Customizing exploitation and exploration quality management practices to strategy

Implications for firm performance

Julen Castillo-Apraiz, Nicole Franziska Richter, Jesus Matey de Antonio, Christian M. Ringle, Siegfried P. Gudergan

Research output: Contribution to conference without publisher/journalPaperResearchpeer-review

Abstract

We aim to advance understanding about quality management (QM) practices by clarifying how business level strategy conditions the impacts of exploitative and explorative QM practices on performance. We apply partial least squares structural equation modeling (PLS-SEM) to primary and secondary data from a sample of German pharmaceutical firms using SmartPLS 3. When fostering different QM practices, the findings support the need for pharmaceutical firms’ managers to select the right mix of exploitative or explorative QM practices in consideration of their strategic focus. 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.
Original languageEnglish
Publication date2019
Number of pages44
Publication statusPublished - 2019
EventInnovation, Entrepreneurship and Knowledge Academy INEKA (formerly GIKA), 2019 - University of Verona, Verona, Italy, Verona, Italy
Duration: 11. Jun 201913. Jun 2019
http://www.ineka-academy.com/ineka-2019-verona-venue/

Conference

ConferenceInnovation, Entrepreneurship and Knowledge Academy INEKA (formerly GIKA), 2019
LocationUniversity of Verona, Verona, Italy
CountryItaly
CityVerona
Period11/06/201913/06/2019
Internet address

Fingerprint

Firm performance
Quality management practices
Exploration and exploitation
Pharmaceuticals
Costs
Partial least squares
Structural equation modeling
Differentiation strategy
Managers
Secondary data

Keywords

  • quality management
  • exploitative
  • explorative
  • competitive strategy
  • pharmaceutical industry
  • contingency

Cite this

Castillo-Apraiz, J., Richter, N. F., Matey de Antonio, J., Ringle, C. M., & Gudergan, S. P. (2019). Customizing exploitation and exploration quality management practices to strategy: Implications for firm performance. Paper presented at Innovation, Entrepreneurship and Knowledge Academy INEKA (formerly GIKA), 2019, Verona, Italy.
Castillo-Apraiz, Julen ; Richter, Nicole Franziska ; Matey de Antonio, Jesus ; Ringle, Christian M. ; Gudergan, Siegfried P. / Customizing exploitation and exploration quality management practices to strategy : Implications for firm performance. Paper presented at Innovation, Entrepreneurship and Knowledge Academy INEKA (formerly GIKA), 2019, Verona, Italy.44 p.
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Castillo-Apraiz, J, Richter, NF, Matey de Antonio, J, Ringle, CM & Gudergan, SP 2019, 'Customizing exploitation and exploration quality management practices to strategy: Implications for firm performance' Paper presented at Innovation, Entrepreneurship and Knowledge Academy INEKA (formerly GIKA), 2019, Verona, Italy, 11/06/2019 - 13/06/2019, .

Customizing exploitation and exploration quality management practices to strategy : Implications for firm performance. / Castillo-Apraiz, Julen; Richter, Nicole Franziska; Matey de Antonio, Jesus; Ringle, Christian M.; Gudergan, Siegfried P.

2019. Paper presented at Innovation, Entrepreneurship and Knowledge Academy INEKA (formerly GIKA), 2019, Verona, Italy.

Research output: Contribution to conference without publisher/journalPaperResearchpeer-review

TY - CONF

T1 - Customizing exploitation and exploration quality management practices to strategy

T2 - Implications for firm performance

AU - Castillo-Apraiz, Julen

AU - Richter, Nicole Franziska

AU - Matey de Antonio, Jesus

AU - Ringle, Christian M.

AU - Gudergan, Siegfried P.

PY - 2019

Y1 - 2019

N2 - We aim to advance understanding about quality management (QM) practices by clarifying how business level strategy conditions the impacts of exploitative and explorative QM practices on performance. We apply partial least squares structural equation modeling (PLS-SEM) to primary and secondary data from a sample of German pharmaceutical firms using SmartPLS 3. When fostering different QM practices, the findings support the need for pharmaceutical firms’ managers to select the right mix of exploitative or explorative QM practices in consideration of their strategic focus. 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.

AB - We aim to advance understanding about quality management (QM) practices by clarifying how business level strategy conditions the impacts of exploitative and explorative QM practices on performance. We apply partial least squares structural equation modeling (PLS-SEM) to primary and secondary data from a sample of German pharmaceutical firms using SmartPLS 3. When fostering different QM practices, the findings support the need for pharmaceutical firms’ managers to select the right mix of exploitative or explorative QM practices in consideration of their strategic focus. 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.

KW - quality management

KW - exploitative

KW - explorative

KW - competitive strategy

KW - pharmaceutical industry

KW - contingency

M3 - Paper

ER -

Castillo-Apraiz J, Richter NF, Matey de Antonio J, Ringle CM, Gudergan SP. Customizing exploitation and exploration quality management practices to strategy: Implications for firm performance. 2019. Paper presented at Innovation, Entrepreneurship and Knowledge Academy INEKA (formerly GIKA), 2019, Verona, Italy.