Powering Through the Turn: Finding Time for Concept Exploration Before Industry Stagnation

Abstract

This study examines how the tension between exploration and exploitation affects early-stage development within the engineering teams of large corporations. Using survey data collected from over 900 system engineers and managers, it was observed that exploration decreased as an organization’s market growth declined, but dire market projections prompted a refocus on exploration. In addition, engineers routinely desire more concept exploration time than they perceive that they have available. The authors argue that engineering teams should more intentionally consider their innovation strategy, and that companies with stagnant market growth should invest in concept exploration before they get to a period of market decline.