Textual Analysis

A project by IMD's Center for Future Readiness
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Fact Sheet

How do companies explore?
 

Companies which are focused on exploring “identify new opportunities” and follow “processes of concerted variation, planned experimentation, and play”. These companies focus their innovation activities on “technological innovation aimed at entering new product-market domains” (Uotila et al., 2009; Allison, McKenny, & Short, 2014; March, 1991; Raisch & Birkinshaw, 2008; Baum, Li, and Usher, 2000; Gupta, Smith, and Shalley, 2006). Exploring is the opposing construct to exploiting.

Which type of language is associated with exploring?
 

Companies high in exploration are often mentioned in connection with words like searching, variation, exploration, risk-seeking, experimentation, playing, flexibility, discover, etc. This also includes variations of the words, like the corresponding nouns.

How are other constructs related to exploration?
 

Some management scholars have investigated how exploration relates to other of our constructs in textual analysis. For instance, Kammerlander et al. (2014) suggests positive correlation between exploration & promotion. Similarly, Tuncdogan, Van den Bosch, and Volberda (2015) explain that exploration is more correlated with promotion than exploration is with prevention.

How do companies exploit?


Companies which focus on exploiting “seize existing opportunities”, and focus on processes of “local search, experiential refinement, and selection and reuse of existing routines”. These companies’ activity focuses on “improving existing product-market domains” (Uotila et al., 2009; Allison, McKenny, & Short, 2014; March, 1991; Raisch & Birkinshaw, 2008; Baum, Li, and Usher, 2000; Gupta, Smith, and Shalley, 2006). Exploiting is the opposing construct to exploring.

Which type of language is associated with exploiting?


Companies high in exploitation are often mentioned in connection with words like refining, choosing, exploiting, production, efficiency, selection, implementation, execution, etc. This also includes variations of the words, like the corresponding nouns.


Which type of scholarly literature investigates exploitation?


The most prominent literature that focuses on exploitation discusses the so-called exploration-exploitation dilemma, which states that companies struggle to face an inherent trade-off of exploitation and exploration. As such, only “ambidextrous” organizations, which are rare, manage to overcome that hurdle (O’Reilly & Tushman: The ambidextrous organization, 2004; O’Reilly & Tushman: Ambidexterity as a dynamic capability, 2008)

What is learning orientation?


Learning orientation is a behavior derived from the literature on organizational learning and describes the motivation, ability, and executional quality of learning in an organization. Learning orientation concerns the whole organization and not only individuals. It also measures the dissemination of the relevant organizational knowledge throughout the organization.

Which type of language is associated with learning orientation?


Companies high in learning orientation are often mentioned in connection with words like analyse, evaluate, discuss, exchange, fail, identify, interpret, induce, infer, learn. This also includes variations of the words, like the corresponding nouns.

Which type of scholarly literature investigates learning orientation?


Many management scholars have researched organizational learning orientation. For example, Calantone, Cavusgil, and Zhao (2002) investigated the link between learning orientation, firm innovation capability, and firm performance. They find that learning orientation is a key factor to organizational competitive advantage. Further, Sujan, Harish, Weitz, and Kumar (1994) find that learning orientation is important for effective marketing and sales staff. Finally, Baker and Sinkula (1999) suggest that learning orientation and market orientation contribute to good organizational performance.

What is digital orientation?


Digital orientation is an organization’s guiding principle to pursue digital technology-enabled opportunities to achieve competitive advantage. It encompasses the dimensions of digital technology scope, digital capabilities, digital ecosystem coordination, and digital architecture configuration.

Which type of language is associated with digital orientation?


Companies high in digital orientation are often mentioned in connection with words from the four dimensions mentioned above. These include algorithm, compute, API, developer, digital, functionality, IoT, open source, virtual, etc. This also includes variations of the words, like the corresponding nouns.

Which literature discusses the construct?


Our conceptualization and use of digital orientation stems from Kindermann et al. (2020), who are the first scholars to propose a digital dictionary for automated textual analysis. These scholars conceptualize digital orientation as a distinct type of strategic orientation, i.e., an orientation which “reflects the firm’s philosophy of how to conduct business through a deeply rooted set of values and beliefs that guides the firm’s attempt to achieve superior performance (Gatignon & Xuereb, 1997)”.

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