How to select the mode of balancing exploration and exploitation: A study based on computer simulation

Based on fitness landscape theory and NK model, this study tries to construct ambidexterity and punctuated equilibrium and simulate how the enterprise chooses the appropriate mode of balancing exploration and exploitation to get a better performance. Our results indicate that, (1) when the resources are sufficient, ambidexterity can outperform punctuated equilibrium; and when the resources are limited, ambidexterity achieves a roughly equal performance with the punctuated equilibrium in the short-term, and a higher performance in the long-term; (2) in the case of rich resources, and with the innovation complexity increases, ambidexterity will yield an distinct advantage than punctuated equilibrium with the increasing innovation complexity. When the resources are limited, ambidexterity will get a lower short-term performance and a higher long-term performance than punctuated equilibrium at a lower innovation complexity. As the innovation complexity increases, ambidexterity will gradually lead to equal short-term performance with punctuated equilibrium, and higher long-term performance.