Investments in Exploitation and Exploration Capabilities: Balance Versus Focus

Big Data Facilitation, Utilization, and Monetization: Exploring the 3Vs in a New Product Development Process

“…Counter to H3a, this effect includes a positive association between exploration orientation and big data velocity; this means that a firm's proclivity to adopt new processes that are unique from those used in the past, rather than improving on existing resources, better facilitates the rate at which new data are analyzed. This finding may be indicative of the notion that while exploration‐oriented firms tend to focus on the long‐term returns of their new product activities (Sarkees et al, ), they still need speed and efficiency in their problem‐solving efforts. Alternatively, this may suggest that exploratory firms want quick analysis to conduct small experiments in learning what works and what does not (i.e., failing fast).…”

“…As a parallel to this short‐term inclination, our research suggests that the first step in avoiding such failures is to use segregated efforts (Andriopoulos and Lewis, ; Tushman and O'Reilly, ) and invest firm resources in a manner consistent with an exploration orientation. To follow this approach, new product managers should avoid processes that may hinder exploration efforts (e.g., stage‐gate controls) and, instead, exercise power in strategic planning to advance the resources necessary for exploration, such as technological capability (Sarkees et al, ; Zhou and Wu, ).…”

“…In particular, exploration and exploitation are central themes in the generation of new insights and product innovation (Atuahene‐Gima, ; Yalcinkaya, Calantone, and Griffith, ). While these benefits are commonly accepted in practice, firms still struggle with balancing their focus on the allocation of limited resources across the exploitation of existing marketing opportunities and the exploration of new opportunities (Atuahene‐Gima, ; March, ; Sarkees, Hulland, and Chatterjee, ). This tension is heightened in today's dynamic world, thus positioning innovation as the ultimate advantage and challenge for firms (Andriopoulos and Lewis, ; Mu, ).…”

Impact of IT Intellectual Capital on IT Explorative-Exploitative Innovation Strategy and Performance

“…While the importance of pursuing both types of innovation has often been highlighted, much more remains to be understood about how ambidextrous organizations coordinate the development of exploratory and exploitative innovations in organizational units [63]. They compete for scarce resources, resulting in the need for firms to manage the trade-offs between the two strategies [17] [34]. However, there may be a synergistic effect between the two as well, and hence there also is a need for firms to manage the balance between the two strategies for higher performance [40].…”

“…Based on the IC perspective, it is critical for IT departments to balance explorative and exploitative innovation strategies to facilitate organizational agility [17] [34]. IT departments use IT resources to develop new or improved applications so as to create values or acquire more profits [12].…”