Organizational Factors for Exploration and Exploitation

Sharadindu Pandey, RRK Sharma


The Purpose of the paper is to develop a conceptual framework which suggests a relationship between organisational factors and exploratory and exploitative innovation types. We searched major databases like ABI/INFORM global, EBSCO, Elsevier’s science direct, Springer link and Emerald full text. Most of studies were included from published sources. We explored the literature of organisational culture, motivational bases of the rewards system and leadership values which are responsible for increasing creative and productive output. Our study has attempted to identify common patterns and themes in the literature regarding the drivers that increase both sides of the organisational creativity. The paper discusses the role of culture, system and styles in the initiation and implementation phases of the innovation called herein exploitative and exploratory innovation.


Exploration; Exploitation; Creativity; Culture; Leadership; Reward system.

Full Text:

PDF [en]


AMABILE,T. M., 1988. A Model of Creativity and Innovation in Organizations. Research in Organizational Behavior, 10, pp. 123-167.

ARAD. S. et al, 1997. A framework for the study of relationships between organizational characteristics and organizational behaviour. The Journal of Creative Behaviour, 31 (1), pp. 42-58.

BARLEY, S.R. and Kunda, G., 1992. Design and Devotion: Surges of Rational and Normative Ideologies of Control in Managerial Discourse. Administrative Science Quarterly, 37 (3), pp. 383.

BENNER, M.J. and Tushman, M. L, 2003. Exploitation, exploration, and process management: The productivity dilemma revisited. Academy of Management Review, 28(.2).

CAVONE A. et al., 2000. Management style in Industrial R&D organizations. European Journal of Innovation Management, 3 (2), pp. 59-71.

CHRISTENSEN, CM., 1997. The Innovators Dilemma: when new technologies cause great firms to fail. Harvard Business School Press, Boston, Massachusetts.

COOMBS, R., 1996. Core competencies and the strategic management of R&D. R&D Management, 26 (4).

CROSSAN, M. M. et al., 1999. An Organizational Learning Framework: From Intuition to Institution. Academy of Management Review, 24 (3), pp. 522-537.

DAMANPOUR, F, 1991. Organizational innovation: a meta-analysis of effects of determinants and moderators. Academy of Management Journal, 34, pp. 555-590.

DESHPANDE, R. et al., 1993. Corporate culture, customer orientation, and innovativeness. Journal of Marketing, 57, pp. 23-37.

DUNCAN, R.B., 1976. The ambidextrous organization: Designing dual structures for innovation. In Killman, R.H., Pondy L.R. Slevin, and D. (Eds), The Management of Organization, New York: North Holland, 1, pp. 167-188.

GARCIA et al., 2003.The role of knowledge in resource allocation to exploration versus exploitation in technologically oriented organizations. Decision Sciences, 34.

GONCALO, J. A. and Staw Berry M., 2005. Individualism-Collectivism and group creativity. Faculty Publications, Cornell University, University of California, Berkeley.

GUPTA, A. et al., 2006.The Interplay between Exploration and Exploitation. Academy of Management Journal, .49 (4).

HE, Z. L. and Wong, P.K., 2004. Exploration vs. exploitation: An empirical test of the ambidexterity hypothesis. Organization Science, 15 (4), pp. 481-494.

HOFSTEDE, G., 1991. Cultures and Organizations: Software of the Mind. London: McGraw-Hill U.K.

HOFSTEDE G., 1997. Riding the Waves: A Rejoinder. International Journal of Intercultural Relations, 21 (2), pp. 287-290.

HOLMQVIST, M.,2004. Experimental learning processes of exploitation and exploration. An empirical study of product development. Organization Science, 15.

ISOBE, T et al., 2004. Exploitation, exploration, and firm performance: The case of small manufacturing firms in Japan. Working Paper.

JANSEN J.J.P, 2005. Exploration and Exploitation in Technology Marketing: Building the Ambidextrous Organization. International Journal of Technology Marketing, 1 (5-6).

DE JONG J.P.J. and Den Hartog, D.N., 2007. Leadership and employees innovative behaviour. European Journal of Innovation Management, 10 (1), pp.41-64

KAO, J., 1989. Entrepreneurship, creativity and organization. Prentice Hall, Englewood Cliffs, NJ.

KEDIA et al. 1992. Dimensions of national culture and the productivity of R & D units, The Journal of High Technology Management Research, 3 , pp. 1-18

MARCH, J.G., 1991. Exploration and exploitation in organizational learning. Organization Science, 2 (1), pp. 71-87.

MARTINS, E.C. et al., 2003. Building organizational culture that stimulates creativity and innovation. European Journal of Innovation Management, 6 (1).

MCGRATH, R.G., 2001. Exploratory learning, innovative capacity and managerial oversight. Academy of Management Journal, 44 (1), pp. 118-131.

MORRIS, W, 2005. A survey of Organizational creativity. Available at

MUMFORD, M.D. and Licuanan, B., 2004. Leading for innovation: conclusions, issues,and directions. Leadership Quarterly, 15 (1), pp. 163-71.

MCNAMARA, P. and Baden-Fuller, C, 1999. Lessons from the Celltech case: balancing knowledge exploration and exploitation in organizational Renewal. British Journal of Management, 10.

NAKATA, C. and Sivakumar, K., 1996. National Culture and New Product Development: An Integrative Review. Journal of Marketing, 60 (1),pp. 155-165.

PELZ, D. and Andrews, F, 1966. Autonomy, coordination and stimulation in relation to scientific achievement. Behavioural science, 11.

POLITIS J. D.,2005. Dispersed leadership predictor of the work environment for creativity and productivity. European Journal of innovation Management, 8 (2).

PYE, L., 1985. Asian power and politics.The cultural dimensions of authority. Cambridge: Harvard.

SCHEIN, E. H., 1992. Organizational culture and leadership (2nd ed). San Francisco: Jossey-Bass.

SIDHU, J.S. et al. 2004. Exploring exploration orientation and its determinants: Some empirical evidence. Journal of Management Studies, 41.

TUSHMAN, M.L. and O'Reilly, C.A., 1997, Winning through innovation: A practical guide to leading organizational change and renewal. Boston, MA: Harvard University Press.

WINTER, S.G. and Szulanski, G., 2001. Replication as strategy. Organization Science, 12 (6), pp. 730-743.

VOLBERDA, H.W., 1996. Toward the Flexible Form: How to Remain Vital Hypercompetitive Environments. Organization Science, 7(4), pp. 359-374.

ZHOU, J. and Woodman, R.W, 2003. Managers' recognition of employees' creative ideas: a social-cognitive model. In Shavinina,Y (Eds), The International Handbook on Innovation, Elsevier Science Ltd, Amsterdam, pp. 631 -40.


Copyright (c)

2017 © Universidad Alberto Hurtado - Facultad de Economía y Negocios. 
Erasmo Escala 1835 - Santiago, Chile.
Economic Analysis Review | Observatorio Económico | Gestión y Tendencias 

Journal Supported by Chimera Innova Group