slack resources + envr threat --> exploration and exploitation --> voss, 2008

Question 1

product exploration

Answer 1

introducing radical innovations extending product competencies

search, variations, risk taking

Question 2

product exploitation

Answer 2

marketing existing or incrementally modified products capitalising on existing product competencies

refinement, choice, production, efficiency

Question 3

exploitation vs exploration characteristics

Answer 3

refinement, choice, production, efficiency
vs
search, variations, risk taking

Question 4

slack resources

Answer 4

stock of excess resources available during a given planning cycle

Question 5

slack characteristics

Answer 5

resource rarity

resource absorption

Question 6

resource rarity

Answer 6

not rare = generic

rare = time-consuming, effortful, complex process
low motivation to deploy

central to creating and sustaining competitive position

Question 7

resource absorption

Answer 7

unabsorbed
uncommitted and deployed
e.g. cash

absorbed
tied to current operations
e.g. stoccks from skilled labour

Question 8

high slack higher exploration view?

Answer 8

more innovation or risk taking
protected if product fails

Question 9

high slack low exploration view?

Answer 9

risk aversion
more exploitation motivation

suggests low resources - more exploring
especially in competitive environments

Question 10

types of slack

Answer 10

financial
customer relational
operational
human resource

Question 11

financial slack

Answer 11

liquid assets –> cash on hand
unabsorbed, less rare
easy to redeploy
lack of structural constraints

e.g. theaters cash reserve at end of year

Question 12

low resource rarity + low absorption = ?

Answer 12

financial slack

Question 13

low resource rarity + high resource absorption = ?

Answer 13

operational slack

Question 14

high resource rarity + low resource absorption = ?

Answer 14

customer relational slack

Question 15

high resource rarity + high resource absorption = ?

Answer 15

human resource slack

Question 16

main effect of customer relations slack on exploration

Answer 16

less

Question 17

main effect of operational slack on exploration

Answer 17

less

Question 18

high envr threat interaction with unabsorbed resources generic and rare = ?

Answer 18

financial + customer relational slack

higher exploration
lower exploitation

Question 19

envr threat + absorbed resources = ?

Answer 19

operational + human resource slack

insignificant

Question 20

human resource slack

Answer 20

rare + absorbed
specialised and skilled human resources

rare –> competitive market want to retain people
absorbed –> tied up in current operations

Question 21

operational slack

Answer 21

generic + absorbed

May be tied to other resources → structurally constrained → less readily deployed

Question 22

customer relational slack

Answer 22

rare + unabsorbed

social capital → by specific relational stakeholder, suppliers, donors, board members

predictable stream of revenues, through reputation + trust