Exploration is an act or illustration of searching or inquiring along with detailed analysis of unidentified areas whereas exploration is a vigorous interrogation that involves a number of stages as well as resolutions of the problems an organization is facing (Yeung, 1999).
Importance of Exploration & Exploitation in Learning Organization
We all re aware with the speedily changing environments in which organization's necessitate vibrant potentialities to incorporate, establish arrangement or set up of resources and abilities to accomplish uninterrupted invention. By considering all these factors the concept of learning organizations emerged that believes in continuous practice and innovation as in present consumer trends alters on regular basis. Even though tangible resources are very crucial to encouraging an organization's capability to perform but in reality the potentialities essentially lies in the human resources, organizational functions, procedures, exercises and standards, which are necessary for an organization to achieve as without all these potentialities it is difficult to become a learning organization.
With all these resources that are necessary for designing a learning organization, there also exist a need of exploration of new thoughts, engineering's and cognition and at the other end a need of the exploitation of obtainable and new cognition for constant innovation (Foss, 2000). In designing of learning organization exploration and exploitation are crucial as it facilitates a firm in its decision making regarding the allocation of scarce resources as well as in establishing vibrant potentialities to keep abreast with ever-changing market considerations.
In designing of learning organization exploration assists organization in exploring new conceptions and exploitation assists it in making appropriate utilization of their old qualities. Exploration offers learning organization with identification of new concepts and methods, change, risk taking capabilities, research abilities, elasticity, breakthrough and novelty. Exploitation renders learning organizations' with elaboration, selection, cultivation, skillfulness, excerption, effectuation and enforcement, which are very essential for making best use of available resources (March, 1991). With this discussion of exploration and exploitation we can confer that both of these are very significant for designing a learning organization.
Foss, N.J. (2000). The theory of the firm: critical perspective on business and management. Taylor & Francis.
March, J.G. (1991). Exploration and Exploitation in Organizational Learning. Organization Science, 2 (1).
Yeung, A.K. (1999). Organizational learning capability. Oxford University Press US.