Logical mechanism for allocating resources to exploitation and exploration to achieve ambidexterity: Team level analysis

Abstract

Despite the rise of studies on knowledge creation in the perspective of exploitation and exploration in organizational learning, previous studies are rare which suggested a concrete mechanism regarding how to allocate limited resources to exploitation and exploration to remain ambidextrous. Main purposes of this paper are to make logical argument on how teams create creativity through knowledge creation by balancing exploitation and exploration, and to present a new logical mechanism by which teams allocate their limited resources to exploitation and exploration to achieve balance between them. Time-dependent simulations were conducted to prove the validity of the proposed logical mechanism for sustaining the balance between exploitation and exploration. © 2010 Springer-Verlag Berlin Heidelberg.