DocumentCode :
570596
Title :
Anticipating organizational technological exploration and exploitation dynamics under varying knowledge usage rates
Author :
Mäkinen, Saku J. ; Vilkko, Matti
Author_Institution :
Dept. of Ind. Manage., Tampere Univ. of Technol., Tampere, Finland
fYear :
2012
fDate :
July 29 2012-Aug. 2 2012
Firstpage :
195
Lastpage :
200
Abstract :
The central decision any organization must make is its balancing act of determining which markets to serve with what products and balancing between exploration-exploitation i.e. whether to seek new technological knowledge to develop new offering or whether to allocate scarce resources to established technological knowledge and serve current markets. This core strategic dimension can subsequently be dichotomized to a decision-making regarding exploitation versus exploration balance under the management of absorptive capacity in acquiring versus discarding new technological knowledge. We explore the dynamics of balance of innovation output regarding resulting from dichotomized strategic decisions in exploration and exploitation under the variable rate of external technological knowledge usage. We build a system dynamic model considering the process of absorptive capacity at the company level and additionally facilitate feedback loops in the process. We shed light on the dynamics of innovation creation from external technological knowledge acquisition when small initial changes in strategic decision making lead to substantial differences in company output. Our simulations illustrate in their basic form how various managerial decisions regarding exploration-exploitation dichotomies in line with the usage of acquired knowledge may influence the output of R&D.
Keywords :
decision making; innovation management; knowledge management; organisational aspects; resource allocation; R and D; absorptive capacity management; decision making; exploitation balance; exploration balance; exploration-exploitation dichotomy; innovation creation; knowledge usage rate; organizational technological exploitation; organizational technological exploration; research and development; resource allocation; system dynamic model; technological knowledge; Adaptation models; Aging; Decision making; Mathematical model; Organizations; Technological innovation; Technology management;
fLanguage :
English
Publisher :
ieee
Conference_Titel :
Technology Management for Emerging Technologies (PICMET), 2012 Proceedings of PICMET '12:
Conference_Location :
Vancouver, BC
Print_ISBN :
978-1-4673-2853-1
Type :
conf
Filename :
6304038
Link To Document :
بازگشت