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Slack resources, exploratory and exploitative innovation and the performance of small technology-based firms at incubators

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  • Danny Soetanto

    (Lancaster University Management School)

  • Sarah L. Jack

    (Lancaster University Management School)

Abstract

This paper aims to contribute (1) to the understanding about how small technology-based firms in spite of being constrained by limited resources, can still perform exploratory and exploitative innovation and (2) to extend knowledge about the role of slack resources in the context of small technology-based firms in facilitating those innovation activities. Herein, we focus on two types of slack resources: internal slack, resources that are available within the firms and external slack, additional resources that are gathered through the facilitation of external sources such as business incubators. Using a sample of 141 small technology-based firms located at incubators, this study combined two streams of research on incubator studies and innovation to construct some hypotheses examining the role of slack resources and innovation activities in enhancing the performance of small technology-based firms operating in incubator setting. Our findings demonstrate that neither slack resources nor innovation activities alone explain firm performance. Instead, small technology-based firms fit their innovation activities to their slack resources. While the relationship between internal slack and performance is mediated by exploitative innovation, exploratory innovation plays a role as a mediator for the relationship between external slack and performance.

Suggested Citation

  • Danny Soetanto & Sarah L. Jack, 2018. "Slack resources, exploratory and exploitative innovation and the performance of small technology-based firms at incubators," The Journal of Technology Transfer, Springer, vol. 43(5), pages 1213-1231, October.
    • Handle: RePEc:kap:jtecht:v:43:y:2018:i:5:d:10.1007_s10961-016-9533-0
    DOI: 10.1007/s10961-016-9533-0
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    Cited by:

    1. Rongbin Ruan & Wan Chen & Zuping Zhu, 2022. "Linking Environmental Corporate Social Responsibility with Green Innovation Performance: The Mediating Role of Shared Vision Capability and the Moderating Role of Resource Slack," Sustainability, MDPI, vol. 14(24), pages 1-20, December.
    2. Xiaoxiang Li & Shuhan Zhang, 2021. "Does Slack Buffer? Market Performance after Environmental Shock," Sustainability, MDPI, vol. 13(17), pages 1-16, August.
    3. Matthias Guffler & Alexandra Bertschi-Michel & Andreas Hack & Franz W. Kellermanns, 2023. "Family firm ambidexterity: the influence of paradoxical tensions and the Entrepreneurial Family’s cohesion," The Journal of Technology Transfer, Springer, vol. 48(6), pages 1945-1977, December.
    4. Telma Mendes & Vítor Braga & Carina Silva & Vanessa Ratten, 2023. "Taking a closer look at the regionally clustered firms: How can ambidexterity explain the link between management, entrepreneurship, and innovation in a post-industrialized world?," The Journal of Technology Transfer, Springer, vol. 48(6), pages 2007-2053, December.
    5. Wenqing Wu & Hongxin Wang & Yenchun Jim Wu, 2021. "Internal and external networks, and incubatees’ performance in dynamic environments: entrepreneurial learning’s mediating effect," The Journal of Technology Transfer, Springer, vol. 46(6), pages 1707-1733, December.
    6. Jessica Alzamora-Ruiz & María Fuentes-Fuentes & Myriam Martinez-Fiestas, 2021. "Together or separately? Direct and synergistic effects of Effectuation and Causation on innovation in technology-based SMEs," International Entrepreneurship and Management Journal, Springer, vol. 17(4), pages 1917-1943, December.
    7. Amit Sareen & Sharadindu Pandey, 2022. "Organizational Innovation in Knowledge Intensive Business Services: The role of Networks, Culture and Resources for Innovation," FIIB Business Review, , vol. 11(1), pages 107-118, March.
    8. Klofsten, Magnus & Lundmark, Erik & Wennberg, Karl & Bank, Megan, 2019. "Incubator specialization and size: divergent paths towards operational scale," Ratio Working Papers 326, The Ratio Institute.

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    More about this item

    Keywords

    Exploration; Exploitation; Innovation; Internal slack; External slack; Mediation; Performance; Incubators;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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