AMBIGUITY AND LEARNING IN THE INNOVATION PROCESS: MANAGING EXPLOITATION-EXPLOITATION BY BALANCING CREATIVITY AND CONSTRAINT REVISITED

In this paper, we explicate the details of the management of ambiguity and the balancing of creativity and constraint as it relates to organizations' absorptive capacity. The innovation process is characterized by cycles of expensive (explorative) activity where ambiguity increases, and constrictive (exploitative) activities, where ambiguity decreases. We argue that ambiguity oscillates in the short run and decrease in the long run while learning increases. These fluctuations in the opportunity space are driven by the balancing of creativity and constraint.