Technological ambidexterity and firm growth: analyzing synergies between exploitation and exploration of technological knowledge

Abstract The nature of the interaction between activities of exploitation and exploration is a key topic in the study of organizational ambidexterity. The paradoxical relationshipsbetween these dimensions and their influence on performances constitute central questions in the literature. This paper approaches in a novel manner the nature of thetechnological exploitation-exploration relationship and its impact on firm-level growth as a performance. The study results, from a massive sample of European firms,support our arguments, demonstrating the synergetic nature of technological ambidexterity, and the effect of organizational size in this relationship, while alsoshedding light on the debate regarding the optimum equilibrium between exploitation and exploration when seeking firm growth. The most noteworthy findings are asfollows: i) exploitation and exploration normally act as positively correlated, complementary and non-competing forces, ii) size does not exert a significant impacton the synergetic relationship, iii) technological ambidexterity has a favorable impact on growth and reduction of uncertainty, and iv) synergy more plausibly conceptualizesthe phenomenon of technological ambidexterity.