The role of competitive strategy in the performance impact of exploitation and exploration quality management practices

Castillo Apraiz, Julen, Richter, Nicole Franziska, Matey de Antonio, Jesus, and Gudergan, Siegfried (2021) The role of competitive strategy in the performance impact of exploitation and exploration quality management practices. European Business Review, 33 (1). pp. 127-153.

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Abstract

Purpose: This study aims to advance understanding about quality management (QM) practices by clarifying how competitive strategy conditions the impacts of exploitative and explorative QM practices on performance.

Design/methodology/approach: The authors apply partial least squares structural equation modeling to data from a sample of German pharmaceutical firms.

Findings: The results show that the impact of exploitative and explorative QM practices on firm performance is contingent on the competitive strategy pursued. Explorative QM practices are significantly more relevant for firms following a differentiation strategy, whereas exploitative QM practices are significantly more relevant for cost leaders. Furthermore, for strategically ambidextrous firms that follow simultaneously a cost and a differentiation focus, the interplay of the two QM practices matters.

Originality/value: This paper contributes to understanding which kind of management practices, exploitative and/or explorative, have greater performance impacts under certain competitive strategy conditions.

Item ID: 70772
Item Type: Article (Research - C1)
ISSN: 1758-7107
Keywords: Competitive strategy, Contingency, Exploitative, Explorative, Pharmaceutical industry, Quality management
Copyright Information: © Emerald Publishing Limited
Date Deposited: 19 Jan 2022 03:20
FoR Codes: 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3507 Strategy, management and organisational behaviour > 350718 Strategy @ 100%
SEO Codes: 24 MANUFACTURING > 2408 Human pharmaceutical products > 240803 Human pharmaceutical treatments @ 100%
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