Solutions to the Exploration-Exploitation Dilemma: Networks as a New Level of Analysis

Abstract

The paper reviews the extant literature on the exploration/exploitation dilemma. Based on a systematic analysis of structural, behavioral, systemic, and temporal solutions, we are able to show that the learning literature continues to struggle with the question how exactly an organization can separate exploration and exploitation and at the same time enable necessary knowledge exchange and cooperation between these two notions. Paying closer attention to networks might enable future research to answer this question. Particularly a combination of structural aspects of networks and social ties have the potential to explain how the solutions currently on offer can be implemented successfully, how organizations can combine several of them, and how they can shift between them.

Keywords: exploration, exploitation, networks

JEL Classification: D23