Untangling the effects of over-exploration and over-exploitation on organizational performance: The moderating role of environmental dynamism
Because a firm’s optimal knowledge search behavior is determined by unique firm and industry conditions, organizational performance should be contingent on the degree to which a firm’s actual level of knowledge search deviates from the optimal level. It is thus hypothesized that deviation from the optimal search, in the form of either overexploitation or overexploration, is detrimental to organizational performance. Furthermore, the negative effect of search deviation on organizational performance varies with environmental dynamism; that is, overexploitation is expected to become more harmful, whereas overexploration becomes less so with an increase in environmental dynamism. The empirical analyses yield results consistent with these arguments. Implications for research and practice are correspondingly discussed.
overexploitation/overexploration, consistency in search, environmental dynamism, organizational performance
Organizational Behavior and Theory
Organisational Behaviour and Human Resources
Journal of Management
WANG, Heli and JT, Li.
Untangling the effects of over-exploration and over-exploitation on organizational performance: The moderating role of environmental dynamism. (2008). Journal of Management. 34, (5), 925-951. Research Collection Lee Kong Chian School Of Business.
Available at: http://ink.library.smu.edu.sg/lkcsb_research/3450