STRATEGIC MANAGEMENT OF INNOVATION: MANAGING EXPLORATION-EXPLOITATION BY BALANCING CREATIVITY AND CONSTRAINT

This paper offers a model for effectively managing ambiguity at the fuzzy front end of innovation projects. We conducted in-depth studies of four new product development projects from the medical device industry. Through the abductive process of iterative grounded theory we built a model of the management of ambiguity. The model we propose shows that innovation teams that have a higher tolerance for ambiguity are better able to exploit it. The successful management of ambiguity in innovation projects rests upon the balancing of opposing needs.