Managing Exploratory-exploitative Innovation in Banking Sector

Document Type : Research Paper


1 PhD Student, Production & Operations Management, Faculty of Management, University of Tehran, Tehran, Iran

2 Associate Prof. of Industrial Management, Faculty of Management, University of Tehran, Tehran, Iran

3 Prof. in Business Management, Faculty of Management, University of Tehran, Tehran, Iran

4 Assistant Prof. in Accounting, Faculty of Management and Accounting, University of Allame Tabatabaei, Tehran, Iran


Objective: The main issue for banks is how much and how to invest in a variety of innovative activities. Innovative activities in banks are carried out in two paradoxical exploratory and exploitative poles.  
Methods: To answer such questions, a longitudinal multiple case study method was used. To do so, 4 banks were selected as the cases for this study and were analyzed in-depth between 2006 and 2017.
Results: At first, the tensions of exploratory and exploitative innovation approaches were identified in these banks. Then, the required strategies to respond to these tensions were extracted in these banks.
Conclusion: Banks strategies of response were extracted within 17 themes and were classified into the following 4 categories (dimensions): selection, separation, balance, and transcendence.


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