IDEAS home Printed from https://ideas.repec.org/a/bla/jomstd/v45y2008i8p1329-1353.html
   My bibliography  Save this article

Market Orientation, Generative Learning, Innovation Strategy and Business Performance Inter‐Relationships in Bioscience Firms

Author

Listed:
  • Robert E. Morgan
  • Pierre Berthon

Abstract

We propose conceptual arguments to establish relationships between market orientation and generative learning and their respective impact on exploitative innovation strategy and explorative innovation strategy. We then consider the ambidextrous association between both forms of innovation strategy and business performance. This model is subject to an empirical test using data generated from 160 bioscience firms. Using structural equation modelling, two mutually exclusive paths are specified where market orientation leads to exploitative innovation strategy, while generative learning leads to explorative innovation strategy. We then find that the ambidexterity exhibited by firms in the form of exploitative innovation strategy and explorative innovation strategy significantly explains improvements in firms’ business performance. Discussion is given to these findings and managerial implications are presented along with avenues for further research.

Suggested Citation

  • Robert E. Morgan & Pierre Berthon, 2008. "Market Orientation, Generative Learning, Innovation Strategy and Business Performance Inter‐Relationships in Bioscience Firms," Journal of Management Studies, Wiley Blackwell, vol. 45(8), pages 1329-1353, December.
    • Handle: RePEc:bla:jomstd:v:45:y:2008:i:8:p:1329-1353
    DOI: 10.1111/j.1467-6486.2008.00778.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-6486.2008.00778.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1467-6486.2008.00778.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Morrison, Pamela D. & Roberts, John H. & Midgley, David F., 2004. "The nature of lead users and measurement of leading edge status," Research Policy, Elsevier, vol. 33(2), pages 351-362, March.
    2. Anne S. Miner & Stephen J. Mezias, 1996. "Ugly Duckling No More: Pasts and Futures of Organizational Learning Research," Organization Science, INFORMS, vol. 7(1), pages 88-99, February.
    3. Eric von Hippel, 1986. "Lead Users: A Source of Novel Product Concepts," Management Science, INFORMS, vol. 32(7), pages 791-805, July.
    4. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    5. Susan E. Feinberg & Anil K. Gupta, 2004. "Knowledge spillovers and the assignment of R&D responsibilities to foreign subsidiaries," Strategic Management Journal, Wiley Blackwell, vol. 25(8‐9), pages 823-845, August.
    6. Alessia Contu & Hugh Willmott, 2003. "Re-Embedding Situatedness: The Importance of Power Relations in Learning Theory," Organization Science, INFORMS, vol. 14(3), pages 283-296, June.
    7. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    8. Kwaku Atuahene-Gima & Anthony Ko, 2001. "An Empirical Investigation of the Effect of Market Orientation and Entrepreneurship Orientation Alignment on Product Innovation," Organization Science, INFORMS, vol. 12(1), pages 54-74, February.
    9. Sriraman Bhoovaraghavan & Ashok Vasudevan & Rajan Chandran, 1996. "Resolving the Process vs. Product Innovation Dilemma: A Consumer Choice Theoretic Approach," Management Science, INFORMS, vol. 42(2), pages 232-246, February.
    10. Gopalakrishnan, S. & Damanpour, F., 1997. "A review of innovation research in economics, sociology and technology management," Omega, Elsevier, vol. 25(1), pages 15-28, February.
    11. John Dawes, 2000. "Market Orientation and Company Profitability: Further Evidence Incorporating Longitudinal Data," Australian Journal of Management, Australian School of Business, vol. 25(2), pages 173-199, September.
    12. Langerak, Fred, 2003. "An Appraisal of Research on the Predictive Power of Market Orientation," European Management Journal, Elsevier, vol. 21(4), pages 447-464, August.
    13. Peter W. Roberts & Raphael Amit, 2003. "The Dynamics of Innovative Activity and Competitive Advantage: The Case of Australian Retail Banking, 1981 to 1995," Organization Science, INFORMS, vol. 14(2), pages 107-122, April.
    14. George P. Huber & Danial J. Power, 1985. "Retrospective reports of strategic‐level managers: Guidelines for increasing their accuracy," Strategic Management Journal, Wiley Blackwell, vol. 6(2), pages 171-180, April.
    15. Figueiredo, Paulo N., 2002. "Does technological learning pay off? Inter-firm differences in technological capability-accumulation paths and operational performance improvement," Research Policy, Elsevier, vol. 31(1), pages 73-94, January.
    16. Sidney G. Winter, 2000. "The Satisficing Principle in Capability Learning," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 981-996, October.
    17. Mitchell P. Koza & Arie Y. Lewin, 1998. "The Co-Evolution of Strategic Alliances," Organization Science, INFORMS, vol. 9(3), pages 255-264, June.
    18. Wendy K. Smith & Michael L. Tushman, 2005. "Managing Strategic Contradictions: A Top Management Model for Managing Innovation Streams," Organization Science, INFORMS, vol. 16(5), pages 522-536, October.
    19. Erwin Danneels, 2003. "Tight–loose coupling with customers: the enactment of customer orientation," Strategic Management Journal, Wiley Blackwell, vol. 24(6), pages 559-576, June.
    20. Hubert Gatignon & Michael L. Tushman & Wendy Smith & Philip Anderson, 2002. "A Structural Approach to Assessing Innovation: Construct Development of Innovation Locus, Type, and Characteristics," Management Science, INFORMS, vol. 48(9), pages 1103-1122, September.
    21. Mowery, David & Rosenberg, Nathan, 1993. "The influence of market demand upon innovation: A critical review of some recent empirical studies," Research Policy, Elsevier, vol. 22(2), pages 107-108, April.
    22. 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.
    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. Strobl, Andreas & Bauer, Florian & Matzler, Kurt, 2020. "The impact of industry-wide and target market environmental hostility on entrepreneurial leadership in mergers and acquisitions," Journal of World Business, Elsevier, vol. 55(2).
    2. Arman Avadikyan & Gilles Lambert & Christophe Lerch, 2016. "A Multi-Level Perspective on Ambidexterity: The Case of a Synchrotron Research Facility," Working Papers of BETA 2016-44, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    3. Matsuno, Ken & Kohlbacher, Florian, 2020. "Proactive marketing response to population aging: The roles of capabilities and commitment of firms," Journal of Business Research, Elsevier, vol. 113(C), pages 93-104.
    4. Partanen, Jukka & Kohtamäki, Marko & Patel, Pankaj C. & Parida, Vinit, 2020. "Supply chain ambidexterity and manufacturing SME performance: The moderating roles of network capability and strategic information flow," International Journal of Production Economics, Elsevier, vol. 221(C).
    5. Brion, Sébastien & Mothe, Caroline & Sabatier, Mareva, 2007. "What impacts more on innovation : Organizational context or individual competences ?," MPRA Paper 10595, University Library of Munich, Germany.
    6. Sébastien Brion & Caroline Mothe & Maréva Sabatier, 2010. "The Impact Of Organisational Context And Competences On Innovation Ambidexterity," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 14(02), pages 151-178.
    7. Turner, Karynne L. & Monti, Alberto & Annosi, Maria Carmela, 2021. "Disentangling the effects of organizational controls on innovation," European Management Journal, Elsevier, vol. 39(1), pages 57-69.
    8. Uriel Stettner & Dovev Lavie, 2014. "Ambidexterity under scrutiny: Exploration and exploitation via internal organization, alliances, and acquisitions," Strategic Management Journal, Wiley Blackwell, vol. 35(13), pages 1903-1929, December.
    9. Cho, Sam Yul & Kim, Sang Kyun, 2017. "Horizon problem and firm innovation: The influence of CEO career horizon, exploitation and exploration on breakthrough innovations," Research Policy, Elsevier, vol. 46(10), pages 1801-1809.
    10. Na, Cheongho & Kim, Eungdo & Hwang, Junseok, 2014. "Research on open innovation strategy and its performance in Korea smart media industry: Focusing on user innovation strategy," 20th ITS Biennial Conference, Rio de Janeiro 2014: The Net and the Internet - Emerging Markets and Policies 106850, International Telecommunications Society (ITS).
    11. Gomes, Paulo J. & Silva, Graça Miranda & Sarkis, Joseph, 2020. "Exploring the relationship between quality ambidexterity and sustainable production," International Journal of Production Economics, Elsevier, vol. 224(C).
    12. Benedikt Schnellbächer & Sven Heidenreich, 2020. "The role of individual ambidexterity for organizational performance: examining effects of ambidextrous knowledge seeking and offering," The Journal of Technology Transfer, Springer, vol. 45(5), pages 1535-1561, October.
    13. Karl Aschenbrücker & Tobias Kretschmer, 2022. "Performance-based incentives and innovative activity in small firms: evidence from German manufacturing," Journal of Organization Design, Springer;Organizational Design Community, vol. 11(2), pages 47-64, June.
    14. Erwin Danneels & Rajesh Sethi, 2011. "New Product Exploration Under Environmental Turbulence," Organization Science, INFORMS, vol. 22(4), pages 1026-1039, August.
    15. 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.
    16. Yasser Alizadeh & Antonie J. Jetter, 2019. "Pathways for Balancing Exploration and Exploitation in Innovations: A Review and Expansion of Ambidexterity Theory," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 16(05), pages 1-33, August.
    17. Lori Rosenkopf & Patia McGrath, 2011. "Advancing the Conceptualization and Operationalization of Novelty in Organizational Research," Organization Science, INFORMS, vol. 22(5), pages 1297-1311, October.
    18. Lee, Jeoung Yul & Xiao, Shufeng(Simon) & Choi, Byungchul, 2021. "Unpacking the drivers of emerging market firms’ international joint venture formation: The interplay between technological innovation strategies and home- and host-institutional pressures," Journal of Business Research, Elsevier, vol. 134(C), pages 378-392.
    19. Tom J. M. Mom & Frans A. J. van den Bosch & Henk W. Volberda, 2009. "Understanding Variation in Managers' Ambidexterity: Investigating Direct and Interaction Effects of Formal Structural and Personal Coordination Mechanisms," Organization Science, INFORMS, vol. 20(4), pages 812-828, August.
    20. Zhi Yang & Xuemin Zhou & Pengcheng Zhang, 2015. "Discipline versus passion: Collectivism, centralization, and ambidextrous innovation," Asia Pacific Journal of Management, Springer, vol. 32(3), pages 745-769, September.

    More about this item

    Statistics

    Access and download statistics

    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:bla:jomstd:v:45:y:2008:i:8:p:1329-1353. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-2380 .

    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.