Imitation or innovation: To what extent do exploitative learning and exploratory learning foster imitation strategy and innovation strategy for sustained competitive advantage?✰

Abstract Using the theory of organizational learning and innovation, this study explores the positive effects of exploitative and exploratory learning on imitation strategy and innovation strategy and shows when these effects are strongest. This study also explores the positive effects of imitation strategy and innovation strategy on sustained competitive advantage and shows when these effects are strongest. The proposed theoretical model was tested on a cross-sectional data sample collected from industrial companies in South Korea. Analysis was conducted through component-based partial least squares (PLS) path modeling methodology. The results support the proposed hypotheses. The results confirm the complementary positive effects of exploitative and exploratory learning on both imitation strategy and innovation strategy. These effects in turn promote the achievement of sustained competitive advantages. Finally, the findings of the study, theoretical contributions, managerial contributions, limitations, and further work are discussed.