Co-exploitation (or co-exploration) vs go it alone? The role of alliance learning capability on firm performance

Purpose: This study aims to analyze the moderating role of a firm’s alliance learning capability. The aim is to investigate the comparative performance of developing exploitation (or exploration) activities in collaboration with others vs adopting a go-it-alone posture. Design/methodology/approach: The authors compare high levels of co-exploitation (or co-exploration) that represent the collaboration stance vs low levels of co-exploitation (or co-exploration) that characterize the go-it-alone posture. Data were collected using a sample of 262 manufacturing firms that developed exploitation-based innovations and 239 exploration-based innovations. Regression models were used to test the hypotheses. Findings: Empirical results suggest that the best performance is reached by firms that exploit or explore collaborating with others at high levels of alliance learning capability. In contrast, firms perform better by going alone in exploitation activities at low levels of alliance learning capability. Practical implications: Firms may complement internal efforts of exploitation or exploration by co-developing knowledge with other organizations for higher performance. However, collaborating with others is not free of drawbacks, and, under certain circumstances, the go-it-alone strategy is more convenient. Originality/value: This paper provides evidence of the role of a firm’s alliance learning capability in determining the differential performance of carrying on exploitation or exploration activities in collaboration with others vs adopting a go-it-alone stance. Thus, it offers an alternative perspective in the literature on organizational learning and innovation management, in contrast with the exploitation and exploration balanced perspective of ambidexterity, by explaining how alliance learning capability fosters firm performance combining exploitation or exploration at organizational and inter-organizational levels.