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Identifying the resource conditions that maximize the relationship between ambidexterity and new product performance

Published on Oct 2, 2017in Journal of Business & Industrial Marketing
· DOI :10.1108/JBIM-08-2016-0191
Nima Heirati6
Estimated H-index: 6
(QMUL: Queen Mary University of London),
Aron O'Cass50
Estimated H-index: 50
,
Phyra Sok14
Estimated H-index: 14
Abstract
Purpose Organizational ambidexterity is argued to be a prerequisite for successful new product development, especially for firms operating in highly competitive emerging markets. Despite growing attention to the importance of ambidexterity, the conditions under which specific forms of ambidexterity are more or less beneficial to new product performance (NPP) remain unclear. This study aims to investigate the contingent value of two specific resource conditions that favor the pursuit of the balanced dimension versus combined dimension of ambidexterity to achieve superior NPP. Design/methodology/approach Survey data were drawn from a sample of 156 high-tech large firms operating in the Middle East and tested through a hierarchical regression analysis. Findings This study highlights the important role of slack resources and social networking capability in enhancing the benefits of the combined dimension of ambidexterity over the balanced dimension of ambidexterity to drive NPP. Originality/value This study extends prior research which has mainly examined organizational characteristics that facilitates organizational ambidexterity and sheds light on the specific resource conditions under which high-technology firms operating in an emerging economy should pursue balanced dimension of ambidexterity or combined dimension of ambidexterity to achieve superior NPP.
  • References (48)
  • Citations (2)
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References48
Newest
#1Ye Dai (SIU: Southern Illinois University Carbondale)H-Index: 5
#2Kui Du (University of Massachusetts Boston)H-Index: 4
Last. Xi Zhu (UI: University of Iowa)H-Index: 5
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Unlike established firms, new ventures often lack the resources and structure necessary to simultaneously pursue exploration and exploitation activities in the process of developing and introducing new products into markets. Thus, it remains unclear whether and how ambidexterity (i.e., simultaneous pursuit of exploration and exploitation activities) can develop in new ventures. This study posits that product development alliances and the transactive memory systems of entrepreneurial teams contri...
17 CitationsSource
#1Hsing-Er Lin (NSYSU: National Sun Yat-sen University)H-Index: 6
#2Edward F. McDonoughH-Index: 18
Last. Chihyuan WangH-Index: 1
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There is little research that has explored the effects of how knowledge assets are aligned with each other in exploitation and exploration innovation strategies. This study uses alignment theory to explore the effects of aligning knowledge assets on facilitating a firm's ability to pursue ambidexterity, which is defined as the simultaneous pursuit of explorative and exploitative innovation strategies. We also explore the relative influence of organizational and human capital in fostering an expl...
13 CitationsSource
#1Yao Li (Tianjin University of Technology)H-Index: 1
#2Yu Zhang (Hohai University)H-Index: 1
Last. Songyue Zheng (Xi'an Jiaotong University)H-Index: 1
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Purpose Social capital is critical for firms to conduct business activities; however, whether it is always beneficial for exploratory innovation and the specific and contingent effects of each dimension remain unknown. This paper aims to examine the role of three dimensions of social capital in determining exploratory innovation and investigate how firms’ portfolio management capabilities shape these links. Design/methodology/approach Survey data from 276 firms in high-tech industries in China a...
6 CitationsSource
#1Nima Heirati (Newcastle University)H-Index: 6
#2Aron O'Cass (UTAS: University of Tasmania)H-Index: 50
While it has been advocated that the generation and application of market knowledge shape marketing capabilities to commercialize new products, the weak institutional environment makes access to critical market knowledge challenging in emerging economies. Critically, managerial social ties with business and political institutions may complement the firm’s market orientation (MO) to obtain market knowledge that is not available in the open market in emerging economies. This study draws attention ...
17 CitationsSource
Purpose – This study aims to explore the necessary role of supply management (SM) resilience capabilities in making effective trade-offs to attain an ambidextrous state, i.e. the state of attaining exploitation and exploration with dexterity, or achieving high levels of both. Sustainability requires effective trade-offs among economic, environmental and social outcomes while maintaining the longevity of the buying firm. Existing literature highlights the difficulty of making effective trade-offs...
17 CitationsSource
#1Lin Yuan (UM: University of Macau)H-Index: 6
#2Xiaoyun Chen (UM: University of Macau)H-Index: 9
Abstract Combining organizational learning theory and institutional theory, this study examines how managerial learning affects the new product innovativeness of high-tech firms in an emerging market and assesses whether such an effect is conditional on institutional support. We propose that managerial learning helps firms increase the innovativeness of their new products, but this effect declines at high levels of managerial learning. Furthermore, we suggest that institutional support at govern...
11 CitationsSource
#1Phyra Sok (QUT: Queensland University of Technology)H-Index: 14
#2Aron O'Cass (UTAS: University of Tasmania)H-Index: 50
New product innovation has been identified as the key to firms' marketplace success, profit and survival. Yet, the failure rate for new products is high. Because of the high costs associated with new product development, there is considerable theoretical and managerial interest in how to minimize the high failure rates of new products and what separates new product winners from losers. This study focuses on individual level ambidexterity – namely head of the R&D departments' capacity to engage i...
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#1Mohan Subramaniam (BC: Boston College)H-Index: 15
#2Holger Ernst (WHU - Otto Beisheim School of Management)H-Index: 24
Last. Anna Dubiel (WHU - Otto Beisheim School of Management)H-Index: 5
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16 CitationsSource
#1Susan A. Hill (LSE: London School of Economics and Political Science)H-Index: 8
#2Julian Birkinshaw (LBS: London Business School)H-Index: 55
Corporate venture (CV) units constitute vehicles through which firms may act ambidextrously, thereby increasing their longevity, but they suffer from a high failure rate. The authors examine why and how some CV units last significantly longer than others. They argue that CV units endure by developing an ambidextrous orientation themselves—they build new capabilities for the parent firm while simultaneously leveraging its existing strengths. They argue that CV units become ambidextrous by nurturi...
100 CitationsSource
This paper investigates the effects of having a separate innovation unit on exploration, exploitation, and ambidexterity in manufacturing and service firms according to traditional paradigms of the innovation management discipline that innovation units should be organized in a separate department. Many manufacturing firms have such a unit while few service firms do. This paper sets out to investigate the advantages of having such a unit for exploration, exploitation, and ambidexterity, and wheth...
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Cited By2
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#1Hong Hu (Shanghai Maritime University)
#2Qiang Wang (SUFE: Shanghai University of Finance and Economics)
Last. Jixiang Chen (SJTU: Shanghai Jiao Tong University)
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Purpose Why do some small and medium-sized enterprises (SMEs) explore more while others exploit further? What are the driving forces of their exploratory and exploitative innovation? These are intriguing questions worthy of in-depth research. The purpose of this paper is to crack these problems from both objective (i.e. organizational slack) and subjective (i.e. market orientation) perspectives. Specifically, the paper examines the effects of unabsorbed and absorbed slack on exploratory and expl...
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A significant amount of work has been done on new product development (NPD); however, studies on the flexibility aspect in NPD are scant. This study aims to investigate the relationship between NPD flexibility and five infrastructural factors, namely, marketing and manufacturing integration practices (MMIPs), advanced human resource practices (AHRPs), supplier integration practices (SIPs), operational improvement practices (OIPs) and advanced manufacturing technologies (AMTs).,The study applies ...
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