Explore or exploit? Unpacking the situational conditions and cognitive mechanisms underlying entrepreneurial learning in the new venture development process

2022/11/17 by Ziad El-Awad
Business, Management and Accounting · #Entrepreneurship Studies and Influences #Innovation and Knowledge Management #Private Equity and Venture Capital

paper · doi:10.1080/08985626.2022.2143573

openalex publication_date 2022/11/17 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28

Abstract

This study explores when and why entrepreneurs choose entrepreneurial learning strategies that emphasize exploration or exploitation. Most studies have focused on explaining the different characteristics of exploration and exploitation, their performance implications, whether they are complementarities or substitutes and how particular organizational structures can support their coexistence. We apply a process design building on four research-based spinoffs observing how changes in entrepreneurs’ choices of exploration and exploitation occur as they identify and adopt a viable configuration for their ventures. In this study, we develop a theoretical model that reveals the situational conditions and mechanisms underlying entrepreneurs’ learning choices and highlights different knowledge typologies and competence gaps that new venture teams need to fill when dealing with uncertainties and performance errors.

Citations

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