This study aims to examine the role of technological innovation exploration routines in upgrading the value chain of new product development or process development for Korean SMEs to survive global competition. After analyzing 131 SMEs, we found that innovation exploration routines have a significant impact on product and process upgrades. We also found that product and process upgrades have a greater impact on SMEs' competitiveness. In particular, process upgrades have a greater impact than product upgrades, suggesting that Korean SMEs prioritize stability through process innovation to compete effectively. The paper concludes with a discussion of theoretical and practical implications for SMEs' technological innovation exploration routines, followed by limitations of the study and suggestions for future research.