Exploration and Exploitation in Organizational Learning

March · Team Learning · Organization Science · 1991 · Paywalled

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Introduced the exploration/exploitation distinction as the central tension in organisational learning: exploration involves search, discovery, and variation; exploitation involves refinement, efficiency, and implementation of known approaches. March showed that the two compete for scarce resources and that organisations systematically under-invest in exploration because exploitation produces more certain, proximate returns. The distinction is load-bearing throughout the team learning literature — reflexive and vicarious learning are broadly exploitative, experimental and contextual learning exploratory — and has implications for PS: a psychologically safe environment is necessary for exploration but may also enable the more comfortable exploitation of existing knowledge.

March, J.G. (1991) 'Exploration and exploitation in organizational learning', Organization Science, 2(1), pp. 71–87.

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