5. Conclusion, implications and future research
Firms in smart cities face multiple challenges, some of which are best met with exploratory activities (e.g. dealing with the introduction of a radical new product) and others with exploitative activities (e.g. improving the quality of current products in light of customer feedback). Hence, many organizations did not focus on just one dimension of performance – either innovation, flexibility and the exploration of new opportunities, or efficiency, control and the exploitation of existing capabilities (Hoffmann, 2007; Adler and Heckscher, 2013). Today, especially in a complex and innovative context as the smart city one, they must find ways to improve both dimensions simultaneously.
Smart cities’ explorative and exploitative alliances are growing due to the business opportunities arising from the application of technological innovation to urban services. Firms explore new technologies in the cities’ ecosystems aimed at finding new product and services cooperating with city governments and other city’s stakeholders combining different kind of heterogeneous resources. Consequently, firms try to capture value and make money from the technologies, services and products tested. In both cases, they need the support of local governments, so the management of both explorative and exploitative activities in this underexplored and complex context became crucial as well as the HR practices used in each project.