Resource Allocation Mechanism Considering Combination of Exploitation and Exploration in Ambidexterity with External Factors

Abstract

This paper proposes a model to represents the mechanism of resource allocation in an enterprise from the perspective of ambidexterity. The recent years have been called an uncertain era, ambidexterity, which balances exploitation, which is the maintenance and expansion of existing businesses, and exploration, which is the creation of new businesses, is important. Thus, it is necessary to elucidate the mechanism of resource allocation in ambidexterity. However, it is difficult to simply distinguish the activities in a company as either exploitation or exploration. In addition, resource allocation is greatly affected by external factors. In this paper, a model that represents the transition of corporate performance is constructed by considering these factors. This model expresses markets and business regions by the exploitation and exploration matrix and corporate performance by the transition of knowledge in each region based on a resource allocation ratio. A resource allocation mechanism using the model is proposed in this paper. This makes it possible to explain the relationship between resource allocation scenarios for exploitation and exploration and corporate performance.