New article on Regulatory Focus and Exploration & Exploitation

How does CEO personality affect the respective firm’s organizational ambidexterity, i.e. its engagement in exploration and exploitation? This question is addressed in a study by myself, Dominik Burger, Alexander Fust, and Urs Füglistaller, which was recently accepted for publication in Journal of Business Venturing.

Building on regulatory focus theory, we theorize how promotion and prevention focus affect the firm’s level of  exploration and exploitation. We further study how those relationships change when competitive intensity is high. We test our hypotheses based on survey responses of 155 CEOs of Swiss SMEs. In addition, we conduct several tests to study the exploration/exploitation of firms that are lead by a CEO with different combinations of high/low promotion and prevention focus. The paper aims to contribute to research on entrepreneurship, ambidexterity, and regulatory focus.

 

Link to full text: here (then click on pdf)

10-min explanation of the paper.

 

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