Conclusions
While supply chain learning orientations, collectively, are beneficial to firms, some combinations of certain learning orientations are more aligned with exploration, others with exploitation. By better understanding the learning orientation required to foster either exploration or exploitation, a manager can better allocate scarce resources. We argue that learning orientations and team orientations develop an organization’s creation capacity, which helps to generate skills and enhance employees’ willingness to explore new opportunities and problem solve more innovatively. On the other hand, memory orientations, which is the storage of knowledge and its dissemination across the organization, and system orientations strengthen dispersion capacity to foster exploitation practices. It is when the explored ideas are implemented in the exploitation stage that firms are able to reap the benefit of newly created approach to solve novel problems. Therefore, exploitation practices enhance firms’ performance directly and indirectly through exploration, indicating that exploration creates value through exploitation to influence firm performance.