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Article
Publication date: 30 July 2010

Yi Li, Nan Zhou and Youhe Si

The purpose of this paper is to explore the impact of a firm's innovation activities on performance, and focus on the internal fit and external fit of two types of innovation

2248

Abstract

Purpose

The purpose of this paper is to explore the impact of a firm's innovation activities on performance, and focus on the internal fit and external fit of two types of innovation activities – exploratory innovation and exploitative innovation.

Design/methodology/approach

The paper adopts the survey data of 397 enterprises in eastern, middle, and western China. The business strategy attributes analysis based on strategic orientation of business enterprises (STROBE) scale was used to classify the business strategy types, and hierarchical regression analyses were employed to test the hypotheses.

Findings

The results show: both exploratory innovation and exploitative innovation have a positive effect on firm performance; the internal fit between exploratory innovation and exploitative innovation, whether it is fit as moderating or fit as matching, has no significant effect on firm performance; the fit between innovation activity and firm business strategy has significant effect on firm performance, therefore, exploratory innovation activity fits defenders and exploitative innovation activity fits prospectors; and the fit between the innovation activity and external environment has a slight effect on firm performance. Environmental competitiveness can enhance exploratory innovation outcome but diminish exploitative innovation outcome.

Originality/value

The paper has supplied the empirical evidence discovered in the context of China to the theoretical views of exploratory innovation and exploitative innovation, and achieved some results which differ from the ones drawn by similar researches done abroad.

Details

Nankai Business Review International, vol. 1 no. 3
Type: Research Article
ISSN: 2040-8749

Keywords

Article
Publication date: 7 April 2020

Volkan Yeniaras, Ilker Kaya and Nick Ashill

The purpose of this paper is to offer a theoretical and empirical understanding of how social ties affect innovation behavior and new product performance in Turkey, which is an…

Abstract

Purpose

The purpose of this paper is to offer a theoretical and empirical understanding of how social ties affect innovation behavior and new product performance in Turkey, which is an emerging economy where high levels of economic and political uncertainties exist.The authors examine whether innovation behavior binds the political and business ties of the firm to new product performance. They also examine if these effects are contingent on variations in the institutional environment and market environment.

Design/methodology/approach

Structural equation modeling and mediation analyses were used on a sample of 344 small- and medium-sized enterprises in Istanbul.

Findings

Business ties are positively related to exploratory innovation behavior and political ties hamper such behavior. The authors also show that government support hinders firms’ disruptive innovation while encouraging incremental innovation behavior. The authors further demonstrate that the positive and indirect relation of business ties to new product performance through exploratory and exploitative innovation is largely insensitive to changes in market and institutional environments. Political ties are negatively (positively) and indirectly related to new product performance through exploratory (exploitative) innovation.

Practical implications

Managers should choose the form of their personal interactions (political and/or business) based on the type of innovation that is being pursued. Additionally, managers should consider both the institutional environment and the market environment as important contingencies in their decision of whether to invest resources in developing social ties to build innovation behavior.

Originality/value

The authors offer a deeper perspective of how social ties in emerging economies affect new product performance by considering exploratory and exploitative innovation behavior as mediating mechanisms. These mediating effects are conditional on institutional and market environments.

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: 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: 17 November 2022

Xi Zhong and Weihong Chen

This study aims to examine whether exploitative and exploratory overseas R&D have independent and significant effects on emerging economy multinational enterprises' (EMNEs’…

Abstract

Purpose

This study aims to examine whether exploitative and exploratory overseas R&D have independent and significant effects on emerging economy multinational enterprises' (EMNEs’) innovation performance and whether top management team (TMT) nationality diversity and openness have a moderating effect on these relationships.

Design/methodology/approach

This study analyzes data collected from Chinese-listed manufacturing enterprises for 2007 to 2018.

Findings

Empirical results show that both exploitative and exploratory overseas R&D can help improve EMNEs' innovation performance. The authors further find that TMT nationality diversity and TMT openness strengthen the aforementioned relationships.

Originality/value

This study presents the first empirical evidence showing whether and when exploitative and exploratory overseas R&D have independent and heterogeneous effects on EMNEs' innovation performance.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 2 April 2020

Hongyun Tian, Courage Simon Kofi Dogbe, Wisdom Wise Kwabla Pomegbe, Sampson Ato Sarsah and Charles Oduro Acheampong Otoo

SMEs could achieve their innovation goals, either through exploitation, exploratory, or ambidextrous learning strategies. This study presents ambidexterity as a more effective and…

2148

Abstract

Purpose

SMEs could achieve their innovation goals, either through exploitation, exploratory, or ambidextrous learning strategies. This study presents ambidexterity as a more effective and efficient strategy that offers superior innovation advantage to SMEs. We also present the role of openness in this relationship.

Design/methodology/approach

Empirical analysis was based on 388 SMEs in Ghana. Various validity and reliability checks were conducted before the presentation of the actual analysis, which was conducted using Ordinary Least Squares approach, run using SPSS (v. 20).

Findings

Findings indicate that although exploitative and exploratory learning strategies individually had a positive significant effect on SMEs' innovation performance, organizational learning ambidexterity was found to have a greater positive impact on innovation performance among SMEs. High levels of openness further boosted the effect of organizational learning ambidexterity on SMEs’ innovation performance.

Research limitations/implications

This study was conducted without recourse to some specific factors that could influence organizational learning ambidexterity among SMEs. Future studies should thus pay particular attention to the determinants of organizational learning ambidexterity among SMEs.

Practical implications

Innovation performance is very critical for the sustainability of firms, and SMEs in particular. Management of SMEs must therefore seek to simultaneously adopt both learning strategies, as that gives firms greater advantage, compared to the adoption of only one strategy.

Originality/value

The study demonstrates that organizational learning ambidexterity had a superior effect on SMEs' innovation performance. High levels of openness further boosted the effect of organizational learning ambidexterity on SMEs' innovation performance.

Details

European Journal of Innovation Management, vol. 24 no. 2
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 16 November 2015

Xin Jin, Jie Wang, Song Chen and Ting Wang

The purpose of this paper is to examine how the knowledge breadth and depth and the balance of the two affect various dimensions of the innovation performance under the…

1617

Abstract

Purpose

The purpose of this paper is to examine how the knowledge breadth and depth and the balance of the two affect various dimensions of the innovation performance under the consideration of the organizational slack as a moderating factor of the analysis framework.

Design/methodology/approach

This study constructs and verifies a research model of knowledge breadth and depth to the explorative and exploitative innovation performance, using the exploratory factor analysis and the hierarchical regression analysis based on a survey sample of 320 Chinese companies.

Findings

The knowledge base is a critical foundation for improving innovation performance of an enterprise. A more detailed analysis reveals that first knowledge breadth provides more benefits for explorative innovation performance while the knowledge depth is more advantageous to exploitative innovation performance of an organization. Second, organizational slack can positively facilitate the improvement of the knowledge depth for the explorative innovation performance while an optimal balance of the knowledge breadth and depth can significantly enhance exploitative innovation performance.

Originality/value

This paper contributes to previous research work by providing both specific comparative studies and a clear explanation of the impacts of different dimensions of the knowledge base, i.e., knowledge breadth and knowledge depth, on innovation performance measures of both exploration and exploitation through a comprehensive empirical study. In particular, organizational slack is found to play a much more complicated moderation role between the knowledge base and the two different dimensions of innovation performance than has been demonstrated in previous research.

Article
Publication date: 13 October 2020

Volkan Yeniaras, Anthony Di Benedetto, Ilker Kaya and Mumin Dayan

Drawing on the literature on dynamic skills, this study builds upon and empirically tests a conceptual model that connects business and political ties, organizational unlearning…

1056

Abstract

Purpose

Drawing on the literature on dynamic skills, this study builds upon and empirically tests a conceptual model that connects business and political ties, organizational unlearning, organizational learning and firm performance. Specifically, this study suggests that business ties enable and political ties inhibit organizational unlearning (i.e. regenerative dynamic capability), which may, in turn, affect exploratory (i.e. renewing dynamic capability) and exploitative (i.e. incremental dynamic capability) innovation behaviors of the firm. Thus, the purpose of this study is to offer a theoretical framework in which organizational unlearning and learning act as mediating mechanisms between business and political ties and firm performance.

Design/methodology/approach

Structural equation modeling and mediation analyzes were used on a sample of 302 small and medium-size enterprises in Turkey.

Findings

This study found that business ties enable organizational unlearning while political ties impede it. This study further demonstrates that business ties positively and political ties negatively relate to organizational learning through organizational unlearning. In addition, this study shows that political ties are mostly negatively and indirectly related to firm performance through organizational learning while business ties positively and indirectly relate to firm performance.

Practical implications

The findings demonstrate the critical role that personal networks play in organizational learning and firm performance. This study provides evidence to the need to recognize and evaluate the potential and undesirable impacts of political ties on cultivating innovation skills and firm performance. In addition, this study recommends managers to embrace the significance of organizational unlearning in strategic renewal, particularly as it applies to building renewing and incremental dynamic skills for enhanced firm performance.

Originality/value

This study offers a deeper perspective of the dissected relations of social ties in emerging economies to firm performance by considering organizational unlearning and learning behaviors as mediating mechanisms.

Details

Journal of Business & Industrial Marketing, vol. 36 no. 3
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 1 February 2021

Yu Wang, Hongyi Sun, Tao Jia and Jinliang Chen

This study is based on knowledge-based view to examine the relationships among buyer–supplier interaction, ambidextrous innovation and business performance. It includes…

Abstract

Purpose

This study is based on knowledge-based view to examine the relationships among buyer–supplier interaction, ambidextrous innovation and business performance. It includes competitive intensity and dysfunctional competition to clarify boundary conditions.

Design/methodology/approach

The ordinary least squares regression was conducted to test hypotheses. The survey data were collected from 182 Hong Kong manufacturing firms.

Findings

Buyer–supplier interaction facilitates ambidextrous innovation, namely exploitative innovation and exploratory innovation. In turn, exploitative innovation enhances business performance, whereas exploratory innovation has no influence on business performance. Competitive intensity strengthens while dysfunctional competition weakens the impact of buyer–supplier interaction on ambidextrous innovation.

Research limitations/implications

This study is based on the knowing processes of knowledge-based view. It contends that business performance is derived from ambidextrous innovation, which depends on the utilization of acquired supplier knowledge and the influence of external competitive environment. The test of relationships is constrained by the single-source and cross-sectional data.

Practical implications

Firms should engage in buyer–supplier interaction to acquire and utilize supplier knowledge. Meanwhile, they should monitor competitive environment to seize opportunities and avoid threats.

Originality/value

This study builds a holistic framework for buyer–supplier interaction, which reconciles the mixed arguments by distinguishing its effects on ambidextrous innovation, and by clarifying boundary conditions in terms of competitive intensity and dysfunctional competition.

Details

The International Journal of Logistics Management, vol. 32 no. 2
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 5 June 2017

Hui Zhang and Baoliang Hu

This paper aims to identify the relationships of both organizational isomorphism and knowledge search with the innovation performance of cluster enterprises. It also specifies the…

1321

Abstract

Purpose

This paper aims to identify the relationships of both organizational isomorphism and knowledge search with the innovation performance of cluster enterprises. It also specifies the mechanism by which organizational isomorphism affects innovation performance, through knowledge search.

Design/methodology/approach

Firm-level data were collected with questionnaires distributed to cluster enterprises in Zhejiang Province, China, which produced 165 usable responses for the analysis. Both multiple regression analyses and structural equation modelling were used to test the hypotheses.

Findings

Normative isomorphism and mimetic isomorphism have inverse U-shaped effects on the innovation performance of cluster enterprises, as does exploratory knowledge search. Exploitative knowledge search and the balance between two types of knowledge search have positive effects on the innovation performance of cluster enterprises; exploratory and exploitative knowledge searches exert partial mediation effects between the organizational isomorphism and innovation performance of cluster enterprises. The mediating effect of knowledge search transforms the inverse U-shaped effect of normative isomorphism and mimetic isomorphism on innovation performance into a positive effect.

Originality/value

This study provides new insights into the effects of organizational isomorphism on innovation performance by showing the indirect influence of organizational isomorphism in clusters. The study proposes a strategic logic of moderate isomorphism, clarifies the innovative effect of different knowledge search modes and reveals the construction and management mechanisms of organizational isomorphism and knowledge search strategy of firms in clusters.

Details

Chinese Management Studies, vol. 11 no. 2
Type: Research Article
ISSN: 1750-614X

Keywords

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