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Abstract Aiming at opening the black box in RBV, enriching research findings of resource allocation, and discussing what pattern of resource allocation can promote exploratory innovation, accordingly strengthen competitive advantage, this paper absorbed the latest research achievement which is real optional resource allocation, analyzed and 〖JP〗verified that real option resource allocation's positive effects on company's competitive advantage as well as the mediating effect of exploratory innovation using regression analysis method. Results show that real optional resource allocation promotes company's competitive advantage and exploratory innovation; exploratory innovation plays a role of partial mediation. This research also finds that the pattern of resource allocation is more important than resource inputs for enhancing competitive advantage.
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