Strategic Consistency of Exploration and Exploitation in Family Businesses

Todd W. Moss, G. Tyge Payne, Curt B. Moore

Research output: Contribution to journalArticle

56 Scopus citations

Abstract

This study advances family business research by examining how the strategic consistency with which family businesses pursue exploration and exploitation initiatives affects performance. Using panel data of 94 family businesses operating in four high-tech industries over 12 years, we find that higher strategic consistency-continuity with past exploration and exploitation strategies stemming from managerial intentionality-yields higher levels of performance. This relationship is also moderated by environmental dynamism, munificence, and organizational size, which demonstrates the contingent and complex nature of the main relationship. Furthermore, in contrast to 113 nonfamily businesses, we find that the main relationship is stronger for family businesses.

Original languageEnglish
Pages (from-to)51-71
Number of pages21
JournalFamily Business Review
Volume27
Issue number1
DOIs
StatePublished - Mar 2014

Keywords

  • exploration and exploitation
  • performance
  • strategic consistency

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