This study examines the exploration-exploitation trade-off in hierarchical organizational structures under varying environmental turbulence. Using a computational model, we analyze how the senior manager (SM) and middle managers (MMs) optimize exploration strategies across different organizational configurations—bottom-heavy, top-heavy, and balanced structures. Our findings reveal that MMs’ exploration rates increase consistently with turbulence, while SM’s strategy is highly dependent on the structure. By linking structural and environmental factors, this study reconciles conflicting findings in the literature and provides a robust framework for understanding hierarchical decision-making in dynamic environments
