Abstract: In the context of market uncertainty and technological change, exploratory innovation and exploitative innovation are the significant strategies for small and medium enterprises(SMEs)in China when they face the dilemma of transformation and upgrading. Based on the data about 199 Chinese SMEs, this paper investigates the relationship between exploratory innovation, exploitative innovation and organizational performance by adopting the hierarchical regression technique. It explores the differentiated effects of exploratory innovation and exploitative innovation on organizational performance. Meanwhile, this paper also examines the moderating role of environmental turbulence in the relationship between exploratory innovation, exploitative innovation and organizational performance. The results suggest that the impact of exploitative innovation on organizational performance appears to be greater than that of exploratory innovation. Furthermore, it is found that market turbulence, technology turbulence,and the two dimensions of environmental turbulence all moderate the relationship between exploratory innovation and organizational performance positively, while they moderate the relationship between exploitive innovation and organizational performance negatively.