Abstract: While firms need to explore and exploit, literature is divided on whether the direct relationship between the two notions is a positive or a negative one. Top Management Teams play an important role here as they allocate resources. We study the role of family managers. Using longitudinal data from German firms we show that family managers foster the positive impact exploration has on exploitation and diminish the effects of exploitation on exploration. This is due to the family managers aversion to risk associated with exploration which might reduce future family influence.

Abstract: In this paper, I examine how heterogeneity in individual- and team-level tenure experience impacts the rate of learning-by-doing in a new practice implementation. I use data from a large retail chain which implemented a new restocking process in its stores to understand the extent to which differences in prior experiences of employees impact the ability to learn to execute the new process. Initial findings show that stores dramatically improve over time. However, there is large heterogeneity in performance across stores. Employee tenure and tenure diversity are both sources of improved performance as is supervisor experience. However, tenure and tenure diversity are not equally impactful across implementation weeks. Taken together, these findings suggest that basic variations in human capital impact firm learning and capability development.

Abstract: We investigate how boards of directors initiate and influence organizational shifts from exploitation to exploration. Based on a comparative case study of nine Swiss electric utility companies, we find that depending on whether a shift toward exploration is initiated by the management or the board, the board draws on different instruments which can be subsumed under either selection or variety creation. Furthermore, as soon as managerial exploration rises, the board is confronted with issues beyond its existing capabilities and needs to engage in learning. Given the lack of a hierarchically superior governance body within the firm, board learning is strongly dependent on the presence of board-internal higher-order learning capabilities. We discuss the implications of these findings for the literature on organizational learning and governance.

Abstract: Although a substantial body of research has emphasized the key role of strategic leadership for innovation, empirical studies have generated inconclusive results and the precise mechanisms through which strategic leadership influences innovation remain unclear. Drawing on upper echelon theory, this study examines the mediating role of organizational learning on the relationship between strategic leadership and innovation. Using meta-analytic techniques combined with structural equation modeling, this synthesis integrates results from 107 studies, covering over 15 years of research. The results from the partial mediation model confirm that strategic leadership fosters organizational learning which, in turn, promotes innovation. The findings further reveal that national culture significantly moderates the relationship between strategic leadership and innovation. These results provide important insights for the management of innovation in different cultures.