Proper

Abstract

This paper analyses the performance of firms' business consulting. The findings show that effects of exploration and exploitation exhibit different impacts on each input latent variable. First, while the institutional conditions have significant relationships with both exploration and exploitation, the support of CEOs and the task competency of consultants have a statistically meaningful relationship with only exploitation. Second, the institutional conditions in client firms via an exploration path has the highest impact on the business performance. Third, the total effects of exploitation and exploration exhibit the first and second highest impact on the contribution to business performance, respectively.