Explore or Exploit Innovation to Survive Uncertain Times? A Theoretical Outlook Based on The Advancement of Employee Creativity Utilizing Promotion and Prevention Goal Framing

Abstract

There has been considerable research in the relationship of exploration and exploitation activities with promotion and prevention focus, especially regarding their impact on innovation and creativity respectively. However, there is a lack of research in this dynamic during times of crisis where innovation and creativity is especially crucial for both firms to thrive and survive. This paper draws upon the regulatory focus theory and its effect on creativity, in order to supplement our theoretical perspective on a firm’s exploratory exploitative innovation strategies during times of crisis, particularly by conceptually linking employee’s creativity to innovation. The results of this study, based on a survey of 218 British students and creativity coding by our researchers, indicate that prevention focus positively affects creativity in individuals at a higher level compared to promotion focus. This study provides an alternate theoretical perspective regarding exploratory and exploitative innovation strategies, based on the development of employees’ creative abilities, through goal framing and increases our practical understanding of the role of creativity during times of crisis within an innovation management framework.