Abstract
To obtain a sustainable competitive advantage in the dynamic environment, it is necessary for Chinese high-tech enterprises to focus on their technology habitual domains in formulating ambidextrous innovation strategy. This study integrates technology habitual domain, exploratory innovation and exploitative innovation within a framework and explores the influence mechanism among them. Based on an in-depth case study on KTE, representing a high-tech enterprise in China, we have several findings. Firstly, we depict the evolution mechanism of technology habitual domain; secondly, we find that the high-tech enterprise’s technology habitual domain will cultivate and develop the firms’ dynamic capabilities; and thirdly, the expansion of technology habitual domain will promote exploitative innovation, while the transformation of technology habitual domain will promote exploratory innovation. These findings can be useful guidance for high-tech enterprises in China who are aiming to achieve ambidextrous innovation to better adapt to the turbulent environment, and thus achieving sustainability.
Highlights
Today, enterprises pay more attention to seeking competitive advantages in the turbulent environment by pursuing sustainability [1]
-Based on the elements of habitual domain (HD) proposed by Yu [47], we identified the actual domain and potential domain as the position of IE in technology habitual domain (THD) -In terms of the original IE, reconfigured IE, and external IE Original IE—the IE stored in THD without changes Reconfigured IE—the IE formed by reconfiguration of original IE and external IE External IE—the IE outside the THD -In terms of the scale, structure of IE, Scale—numbers of IE to meet the needs Structure—IE from customers, suppliers, cooperators, competitors, government policies, etc. -Base on the interaction ability of THD proposed by Yan [18]
We find the dynamic capabilities (DC) are cultivated and improved by the evolution of THD, and help the firm align resources, knowledge, and capabilities from THD to match the ambidextrous innovation strategy when facing the turbulent environment
Summary
Enterprises pay more attention to seeking competitive advantages in the turbulent environment by pursuing sustainability [1]. For the interest of sustainability, enterprises should embrace opportunities and control risks from economic, environmental, and social development, which should be reflected in both decision-making and implementation [3]. In addition to considering current economic benefits, enterprises can achieve sustainable development by adding environment concerns during innovation [4]. As discontinuous and imbalanced innovation may cause failure within rapidly changing industries [5], the continuous combination of exploitation and exploration has become a source of sustainable competitive advantages [6]. Under the hypercompetitive environments, enterprises should pursue both exploratory innovation and exploitative innovation to ensure long-term survival and prosperity [5,7], in order to achieve sustainability
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