EXPLORATION AND EXPLOITATION: A 20-YEAR REVIEW OF EVOLUTION AND RECONCEPTUALISATION

2015 ◽  
Vol 19 (01) ◽  
pp. 1550008 ◽  
Author(s):  
RANGGA ALMAHENDRA ◽  
BJÖRN AMBOS

The exploration–exploitation tension has been resonated and applied in diverse areas of management research. Its applications have deviated substantially from the scope of organisational learning as originally proposed by March [(1991). Exploration and exploitation in organizational learning. Organization Science, 2(1), 71–87]. Scholars have developed set of definitions, new conceptualisations, and varied applications in rejuvenating the concept; and literatures on this topic seem do not significantly ensure a conclusive picture. It is still also unclear what are the antecedents and following scientific breakthroughs which may have led to the divergence of this construct. This study offers an added value as it becomes the first to apply a bibliometric analysis, combined with fine-grained content analysis to attain a more comprehensive understanding on how the construct of exploration–exploitation have grown and evolved during the last 20 years. We attempt to grasp the structural pattern of citing behaviour and collective understanding among scholars, through conducting in-depth bibliographic review in a complete population of articles on this topic, published in leading journals following March [(1991). Exploration and exploitation in organizational learning. Organization Science, 2(1), 71–87]. This study identifies the intellectual base articles which form the basis of the exploration–exploitation and the turning point articles that shift the discussion into different directions.

2016 ◽  
Author(s):  
◽  
Fengxia Zhu

[ACCESS RESTRICTED TO THE UNIVERSITY OF MISSOURI AT AUTHOR'S REQUEST.] Globalization has led to a universal learning race in which organizations strive to achieve or maintain a competitive advantage through learning and innovation. Extant literature in organizational learning and international marketing, however, is often confusing and/or ambiguous on the fundamental conceptualization of different types of learning, and on the relationships between different types of learning and subsequent innovation performance. This study proposes a contingency model to examine how external market conditions and internal organizational conditions influence the learning pathways taken by subsidiaries of multinational companies (MNCs) and, in turn, how those choices affect innovation performance. Drawing on organizational learning and international marketing literatures, this study (1) explicitly distinguishes between a subsidiary's learning orientations (i.e., the exploration and exploitation orientations) and actual manifested learning actions (i.e., the exploration and exploitation activities); (2) unpacks the internal organizational conditions under which the relationships between exploration / exploitation orientations and exploration / exploitation actions become stronger or weaker; and (3) identifies the external market conditions under which exploration / exploitation actions become more effective in contributing to subsidiary innovation performance. The proposed model was empirically tested with survey data collected from 212 executive managers of subsidiaries operating in China, an emerging market with high strategic importance to foreign direct investment and offering rich opportunity for organizational learning and innovation. The results indicated that subsidiary autonomy and interdependence amplifies the impact of exploitation orientation on exploitation actions, while subsidiary internal competition amplifies the impact of exploration orientation on exploration actions. The research findings also suggested that subsidiary exploration actions are more effective on innovation performance under unique and dynamic market conditions. This study contributes to a greater clarity and better understanding of how MNC subsidiaries may effectively pursue different types of learning, under different market and internal organizational conditions, to improve innovation performance. The findings also have implications for company managers' critical resource allocation as they attempt to maximize benefits from their exploitation and exploration activities.


2021 ◽  
Vol 6 ◽  
Author(s):  
Yao Xiao ◽  
Jie Cen ◽  
Peder Soberg

Firms should deploy exploration and exploitation to foster organizational adaptation. Previous research on exploration and exploitation lacked a focus on disruption implications in different contexts. This study aims to empirically test a moderation model including disruption events, exploration, exploitation, and organizational adaptation and enable a deeper understanding of organizational learning and innovation theory to yield competitive advantage and sustainability of innovative firms. Our results reveal that exploration is more effective during outside disruption events. The results do not support the concept that exploitation is more effective during inside disruptions. Disruptions also moderate the combined effect of exploration and exploitation. Although they are generally complementary in facilitating organizational adaptation, a singular focus on either exploration or exploitation is as effective as is combining exploration and exploitation during inside and outside disruption events. The results of an event study using seven Chinese international firms, including Alibaba, Meituan, Dianping, Baidu, Beibei, TP-link, and Maxio, provided 132 completed and usable questionnaires that supported our hypotheses. Our study contributes to a better understanding of disruption, exploration, exploitation, and related performance implications.


2021 ◽  
Vol 13 (3) ◽  
pp. 1021
Author(s):  
Sara Scipioni ◽  
Meir Russ ◽  
Federico Niccolini

To contribute to small and medium enterprises’ (SMEs) sustainable transition into the circular economy, the study proposes the activation of organizational learning (OL) processes—denoted here as multi-level knowledge creation, transfer, and retention processes—as a key phase in introducing circular business models (CBMs) at SME and supply chain (SC) level. The research employs a mixed-method approach, using the focus group methodology to identify contextual elements impacting on CBM-related OL processes, and a survey-based evaluation to single out the most frequently used OL processes inside Italian construction SMEs. As a main result, a CBM-oriented OL multi-level model offers a fine-grained understanding of contextual elements acting mutually as barriers and drivers for OL processes, as possible OL dynamics among them. The multi-level culture construct—composed of external stakeholders’, SC stakeholders’, and organizational culture—identify the key element to activate CBM-oriented OL processes. Main implications are related to the identification of cultural, structural, regulatory, and process contextual elements across the external, SC, and organizational levels, and their interrelation with applicable intraorganizational and interorganizational learning processes. The proposed model would contribute to an improved implementation of transitioning into the circular economy utilizing sustainable business models in the construction SMEs.


2019 ◽  
Vol 26 (4) ◽  
pp. 337-351 ◽  
Author(s):  
Jacob Brix

PurposeThe purpose of the study is to investigate how the processes of exploration and exploitation have developed in parallel in the literature of organizational ambidexterity and organizational learning, since James March published his seminal paper in 1991. The goal of the paper is to provide a synthesis of exploration and exploitation based on the two areas of literature.Design/methodology/approachThe study is conceptual and no empirical data have been used.FindingsThe study advances current understanding of exploration and exploitation by building a new model for organizational ambidexterity that takes into account multiple levels of learning, perspectives from absorptive capacity and inter-organizational learning.Originality/valueThe study’s novelty lies in the creation and discussion of a synthesis of exploration and exploitation stemming from organizational ambidexterity and organizational learning.


2016 ◽  
Vol 10 (1) ◽  
pp. 163
Author(s):  
Hamid Rahimian ◽  
Mojtaba Kazemi ◽  
Abbas Abbspour

This research aims to determine the effectiveness of training based on learning organization in the staff of cement industry with production capacity over ten thousand tons. The purpose of this study is to propose a training model based on learning organization. For this purpose, the factors of organizational learning were introduced by qualitative research in the form of open codes, axial codes, selective codes and the resulted observations, and then the final model was obtained by structural equation model. The data were collected from the staff of three cement companies of Abyek, Tehran, and Sepahan, with a statistical population of 1719 staff of cement industry. The qualitative research sample included 29 experienced experts in the field of cement industry, and the quantitative research sample included 326 staff and experts, who were selected by multi-stage cluster sampling. A self-made questionnaire consisting of 72 questions was used to measure quantitative variables. The reliability of the questionnaire was 0.93 and its content and face validity was determined by expert colleagues and professors, the structural equation model and regression was used to analyze the quantitative data. The results showed that the status of learning organization in cement companies is in average level. Finally, the obtained model consisted of both individual and organizational factors. The individual factors affecting organizational learning include teaching scientific content, perception, trust, and self-efficacy of training. The organizational factors affecting organizational learning include organizational culture, forming the structure, the method of management and leadership, preparing human resource (identity), adaption to the environment, policies, rules, and regulations, and achieving a viable product. The share of individual factors on learning organization is higher than the effect organizational factors; the share of each factor is also determined.


2021 ◽  
Author(s):  
Alina Ferecatu ◽  
Arnaud De Bruyn

This paper develops a learning model to describe decision makers' exploration/exploitation trade-offs and their link to psychometric traits.


2019 ◽  
Author(s):  
Nathaniel J. Blanco ◽  
Vladimir Sloutsky

Organisms need to constantly balance the competing demands of gathering information and using previously acquired information to obtain rewarding outcomes (i.e., the “exploration- exploitation” dilemma). Exploration is critical to obtain information to discover how the world works, which should be particularly important for young children. While studies have shown that young children explore in response to surprising events, little is known about how they balance exploration and exploitation across multiple decisions or about how this process changes with development. In this study we compare decision-making patterns of children and adults and evaluate the relative influences of reward-seeking, random exploration, and systematic switching (which approximates uncertainty-directed exploration). In a second experiment we directly test the effect of uncertainty on children’s choices. Influential models of decision-making generally describe systematic exploration as a computationally refined capacity that relies on top-down cognitive control. We demonstrate that (1) systematic patterns dominate young children’s behavior (facilitating exploration), despite protracted development of cognitive control, and (2) that uncertainty plays a major, but complicated, role in determining children’s choices. We conclude that while young children’s immature top-down control should hinder adult-like systematic exploration, other mechanisms may pick up the slack, facilitating broad information gathering in a systematic fashion to build a foundation of knowledge for use later in life.


Author(s):  
Fatimah Az-Zahra ◽  
Emilia Fitriana Dewi

Cessa previously ran a technology-based business by creating therapeutic tools to reduce sleep problems. Since the pandemic era, the research and development process has been hampered due to limited access to laboratories. Therefore, the company pivoted to the Savlee company by creating a dailywear sleeping product. There are several problems and challenges that arise in the business model. Savlee began to try a new approach in the fields of pharmacy, psychology,, and neuroscience. Savlee needed to have initial learning and should seek a new form of data and information that became the main reference. The data analysis process was carried out using qualitative data methods with in-depth interviews and focus group discussions. Based on the House of Learning Organization by Jann Model as the model of learning organization practices that consist of learning foundations, learning facilities, learning skills, learning enablers, and learning disciplines, and plan for the implementing practice of learning organizations using Peter Senge's methods in "The Dance of Change-Generating Profound Change." The outcome of this research is a plan for implementation of the learning organization, which consists of three stages, starting with building individual personal mastery, team learning ability, and organizational learning ability. Therefore, Savlee must implement a suitable learning organization with appropriate design and organizational learning that has a clear measurement for the evaluation of business performance


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