Matching technology strategy with knowledge structure: Implications for firm performance

Document Type

Conference Proceeding

Publication Date



Alignment between exploration and exploitation strategies and organizational knowledge structures may lead to increased firm performance. A knowledge portfolio that is broad has high convergent recombinatory potential, whereas one that is deep has high divergent recombinatory potential. Firms tap these potentials with exploration and exploitation strategies that alter the dimensions of their knowledge structures. The study results indicate that firms perform better when they increase exploration (decrease exploitation) in response to high technological knowledge depth, and increase exploitation (decrease exploration) in response to high technological knowledge breadth. These results have implications for research examining exploration and exploitation as knowledge fitting strategies. By learning to recognize imbalances in their own knowledge structures, firms and their strategic leaders may become able to steer their organizations toward more suitable exploration and exploitation strategies.

Publisher's Statement

© 2013 Academy of Management. Publisher’s version of record: http://dx.doi.org/10.5465/AMBPP.2013.217

Publication Title

Academy of Management Journal