Resource Allocation Mechanism for Ambidexterity based on Technology and Customer Knowledge: A model considering the differences of organizational approaches to achieve ambidexterity

Abstract

While preparing for the decline of existing businesses, creating new ventures through innovation is crucial but often overshadowed by the focus on current operations. Ambidexterity, which balances exploiting existing businesses with exploring new opportunities, has emerged as a key strategy. This study models ambidexterity's structure to simulate its impact on corporate performance under various scenarios. Previous models have not adequately captured the transition from existing to new businesses or differences in organizational approaches. To address this gap, this study introduces the EE Matrix, representing a company's knowledge across two dimensions—technology and customer—and illustrating the shift from current operations to new ventures. Expert interviews confirm the effectiveness of this structural model. The study contributes theoretically by demonstrating how ambidexterity's contextual and structural approaches affect performance and how their combined application can enhance outcomes. It also offers practical insights for addressing innovation challenges in management.