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Exploratory Innovation, Exploitative Innovation, and Performance: Effects of Organizational Antecedents and Environmental Moderators

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Jansen, Justin J. P., Van Den Bosch, Frans A. J., Volberda, Henk W.·2006·Management Science

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Abstract

Research on exploration and exploitation is burgeoning, yet our understanding of the antecedents and consequences of both activities remains rather unclear. We advance the growing body of literature by focusing on the apparent differences of exploration and exploitation and examining implications for using formal (i.e., centralization and formalization) and informal (i.e., connectedness) coordination mechanisms. This study further examines how environmental aspects (i.e., dynamism and competitiveness) moderate the effectiveness of exploratory and exploitative innovation. Results indicate that centralization negatively affects exploratory innovation, whereas formalization positively influences exploitative innovation. Interestingly, connectedness within units appears to be an important antecedent of both exploratory and exploitative innovation. Furthermore, our findings reveal that pursuing exploratory innovation is more effective in dynamic environments, whereas pursuing exploitative innovation is more beneficial to a unit’s financial performance in more competitive environments. Through this richer explanation and empirical assessment, we contribute to a greater clarity and better understanding of how ambidextrous organizations coordinate the development of exploratory and exploitative innovation in organizational units and successfully respond to multiple environmental conditions.

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Authors: Jansen, J. J. P., Van Den Bosch, F. A. J., & Volberda, H. W.
Affiliations: Erasmus University Rotterdam (NL)
RSM Erasmus University, P.O. Box 1738, 3000 DR Rotterdam, The Netherlands
ORCID: Jansen, Justin J. P.
Volberda, Henk W.
Venue: Management Science
Publisher: Institute for Operations Research and the Management Sciences (INFORMS)
Published: 2006-11
Volume: 52
Issue: 11
Pages: 1661-1674
ISSN: 0025-1909 (ISSN-L)
1526-5501
DOI: 10.1287/mnsc.1060.0576
OpenAlex: W2240963366
Cited by: 3,705
References: 88
Citations by year: 2026: 267 · 2025: 257 · 2024: 295 · 2023: 278 · 2022: 297 · 2021: 272 · 2020: 262 · 2019: 251 · 2018: 189 · 2017: 211 · 2016: 169 · 2015: 194 · 2014: 158 · 2013: 186 · 2012: 146
FWCI: 104.94
Type: journal article
Language: en
Open access: green
repub.eur.nl
Licence: other-oa
Locations: Management Science (publishedVersion)
RePEc: Research Papers in Economics (submittedVersion)
RePub (Erasmus University Rotterdam) (submittedVersion, other-oa)
SSRN Electronic Journal (submittedVersion)
ERIM Report Series Research in Management (submittedVersion)
EUR Research Repository (Erasmus University Rotterdam) (submittedVersion)
Topics: Social Sciences › Business, Management and Accounting › Strategy and Management › Innovation and Knowledge Management
Social Sciences › Business, Management and Accounting › Organizational Behavior and Human Resource Management › Management and Organizational Studies
Social Sciences › Psychology › Social Psychology › Team Dynamics and Performance
Keywords: exploratory innovation, exploitative innovation, ambidexterity, organizational performance, centralization, formalization, connectedness, environmental dynamism, competitiveness, environmental moderators, organizational units

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Exploratory Innovation, Exploitative Innovation, and Performance: Effects of Organizational Antecedents and Environmental Moderators

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