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Article
Publication date: 28 February 2023

Kai Zhang, Hefu Liu, Yang Li and Xia Wu

The purpose of this study is to examine the underlying mechanisms of exploitative innovation and exploratory innovation between social media usage and organizational agility, and…

Abstract

Purpose

The purpose of this study is to examine the underlying mechanisms of exploitative innovation and exploratory innovation between social media usage and organizational agility, and elucidate the moderating role of learning goal orientation (LGO) in the above relationships, based on adaptive structuration theory (AST).

Design/methodology/approach

Based on a multiple-respondent matched survey of 334 Chinese e-commerce firms, authors employed structural equation modeling to examine the correlations among social media usage, exploitative innovation, exploratory innovation and organizational agility. Hierarchical regression analysis was used to examine the moderating role of LGO.

Findings

This study's empirical findings demonstrate that exploitative innovation and exploratory innovation mediate the relationship between social media usage and organizational agility in different ways. Further, LGO positively moderates the relationship between social media usage for customer acquisition and exploratory innovation, as well as the relationship between social media usage for customer relationship and exploitative innovation.

Practical implications

Firms are advised to leverage different types of social media usage to facilitate exploitative innovation and exploratory innovation and promote organizational agility. In addition, LGO within a firm should be established to enhance the effects of social media usage on exploitative innovation and exploratory innovation.

Originality/value

This study adds to the literature on social media usage by proposing and examining exploitative innovation and exploratory innovation as explanatory mechanisms to facilitate organizational agility. This study further identifies LGO as a boundary condition of social media usage's effect on exploitative innovation and exploratory innovation. By contextualizing social media as advanced information technology, this study contributes to the contextualization of AST in the social media context.

Article
Publication date: 28 June 2023

Xi Zhong, Ge Ren and Xiaojie Wu

Economic policy uncertainty has increased around the world since the financial crisis of 2007–2008. While scholars have devoted a lot of time and energy to investigating the…

Abstract

Purpose

Economic policy uncertainty has increased around the world since the financial crisis of 2007–2008. While scholars have devoted a lot of time and energy to investigating the impact of economic policy uncertainty (EPU) on firm innovation, they have not reached consistent research conclusions. This study aimed to clarify the above research differences by exploring the impact of EPU on firms' relative exploitative innovation emphasis, so as to provide a more comprehensive and granular understanding of the relationship between EPU and firm innovation.

Design/methodology/approach

This study obtained 17,165 firm-year data points from 3,107 listed companies in China. It analyzed the above data with a fixed effects model. In addition, this study used an instrumental variables method to solve potential endogeneity problems.

Findings

Based on real options theory and contingency theory, the authors proposed and found that EPU has a significant positive effect on relative exploitative innovation emphasis. In addition, the authors proposed and found that this effect is more pronounced in industries with high technological uncertainty, low competitive intensity, and low state monopolization.

Originality/value

This study is the first to explore why firms prefer exploitative innovation over exploratory innovation from the perspective of EPU. In doing so, this study expands and enriches the EPU literature and the innovation literature. Furthermore, by introducing the moderating role of industry environment, this study deepens the authors' understanding of how complex interactions between industry and institutional environments work together to shape firm strategic choices, and especially firm innovation. Finally, the conclusions of this study have important practical implications for shareholders to take measures to balance exploitative innovation and exploratory innovation to achieve better development.

Details

European Journal of Innovation Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 29 December 2021

Sebastian Ion Ceptureanu and Eduard Gabriel Ceptureanu

The purpose of the study was to analyse the impact of innovation ambidexterity represented by explorative and exploitative innovation capabilities and their combined effects on…

Abstract

Purpose

The purpose of the study was to analyse the impact of innovation ambidexterity represented by explorative and exploitative innovation capabilities and their combined effects on product innovation performance and to prove the mediating effect of decentralization.

Design/methodology/approach

The study uses partial least squares for structural equation models and SmartPLS version 3.3.1 on a sample of 174 Romanian medium- and large-sized firms from the IT industry to test six research hypotheses. To measure innovation ambidexterity, the orthogonal approach was used, conceptualizing innovation ambidexterity as a multidimensional, second-order construct composed of explorative and exploitative innovation capabilities. Innovation ambidexterity was conceptualized as a multiplicative term of both explorative and exploitative innovation capabilities.

Findings

The empirical results prove that innovation ambidexterity is positively correlated with product innovation performance, while decentralization is mediating the impact of innovation ambidexterity on product innovation performance in the IT industry.

Research limitations/implications

The data was based on self-reported assessments of senior executives. While innovation ambidexterity may influence product innovation performance in the long term, such long-term effects are not assessed. Other studies found a moderating effect between centralization or decentralization and ambidexterity, while we found that it has a mediating effect.

Practical implications

In the context of innovation capability, the combination of explorative or exploitative capabilities may lead to a better synergy. Innovation ambidexterity influences product innovation performance through a synergistic effect, making the simultaneous combination of capabilities useful for firms willing to make efficient use of existing resources and make their capabilities mutually supportive. Moreover, for senior executives, the effects of decentralization as a mediator provide further incentive to include it in their development of firms' innovation capabilities.

Originality/value

This study extends findings of other studies by contributing to a deeper examination of the effects of decentralization, on innovation outcomes by focusing on a specific type of innovation, product innovation. Moreover, since innovation capability is often studied in small firms or in the manufacturing industry, this study contributes to the research on innovation capability and the consequences on innovation capability in the services sector and medium- and large-sized companies. By proving that decentralization mediates the effects of innovation ambidexterity on product innovation performance, it enables reconsideration of the organizational structure role in fostering innovation.

Article
Publication date: 26 April 2022

Hui Zhang, Huanhuan Xiong, Qian Wang and Yongjie Gu

This paper aims to explore the impact of enterprise niche on dual innovation performance and the moderating role of innovation openness on the relationship between enterprise…

Abstract

Purpose

This paper aims to explore the impact of enterprise niche on dual innovation performance and the moderating role of innovation openness on the relationship between enterprise niche and dual innovation performance.

Design/methodology/approach

This study uses the panel data of the enterprise technology patents of China's Top 100 Electronic Information Enterprises from 2009 to 2018. Multiple regression analyses were used to test the hypotheses.

Findings

Niche width has a significant positive impact on exploitative and exploratory innovation performance. Niche overlap has an inverted U-shaped effect on exploitative innovation performance and significantly positively affects exploratory innovation performance. Innovation openness negatively moderates the impact of niche width on exploitative innovation performance and positively moderates the impact of niche overlap on exploitative innovation performance.

Originality/value

This study provides new insights into the effects of enterprise niche on dual innovation performance by showing the moderating role of innovation openness. The study finds a strategic logic of moderate niche overlap, clarifies the innovative effect of different innovation openness modes and reveals the construction and management mechanisms of enterprise niche and innovation openness strategy.

Details

European Journal of Innovation Management, vol. 26 no. 6
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 2 January 2024

Xianglin Zhu, Naiding Yang, Mingzhen Zhang and Yu Wang

Technical knowledge is a key factor in firm innovation. This study aims to construct a theoretical framework of technological boundary-spanning search, exploratory innovation and…

Abstract

Purpose

Technical knowledge is a key factor in firm innovation. This study aims to construct a theoretical framework of technological boundary-spanning search, exploratory innovation and exploitative innovation to help firms adjust their search strategies and improve the effect of external resources on internal innovation.

Design/methodology/approach

The study uses questionnaires to collect data and conducts empirical analysis using SPSS25 and AMOS24.

Findings

Technological boundary-spanning search is positively correlated with ambidextrous innovation. Additionally, knowledge base positively moderates the effect of technological boundary-spanning search on ambidextrous innovation and knowledge distance negatively moderates the effect of technological boundary-spanning search on ambidextrous innovation. When a firm’s knowledge base is robust, its ambidextrous innovation can benefit more from technological boundary-spanning search. Additionally, when the knowledge distance is less, a firm’s ambidextrous innovation can benefit more from technological boundary-spanning search.

Originality/value

Considering organizational ambidexterity, this study divides firm innovation into exploratory innovation and exploitative innovation and presents a theoretical framework for the effect of technological boundary-spanning search on ambidextrous innovation. Additionally, it provides a comprehensive understanding of the crucial roles of knowledge base and knowledge distance in the relationship between technological boundary-spanning search and exploratory and exploitative innovation.

Details

Management Decision, vol. 62 no. 1
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 3 October 2023

Phong Ba Le and Hung Manh Le

Given the importance of leadership practices and knowledge resources in fostering innovation capabilities of firms, the purpose of this study is to explore the influence of…

Abstract

Purpose

Given the importance of leadership practices and knowledge resources in fostering innovation capabilities of firms, the purpose of this study is to explore the influence of transformational leadership on exploitative and exploratory innovation via mediating role of knowledge management capability. This study also attempts to increase understanding of the appropriate mechanisms for firms to pursue innovation capability by examining the moderating mechanism of competitive intensity.

Design/methodology/approach

This study utilized the structural equation modeling and cross-sectional design to test hypotheses in the proposed research model using survey data collected from 351 participants in 120 manufacturing and service firms.

Findings

The findings indicate that transformational leadership induces greater effect on exploratory innovation compared to its effect on exploitative innovation. The mediating role of knowledge management capability between transformational leadership and aspects of innovation capability is also supported. Especially, the influences of knowledge management capability on exploratory innovation capability are enhanced and depended on the degree of competitive intensity.

Research limitations/implications

Future research should examine the mediating mechanisms of knowledge acquisition, knowledge sharing and knowledge application to provide deeper insight on the role of specific components of knowledge management capability in linking transformational leadership and innovation capability.

Practical implications

The paper highlights the important role of transformational leadership practices for fostering knowledge management capability and specific aspects of innovation capability under high level of competitive pressure.

Originality/value

The paper is unique in the attempts to provide a prospective solution for firms to pursue and improve innovation based on the meaningful insights on the mediating role of knowledge management capability and moderating effect of competitive intensity in the relationship between transformational leadership and specific dimensions of innovation capability.

Details

Leadership & Organization Development Journal, vol. 44 no. 8
Type: Research Article
ISSN: 0143-7739

Keywords

Article
Publication date: 20 September 2022

Jian Zheng, Renjing Liu, Ru Zhang and Hao Xu

In the context of virtual brand communities (VBCs), based on self-determination theory and organizational binary learning (OBL) theory, this study investigates the direct and…

Abstract

Purpose

In the context of virtual brand communities (VBCs), based on self-determination theory and organizational binary learning (OBL) theory, this study investigates the direct and indirect effects of various dimensions of consumer participation (CP) on firm innovation performance (FIP) and the mediating role of OBL. By introducing the perspective of knowledge absorptive capacity (KAC), this study examines the moderating effect of KAC on the relationship between OBL and TIP.

Design/methodology/approach

In this study, 751 samples are collected from Chinese firms, and stratified adjusted regression analysis is used to conduct empirical tests.

Findings

Information provision or co-creation directly affects FIP; the latter is more significant than the former, while social interaction does not directly affect FIP. Exploitative or exploratory learning plays a mediating role in the relationship between information provision or co-creation and FIP. In contrast, exploratory learning plays a mediating role in the relationship between social interaction and FIP. KAC has a positive moderating effect on the relationship between exploitative learning or exploratory learning and FIP. When the firm has a low KAC, the improvement of FIP through exploratory learning is slight.

Originality/value

In VBCs, this study tries to divide the dimensions of CP. It also clarifies the mediating effect of OBL on CP and FIP. In addition, it explores the moderating effect of KAC on OBL and FIP. The conclusions of this study provide theoretical support and practical inspiration for firms to use VBCs to improve FIP.

Details

European Journal of Innovation Management, vol. 27 no. 3
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 12 September 2023

Md Imtiaz Mostafiz, Farhad Uddin Ahmed, Fahad Ibrahim and Shlomo Yedidia Tarba

This study aims to investigate how international entrepreneurial firms (IEFs) successfully commercialise innovative products/services internationally. In doing so, the authors…

Abstract

Purpose

This study aims to investigate how international entrepreneurial firms (IEFs) successfully commercialise innovative products/services internationally. In doing so, the authors examined the role played by the international dynamic marketing capability (IDMC) in the relationship between explorative and exploitative innovation and commercialisation. In addition, the authors also evaluated how the breadth and depth of international networks facilitate IEFs in upholding the effects of the IDMC to influence commercialisation.

Design/methodology/approach

To test the research model, structural equation modelling is used based on time-lagged survey data drawn from 201 Malaysian IEFs. To validate the results, additional robustness tests and endogeneity analyses have been performed.

Findings

The findings show that the IDMC positively mediates the relationship between explorative and exploitative innovation and commercialisation. Furthermore, the finding exhibits that the effects of the IDMC on commercialisation are positively moderated by the breadth and depth of international networks.

Originality/value

Given the fragmented and general nature of the extant marketing research on the IDMC, the study contributes to the international marketing literature by providing rich and nuanced pertinent knowledge. This study advances dynamic capability theory in relation to IEFs by establishing the IDMC as a functional capability suited to enable them to successfully commercialise the products/services resulting from explorative and exploitative innovation.

Article
Publication date: 18 April 2024

Sehrish Huma, Sidra Muslim and Waqar Ahmed

The purpose of this paper is to empirically investigate the impact of organizational intellectual capital (IC) components on absorptive capacity (ACAP) such as potential…

Abstract

Purpose

The purpose of this paper is to empirically investigate the impact of organizational intellectual capital (IC) components on absorptive capacity (ACAP) such as potential absorptive capacity (PACAP) and realized absorptive capacity (RACAP). Furthermore, it attempts to investigate the mechanism through which PACAP and RACAP jointly influence innovation strategies (i.e.) exploitative and exploratory innovations.

Design/methodology/approach

This is an explanatory research using a deductive approach. This study uses survey data from 184 manufacturing export firms analyzed through partial least squares structural equation modelling.

Findings

The results have found that the cognitive and social capital of a firm positively affects PACAP and RACAP, whereas relational capital has a significant effect on RACAP. Moreover, the study reveals that both potential and realized absorptive capacities considerably lead to the development of organizational exploitative and exploratory innovation strategies.

Research limitations/implications

The research focused on two driving factors, i.e. IC components and ACAP dimensions, and overlooked how each component of IC and ACAP influences ambidextrous innovative strategy.

Practical implications

Providing managers with insights about the critical role of developing IC to facilitate the transfer and exchange of crucial absorptive capacity necessary for ambidextrous innovative strategy.

Originality/value

This study makes a significant contribution to the existing literature by highlighting the importance of ACAP and provides useful insights for firms in developing economies to improve their exploitative and exploratory innovation capability. This study likewise reveals the significance of the four dimensions of IC, which can facilitate bringing in knowledge from developing economies.

Details

Review of International Business and Strategy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2059-6014

Keywords

Article
Publication date: 25 March 2024

Hyoungjin Lee and Jeoung Yul Lee

This study examines how the characteristics of innovation knowledge exchanged among affiliate firms affect the ownership strategies adopted for their foreign subsidiaries.

Abstract

Purpose

This study examines how the characteristics of innovation knowledge exchanged among affiliate firms affect the ownership strategies adopted for their foreign subsidiaries.

Design/methodology/approach

This study employs a cross-classified multilevel model to examine a sample of 185 Korean manufacturing affiliates derived from 49 Chaebols engaged in international diversification, along with their 1,110 foreign manufacturing subsidiaries.

Findings

While exploratory innovation knowledge exchange lowers the affiliate's level of ownership in its foreign subsidiary, exploitative innovation knowledge exchange rather increases the affiliate's level of ownership in its foreign subsidiary.

Research limitations/implications

This study advances the literature on intrafirm knowledge exchange by highlighting it as a determinant of ownership strategies. The study further shows that the characteristics of knowledge exchanged at the affiliate level not only determine the ownership structure but also have the potential to shape the direction in which the subsidiary develops its competencies.

Practical implications

This study has practical implications for the managers of business group affiliates. The results suggest that managers should adapt their ownership strategies according to the type of knowledge exchanged at the affiliate level to achieve a balanced and synergistic effect on intraorganizational knowledge exchange.

Originality/value

Previous studies have extensively explored the performance implications related to knowledge exchange. However, there is a notable gap in understanding the mechanisms through which the value of knowledge transferred within an affiliate is realized. To address this gap, this study focuses on ownership strategy as a crucial factor and empirically examines how the characteristics of innovation knowledge exchanged among affiliate firms influence the ownership strategies adopted for their foreign subsidiaries. By investigating this relationship, this study provides valuable insights into the complex dynamics of knowledge exchange and its effect on ownership decisions within business group affiliates.

Details

Cross Cultural & Strategic Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2059-5794

Keywords

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