Abstract: Based on the absorptive capacity theory and dynamic resource bunding theory, this article explores the effects of external knowledge exploration and internal knowledge exploration on radical innovation. Moreover, we consider the moderating effect of dual dynamic resource bundling on the relationships between knowledge exploration and radical innovation. With an empirical work based on data covering 203 firms, we find 1) that the impacts of dual knowledge exploration on radical innovation are obviously different, and the interaction of external knowledge exploration and internal knowledge exploration positively affects radical innovation.2) that dual dynamic resource bundling, stabling resource bundling and pioneering resource bundling, moderates the effect of dual knowledge exploration on radical innovation in different ways. Our work may shed some lights on the solution of the conflicts on the relationship between knowledge exploration and radical innovation, and also, provides useful suggestions for firms to promote radical innovation.

Key words: knowledge exploration, resource bundling, radical innovation