DOES STRONGER R&D CAPABILITY ALWAYS PROMOTE BETTER INNOVATION? THE MODERATING ROLE OF KNOWLEDGE BOUNDARY SPANNING OF R&D NETWORK

Yanhui Jiang, Chongyang Wei, Zhi Yang and Ulaganathan Subramanian
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Yanhui Jiang: Business School, Hunan University, Changsha, China
Chongyang Wei: Business School, Hunan University, Changsha, China
Zhi Yang: Business School, Hunan University, Changsha, China
Ulaganathan Subramanian: #x2020;UTB Business of School, Universiti Teknologi Brunei, Brunei

International Journal of Innovation Management (ijim), 2018, vol. 22, issue 07, 1-22

Abstract: Setting the research background in China, this study draws on absorptive capacity, knowledge inertia and prospect theory to show the relationship between R&D capability and innovation performance which comprises exploitation and exploration. We propose that stronger R&D capability promotes exploitation performance but inhibits exploration performance. As exploitation represents immediate interest and exploration represents long-term interest, we introduce the notion of knowledge boundary spanning of R&D network to balance short-term and long-term benefits. The empirical results show that R&D capability and knowledge boundary spanning of R&D network complement each other for explorative innovation while they present trade-offs for exploitative innovation. This study contributes to existing literature on R&D capability–innovation performance, and it further extends our understanding by investigating the impact of knowledge boundary spanning of R&D network on the R&D capacity–innovation performance relationships. In addition, this study provides references on resources configuration to achieve different innovation strategies.

Keywords: Research and development; innovation; China; knowledge boundary (search for similar items in EconPapers)
Date: 2018
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DOI: 10.1142/S1363919618500597

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