Managing Exploratory-exploitative Innovation in Banking Sector

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. 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. 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. Banks strategies of response were extracted within 17 themes and were classified into the following 4 categories (dimensions): selection, separation, balance, and transcendence.