Exploratory and Exploitative Learning in New Product Development: A Social Capital Perspective on New Technology Ventures in China

The authors examine the differential effects of the structural, relational, and cognitive dimensions of social capital on exploratory and exploitative learning in new product development in new ventures in China. In addition to investigating the potential nonlinear relationships between exploratory and exploitative learning and new product performance, the authors examine the relationship between the interaction of the two types of learning and new product performance. The findings suggest that different dimensions of social capital are indeed significantly related to the level of exploratory and exploitative learning. The results also support the argument that firms need a balance of exploratory and exploitative learning to enhance performance. The findings draw the attention of managers from multinational firms operating in China to the important role of social capital in enhancing new product performance.