Balancing incremental and radical innovation through performance measurement and incentivization

The literature has discussed the introduction of incentive structures as a means achieving balance between organizational exploration and exploitation. This study posits that this is not reasonable approach to such balance. I used micro-economic model where explorative exploitative activities are modeled in accordance with definitions March (1991). shows personal cost employee performing was crucial factor determining their balancing resources However, these costs also Achilles' heel calculations because information regarding type incomplete difficult, perhaps even impossible, for owner or manager obtain. Based on process output characteristics exploratory activities, argue it appropriate design hard, quantitative performance measurement system resource allocation activities. solution must be found outside system. Further, posit managing R&D departments requires management focus enforcing productive workspaces norms associated disbursal rewards/punishments.