Research On Resource Allocation Under Limited Resource At Given Strategy For Corporation Conducting Ambidextrous Innovation

During their continuous development period,firms need to balance the shot-term ability of return and long-term competitive advantages,as a result,it's better for firms to find an efficient way to balance the exploitation and exploration.Exploitation refers to the innovation of updating based on the old knowledge and solutions,deepening the depth of existing products and technology with the aim at meeting the demand of now existing market and customers,where exploration's goal aiming at expanding new markets or meeting the needs of new emerging customers by developing new products,service and technology based on the existing technology.This "trade-off" between exploration and exploitation will give firms an insurance that high-level short-term return keeps stability,while long-term competitive capacity can be strengthened with the continual transformational innovation.The enterprise is the key to pursue innovation-driven development.The innovation strategy selection of enterprises is the important issue in the theory and practice.Nowadays,the innovation ambidexterity becomes a hot area of research,making it becoming a very core issue for firms to make an efficient strategy balancing exploration and exploitation.As the situation with limited resources,it is not possible to develop the two innovation activities infinitely,leading to the problem trade-off strategy shifting into the problem of how to allocate the limited resource to exploration and exploitation.However,existing researches usually take“resource limitation" as constraint condition on the analysis of innovation ambidexterity,and attach great importance on the antecedent,moderate,mediating and control variables of ambidextrous innovation,but rarely research the allocation problem of limited resources in exploitative innovation and exploratory innovation.This research focuses on dynamic resource allocation mechanism of ambidextrous innovation in enterprises.It is generally agreed by the academy that only these two innovation behaviors develop at the same time,can enterprises remain competitive and acquire the long-term benefits.But researchers seldom study the specific allocation mechanism on the limited innovation resources.As a result,it is worth a lot to conduct a research on the trade-off between exploitation and exploration,not only from the perspective of actual needs,and also for the theoretical empty.This research is conducted based on the March's now seminal work of the balance of these two innovation activities,by using methods like theoretical deduce,model hypothesis and mathematical simulation.It mainly focus on the definition,relation and balance of exploration and exploitation,with comparing statics and dynamic decision.This research takes the dynamic resource allocation as the main focus,given that exploitation mainly affect the short-term performance whereas exploration mainly have effect on the long-run,put the gap between target goal and real performance as the motivation to drive the manager re-allocate the resources,according to the Behavioral Theory of the Firm.Then,taken into consideration the respective character of exploration and exploitation,this research conduct a perfect dynamic cyclic mechanism for resource allocation by using knowledge level as the mediate variable.Based on that,this article will go in two submodule,one is to analysis three mathematical module:resource allocation function over performance gap in last term,knowledge level creativity function and knowledge production function,using theoretical and logical analysis;the other one is to conduct a simulation by dividing firms into four types:high sensitiveness of performance gap with high exploration preference firm,high sensitiveness of performance gap with low exploration preference firm,low sensitiveness of performance gap with high exploration preference firm,and low sensitiveness of performance gap with low exploration preference firm,based on its ambidextrous innovation mode.At the end,through theoretical revise and analysis,this article conduct the conclusion that,firms should put a high priority on dynamic deciding than statics deciding,which is support by contingency theory.The previous research shows that the allocation proportion on enterprise resources is associated with performance gap between the targeted performance and actual performance and both exploitative innovation and exploratory innovation can increase the level of knowledge and promote the development of performance.Based on this theory,a simulation was conducted.And the result shows that exploratory innovation-oriented firms have better long-term performance than exploitative innovation-oriented firms.And for exploratory innovation-oriented firms,the more sensitive on the performance gap,the better long-term performance,but for the exploitative innovation-oriented firms,the less sensitive on the performance gap,the better long-term performance.The innovation point of this article is that it makes it more clearly about the framework of ambidextrous innovation trade-off,to some extent clarified the relation between the exploration and exploitation.And then,it compares the strengths and weakness between dynamic deciding and statics deciding.Last but not least,this article makes the dynamic allocation mechanism more compete,leading to a more applicable conclusion.There are also some limits here,one is that the path this research has made in this area is relatively not big enough,because of rare relevant research before,it is possible that with more research about this area arise,there will be a more systematic theory upon the ambidextrous innovation resource allocation area.