Research on enterprise innovation modes choice and alternate evolution from ambidextrous perspectives

Abstract

ABSTRACT This study examines the strategic choices of enterprises regarding exploitative and exploratory innovation, drawing on the ambidextrous innovation theory and using a case analysis of Ningbo Cixing Co., Ltd in China (referred to as ‘Cixing’ for short). The study constructs an evolutionary game model to analyse these choices from a micro perspective. The results of the study suggest that when the costs and opportunity costs associated with exploitative innovation are lower, the growth rate of innovation benefit is higher, and enterprises are more likely to adopt an exploitative innovation strategy. On the other hand, when the costs associated with exploratory innovation are lower, the success rate of innovation is higher, and enterprises are more likely to adopt an exploratory innovation strategy. The study also reveals that enterprises alternate between exploitative and exploratory innovation modes in response to changes in the external environment. This dynamic evolution shows a regular and complementary pattern of quantitative and qualitative change that promotes innovation growth.