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http://dx.doi.org/10.7583/JKGS.2015.15.1.115

The Strategic Ambidexterity of Online Game Companies: The Exploitation and Exploration of NCsoft  

Bae, Joonheui (School of Business Administration, Kyungpook National University)
Koo, Dong Mo (School of Business Administration, Kyungpook National University)
Publication Information
Journal of Korea Game Society / v.15, no.1, 2015 , pp. 115-124 More about this Journal
Abstract
This research analyzed the case of Ncsoft to study the organizational learning, exploitation and exploration that create dynamic capability in hypercompetitive environment. First of all, we demonstrated the activities of exploitation and exploration in Ncsoft according to the life cycle of online game industry. An exploitation related to routine, learning and fit with existing environment brings about incremental innovation. In contrast, an exploration associated with non-learning, flexibility with changing environment results in radical innovation. We examined them based on the life cycle of its various game services. NCsoft that built the leading position in online game industry focused the exploitation activities at the stage of beginning period and growth, whereas NCsoft has increased the activities of exploration at period of mature. In addition, the firm conducts an exploration for its brand new game services and R&D. Conversely, An exploitation is conducted for sustainable updating of patch service and marketing and system building. The result implies that online game companies create sustainable competitive advantage using the balance between exploitation and exploration.
Keywords
Online game; Exploitation; Exploration; Dynamic capability; Innovation;
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Times Cited By KSCI : 4  (Citation Analysis)
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