Finding the right balance: The impact of individual autonomy on balancing exploration and exploitation

In the dynamic landscape of management, balancing exploration and exploitation is crucial for organizational success. This study examines how individual autonomy influences organizational learning strategies, addressing the challenge of engaging autonomous individuals who may prioritize self-efficiency-seeking behaviors over organizational objectives. Employing a computational simulation model, we explore the role of individual autonomy in fostering this balance. Our findings reveal that individual autonomy significantly enhances the benefits of explorative activities through slow learning, improving both individual and organizational performance. This combination of autonomy and slow learning increases knowledge diversity, creating a robust and adaptable organizational environment. Furthermore, autonomy boosts motivation and engagement by aligning self-efficiency behaviors with organizational strategy, maintaining a balanced approach to exploration and exploitation. Highlighting the critical role of autonomy in facilitating engagement and innovation, our study provides valuable theoretical and practical insights for improving the exploration–exploitation balance and overall organizational performance.