Abstract
Exploratory innovation is vital in rapidly changing environments to maintain a competitive advantage. This study examines the impact of managerial personality traits as a microfoundation of exploratory innovation decisions, specifically focusing on the dimensions and facets of the Big Five Model. Through three distinct studies, we investigated the relationship between managers' Openness and their inclination towards exploratory innovation. In the first study, managers with higher Openness were found to favor more exploratory policies, particularly in less competitive environments, indicating a direct link between Openness and enhanced firm performance (Study 1, N = 203). The second study showed that product managers with higher Openness preferred exploratory over exploitative strategies (Study 2, N = 112). The third study used a multi-armed bandit task to demonstrate that individuals with greater Openness are more likely to make exploratory decisions in uncertain environments (Study 3, N = 494). Overall, these findings highlight the critical role of Openness, especially its facet of imaginativeness, in driving exploratory innovation. They also suggest that focusing on specific facets of personality traits can provide deeper insights into strategic leadership and innovation.