“…Dynamism in the environment may increase uncertainty about the future state of an industry, which, in turn, impacts the consequences of simultaneously combining exploratory and exploitative search (Fleming, 2001;Sidhu et al, 2007). Past research has conceptualized how the interplay between dynamism and scarcity creates fundamentally different environments (Dess and Beard, 1984), Research to date, nonetheless, has not investigated the implications of these environmental conditions together, but has postulated the importance of pursuing both exploration and exploitation in resource-scarce or dynamic environments (Cao et al, 2009;Eklund and Mannor, 2020;Jansen et al, 2006;Posen and Levinthal, 2012). To address this gap in the literature and to further specify the search-performance relationship, we ask the question: 'to what extent can firms capitalize on exploratory and exploitative search in resource-scarce environments, under conditions of high and low dynamism?…”