We propose that innovative corporations that maintain growth through knowledge creation and utilization have organizational structures that dynamically synthesize exploration and exploitation. To examine this proposition, we first highlight the problems and limitations with the information processing model that forms the basis of most of
the extant research on exploration and exploitation. Finally
we will propose a new organizational model. The concept of
‘‘exploration and exploitation’’ is grounded in the information processing model proposed by the Carnegie School of
Thought in the 1950s and 1960s.