Abstract: | In order to leverage organizational learning, scholars have already defined but are still discussing the interpretation of two different learning types, exploration and exploitation. Exploring new frontiers across knowledge domains and maintaining the balance with exploiting the existing knowledge is critical for the prosperity of an organization. The spatial dimension of organizational learning considers that proximity of employees has an influence on their learning activities, but from a rather macro perspective without taking workspace design into account. We account for these issues by examining the impact of workspace design on knowledge exploration and exploitation on the micro level at distinct stages along the value chain (i.e., the research, development and project market team unit) of Novartis, a pharmaceutical company. In a longitudinal study, employees of the three cases have been interviewed and observed over the course of three years, before and after workspace redesign. With the change from a cellular to an open workspace, employees become closer and highly visible to each other, which influences knowledge work. As the cases occurred sequentially in time, design principles were derived. The findings suggest that exploitation is supported by workspace design that leads to high proximity inducing faster feedback cycles and first‐hand information. Exploration, however, is supported by workspace design that leads to high visibility triggering more cross‐functional interactions and thereby the variability of knowledge. The later the stage in the research and development process, the higher the need for balanced learning activities. This balance is well reflected in a ‘multi‐space’ workspace consisting of shared meeting areas, quiet zones, central staircases and integrated laboratories and desk areas. |