IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i5p3994-d1076862.html
   My bibliography  Save this article

Performance Gap and Innovation Ambidexterity: A Moderated Mediation Model

Author

Listed:
  • Songsong Cheng

    (School of Management, Guangzhou College of Technology and Business, Guangzhou 510850, China
    Mobile Post-Doctoral Stations, Shunde Rural Commercial Bank, Foshan 528300, China)

  • Qunpeng Fan

    (School of Economic, Management and Law, Jilin Normal University, Siping 136000, China)

  • Yang Song

    (School of Management, Guangzhou College of Technology and Business, Guangzhou 510850, China)

Abstract

Innovation ambidexterity has become a crucial strategic action for creating sustainable competitive advantages. This research provides novel insights by establishing a connection between performance gaps and innovation ambidexterity. We employ the organization’s resource acquisition and management perspective to construct and empirically assess a moderated mediation model that sheds light on the underlying process—through the dual-mediating path of network broadening (NB) and network deepening (ND) and the moderating role of resource orchestration capabilities. Using subjective surveys and objective-matched data from 362 Chinese listed firms, we confirm the positive-performance-gap-combined innovation ambidexterity relationship, and we find that NB and ND play a parallel mediating role between performance gap and balanced and combined innovation ambidexterity, with ND playing a stronger mediating role than NB. Furthermore, resource orchestration capabilities play a moderating role between NB and balanced and combined innovation ambidexterity, as well as between ND and balanced and combined innovation ambidexterity. These results contribute to the research on social network and ambidexterity literature and provide guidance on how to overcome firms’ performance dilemmas. However, our study has certain methodological limitations that constrain the implications of our results, offering intriguing opportunities for future research.

Suggested Citation

  • Songsong Cheng & Qunpeng Fan & Yang Song, 2023. "Performance Gap and Innovation Ambidexterity: A Moderated Mediation Model," Sustainability, MDPI, vol. 15(5), pages 1-22, February.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:5:p:3994-:d:1076862
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/5/3994/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/5/3994/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Raffaele Morandi Stagni & Andrea Fosfuri & Juan Santaló, 2021. "A bird in the hand is worth two in the bush: Technology search strategies and competition due to import penetration," Strategic Management Journal, Wiley Blackwell, vol. 42(8), pages 1516-1544, August.
    2. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    3. Constantine Andriopoulos & Marianne W. Lewis, 2009. "Exploitation-Exploration Tensions and Organizational Ambidexterity: Managing Paradoxes of Innovation," Organization Science, INFORMS, vol. 20(4), pages 696-717, August.
    4. Ronald S. Burt, 2019. "Network Disadvantaged Entrepreneurs: Density, Hierarchy, and Success in China and the West," Entrepreneurship Theory and Practice, , vol. 43(1), pages 19-50, January.
    5. Wei Yu & Maria Minniti & Robert Nason, 2019. "Underperformance duration and innovative search: Evidence from the high‐tech manufacturing industry," Strategic Management Journal, Wiley Blackwell, vol. 40(5), pages 836-861, May.
    6. Le Roy, Frédéric & Robert, Frank & Hamouti, Rizlane, 2022. "Vertical vs horizontal coopetition and the market performance of product innovation: An empirical study of the video game industry," Technovation, Elsevier, vol. 112(C).
    7. Clint Chadwick & Janice F. Super & Kiwook Kwon, 2015. "Resource orchestration in practice: CEO emphasis on SHRM, commitment-based HR systems, and firm performance," Strategic Management Journal, Wiley Blackwell, vol. 36(3), pages 360-376, March.
    8. Elena Vidal & Will Mitchell, 2015. "Adding by Subtracting: The Relationship Between Performance Feedback and Resource Reconfiguration Through Divestitures," Organization Science, INFORMS, vol. 26(4), pages 1101-1118, August.
    9. Venugopal, Aparna & Krishnan, T.N. & Upadhyayula, Rajesh Srinivas & Kumar, Manish, 2020. "Finding the microfoundations of organizational ambidexterity - Demystifying the role of top management behavioural integration," Journal of Business Research, Elsevier, vol. 106(C), pages 1-11.
    10. Justin J. P. Jansen & Frans A. J. Van Den Bosch & Henk W. Volberda, 2006. "Exploratory Innovation, Exploitative Innovation, and Performance: Effects of Organizational Antecedents and Environmental Moderators," Management Science, INFORMS, vol. 52(11), pages 1661-1674, November.
    11. Weiwen Li & Garry D. Bruton & Xinchun Li & Shuang Wang, 2022. "Transgenerational Succession and R&D Investment: A Myopic Loss Aversion Perspective," Entrepreneurship Theory and Practice, , vol. 46(1), pages 193-222, January.
    12. John Joseph & Vibha Gaba, 2015. "The fog of feedback: Ambiguity and firm responses to multiple aspiration levels," Strategic Management Journal, Wiley Blackwell, vol. 36(13), pages 1960-1978, December.
    13. Pasi Kuusela & Thomas Keil & Markku Maula, 2017. "Driven by aspirations, but in what direction? Performance shortfalls, slack resources, and resource-consuming vs. resource-freeing organizational change," Strategic Management Journal, Wiley Blackwell, vol. 38(5), pages 1101-1120, May.
    14. Domurath, Anne & Patzelt, Holger & Liebl, Andreas, 2020. "Does negative feedback impact new ventures' organizational identity? The role of founding teams' human capital and feedback source," Journal of Business Venturing, Elsevier, vol. 35(3).
    15. Zi-Lin He & Poh-Kam Wong, 2004. "Exploration vs. Exploitation: An Empirical Test of the Ambidexterity Hypothesis," Organization Science, INFORMS, vol. 15(4), pages 481-494, August.
    16. Bat Batjargal & Michael Hitt & Anne Tsui & Jean-Luc Arregle & Justin Webb & Toyah Miller, 2013. "Institutional Polycentrism, Entrepreneurs' Social Networks, and New Venture Growth," Post-Print hal-02313079, HAL.
    17. Songcui Hu & Zi-Lin He & Daniela P. Blettner & Richard A. Bettis, 2017. "Conflict inside and outside: Social comparisons and attention shifts in multidivisional firms," Strategic Management Journal, Wiley Blackwell, vol. 38(7), pages 1435-1454, July.
    18. Pino G. Audia & Henrich R. Greve, 2006. "Less Likely to Fail: Low Performance, Firm Size, and Factory Expansion in the Shipbuilding Industry," Management Science, INFORMS, vol. 52(1), pages 83-94, January.
    19. García-Villaverde, Pedro M. & Rodrigo-Alarcón, Job & Parra-Requena, Gloria & Ruiz-Ortega, María José, 2018. "Technological dynamism and entrepreneurial orientation: The heterogeneous effects of social capital," Journal of Business Research, Elsevier, vol. 83(C), pages 51-64.
    20. Eric Gedajlovic & Benson Honig & Curt B. Moore & G. Tyge Payne & Mike Wright, 2013. "Social Capital and Entrepreneurship: A Schema and Research Agenda," Entrepreneurship Theory and Practice, , vol. 37(3), pages 455-478, May.
    21. O'Reilly, Charles A., III & Tushman, Michael L., 2013. "Organizational Ambidexterity: Past, Present and Future," Research Papers 2130, Stanford University, Graduate School of Business.
    22. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    23. Murat Tarakci & Nüfer Yasin Ateş & Steven W. Floyd & Yoojung Ahn & Bill Wooldridge, 2018. "Performance feedback and middle managers’ divergent strategic behavior: The roles of social comparisons and organizational identification," Strategic Management Journal, Wiley Blackwell, vol. 39(4), pages 1139-1162, April.
    24. Balagopal Vissa, 2012. "Agency in Action: Entrepreneurs' Networking Style and Initiation of Economic Exchange," Organization Science, INFORMS, vol. 23(2), pages 492-510, April.
    25. Bat Batjargal & Michael Hitt & Anne Tsui & Jean-Luc Arregle & Justin Webb & Toyah Miller, 2013. "Institutional Polycentrism, Entrepreneurs' Social Networks, and New Venture Growth," Post-Print hal-02276709, HAL.
    26. Ohad Ref & Zur Shapira, 2017. "Entering new markets: The effect of performance feedback near aspiration and well below and above it," Strategic Management Journal, Wiley Blackwell, vol. 38(7), pages 1416-1434, July.
    27. Qing Cao & Eric Gedajlovic & Hongping Zhang, 2009. "Unpacking Organizational Ambidexterity: Dimensions, Contingencies, and Synergistic Effects," Organization Science, INFORMS, vol. 20(4), pages 781-796, August.
    28. Koryak, Oksana & Lockett, Andy & Hayton, James & Nicolaou, Nicos & Mole, Kevin, 2018. "Disentangling the antecedents of ambidexterity: Exploration and exploitation," Research Policy, Elsevier, vol. 47(2), pages 413-427.
    29. Congcong Zheng & Mujtaba Ahsan & Alex F. DeNoble, 2020. "Entrepreneurial Networking During Early Stages of Opportunity Exploitation: Agency of Novice and Experienced New Venture Leaders," Entrepreneurship Theory and Practice, , vol. 44(4), pages 671-699, July.
    30. Bat Batjargal, 2013. "Institutional Polycentrism, Entrepreneurs??? Social Networks, And New Venture Growth," William Davidson Institute Working Papers Series wp1060, William Davidson Institute at the University of Michigan.
    31. Juanru Wang & Yajiong Xue & Jin Yang, 2020. "Boundary‐spanning search and firms' green innovation: The moderating role of resource orchestration capability," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 361-374, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jingoo Kang & Sang‐Joon Kim, 2020. "Performance implications of incremental transition and discontinuous jump between exploration and exploitation," Strategic Management Journal, Wiley Blackwell, vol. 41(6), pages 1083-1111, June.
    2. Martin Owusu Ansah & Nicholas Addai-Boamah & Abeeku Bylon Bamfo & Lucy Afeafa Ry-Kottoh, 2022. "Organizational ambidexterity and financial performance in the banking industry: evidence from a developing economy," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 27(3), pages 250-263, September.
    3. Olga Kassotaki, 2022. "Review of Organizational Ambidexterity Research," SAGE Open, , vol. 12(1), pages 21582440221, March.
    4. Matthews, Lane & Heyden, Mariano L.M. & Zhou, Dan, 2022. "Paradoxical transparency? Capital market responses to exploration and exploitation disclosure," Research Policy, Elsevier, vol. 51(1).
    5. Lulu Liu & Fengbin Wang & Xiukun Li, 2019. "Comparing the configured causal antecedents of exploration and exploitation: a fuzzy set qualitative comparative analysis," Frontiers of Business Research in China, Springer, vol. 13(1), pages 1-25, December.
    6. Su, Taoyong & Yu, Yuzhu & Chen, Yongheng & Hou, Wanrong, 2023. "On or off: The triggering effect of underperformance duration on cooperative innovation," Technovation, Elsevier, vol. 126(C).
    7. Al-Atwi, Amer Ali & Amankwah-Amoah, Joseph & Khan, Zaheer, 2021. "Micro-foundations of organizational design and sustainability: The mediating role of learning ambidexterity," International Business Review, Elsevier, vol. 30(1).
    8. David B. Audretsch & Maribel Guerrero, 2023. "Is ambidexterity the missing link between entrepreneurship, management, and innovation?," The Journal of Technology Transfer, Springer, vol. 48(6), pages 1891-1918, December.
    9. Koryak, Oksana & Lockett, Andy & Hayton, James & Nicolaou, Nicos & Mole, Kevin, 2018. "Disentangling the antecedents of ambidexterity: Exploration and exploitation," Research Policy, Elsevier, vol. 47(2), pages 413-427.
    10. Úbeda-García, Mercedes & Claver-Cortés, Enrique & Marco-Lajara, Bartolomé & Zaragoza-Sáez, Patrocinio, 2020. "Toward a dynamic construction of organizational ambidexterity: Exploring the synergies between structural differentiation, organizational context, and interorganizational relations," Journal of Business Research, Elsevier, vol. 112(C), pages 363-372.
    11. Atif Açıkgöz & Irem Demirkan & Gary P. Latham & Cemil Kuzey, 2021. "The Relationship Between Unlearning and Innovation Ambidexterity with the Performance of New Product Development Teams," Group Decision and Negotiation, Springer, vol. 30(4), pages 945-982, August.
    12. Christine Chou & Steven O. Kimbrough, 2016. "An agent-based model of organizational ambidexterity decisions and strategies in new product development," Computational and Mathematical Organization Theory, Springer, vol. 22(1), pages 4-46, March.
    13. Mavroudi, Eva & Kesidou, Effie & Pandza, Krsto, 2023. "Effects of ambidextrous and specialized R&D strategies on firm performance: The contingent role of industry orientation," Journal of Business Research, Elsevier, vol. 154(C).
    14. Zhong, Xi & Chen, Weihong & Ren, Ge, 2022. "The effects of performance shortfalls on firms’ exploitation and exploration R&D internationalization decisions: Does industry environmental matter?," Technovation, Elsevier, vol. 112(C).
    15. Lee, In Hyeock & Lévesque, Moren, 2023. "Do resource-constrained early-stage firms balance their internal resources across business activities? If so, should they?," Journal of Business Research, Elsevier, vol. 159(C).
    16. Katou, Anastasia A. & Budhwar, Pawan S. & Patel, Charmi, 2021. "A trilogy of organizational ambidexterity: Leader’s social intelligence, employee work engagement and environmental changes," Journal of Business Research, Elsevier, vol. 128(C), pages 688-700.
    17. Ngo, Liem Viet & Bucic, Tania & Sinha, Ashish & Lu, Vinh Nhat, 2019. "Effective sense-and-respond strategies: Mediating roles of exploratory and exploitative innovation," Journal of Business Research, Elsevier, vol. 94(C), pages 154-161.
    18. Marina Estrada-Cruz & Noelia Rodriguez-Hernández & Antonio J. Verdú-Jover & Jose Maria Gómez-Gras, 2022. "The effect of competitive intensity on the relationship between strategic entrepreneurship and organizational results," International Entrepreneurship and Management Journal, Springer, vol. 18(1), pages 1-24, March.
    19. François Constant & Richard Calvi & Thomas Johnsen, 2020. "Managing tensions between exploitative and exploratory innovation through purchasing function ambidexterity Managing tensions between exploitative and exploratory innovation through purchasing functio," Post-Print hal-02891790, HAL.
    20. Hughes, Paul & Hughes, Matthew & Stokes, Peter & Lee, Hanna & Rodgers, Peter & Degbey, William Y., 2020. "Micro-foundations of organizational ambidexterity in the context of cross-border mergers and acquisitions," Technological Forecasting and Social Change, Elsevier, vol. 153(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:5:p:3994-:d:1076862. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.