspiration performance motivates firms to engage in exploration rather than exploitation alliances, and a CEO’s overconfidence strengthens this relationship. The moderating effect of overconfidence decreases with environmental munificence and dynamism.
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Research Products
(2 results)