Abstract
The aim of this study is to explore the effect of exploratory and exploitative innovation separately and ambidexterity premise simultaneously relating to firms’ innovation performance. To test these relationships, we applied a hierarchical linear regression analysis to a large sample of international organisations (by using the Community Innovation Survey [CIS] 2006 micro data). We show that the relationship between exploratory innovation and a firm’s innovation performance is moderated by geographically different partners. We found that ambidexterity premise in innovation context undermines innovation performance.
Highlights
Organisational scholars argued that the firm’s ability to balance exploitation and exploration is crucial for long-term survival and competitive advantage (March, 1991)
We built upon existing theoretical foundations and empirical evidence supporting the role of ambidextrous firms and their partners on the firm’s innovation performance
If firms specialise in either exploratory innovation or exploitative innovation, they can be successful in terms of performance
Summary
Organisational scholars argued that the firm’s ability to balance exploitation and exploration is crucial for long-term survival and competitive advantage (March, 1991). Such an ambidextrous approach encompassing both exploration and exploitation activities were welcomed, research on the performance implications of organisational ambidexterity has yielded mixed results (Simsek, 2009). Innovation was inevitably connected to both types of activities, exploratory and exploitive, with little attention given to their simultaneous effect (Greve, 2007). A broader concept of innovation that includes synergistic effects of both types of activities is needed.
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