Ambidexterity in External Knowledge Search Strategies and Innovation Performance: Mediating Role of Balanced Innovation and Moderating Role of Absorptive Capacity

Choo Yeon Kim, Myung Sub Lim and Jae Wook Yoo
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Choo Yeon Kim: College of Business Administration, Konkuk University, Seoul 05029, Korea
Myung Sub Lim: College of Business Administration, Konkuk University, Seoul 05029, Korea
Jae Wook Yoo: College of Business Administration, Konkuk University, Seoul 05029, Korea

Sustainability, 2019, vol. 11, issue 18, 1-23

Abstract: The importance of external knowledge acquisition for innovation by firms is well established. In particular, there has been an increasing focus on the two distinct modes of firms’ external search strategies, which have a differential effect on their learning and innovation: search breadth and depth. By applying organizational ambidexterity lens, we hypothesize that pursuing high levels of both external search strategies is beneficial to achieve a balance between exploitative and explorative innovation, which, in turn, has a positive impact on the firm’s innovation performance. We also hypothesize that, even among the firms that maintain high levels of both search strategies, firms with higher absorptive capacity better achieve a balance between both modes of innovation, thereby producing higher performance. The findings on a multi-industry sample of Koran manufacturing firms confirm our hypotheses and imply that it is essential for firms to develop capabilities for different modes of external search activities in conjunction with internal absorptive capacity for superior innovation performance.

Keywords: external search strategies; organizational ambidexterity; a balance between explorative and exploitative innovation; absorptive capacity (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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