The roles of absorptive capacity and cultural balance for exploratory and exploitative innovation in SMEs

Limaj, Everist and Bernroider, Edward (2019) The roles of absorptive capacity and cultural balance for exploratory and exploitative innovation in SMEs. Journal of Business Research, 94. pp. 137-153. ISSN 01482963

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Abstract

This study investigates whether balanced forms of organizational cultures moderate the effects of potential and realized absorptive capacities (ACs) to simultaneously generate exploratory and exploitative innovations. Using empirical survey data collected from 138 small to medium-sized enterprises (SMEs), we applied partial least squares (PLS) structural equation modeling (SEM) combined with mediation and moderation analyses to test our hypotheses. Our results show that the effects of potential AC on organizations' exploratory and exploitative innovations are fully mediated by the organizations' realized AC. The positive effects of realized AC on innovation are contingent on the overall cultural balance of the organization, which, however, does not affect the strong link between potential AC and realized AC. We thus provide novel empirical insights into the multi-dimensional nature of AC and the importance of cultural equilibrium for both exploratory and exploitative innovation, which is of particular importance for ambidextrous SMEs facing dynamic markets.

Item Type: Article
Keywords: Absorptive capacity; Cultural balance; PLS-SEM; Exploratory innovation; Exploitative innovation
Divisions: Departments > Informationsverarbeitung u Prozessmanag. > Informationswirtschaft
Version of the Document: Published
Depositing User: ePub Administrator
Date Deposited: 20 Nov 2017 11:59
Last Modified: 05 Dec 2018 16:18
Related URLs:
FIDES Link: https://bach.wu.ac.at/d/research/results/84373/
URI: https://bach-s59.wu.ac.at/id/eprint/5869

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