Pardew was forced to defend the club's transfer policy at the start of September as Newcastle failed to sign anyone on a permanent deal in the summer transfer window, bringing in only Loic Remy on loan from QPR.
Remy has been crucial to the Magpies in the early part of the season, scoring five of their nine league goals, but speaking to Goals on Sunday, Pardew hinted at his frustration with life at St James' Park.
"Mike is a strong character who has been a success in his whole business life and is a genius in that world - but when you come to football the logic doesn't quite fit," he said.
"He loves football but he sometimes can't understand how it works and it confuses and upsets him, and when he is upset he does things that aren't brilliant for the football club.
"That's just Mike and he has funded the club, made sure we have no debt - other than to himself - and supported me, but unless we get a billionaire from deepest Russia we are probably not going to be able to compete with the likes of Man United, Man City and Chelsea, which is what our fans want."
Regarding the lack of summer signings, Pardew said: "We were after flair players and when you get into that market as a Premier League club, you have your league and divisions like the Bundesliga chasing them because they are a rare commodity, so it is difficult to get them over the line.
"Loic Remy has been a great signing and given us what we didn't have last year which is a striker who can play, build the game and finish, while he has a nice manner, is comfortable with our group and has the confidence to play for Newcastle, too.
"But Mike has put in about £200million of his own money and I don't think he wants to put any more of his own money in.
"If Yohan Cabaye had have gone we might have had more to play with and got a striker, but I'm glad he stayed because he is an important player and such a talent in terms of his technique and manoeuvring of the ball, and is good a midfielder as I've worked with.
"We did have some words when he tried to force a move, though, and he has some making up to do."
Pardew also insists he is comfortable with the role that Joe Kinnear, who was appointed as director of football in June, plays at St James' Park.
He continued: "Derek Llambias was in charge of the transfers at the club and I worked well with him, but Mike Ashley decided he wanted a change in that department and wanted someone in place who knew football.
"He whispered that someone might be coming in without telling me the name and then I later found out that it was Joe, someone I didn't know at all.
"I have got to know him a bit now in his role as Mike's confidante where he gets asked: 'What does the manager need and what can I do for him?' and so far he has been very supportive.
"I have told him what I want and his job is to try and get it out of Mike. He is not involved at the training ground or in tactics and hasn't even offered me his opinion on those things, so I am comfortable with that and hope he can get the message to Mike on the one or two issues I think we need to address, one of which is more British players as we are starting to get filled up with too many foreign players."