Exploratory innovation, exploitative innovation and firm performance: Moderating effect of organizational structure and slack resources

Author

Xuefeng Liu ; Yuying Xie

Author_Institution

Sch. of Manage., Xiamen Univ., Xiamen, China

fYear

2014

fDate

27-31 July 2014

Firstpage

861

Lastpage

869

Abstract

As suggested by prior research, there are two types of innovation: Exploratory innovation and exploitative innovation. What is the relationship between the two approaches of innovation and firm performance? We argue that the effect of each approach of innovation on firm performance is contingent upon organizational structure, measured by centralization and formalization, and slack resources, consisted of absorbed slack resources and unabsorbed slack resources. Using data from 155 Chinese manufacturing firms, we show that centralization has a positive moderating effect on the relationship between exploitative innovation and firm performance; Formalization has a negative moderating effect on the relationship between exploratory innovation and firm performance; Unabsorbed slack resources have a negative moderating effect on the relationship between exploitative innovation and firm performance.

Keywords

innovation management; organisational aspects; Chinese manufacturing firms; centralization; exploitative innovation; exploratory innovation; firm performance; formalization; negative moderating effect; organizational structure; slack resources; Boundary conditions; Educational institutions; Industries; Manufacturing; Organizations; Standards organizations; Technological innovation;

fLanguage

English

Publisher

ieee

Conference_Titel

Management of Engineering & Technology (PICMET), 2014 Portland International Conference on

Conference_Location

Kanazawa

Type

conf

Filename

6921130