When does design thinking promote radical and incremental innovation? The moderating role of the innovation stage

Although the interest in design thinking within innovation research and practice is growing, there is a lack of a holistic view of the relationship between design thinking and different types of innovation (i.e., radical and incremental innovation). This gap impedes a more thorough and nuanced comprehension of the role that design thinking plays in innovation. To bridge this gap, we investigate the impact of design thinking on both radical and incremental innovation by integrating resource orchestration theory. We further explore whether and how these impacts vary with the innovation stage (ideation stage vs. product development stage). Using survey data from 446 Chinese manufacturing firms, we find that design thinking positively affects both radical and incremental innovation. More interestingly, the innovation stage forms a different contingency factor in which design thinking affects the two types of innovation. The positive relationship between design thinking and incremental innovation is stronger in the ideation stage than in the product development stage. However, the positive relationship between design thinking and radical innovation does not differ significantly between the two stages of innovation. These findings advance the literature on when and how to apply design thinking in different types of innovation, providing practical implications for managers to adjust design thinking implementation strategies on the basis of innovation types and stages.