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Effective sense-and-respond strategies: Mediating roles of exploratory and exploitative innovation

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  • Ngo, Liem Viet
  • Bucic, Tania
  • Sinha, Ashish
  • Lu, Vinh Nhat

Abstract

Integrating the dynamic capabilities view of the firm with ambidexterity theory, this article proposes a sense-and-respond performance framework, in which technology- and market-sensing capabilities drive explorative and exploitative innovation activities, which then determine firm performance in an emerging market. With a sample of 150 Vietnamese firms, this study shows that exploratory and exploitative innovations are salient modi operandi through which the effects of technology-sensing and market-sensing capabilities affect firm performance. No performance-related empirical evidence supports the proposed complementarity between exploratory innovation and exploitative innovation. Instead, the findings imply that a firm's ability to compete in a complex market depends on its possession of adaptive capabilities.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:jbrese:v:94:y:2019:i:c:p:154-161
    DOI: 10.1016/j.jbusres.2017.10.050
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    References listed on IDEAS

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    2. Piñeiro-Chousa, Juan & López-Cabarcos, M. Ángeles & Romero-Castro, Noelia María & Pérez-Pico, Ada María, 2020. "Innovation, entrepreneurship and knowledge in the business scientific field: Mapping the research front," Journal of Business Research, Elsevier, vol. 115(C), pages 475-485.
    3. Abiodun Babatunde ONAMUSI, 2020. "Strategic Response Capability And Firm Competitiveness: How Omoluabi Leadership Makes A Difference," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 10(4), pages 23-37, December.
    4. Yang, Miaomiao & Wang, Juanru & Zhang, Xiaodi, 2021. "Boundary-spanning search and sustainable competitive advantage: The mediating roles of exploratory and exploitative innovations," Journal of Business Research, Elsevier, vol. 127(C), pages 290-299.
    5. María Elena Murrieta-Oquendo & Iván Manuel De la Vega, 2022. "State and Dynamics of the Innovative Performance of Medium and Large Firms in the Manufacturing Sector in Emerging Economies: The Cases of Peru and Ecuador," Sustainability, MDPI, vol. 15(1), pages 1-23, December.
    6. Astadi Pangarso, 2020. "A New Theoretical Framework of Organizational Effectiveness from Knowledge and Ambidexterity Perspectives," GATR Journals jmmr257, Global Academy of Training and Research (GATR) Enterprise.
    7. Hao Qin & Hua Zou & Huimin Ji, 2023. "Research on Enterprise Interactive Innovation Balance Decision in Green Manufacturing Innovation Ecosystem," Sustainability, MDPI, vol. 15(10), pages 1-22, May.
    8. De Silva, Muthu & Howells, Jeremy & Khan, Zaheer & Meyer, Martin, 2022. "Innovation ambidexterity and public innovation Intermediaries: The mediating role of capabilities," Journal of Business Research, Elsevier, vol. 149(C), pages 14-29.
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    11. Ko, Young Jin & O'Neill, Hugh & Xie, Xuanli, 2021. "Strategic intent as a contingency of the relationship between external knowledge and firm innovation," Technovation, Elsevier, vol. 104(C).
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    14. Osiyevskyy, Oleksiy & Shirokova, Galina & Ritala, Paavo, 2020. "Exploration and exploitation in crisis environment: Implications for level and variability of firm performance," Journal of Business Research, Elsevier, vol. 114(C), pages 227-239.

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