Abstract:Using the data collected from 265 new ventures, this paper put environmental terbulence into the antecedent framework of exploitation/exploration innovation. Our results showed that both technological turbulence and market turbulence are significantly and positively related with the exploitation/exploration innovation as well as the balance between them. Meanwhile, our results showed exploitation and exploration innovation as well as the balance between them are significantly and positively related with new venture performance. However, exploration innovation have a greater effect on new venture performance. We suggest that new venture need to make a tradeoff between exploitation and exploration rather than maintain a balance between them.