Resource Slack, Innovation Ambidexterity, and Quality Performance: Knowledge Heterogeneity Perspective

Fu-Sheng TSAI, Che-Hung LIN, Kou-Cheng CHUNG

Abstract


Abstract. Resource slack and innovation ambidexterity can both be represented and connected conceptually with heterogeneous knowledge structure. Hypothesizing with the logic of knowledge heterogeneity, the present study empirically examined ambidexterity’s mediation effect in the relationship between two forms of resource slacks (i.e., human and financial resources) and product quality. Companies in Taiwanese manufacturing industry were located based on the random inspection conducted by the Department of Budget, Accounting and Statistics of the Government in 2011, and surveyed. Our findings demonstrated that slack resource is only an indirect factor for product quality evaluated by internal developers and producers (i.e. development and delivery processes) and external customers (product-specific quality). Specifically, first, different resource slacks influence differently on ambidexterity; second, both exploration and exploitation positively influence quality of innovation; third, ambidexterity plays a significant mediator’s role that may strategically alter the relationship between slack and quality. Research has paid increasing attention to ambidexterity (i.e., exploration and exploitation) in organizational innovation. Mostly, however, focus on the influencing factors leading to possible ambidextrous design or implementation of innovation. Few have examined ambidexterity’s effects on specific dimensions of innovation as outcomes.

Keywords. Resource slacks, Ambidexterity, Quality, Knowledge heterogeneity.

JEL. M10; M11; M14.


Keywords


Resource slacks; Ambidexterity; Quality; Knowledge heterogeneity.

Full Text:


References


Anderson, J.C., & Gerbing, D.W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411-423. doi. 10.1037/0033-2909.103.3.411

Andriopoulos, C., & Lewis, M.W. (2008). Exploitation-exploration tensions and organizational ambidexterity: Managing paradoxes of innovation. Organization Science, 20(4), 696-717. doi. 10.1287/orsc.1080. 0406

Ahire, S.L., & Drefus, P. (2000). The impact of design management and process management on quality: an empirical investigation. Journal of Operations, 18(5), 49-575. doi. 10.1016/s0272-6963(00)00029-2

Baran, R.J., Galka, R.J., & Strunk, D.P. (2008). Principles of Customer Relationship Management. Mason, OH: Thomson.

Barney, J.B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-12. doi. 10.1177/014920639101700108

Baum, J.A.C., Li, S.X., & Usher, J.M. (2000). Making the next move: How experiential and vicarious learning shape the locations of chains’ acquisitions. Administrative Science Quarterly, 45, 766–801. doi. 10.2307/2667019

Benner, M.J., & Tushman, M.L. (2003). Exploitation, exploration, and process management: The productivity dilemma revisited. Academy of Management Review, 28(2), 238-256. doi. 10.5465/AMR.2003.9416096

Bourgeois, L.J. (1981). On the measurement of organizational slack. Academy of Management Review, 6, 22-39. doi. 10.5465/AMR.1981.4287985

Bourgeois, L.J., & Singh, J.V. (1983). Organizational slack and political behavior within top management groups. Academy of Management Proceedings, 5(1), 43-49. doi. 10.5465/AMBPP.1983.4976315

Burgelman, R.A. (2002). Strategy Is Destiny: How Strategy-making Shapes a Company’s Future. New York: Free Press.

Cheng, J.L.C., & Kesner, I.F. (1997). Organizational slack and response to environmental shifts: The impact of resource allocation patterns. Journal of Management, 23(1), 1-18. doi. 10.1016/S0149-2063(97)90003-9

Cowherd, D.M., & Levine, D.I. (1992). Product quality and pay equity between Lower-Level employees and top management: An investigation of distributive justice theory. Administrative Science Quarterly, 37(2), 302-320. doi. 10.2307/2393226

Cyert, R.M., & March, J.G. 1963 (1992). A Behavioral Theory of the Firm. Malden, MA: Blackwell.

Damanpour, F. (1987). Organizational innovation: A meta-analysis of effects of determinants and moderators. Academy of Management Journal, 34(3), 555-590. doi. 10.2307/256406

Ferrary, M. (2011). Specialized organizations and ambidextrous clusters in the open innovation paradigm. European Management Journal, 29(3), 181-192. doi. 10.1016/j.emj.2010.10.007

George, G. (2005). Slack resources and the performance of privately held firms. Academy of Management Journal, 48(4), 661-676. doi. 10.5465/AMJ.2005.17843944

Greve, H. (2003). Organizational Learning from Performance Feedback: A Behavioral Perspective on Innovation and Change. New York: Cambridge University Press, England.

Greve, H.R. (2007). Exploration and exploitation in product innovation. Industrial and Corporate Change, 16(5), 945-975. doi. 10.1111/radm.12012

Gupta, A.K., Smith, K.G., & Shalley, C. (2006). The interplay between exploration and exploitation. Academy of Management Journal, 49, 693-706. doi. 10.5465/AMJ.2006.22083026

Hambrick, D.C., & Snow, C.C. (1977). A conceptual model of strategic decision making in organizations. In R.L. Taylor, M.J. O'Connell, R.A. Zawacki & D.D. Warrick (Eds.), Proceedings of the Academy of Management (pp.109-112). Colorado Springs, CO: University of Colorado.

He, Z.-L., & Wong, P.-K. (2004). Exploration vs. exploitation: An empirical test of the ambidexterity hypothesis. Organization Science, 15(4), 481-494. doi. 10.1287/orsc.1040. 0078

Homburg, C., Grozdanovic, M., & Klarmann, M. (2007). Responsiveness to customers and competitors: the role of affective and cognitive organizational systems. Journal of Marketing, 71(3), 18-38. doi. 10.1509/jmkg.71.3.18

Kang, I., Jeon, S., Lee, S., & Lee, C.K. (2005). Investigating structural relations affecting the effectiveness of service management. Tourism Management, 26(3), 301-310. doi. 10.1016/j.tourman.2004.02.006

Katila, R., & Ahuja, G. (2002). Something old, something new: a longitudinal study of search behavior and new product introductions. Academy of Management Journal, 45(6), 1183-1194. doi. 10.2307/3069433

Kraatz, M., & Zajac, E. (2001). How organizational resources affect strategic change and performance in turbulent environments: Theory and evidence. Organization Science, 12(1), 632-657. doi. 10.1287/orsc.12.5. 632.10088

Lavie, D., Stettner, U., & Tushman, M. (2010). Exploration and Exploitation within and across Organizations. Academy of Management Annals, 4(1), 109–155. doi. 10.1080/ 19416521003691287

Lecuona, J.R., & Reitzig, M. (2014). Knowledge worth having in ‘excess’: The value of tacit and firm-specific human resource slack. Strategic Management Journal, 35(7), 954-973. doi. 10.1002/smj.2143

Lee, I.G., Kim, S.Y., Loo, O.S., Lee, H.K., Yeon, S.J., Song, Y.W., & Kim, J. (2013). Product orientations and the development strategies of new convergence products: Moderating effects of corporate capabilities, Asian Journal of Technology Innovation, 21 (1), 34-51. doi. 10.1509/jmkg.73.4.97

Levinthal, D., & March, J.G. (1981). A model of adaptive organizational search. Journal of Economic Behavior and Organization, 2(3), 307-333. doi. 10.1016/0167-2681(81)90012-3

Lin, H.-E., McDonough, E.F., Lin, S.-J., & Lin, C.Y.-Y. (2013). Managing the exploitation/exploration paradox: The role of a learning capability and innovation ambidexterity. Journal of Product Innovation Management, 30, 262-278. doi. 10.1111/j.1540-5885.2012.00998.x

March, J.G. (1991). Exploration and exploitation in organizational learning. Organization Science, 2(1), 71-87. doi. 10.1287/orsc.2.1.71

March, J.G., & Simon, H. (1958). Organizations. New York, NY: John Wiley.

McGrath, M.E. (2001). Product Strategy for High-technology Companies (2nd ed.). New York: McGraw-Hill.

Mishina, Y., Pollock, T.G., & Porac, J.F. (2004). Are more resources always better for growth? Resource stickiness in market and product expansion. Strategic Management Journal, 25(12), 1179-1197. doi. 10.1002/smj.424

Moses, D.O. (1992). Organizational slack and risk-taking behavior: Tests of product pricing strategy. Journal of Organizational Change Management, 5(3), 38-54. doi. 10.1108/09534819210018045

Nohria, N., & Gulati, R. (1996). Is slack good or bad for innovation? Academy of Management Journal, 39, 1245-64. doi. 10.2307/256998

O'Reilly III, C.A., & Tushman, M. (2008). Ambidexterity as a dynamic capability: resolving the innovator's dilemma. In A. P. Brief, & B. M. Staw (Eds.), Research in Organizational Behavior, 28, (pp.185-206). Oxford: Elsevier.

O’Brien, J.P. (2003). The capital structure implications of pursuing a strategy of innovation. Strategic Management Journal, 24(5), 415-432. doi. 10.1002/smj.308

Orsi, A. (2006) Knowledge management in mergers and acquisitions: key factors. RBGN-Revista Brasileira de Gestao de Negocios, 8(22), 46-56. doi. 10.7819/ rbgn.v8i22.68

Payne, A. (2006). Handbook of CRM: Achieving Excellence in Customer Management. Burlington, Butterworth-Heinemann, UK.

Porter, M. (1996). What is strategy? Harvard Business Review, 74, 61-78. doi. 10.1177/1470593111418795

Raisch, S., & Birkinshaw, J. (2008). Organizational ambidexterity: antecedents, outcomes, and moderators. Journal of Management, 34, 375-409. doi. 10.1177/0149206308316058

Raisch, S., Birkinshaw, J., Probst, G., & Tushman, M.L. (2009). Organizational ambidexterity: balancing exploitation and exploration for sustained performance. Organization Science, 20(4), 685-695. doi. 10.1287/orsc.1090.0465

Ribeiro, F.F. & Oliveira Jr., M.M. (2009). Transfer and reverse transfer of knowledge of international acquisitions: The case of the acquisition of the Perez Companc by Petrobras in Argentina. RBGN-Revista Brasileira de Gestao de Negocios, 11 (30), 79-93. doi. 10.7819/rbgn.v11i30. 292

Rosenkopf, L., & Nerkar, A. (2001). Beyond local search: Boundary-spanning, exploration, and impact in the optical disk industry. Strategic Management Journal, 22, 287–306. doi. 10.1002/smj.160

Sharfman, M.P., Wolf, G., Chase, R.B., & Tansik, D.A. (1988). Antecedents of organizational slack. Academy of Management Journal, 13(4), 601-614. doi. 10.3917/mana.082.0025

Simsel, Z. (2009). Organizational ambidexterity: Towards a multilevel understanding. Journal of Management Studies, 46(4), 597-624. doi. 10.1111/j.1467-6486.2009.00828.x

Siggelkow, N., & Levinthal, D.A. (2003). Temporarily divide to conquer: Centralized, decentralized, and reintegrated organizational approaches to exploration and adaptation. Organization Science, 14, 650-669. doi. 10.1287/orsc.14.6.650.24840

Singh, J.V. (1986). Performance, slack, and risk taking in organizational decision making. Academy of Management Journal, 29(3), 562-585. doi. 10.2307/256224

Sinkula, J.M., Baker, W.E., & Noordewier, T. (1997). A framework for market-based organizational learning: linking values, knowledge, and behavior. Academy of Marketing Science Journal, 25(4), 305-318. doi. 10.1177/0092070397254003

Slater, S.F. & Narver J.C. (1995). Market orientation and the learning Organization. Journal of Marketing, 59, 63-74. doi. 10.2307/1252120

Sordi, J.O. & Azevedo, M.C. (2008). Analyses of individual and organizational competences associated with knowledge management practice. RBGN-Revista Brasileira de Gestao de Negocios, 10 (29), 391-407. doi. 10.7819/rbgn.v10i29.173

Taguchi, G. (1987). System of Experimental Design: Engineering Methods to Optimize Quality and Minimize Costs, White Plains NY: UNIPUB/Kraus International Publications,

Tan, J. (2003). Curvilinear relationship between organizational slack and firm performance: Evidence from Chinese state enterprises. European Management Journal, 21(6), 740-749. doi. 10.1016/j.emj.2003.09.010

Tan, J. & Peng, M.W. (2003). Organizational slack and firm performance during economic transitions: two studies from an emerging economy. Strategic Management Journal, 24(13), 1249-1263. doi. 10.1002/smj.351

Tsai, K.-H. & Hsu, T-.J. (2012). Linking cross-functional collaboration, innovation performance, and competitive intensity: towards a mediated moderation perspective, Asian Journal of Technology Innovation, 20 (1), 113-126. doi. 10.1080/19761597.2012.681438

Tushman, M.L., & Anderson, P.C. (2004). Managing Strategic Innovation and Change: A Collection of Readings. Second Edition, Oxford: Oxford University Press.

Tushman, M.L., & Smith, W. (2002). Organizational technology. In J. A. C. Baum (Ed.), Blackwell Companion to Organizations (pp.386-414). Malden.

Vermeulen, F., & Barkema, H. (2001). Learning through acquisitions. Academy of Management Journal, 44, 457–478. doi. 10.2307/3069364

Voss, G.B., Sirdeshmukh, D., & Voss, Z.G. (2008). The effects of slack resources and environmental threat on product exploration and exploitation. Academy of Management Journal, 51(1), 147-164. doi. 10.5465/AMJ.2008.30767373

Yalcinkaya, G., Calantone, R.J., & Griffith, D.A. (2007). An examination of exploration and exploitation capabilities: Implications for product innovation and market performance. Journal of International Marketing, 15(4), 63-93. doi. 10.1509/jimk.15.4.63




DOI: http://dx.doi.org/10.1453/jsas.v3i4.1068

Refbacks

  • There are currently no refbacks.




....................................................................................................................................................................................................................................................................................................................................... Journal of Social and Administrative Sciences - J. Adm. Soc. Sci. - JSAS - www.kspjournals.org

ISSN: 2149-0406

Editor: editor-jsas@kspjournals.org   Secretarial: secretarial@kspjournals.org   Istanbul - Turkey.

Copyright © KSP Library