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Strategic Management Journal Vol. 37 No. 6 2016

Exploration versus exploitation: Emotions and performance as antecedents and consequences of team decisions

Dorthe Døjbak Håkonsson1,2,3; Jacob Eskildsen1,2; Linda Argote4; Dan Mønster1,3,5; Richard M. Burton6; Børge Obel1

1 Interdisciplinary Center for Organizational Architecture, Aarhus University Aarhus V Denmark · 2 Department of Business Development and Technology, School of Business and Social Sciences Aarhus University Herning Denmark · 3 Department of Culture and Society Interacting Minds Centre, Aarhus University Aarhus C Denmark · 4 Tepper School of Business, Carnegie Mellon University Pittsburgh Pennsylvania U.S.A. · 5 Department of Economics and Business Aarhus University Aarhus V Denmark · 6 Fuqua School of Business, Duke University Durham North Carolina U.S.A.

open access

Abstract

We analyze performance and emotions as antecedents and consequences of team strategic decisions to explore a new routine versus exploiting an existing one. In a laboratory study, we examine team decision making over time and draw causal inferences about the relationships among team emotions, team performance, and explore–exploit decisions. We use self‐report data to measure team emotions, and validate results with psychophysiological data. We find that declines in performance increase the likelihood that teams decide to explore new routines rather than exploit existing ones. We also find a marginal positive effect of positive emotions, as measured by both self‐report and psychophysiological data, on team decisions to explore a new routine. Further, teams successful at implementing new routines report increased positive emotions, as measured by the self‐report data. This relationship is fully mediated by performance change.

DOI
10.1002/smj.2380
Volume
37
Issue
6
Pages
985-1001
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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