| Building on A Behavioral Theory of the Firm and on A Network Theory of Social Capital, this dissertation develops a theory that serves as the basis to understand what guides firm search, particularly, why ex ante alternative assessment drives exploration by focusing the attention of the firm on certain alternative sets. It conceptualizes firm search as a two-stage process, where a choice set is populated with better understood alternatives. As a result, firm's exploration is seen not as a random jump, but a search that is channeled by the embeddedness of the firm in networks of firms and individuals. First, a computer simulation (agent-based model) provides support to the assumption that increase accuracy in ex ante alternative assessment improves exploration success. Then, two additional studies of the semiconductor industry, primarily utilizing patent data from 1975 to 1995 to capture information flows, inventor mobility, geographic location, and technological positions, conduct multivariate analyses to assess the impact of networks on the probability of citing another firm. The first study is an event history analysis and provides evidence that enduring social ties and monitoring are two generative mechanism of accessibility to the knowledge of other firms. In addition, its results support that (1) localized networks and inventor mobility provide redundant access, and (2) social capital access from inventor mobility occasionally suffices to overcome capability Tosses. The second study, provides evidence that semiconductor firms' exploration favors the utilization of the knowledge base where the firm is embedded through monitoring ties---networks of market competition---and enduring personal ties---networks of organizational ties. Taken together, the three studies support the thesis advanced in this dissertation: exploration strategies that resort to firm ties, which increase the access to other firms' knowledge, are more successful. Moreover, it appears that the impact of ties is not dependent on their strength the positive impact of access to others' knowledge is significant for a broad range of ex ante estimation errors reduction. In sum, channeling exploration to the knowledge base with the best access leads to the highest exploration success. |
