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Purpose

This study aims to systematically review and synthesize existing research to answer the dilemma and debate of the balance between exploration and exploitation at the level of competition intensity in theory and practice.

Design/methodology/approach

This study collected all research on exploration and exploitation in competitive intensity through the PRISMA guidelines using the Scopus database to extract 162 papers.

Findings

Competitive intensity is a significant factor in strengthening the balance between exploration and exploitation. It also plays a minor role as a benchmark for assessing the level of competition in entering new markets and improving market position.

Research limitations/implications

This systematic review is limited to the Scopus database’s coverage and focuses only on English-language articles, potentially missing out on the depth of relevant articles.

Practical implications

These findings offer a framework for factors that can strengthen the balance between exploration and exploitation at varying levels of competition. They provide insights for researchers to focus more on the level of competition intensity, industry characteristics and the business environment. Furthermore, these findings can guide managers in creating value that differentiates them from their competitors, increasing profitability, sales growth and market share to improve their market position.

Originality/value

This study investigates the development of literature on exploration and exploitation strategies by proposing a new research framework that addresses the weaknesses of the ambidexterity theory through the interconnection of factors that can strengthen the balance between exploration and exploitation in competitive intensity and provide a transparent scheme for future research agendas.

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