The impact of China’s emergency industry innovation policy mix on enterprises’ ambidextrous innovation

BACKGROUND: China’s 14th Five-Year Plan for National Economic and Social Development and the Long-Range Objectives Through the Year 2035 clearly points out that it is necessary to implement innovation driven strategy, promote enterprise technological innovation, and better play the important role of entrepreneurs in enterprise technological innovation. Therefore, it is of great significance to explore the impact of entrepreneurial leadership on enterprises’ technological innovation. OBJECTIVE: From the perspective of technological innovation stream, we divide ambidextrous innovation into mainstream innovation and new stream innovation. Integrating ambidexterity theory, innovation streams theory and cognitive affective personality system theory (CAPS), we explore the mediating mechanism of entrepreneurial ambidextrous leadership on ambidextrous innovation from cognitive path, affective path and cognitive-affective compound path. METHODS: Based on the data collected from 254 top managers in 12 provinces in China, we conducted descriptive statistical analysis, reliability and validity analysis, regression analysis and bootstrap mediating effect test on the sample data. RESULTS: Our empirical results revealed that: 1) entrepreneurial ambidextrous leadership positively related with the ambidextrous innovation; 2) organizational paradoxical cognition plays a partly mediating role between ambidextrous leadership and ambidextrous innovation; 3) organizational affective conflict plays a partly mediating role between ambidextrous leadership and ambidextrous innovation; 4) organizational paradoxical cognition negatively related with organizational affective conflict; 5) organizational paradoxical cognition and organizational affective conflict play a chain mediating role between entrepreneurial ambidextrous leadership and ambidextrous innovation. CONCLUSIONS: Combined with the cognitive affective personality system theory, our research explores the mediating mechanism of entrepreneurial ambidextrous leadership on ambidextrous innovation from cognitive path and affective path and “cognitive-affective” compound path, which not only have great theoretical contributions, but also have important significance in enterprise management practice.

PurposeHow do institutional pressures influence the cluster firm’s innovation? Institutional pressure consists of regulative, normative and cognitive pressures; most scholars have only focused on the influence of regulative pressure as institutional environment on innovation. In addition, the nature of strategic cognition, as the mediator act on innovation strategy, remains underexplored in the literature. Based on institution theory and ambidextrous innovation theory, this study aims to propose a framework to examine the mechanism of institutional pressures acting on ambidextrous innovation through the moderated mediating role of strategic cognition in clusters.Design/methodology/approachUsing survey data collected from 422 sampled firms in China, regression models were used to test hypotheses from the mediating role of strategic cognition between institutional pressures and cluster firm’s ambidextrous innovation.FindingsThe results showed that regulative, cognitive pressures and, especially, normative pressures have significant positive effects on cluster firms’ ambidextrous innovation. Strategic cognition presented by prospector and analyzer mediates the relationship between institutional pressure and ambidextrous innovation except defender; dynamic environment positively moderates the mediating effects of prospector cognition on explorative innovation, and negatively moderates the mediating effects of analyzer cognition on exploitative innovation.Originality/valueThe findings of this study have some implications that strategic cognition played a partially meditating role between the institutional pressure and ambidextrous innovation. Government should construct a dynamic innovation policy system according to the resource endowment in different regions; furthermore, classification support system to cluster firms with different strategic cognition should be built.

PurposeThe 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/approachThe 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.FindingsThe 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/implicationsThe 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 implicationsIn 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/valueThis 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.

ABSTRACTLinking the literature of resource-based view (RBV) with ambidexterity, we construct an integrative framework of technology capabilities, marketing capabilities, innovation ambidexterity, and organisational performance. Using data from a sample of 190 Chinese hospitals, we find that both technology capabilities and marketing capabilities have an inverse U-shape relationship with innovation ambidexterity. And they can complementarily improve innovation ambidexterity, which further enhances organisational performance. This study deepens our understanding of RBV and ambidexterity by investigating the antecedent roles of technological and marketing capabilities on innovation ambidexterity. We also investigate their interactive role on improving innovation ambidexterity.

PurposeThis study empirically investigates how ambidextrous innovations and their balancing affect the supply chain financing performance (SCFP) of small and medium-sized enterprises (SMEs), based on signaling theory. Moreover, this study explores the moderating effect of the breadth and depth of digital technology deployment on the relationship between ambidextrous innovations and the SCFP of SMEs.Design/methodology/approachA mixed-methods design is used, including a qualitative study and a quantitative study. Qualitative data have been collected from six multi-cases in different industries. Questionnaire data have been collected from 259 SMEs in China, and a multiple regression model is used to verify the research hypotheses.FindingsThe findings indicate that, in supply chain financing, both exploitative innovation and exploratory innovation are helpful in improving the SCFP of SMEs. For resource-constrained SMEs, a relative balance between exploitative innovation and exploratory innovation can help improve SCFP. The breadth of digital technology deployment can strengthen the relationship between exploitative innovation and SCFP, while the depth of digital technology deployment can weaken the relationship between exploratory innovation and SCFP. In addition, increasing the depth of digital technology deployment strengthens the positive correlation between the relative balance of ambidextrous innovations and SCFP.Practical implicationsTo effectively obtain supply chain financing, SMEs can either concentrate their limited resources on a single type of innovation or use relative balance strategies to simultaneously pursue two innovations. In addition, in the process of obtaining supply chain financing by ambidextrous innovations, SMEs should appropriately deploy digital technologies.Originality/valueThis study first deconstructs the impact mechanism of ambidextrous innovation capabilities on SCFP based on signaling theory, and then discusses the balancing effect of ambidextrous innovations on SCFP in the cases of resource-constrained SMEs. This study also goes further and finds the negative moderating effect of digital technology deployment in the process of supply chain financing.

A firm's embedding structures in a technology competition network can influence its propensity for innovation ambidexterity. Using PCT (patent cooperation treaty) patent data of wind energy companies between 2010 and 2019, we adopted social network analysis and fixed-effects panel negative binomial regression to examine the impacts of network structural features on firm innovation ambidexterity. The results show that competitor-weighted centrality contributes to a firm's propensities for both incremental and radical green innovation. In contrast, a firm's embeddedness in small-world clusters can moderate the effect of the firm's competitor-weighted centrality positively on its incremental innovation but negatively on its radical innovation. The study makes three theoretical contributions. First, it enriches the understanding of how the competition network affects innovation ambidexterity. Second, it provides new insights into the relationship between competition network structures and technology innovation strategy. Finally, it contributes to bridging the research on the social embeddedness perspective and green innovation literature. The findings of this study have important implications for enterprises in the wind energy sector regarding how competitive relationships affect green technology innovation. The study underscores the importance of considering the competitiveness of a firm's rivals and the embedded structural features when devising green innovation strategies.

Purpose This paper aims to explain the relationship between strategic technological and non-technological innovation ambidexterity and the internationalization performance of HbSMEs. Design/methodology/approach The theory of dynamic capability is highlighted as the main approach to enhance the internationalization performance of HbSMEs. It spells on the importance of continuous improvement, which can be realized by renewing and reconfiguring businesses competencies in response to the changing nature of business environment. The respondents composed of 310 HbSMEs that involve actively in international business activity. The data is analyzed using partial least squares. Findings The results indicate that only strategic non-technological innovation ambidexterity plays critical role in determining the internationalization performance of HbSMEs, while strategic technological innovation ambidexterity creates non-significant impact. Originality/value As resource-constrained enterprises, innovation activity imposed undue burden to Small and Medium Enterprises (SMEs). However, since people are started to shift their preferences on herbal-based products, strategic innovation ambidexterity is critical for HbSMEs to respond to the global herbal market. This research may provide information in which area of innovation should be emphasized by HbSMEs. Here, strategic non-technological innovation ambidexterity has been observed to create positive and significant impact on the internationalization performance of HbSMEs. Therefore, exploiting the existing marketing capability and concurrently exploring new marketing capability are critical for HbSMEs so that businesses could improve its performance in the turbulent nature of international business environment.

Purpose Knowledge input development and innovation implementation are new features of industrial technology innovation. The purpose of this study is to find the process of coordination and ecological spiral in the ambidextrous innovation of industrial technology. Design/methodology/approach To design the model of industrial technology ambidextrous innovation based on knowledge ecology spiral, an input-output model of knowledge for ambidextrous innovation and a spiral model of knowledge ecology were constructed based on an improved Lotka-Volterra model. Then, the equilibriums in different knowledge inputs and the spiral evolution of knowledge ecology were analyzed. Finally, the ambidextrous coordination mechanism of the core organization was revealed. Findings By coordinating the knowledge inputs and the knowledge ecology spiral, enterprises extend the R&D investments in the innovation chain, which will facilitate the knowledge inputs of the exploitative and exploratory innovation. Implementing the ambidextrous coordination in the technology innovation chain and the knowledge ecology chain has the advantage of promoting knowledge inputs, mobility and ecological spiral. Meanwhile, it can achieve the “multi-source, integration and coordination” development of industrial technology innovation. Originality/value The two-element innovative knowledge input coordination model and the knowledge ecological spiral model based on the improved Lotka-Volterra model are constructed, which extends the modeling way of the traditional knowledge input-output profit model. It is expected to reduce the amount of knowledge input of a single member and provide theoretical reference for improving the efficiency of knowledge input by constructing the inter-dependent regenerative and inter-generative knowledge interaction.

The joint effects of performance measurement system design and TMT cognitive conflict on innovation ambidexterity

Text analysis was used in this study to construct the index of digital transformation degree in manufacturing enterprises. On this basis, an empirical test was conducted on the relationship between digital transformation, ambidextrous innovation, and enterprise value. The results show that: digital transformation has a significant positive impact on the enterprise value of manufacturing enterprises. Digital transformation can promote the rise of enterprise value through technological innovation, business model innovation, and their combination, where ambidextrous innovation plays a mediating role. For manufacturing enterprises, the impact of digital transformation on enterprise value has a single-threshold effect and a double-threshold effect, respectively, with technological innovation and business model innovation being the threshold variables. The synergy of technological innovation and business model innovation plays a stronger mediating role compared with a single innovation model. The conclusions of this study have certain theoretical and practical significance for systematically revealing the intermediate mechanism of digital transformation affecting enterprise value and then promoting manufacturing enterprises to make remarkable accomplishments in digital transformation.

Linking the literatures of resource based view and ambidexterity together, we construct an integrative framework of technological capabilities, marketing capabilities, innovation ambidexterity and ...

Ambidextrous innovation is an essential way for enterprises to respond to environmental changes and create competitive advantage. This study constructs the “technology-organization-environment” (TOE) framework of enterprise ambidextrous innovation, aiming to explore the configuration effect of the linkage matching of technology, organization, and environment on enterprise ambidextrous innovation and the differentiated driving mode of enterprise ambidextrous innovation. In the study, the fuzzy set qualitative comparative analysis (fsQCA) is used to conduct an empirical study on the samples of 34 listed companies on the Science and Technology Innovation Board. The findings are as follows: (1) technical conditions (hardware facilities and software facilities), organizational conditions (human capital investment and R&D investment), and environmental conditions (market competition and government subsidies) are not necessary conditions for ambidextrous innovation individually; (2) there are three driven paths of ambidextrous innovation, namely, the technology-driven path under the pressure of market competition, the technology-promoted path under government support, and the resource-rich proactive change path. The conclusion has enlightening significance for guiding enterprises to attach importance to the technology and organizational conditions in the process of enterprise ambidextrous innovation.

Purpose This paper aims to investigate the impact of knowledge search on radical and incremental innovation and analyze the mediating role of absorptive capacity in this process. By integrating heterogeneity among different samples, the study draws more reliable and stable conclusions between knowledge search and ambidextrous innovation, highlighting its key role in enhancing the competitiveness of enterprises in a complex market environment. Design/methodology/approach A meta-analysis from 53 relevant literatures (103 effect values, n = 322,191) was established for the relationship between knowledge search and ambidextrous innovation mediated by absorptive capacity. At the same time, this paper introduces four cross-cultural dimensions as boundary conditions to explore their potential moderating effects. Findings Potential and realized absorptive capacity sequentially mediate the positive relationship between knowledge search and ambidextrous innovation. The relationship is more positive for lower uncertainty avoidance. In high power distance, knowledge search breadth has a stronger effect on incremental innovation, while knowledge search depth has a stronger influence on radical innovation. In the context of individualism, knowledge search has a stronger influence on incremental innovation, but in the context of collectivism, the depth of knowledge search has a stronger effect in promoting radical innovation. Masculinity positively moderates the relationship between knowledge search and innovation. Originality/value This research specifies the framework of knowledge search – absorptive capacity – innovation and enriches cross-cultural boundaries. The findings enhance the reliability of the positive relationship how knowledge transforms into ambidextrous innovation in cross-cultural contexts. Furthermore, it provides references for organizations in formulating innovation policies.

Building on upper echelon theory and strategic process theory, this article analyzes the relationship between ambidexterity‐oriented decisions and innovative ambidexterity. While ambidexterity‐oriented decisions embrace the capability of top management teams to manage contradictory strategic directions, namely adaptability and alignment, innovative ambidexterity captures the ability of firms to simultaneously develop discontinuous and incremental innovations. In addition to the direct relationship between ambidexterity‐oriented decisions and innovative ambidexterity, it is argued that innovation orientation and cost orientation denote two cultural implementation mechanisms that mediate this effect. Using two top‐executive data sets collected in the United States (n = 83) and India (n = 78), the empirical analysis shows that innovation orientation and cost orientation partially mediate the direct influence of ambidexterity‐oriented decisions on innovative ambidexterity, thus further explaining how formulated decisions made by the top management team nurture ambidextrous innovation behavior. Hence, this article extends prior literature that emphasizes a positive influence of top managers on innovation through incorporating an organizational ambidexterity perspective. Second, this study contributes to ambidexterity literature through integrating strategic process theory. While ambidexterity‐oriented decisions primarily relate to strategy formulation, innovation orientation and cost orientation are associated with strategy implementation. The results show that both strategic subprocesses are vital in enabling ambidextrous innovation behavior. Third, an operationalization for the ability of top management to balance adaptability‐ and alignment‐oriented decisions is provided based on prior literature.

Innovation ambidexterity, namely, performing exploitative and exploratory innovation simultaneously, is important for high-tech firms to achieve sustainable success. This can be achieved by building an egocentric alliance network. Research into the influence of alliance network diversity on innovation ambidexterity is seeing more attention. However, the differences among multiple alliance network diversities are unclear. Grounded on a knowledge-based view, organizational learning theory, and transaction cost theory, this study investigates in-depth the roles of geographical diversity, industrial diversity, and functional diversity of the alliance network. The empirical analysis based on panel data, including alliance data from the SDC Joint & Venture database and patent data from the Derwent Innovation Index database of 106 top high-tech firms from electronic information and biopharmaceutical industries, suggests that industrial diversity enhances firm innovation ambidexterity, geographical diversity impedes firm innovation ambidexterity, and functional diversity shows an inverted U-shaped relationship with firm innovation ambidexterity. These results provide practical suggestions about alliance network diversity configuration and innovation ambidexterity construction for high-tech firms.