Beyond internal exploration and exploitation, firms increasingly explore and exploit knowledge outside their boundaries in corporate entrepreneurship activities with external partners. We provide new theoretical arguments and use data from a multi‐informant survey of 97 medium‐sized firms to show that the interactions of intraorganizational and interorganizational processes allow for simultaneous exploration and exploitation in open innovation. While the positive effects of all interactions of exploration and exploitation on product development performance are limited under stable conditions, they are particularly pronounced at high levels of technological turbulence. These findings have implications for research into strategic entrepreneurship, corporate entrepreneurship, organizational learning, ambidexterity, and technological turbulence.