Focusing on product development, this study extends the understanding of the environment-strategy framework and investigates the relative effect of two classical environmental variables, dynamism and complexity, on the knowledge strategy. Adopting a knowledge-based view, and assuming that the strategy´s locus is knowledge creation -exploration- and knowledge application -exploitation-, the study suggests that the development of a knowledge strategy is a managerial strategic choice that is related to the environment. The results of a survey on product development managers indicate that product development efforts operating in highly dynamic environments mostly pursue exploratory strategies.
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Paper provided by Instituto de Empresa, Area of Economic Environment in its series Working Papers Economia with number
wp08-15.