2020 Volume 28 Issue 2 Pages 69-90
Management control plays different roles at the same time in order to achieve organizational ambidexterity. Management must be responsible for fostering startups and operating existing businesses, and maintain an optimal balance between exploitation and exploration. Influencing activities on organizational members are extremely complex. Management control functions both as a mechanism for generating variations and as a mechanism for selection. Three different areas of management control were identified. The first is management control to run existing businesses efficiently. Resources for exploration activities necessary for new business creation must be secured. Second, it is necessary to develop management controls used within new businesses. Methodologies such as lean startup have been accumulated and systematized. Third is the optimal resource allocation between exploration and exploitation. Activities for creating new businesses can be carried out in-house or purchased from external markets. There needs to be an appropriate management mechanism for the resource allocation portfolio.
