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Innovation ambidexterity: balancing exploitation and exploration for startup and established restaurants and impacts upon performance

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  • Meehee Cho
  • Mark A. Bonn
  • Su Jin Han

Abstract

This study was designed to examine how important a balance between exploitation (proximity to existing technologies, products and services) and exploration (proximity to existing consumer segments) representing innovation ambidexterity, would be for improved restaurant performance. Also investigated was whether or not innovation ambidexterity played different roles in performance with respect to stages of business life cycles represented by startup and established restaurants. Using data obtained from 317 owners and managers of independent casual dining restaurants, a nonlinear approach was adopted to test our hypotheses. Results supported the significant and positive relationship between innovation ambidexterity and restaurant performance. More specifically, balancing exploitative and exploratory innovation was significantly and positively associated with startup restaurant performance. However, its relationship with established restaurant performance was not significant. Results also confirmed that exploitative innovation was more important than exploratory innovation for startup restaurants, while exploratory innovation was more important for established restaurants.

Suggested Citation

  • Meehee Cho & Mark A. Bonn & Su Jin Han, 2020. "Innovation ambidexterity: balancing exploitation and exploration for startup and established restaurants and impacts upon performance," Industry and Innovation, Taylor & Francis Journals, vol. 27(4), pages 340-362, April.
    • Handle: RePEc:taf:indinn:v:27:y:2020:i:4:p:340-362
    DOI: 10.1080/13662716.2019.1633280
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    Citations

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    Cited by:

    1. Peixu He & Yana Pei & Chunpei Lin & Di Ye, 2021. "Ambidextrous Marketing Capabilities, Exploratory and Exploitative Market-Based Innovation, and Innovation Performance: An Empirical Study on China’s Manufacturing Sector," Sustainability, MDPI, vol. 13(3), pages 1-21, January.
    2. Jinying Liu & Yiping Wu & Haiwei Xu, 2022. "RETRACTED ARTICLE: The relationship between internal control and sustainable development of enterprises by mediating roles of exploratory innovation and exploitative innovation," Operations Management Research, Springer, vol. 15(3), pages 913-924, December.
    3. Jiuling Xiao & Yuting Bao & Jiankang Wang, 2023. "Which neighbor is more conducive to innovation? The moderating effect of partners’ innovation," The Journal of Technology Transfer, Springer, vol. 48(1), pages 33-67, February.
    4. Rabab H. Saleh & Christopher M. Durugbo & Soud M. Almahamid, 2023. "What makes innovation ambidexterity manageable: a systematic review, multi-level model and future challenges," Review of Managerial Science, Springer, vol. 17(8), pages 3013-3056, November.
    5. Tingyu Yang & Yongmei Cui & Rui Li, 2023. "Exploitation or Exploration? Managerial Myopia, Economic Policy Uncertainty and Ambidextrous Innovation Investment," Sustainability, MDPI, vol. 15(9), pages 1-20, April.
    6. Vendrell-Herrero, Ferran & Bustinza, Oscar F. & Opazo-Basaez, Marco & Gomes, Emanuel, 2023. "Treble innovation firms: Antecedents, outcomes, and enhancing factors," International Journal of Production Economics, Elsevier, vol. 255(C).
    7. Marcon, Arthur & Ribeiro, Jose Luis Duarte, 2021. "How do startups manage external resources in innovation ecosystems? A resource perspective of startups’ lifecycle," Technological Forecasting and Social Change, Elsevier, vol. 171(C).

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