Thinking through exploration and exploitation in start-ups: A case of research commercialization

Crossing the valley of death between initial funding and commercialization is a major challenge for most start-ups. This paper studies the possibility to use secondary markets in order to maintain financial stability and independence. However, adding secondary market segments requires managing ambidexterity within the start-up, its network and its environment. These market segments are theoretically conceptualized as segments for exploitation and exploration, and criteria are developed accordingly. We use interventionist research for studying the challenges that a research-based start-up faces when they try to manage this ambidexterity in their commercialization process. The results indicate that exploitation strategy can be beneficial for crossing the valley of death but implementing it includes uncertainties. Even though exploitative market segments can be found, starting a business requires the right circumstances and capabilities, such as technological compatibility and supporting regulatory conditions. The case study highlights the importance of managing asymmetric interests in ambidextrous partnerships.