The dynamic internal and external environments faced by many professional service firms mean that the simultaneous exploiting of existing knowledge assets as well as exploring new knowledge capabilities become critical. These two modes of learning (March, 1991) can take place in two distinct time frames: the planned, longer-term and the accelerated, shorter-term. The ability to switch between these is critical to organizational success. This article draws on a case study of a marketing agency to illustrate how exploratory and exploitive learning takes place in both time frames. It demonstrates how the most important interactions between knowledge assets in each of these learning orientations create valuable outputs for clients.
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