Influential Article Review - A Systematic Study on the Precedents of Exploration and Exploitation

Abstract

This paper examines entrepreneurship and operations. We present insights from a highly influential paper. Here are the highlights from this paper: Although exploration and exploitation, as a pair of paradoxical organizational outcomes, are generated by different causal conditions, the conjunction of their respective causal antecedents has yet to be fully examined. Combining environmental uncertainty, unit interdependence, entrepreneurial bricolage and firm life cycle stage in a qualitative comparative analysis (QCA), the distinct causal configurations of exploration and exploitation are formalized and compared based on a survey of founders or high-level managers in 63 small firms. Results show that contrasted relationships between entrepreneurial bricolage and unit interdependence exist in that the two antecedents are partial substitutes in exploration whereas they are complements in exploitation when combined with other conditions. This study provides empirical evidence on the causal configurations of exploration and exploitation and deepens our current understanding of ambidexterity. For our overseas readers, we then present the insights from this paper in Spanish, French, Portuguese, and German.