Balancing Exploration and Exploitation at Different Stages of High-tech Start-up Development: Evidence from Russia

Abstract

This study attempts to reveal the role of exploration and exploitation employment and balancing both during new venture creation process. Using longitudinal multiple case-study strategy, it tracks a vivid flow of start-up decisions and actions in-depth and over time through the series of rich interviews with founders of ten Russian high-tech start-ups and combines gained process data with the analysis start-up dynamics. As a result, a theoretical model of the relationship between exploration-exploitation and firm performance at key initial stages of development is created. This model contributes to the clarification of organizational adaptation concepts through the venture creation logics and entrepreneurial leadership processes.