The Effect Of The Coupling Of Exploration And Exploitation On Firm Performance

The advantages of demographic dividend and land resources,which made a great contribution to the development of manufacturing business in the past of decades of years,are fading away gradually.Facing the fact of the rising labor cost and the pressure of high end strategy of re-industrialization implemented by developed countries as well as mid low end strategy carried out by emerging economies like southeast Asia,the manufacturing business is confronted with big challenges in China.In recent years,with the adjustment and implementation of national macro policy,such as “Made in China 2025” plan and structural reform of the supply front,the ideas like innovation-driven development,balanced allocation of factors and upgrading of the manufacturing sector offer the direction of manufacturing business in the transformation and upgrading.The stability and changes,efficiency and flexibility have been the important parts of the business management under the circumstance of rapidly alternating environment and intense of competition.The proposal of exploration and exploitation finds the way of breaking through the dual dilemma.Exploration shows the conception of innovation,changes and radicalness,but exploitation represents enforcement,stability and increment.What's more,the nature of the exploration is discovering uncertainty,however,exploitation is refining and selecting available capacity.The complementation of exploration and exploitation helps the company to obtain short-term operational efficiency to make profits and achieve long-term sustainable development in the future.This thesis tries to discuss the effect of the coupling of exploration and exploitation on long-term and short-term enterprise performance with the mediation of environment uncertainty using the panel data of 221 manufacturing listed companies from 2009-2014 via Generalized Least Squares(GLS)regression.The results show that,(1)exploration and exploitation have the inverted U type relationship with short-term performance;(2)exploration and exploitation have positive relationship with long-term performance;(3)the coupling of exploration and exploitation has positive relationship with the increase of marginal utility except the influence of coupling degree and short-term performance;(4)the environment dynamism plays the mediation effects between exploitation and performance,coupling coordination degree and short-term performance,as well as coupling degree and long-term performance;(5)the environment complexity makes the partial mediation between exploration,exploitation and performance as well as their coupling and performance.