Demystifying the non-linear effect of high commitment work systems (HCWS) on firms’ strategic intention of exploratory innovation: An extended resource-based view

Abstract

Drawing on the extended resource-based view (RBV), this paper attempts to test the proactive role of high commitment work systems (HCWS) in affecting firms’ strategic intention of exploratory innovation, and the moderating effect of technological opportunity (TO). Multi-sourced survey data from Chinese firms in high-tech and manufacturing industries are used to test the hypotheses. The results show that HCWS have an inverted U-shaped relationship with firms’ strategic intention of exploratory innovation, and TO positively moderates such a non-linear relationship. By further decomposing TO into science-based (SBTO) and market-based (MBTO), the findings suggest that SBTO positively moderates the non-linear relationship between HCWS and firms’ strategic intention of exploratory innovation, while MBTO only positively moderate the linear relationship between them. These findings enrich the understanding of how HCWS affect firms’ strategic intention of exploratory innovation by highlighting the double-edged sword roles of HCWS, as well as TO's asymmetrically moderating effect, respectively.