The current paper investigates empirically the relation between relatively radical changes (radical for medium sized firms) in strategic research and development (R&D) firm-choices occurring within small time windows and an evaluation of the extent of the firm's exploratory knowledge activity. In particular, value is co-created in use, because customers assess and determine the value of the proposition on the basis of the specificity of their usage. This paper focuses on the impact that moving between exploitation and exploration can have on a firm's innovative performance. This study develops a conceptual framework of value creation and appropriation in the technological growth process in medium sized multinationals and analyses this in an exploratory longitudinal multi-case study.This research approach is inductive and deductive, which means that the aim is directed towards theory building through the original use of existing theory from both international managerial literature and empirical analysis. Overall, this study provides a unique contribution in terms of both theoretical development and managerial implications by investigating the two activities (operations and R&D activities) with the aspects of global development.