Crossing the great divide of strategic entrepreneurship: Transitioning between exploration and exploitation

Managing uncertainty effectively is perhaps one of the most significant challenges a firm's decision makers face today. Strategic entrepreneurship defined as exploration for future sources of competitive advantage, combined with exploitation of current sources of competitive advantage has been proposed as a means via which decision makers can manage uncertainty. In this article, we discuss the transition between exploration and exploitation activities within organizations as a vital part of strategic entrepreneurship; this transition process can involve various types of internal firm challenges. Additionally, we highlight various sources for these internal challenges and mechanisms through which firms can overcome them. (C) 2009 Kelley School of Business, Indiana University. All rights reserved.