Exploring with partners: Entry into new lines of business and partnerships in the U.S. venture capital industry

Firms engage in exploration, i.e. application of existing knowledge in a new domain (March 1991) to enlarge their knowledge base (Chang 1996; Kotha et al, 2011), increase market share (Chang and Rosenzweig, 2001), and ultimately enhance performance. In the past three decades strategic management literature has explored the process of exploration extensively, studying various aspects of it in a multitude of settings. However, we know relatively little about the role of organizational partnerships in this process. In particular, little is known how partnerships affects firms' propensity to engage in exploration, the way firms approach exploration, and the outcomes of their exploration efforts. This project aim to contribute to closing this gap.