Empirical analysis of the technological exploration–exploitation balance and its impact on organizational performance under uncertainty

Juan A. Martínez-Román (), Javier Gamero, Juan A. Tamayo and María de Loreto Delgado-González
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Juan A. Martínez-Román: University of Seville
Javier Gamero: University of Seville
Juan A. Tamayo: University of Seville
María de Loreto Delgado-González: University of Seville

Palgrave Communications, 2025, vol. 12, issue 1, 1-12

Abstract: Abstract The literature on organizational ambidexterity emphasizes the complex relationship between the balance of exploitation and exploration and its impact on performance. However, the empirical research, while granting special attention to the study of types of ambidexterity and factors conditioning this phenomenon, has largely neglected to analyze balance. Our study is novel in tackling two knowledge gaps in the literature on organizational ambidexterity: the absence of quantitative analyses to pinpoint the optimal exploration–exploitation balance, and the lack of attention paid to the effect of risk on this optimal balance and on organizational ambidexterity in general. In order to address these knowledge gaps, the paper analyzes the technological exploitation-exploration relationship in conditions of uncertainty and the balance that maximizes Value at Risk (VaR) of firm growth. The methodology includes the elaboration of VaR, using the expected value and degree of dispersion in firm growth, and the combination of quantitative methods for hypothesis testing. Results obtained from a sample of 87,911 European firms from all sectors confirm the positive effect on the growth of harmonious efforts in exploration and exploitation, determining technological balance according to an organization’s risk-taking. The findings are relevant to theory and decision-making by managers and policymakers.

Date: 2025
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DOI: 10.1057/s41599-025-04476-w

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