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Despite a growing body of research on exploration and exploitation, scholars have tended to study the phenomena from a narrow perspective mostly within larger, well-established organizations. However, it is still far from obvious how top management within small-to-medium sized enterprises (SMEs) are to address the liability of newness and seek access to resources and capabilities relevant for the pursuit of exploration and exploitation. Resource sourcing and allocation decisions are particularly critical in SMEs and must be aligned with the firm’s fundamental strategic intent and growth model. For example, organizations following a stage model by first developing a domestic market and then expanding globally will require different bundles of resources and capabilities than organizations that are designed to conquer the global arena. Indeed, management systems will likely need to adapt across the firm life cycle such that it can fulfill an explorative function in the earlier stages and an exploitative function in later ones. Hence, early-stage ventures have to master the resource reallocation process which is contingent on their access to capital. Across the firm life cycle, venture capitalists can tap into the growth potential of early-stage ventures is a key factor behind their successful short-term innovative performance as well as long-term survival.

This study aims to build an integrated model for information technology (IT)/information system (IS) team exploration and exploitation innovation in the business-to-business (B2B) enterprise context by empirically investigating the mediating role of tacit-explicit knowledge co-creation and exploring the behavior approach of servant leaders for IT/IS team exploration-exploitation innovation.

The authors' analysis was supported by 182 enterprise-IT/IS teams (403 participants) in Taiwan. The authors used a questionnaire and Structural Equation Model (SEM)-SmartPLS to validate the development model. This study examines IT/IS exploration-exploitation innovation using a combination of quantitative survey research and qualitative case studies.

The specific roles of direct and mediating effects for two innovations of IT/IS team exploration and exploitation were investigated. The findings show a direct effect of knowledge creation (tacit and explicit) on IT/IS team exploration-exploitation innovation. Servant leader behavior positively influences tacit-explicit knowledge co-creation practices, IT/IS team exploration and exploitation. Moreover, knowledge creation (tacit and explicit) successfully mediates the correlation between servant leaders and IT/IS team innovations (for exploration and exploitation).

Managers, IT/IS consultants and enterprises at the executive level are suggested to encourage knowledge co-creation practices, both tacit and explicit to support their IT/IS team innovation. The greater the degree of explicit knowledge (i.e. socialization and internalization) and tacit knowledge creation (i.e. externalization and combination), the greater will be the opportunities for meeting the enterprise-IT/IS team exploration and exploitation innovation goals. The project manager may follow servant leadership behavior to promote effective knowledge co-creation process on the IT/IS team.

This effort contributes to greater and new understanding of how ambidexterity capability, tacit-explicit knowledge co-creation (mediators) and servant leaders for IT/IS team exploration-exploitation innovation in the B2B enterprise context and new foundations for future studies on a cross-enterprise IT/IS team. This research is also the first empirical effort to understand how a servant perspective leadership contributes through the knowledge co-creation process for IT/IS exploration-exploitation innovation.

Despite the theoretical assumption that balancing exploration and exploitation is important for long-term performance and survival, previous studies have provided few insights into these relationships because they have focused mainly on the short-term financial performance of organizations. In addition, balancing exploration and exploitation is a critical challenge for small- and medium-sized enterprises (SMEs) that lack the resources, capabilities, and experience necessary to achieving ambidexterity. In this regards, this study empirically explores the relationship between the exploration–exploitation balance and SMEs’ longevity in order to address two important questions from the ambidexterity perspective: (1) How does the balance between exploration and exploitation influence organizational survival? (2) How is the appropriate balance between exploration and exploitation influenced by an organization’s internal and external contexts?

An analysis of 1981–2012 data from the Korean SMEs in IT industry reveals an inverted U-shaped curvilinear relationship between the extent of exploratory innovation and organizational longevity, providing support for the ambidexterity perspective. We further examine the moderating effects of financial slack and environmental dynamism on the relationship between exploratory innovation and organizational longevity. The results indicate that financial slack moderated the exploration–longevity relationship and call for a contingency approach for a better understanding of performance implications of the exploration–exploitation balance.

The dynamic capabilities perspective focuses on the ability of an organization to develop its resource base in order to meet environmental expectations. Therefore, it is closely interrelated to the issue of managing the interaction of exploration and exploitation. The competence of continuously optimizing the interaction of exploration and exploitation has been referred to as organizational ambidexterity. Managing this interaction implies resolving a firm's permanent struggle to overcome the barriers related to the right configuration between exploration and exploitation.

By incorporating the concept of combinative capabilities as balancing routines into the conceptualization of ambidexterity we distinguish structural, interaction, and socialization capabilities that are deployed in overcoming these barriers to resource (re)configuration.

Drawing on knowledge management and barriers to resource configuration we expect that the way organizations deploy combinative capabilities to manage the interaction between exploration and exploitation depends on the observed barriers to resource (re)configuration. By combining the constructs of barriers to resource reconfiguration, ambidexterity, and combinative capabilities we intend to gain more insight in the way organizations manage the actual interaction between exploration and exploitation. Our paper will introduce a set of propositions indicating the relationship between ambidexterity, barriers to resource (re)configuration, and combinative capabilities as balancing routines.

Since March (1991) presented his ideas on organizational learning, hundreds of empirical tests have been conducted on relationships among the activities of exploration, exploitation, ambidexterity, and firm performance. Despite continued interest in his ideas, there has not been a systematic assessment of extant research to reveal whether, and to what extent, these activities relate to firm performance. This study uses meta-analysis to take a next step by aggregating results of 117 studies from more than 21,000 firms. I find strong performance effects for exploration and exploitation, but contrary to received theory, I discover ambidexterity yields weaker effects than a focus on either exploration or exploitation. Thus, I leverage these findings to offer future research opportunities.

This study aims to analyse whether the presence of supply chain complexity (SCC) influences firms to improve their supply chain (SC) resilience and SC robustness capability. This study also examines an important paradox: whether investing in both exploitation and exploration practices is conflicting or complementary to enabling SC resilience and robustness in the presence of SCC.

The authors used a survey-based approach to collect 242 useful responses from SC professionals of Pakistani firms, an important emerging economy context. The data were analysed with covariance-based structural equation modelling to statistically validate the model.

The analysis reveals several key findings: the presence of SCC has a direct, positive influence on SC resilience and SC robustness; while exploitation practices only partially mediate the nexus between SCC and SC resilience, they fully mediate the relationship between SCC and SC robustness; while exploration practices partially mediate the nexus between SCC and SC resilience, they do not mediate the relationship between SCC and SC robustness and SCC has a significant influence on SC resilience and SC robustness sequentially through exploitation and exploration (i.e. one after the other).

These findings help to reconcile the exploitation versus exploration paradox in cultivating SC resilience and SC robustness in the presence of SCC. The findings assist SC managers in determining how to deploy their limited resources most effectively to enhance SC resilience and SC robustness while facing SCC.

The authors devise and empirically validate a unique framework that demonstrates how the presence of SCC works as a stimulus to build SC resilience and SC robustness.

In this chapter, the authors examine the main effect of entrepreneurial orientation (EO) – a firm’s strategic entrepreneurial posture – on balancing exploration and exploitation in the form of organizational ambidexterity. Resource-constrained firms face an imperative to conduct innovative activities, survive hostile environments, and compete with larger and more resource-rich firms. The authors contend that firms can address these potential impediments through achieving ambidexterity via dynamic capabilities, firm-specific resources, and institutional factors. Specifically, The authors review the EO and ambidexterity literatures and summarize extant arguments related to the relationship between EO, exploration, and exploitation. The authors also discuss the most prominent scales and measures of EO, exploration, and exploitation. Moreover, the authors discuss operationalizational challenges that should be considered when conducting EO–ambidexterity research and suggest future research directions by specifying an agenda outlining useful theoretical perspectives and various contingencies that may influence the EO–ambidexterity relationship.

Contemporary working life highlights the challenge between exploitation and exploration both on a general and a more individual level. Here, we focus on the latter, and connect the critical debate regarding self-management to March's exploitation/exploration trade-off, as this forms a useful theoretical frame to understand how employees make sense of their self-management efforts. The employee is subjected to an individual responsibility to understand and manage an exploration of the self while handling the norms of self-exploitation that a self-management culture creates. Through an empirical study of a large group of management consultants, we explore how they perform and make sense of self-exploitation and self-exploration through three specific discourses: the discourse of workload, the discourse of aspiration, and the discourse of fun. Through these, the consultants try to identify optimal amounts of work, play, and ambition, all while handling the trade-off between self-exploitation and self-exploration. We show how this keeps failing, but how it reappears as a necessary condition for avoiding future failures. In all three discourses, the trade-off therefore presents itself as the problem of as well as the solution to self-management.

In contrast to the largely functionalist and apolitical literature which dominates organisational scholarship on exploitation and exploration after March, this paper seeks to complement this view of exploitation and exploration with a Marxist reading which is unwittingly implied by these terms. More specifically, we combine neo-Marxist and paleo-Marxist arguments to more fully understand the conflictual relations that underpin exploitation and exploration in the management of firms. This enables us to address both the objective and subjective dimensions of exploitation and exploration which firms and workers are involved in through the contemporary capitalist labour process. We illustrate this by drawing on a case study of a large Swedish manufacturing firm which sought to improve lean production by systematically helping employees to explore their own lifestyles and possibilities for a healthier and happier life.

Measuring behavior requires research methods that can capture observed outcomes and expose underlying processes and mechanisms. In this chapter, we present a toolbox of instruments and techniques we designed experimental tasks to simulate decision environments and capture behavior. We deployed protocol analysis and text analysis to examine the underlying cognitive processes. In combination, these can simultaneously grasp antecedents, outcomes, processes, and mechanisms. We applied them to collect rich behavioral data on two key topics in strategic management: the exploration–exploitation trade-off and strategic risk-taking. This mix of methods is particularly useful in describing actual behavior as it is, not as it should be, replacing assumptions with data and offering a finer-grained perspective of strategic decision-making.