Session 223

Exploration and Novelty

Track I

Date: Monday, October 12, 2009


Time: 15:45 – 17:00


Room: Meeting Room 12

Session Chair:
Thomas Durand, National Conservatory of Arts and Crafts

Title: Embedded Exploration: An Empirical Study of Firm Selectors For Problemistic Search


  • Rafael Corredoira, Ohio State University

Abstract: This paper advances and tests a model supporting the thesis of increased search efficiency when the exploration is embedded on social ties and conducted among the alternatives already known by others. Larger benefits are derived from searching in areas where the firm has better access to knowledge. The phenomenon is explained by increased alternative assessment accuracy. A study of exploration citations (those patents cited for the first time) on the semiconductor industry provides empirical evidence that firms focus their exploration efforts on the knowledge of those they have better understanding of. In this case, market competitors, firms connected through alliances and mobility, and geographically proximate firms have significant impact, even when controlling for a host of alternative explanations.

Title: Knowledge Acquisition Modes in New Ventures


  • Thomas Paris, HEC Paris
  • Sylvain Bureau, ESCP-EAP
  • Sihem Ben Mahmoud-Jouini, HEC-Paris

Abstract: The process of knowledge development is an important issue of strategic management, specifically as far as innovation is concerned. But the specific issue of how knowledge acquisition is achieved in new ventures needs further investigation and can help to understand how knowledge creation is managed. Our paper addresses the following question: how do ventures acquire knowledge during the entrepreneurial process, and specifically in the phase of the opportunity construction? Through a longitudinal, case study methodology, focused on two innovative new ventures, we could identify three distinct modes of knowledge acquisition that we describe as open capture, focused creation, and active generation.

Title: Reasoning About Novelty in Markets: A Model of Coherence


  • Timo Ehrig, Max Planck Institute for Mathematics in the Sciences
  • Louis Kauffman, University of Illinois-Chicago

Abstract: Our proposed paper presents a model to conceptualize reasoning in novel markets, in particular the valuation of novel types of companies. Narratives are a key element in the knowledge generation between entrepreneurs, investors, analysts and customers. Our proposed paper presents a novel methodological approach to code the knowledge generation mediated by texts, and a model to conceptualize the reasoning process of an idealized investor who makes sense of a novel situation after reading through texts. The proposed model conceptualizes how investors form optimally consistent beliefs on novel phenomena. The model conceptualizes how beliefs on theories that are articulated in the verbal domain (like “Google is a media company.”) organize the evaluation of factual knowledge that is available at present (like Google’s current earnings per share.).

Title: Repeated Innovations in the Long Run: How Some Organizations Maintain Intrapreneurial and Innovative Capabilities


  • Sébastien Ronteau, ESSCA Graduate School of Management
  • Thomas Durand, National Conservatory of Arts and Crafts

Abstract: This paper aims at better understanding how some firms have built and maintained capabilities to innovate repeatedly in the long run. We deal with large organizations that delivered successful innovations again and again over decades. We aim at identifying the underlying strategic and organizational dynamics that made it possible to maintain this ability over time. We first review the literature on innovation and intrapreneurship. We then present the results of four case studies of companies known for their long and solid track record regarding innovation. From this, we infer a theoretical comprehensive framework designed to capture how innovating repeatedly within existing organizations can be institutionalized via a set of sub-processes. We finally present a simplified version of the model stressing the role of managerial leaders.

All Sessions in Track I...

Sun: 10:00 – 11:30
Session 264: Strategy in an Uncertain World: “Black Swan” Implications for K&I Scholars
Sun: 13:00 – 14:30
Session 265: The Changing Governance Landscape: Implications for Knowledge and Innovation Scholars
Sun: 15:00 – 16:30
Session 266: Integrating Theories of Problem Formation
Sun: 16:30 – 17:30
Session 313: Knowledge & Innovation, IG Meeting
Mon: 12:45 – 14:00
Session 201: 50th Anniversary of Penrose's (1959) The Theory of the Growth of the Firm
Session 212: Technological Innovation
Mon: 15:45 – 17:00
Session 218: Let the Knowledge Flow...
Session 223: Exploration and Novelty
Mon: 17:15 – 18:30
Session 209: Learning and Collaboration
Session 221: Innovation and Management Practice
Tue: 10:00 – 11:15
Session 202: Microfoundations of Knowledge and Learning
Session 235: Regulating the Market for Ideas: The Role of Communities, Norms, and Networks
Tue: 11:30 – 12:45
Session 203: Dynamic Capabilities
Session 224: Governing Knowledge
Tue: 14:30 – 15:45
Session 207: How Do Capabilities Develop?
Session 210: The Complex Roles of Experience
Wed: 10:00 – 11:15
Session 211: Knowledge Transfer
Session 215: Knowledge-Based Strategic Interaction
Wed: 11:30 – 12:45
Session 213: The Human Factor in Knowledge and Innovation
Session 219: Ambidexterity

Strategic Management Society

Washington DC