Unveiling the complex U-shaped relationship between entrepreneurial orientation and exploratory/exploitative innovations: strategic planning as a moderator

Grounded in agency and stewardship theories, this study investigates the U-shaped relationship between entrepreneurial orientation and exploratory/exploitative innovations and the moderating effects of strategic planning. Empirical data is collected from 396 A-share listed public companies in China. Entrepreneurial orientation is assessed via internal R&D and external investment data, while content analysis captures exploitative, exploratory innovation, and strategic planning. The empirical findings yield two core conclusions: (1) This study finds the presence of U-shaped relationships between entrepreneurial orientation and exploratory/exploitative innovations. As entrepreneurial orientation increases to an inflection point, it exhibits negative effects due to managerial agency behavior; however, beyond this point, it yields positive outcomes due to stewardship. (2) Strategic planning positively moderates the U-shaped relationships, countering agency impact at low orientation levels while enhancing stewardship at higher levels. These insights advance entrepreneurial orientation research, agency vs. stewardship literature, and provide a roadmap for fostering exploratory and exploitative innovations through strategic integration of entrepreneurial orientation and leveraging of strategic planning.