Exploration, exploitation and innovation performance: Disentangling environmental dynamism

  1. Maria Pilar Bernal Ansón 1
  2. Juan Pablo Maicas López 1
  3. Pilar Vargas Montoya 2
  1. 1 Universidad de Zaragoza

    Universidad de Zaragoza

    Zaragoza, España

    ROR https://ror.org/012a91z28

  2. 2 Universidad de La Rioja

    Universidad de La Rioja

    Logroño, España

    ROR https://ror.org/0553yr311

Documentos de trabajo ( Universidad de Zaragoza. Facultad de Economía y Empresa )

ISSN: 2171-6668

Year of publication: 2016

Issue: 3

Pages: 1

Type: Working paper

More publications in: Documentos de trabajo ( Universidad de Zaragoza. Facultad de Economía y Empresa )


Environmental dynamism has recently attracted the attention of scholars studying the relationships between exploration and exploitation strategies and innovation performance. Surprisingly, although extant research has already acknowledged its multidimensional character, it has only been analyzed in an aggregate fashion. In this paper, we distinguish two components of environmental dynamism, the pace of market evolution and the pace of technology evolution, and we elaborate on their different impacts in the context of exploration and exploitation strategies. More precisely, we argue that while a rapid pace of technology evolution has opposite impacts on the relationships between exploration (positive), exploitation (negative) and innovation performance, a rapid pace of market evolution positively affects both exploration and exploitation. Our findings provide substantial support for our prediction using a large panel of Spanish innovating firms for the period 2008-2012