ISSN: 2222-6990
Open access
To enhance the level of product innovativeness in various countries, one solution that can be taken is to apply strategic ambidexterity, since strategic ambidexterity is important for enhancing product innovativeness due to limited resources ,the dynamic nature of markets and the need to balance exploration and exploitation activities, by simultaneously focusing on both incremental improvements to existing products and exploring new opportunities, capabilities, and resources to produce new products , SMEs can adapt to changing customer preferences and technological advancements effectively and enhance the level of product innovativeness this article reviews previously published research which linked strategic ambidexterity to product innovativeness. The steps of this review include searching, screening, evaluating, and synthesizing. According to the findings of this review, this study fills the gap in the literature by absorbing and integrating variables from various theoretical frameworks.
Agwu, G. A., Agbanike, T., Uwajumogu, N., & Ogbuagu, R. A. (2020). How do firms combine different types of innovation? A multivariate probit approach. African Journal of Science, Technology, Innovation and Development, 12(2), 173–185.
https://doi.org/10.1080/20421338.2019.1624312
Ali, S., Tian, H., Wu, W., Ali, S., Kumail, T., & Saif, N. (2024). Marketing capabilities, market ambidexterity and product innovation outcomes: A yin-yang of inside-out and outside-in. Industrial Marketing Management, 118, 27–43.
https://doi.org/10.1016/j.indmarman.2024.02.003
Al-Khatib, A. W. (2023). How big data-driven organizational capabilities shape innovation performance? An empirical study from small and medium manufacturing enterprises. Kybernetes. https://doi.org/10.1108/K-06-2023-1070
Al-Okaily, M. (2023). Does AIS usage matter in SMEs performance? an empirical investigation under digital transformation revolution. Information Discovery and Delivery. https://doi.org/10.1108/IDD-08-2022-0072
Al-Sa’di, A. F., Abdallah, A. B., & Dahiyat, S. E. (2017). The mediating role of product and process innovations on the relationship between knowledge management and operational performance in manufacturing companies in Jordan. Business Process Management Journal, 23(2), 349–376. https://doi.org/10.1108/BPMJ-03-2016-0047
Altig, D., Baker, S., Barrero, J. M., Bloom, N., Bunn, P., Chen, S., Davis, S. J., Leather, J., Meyer, B., Mihaylov, E., Mizen, P., Parker, N., Renault, T., Smietanka, P., & Thwaites, G. (2020). Economic uncertainty before and during the COVID-19 pandemic. Journal of Public Economics, 191, 104274. https://doi.org/10.1016/j.jpubeco.2020.104274
Arnold, T. J., Fang, E. (Er), & Palmatier, R. W. (2011). The effects of customer acquisition and retention orientations on a firm’s radical and incremental innovation performance. Journal of the Academy of Marketing Science, 39(2), 234–251.
https://doi.org/10.1007/s11747-010-0203-8
Atuahene-Gima, K. (2005). Kwaku Atuahene-Gima Resolving the Capability-Rigidity Paradox in New Product Innovation. Journal of Marketing, 69(4), 61-83. https://doi.org/10.1509/jmkg.2005.69.4.61
Aziz, N. N. A., & Samad, S. (2016). Innovation and competitive advantage: moderating effects of firm age in foods manufacturing SMEs in Malaysia. Procedia Economics and Finance, 35, 256–266. https://doi.org/10.1016/s2212-5671(16)00032-0
Baccarella, C. V., Maier, L., Meinel, M., Wagner, T. F., & Voigt, K. I. (2022). The effect of organizational support for creativity on innovation and market performance: The moderating role of market dynamism. Journal of Manufacturing Technology Management, 33(4), 827–849. https://doi.org/10.1108/JMTM-10-2020-0423
Barba-Aragón, M. I., & Jiménez-Jiménez, D. (2020). HRM and radical innovation: A dual approach with exploration as a mediator. European Management Journal, 38(5), 791-803. https://doi.org/10.1016/j.emj.2020.03.007
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. https://doi.org/10.1177/014920639101700108
Bernal, P., Maicas, J. P., & Vargas, P. (2019). Exploration, exploitation and innovation performance: disentangling the evolution of industry. Industry and Innovation, 26(3), 295–320. https://doi.org/10.1080/13662716.2018.1465813
Brockman, B. K., & Morgan, R. M. (2003). The role of existing knowledge in new product innovativeness and performance. Decision Sciences, 34(2), 385-419. https://doi.org/10.1111/1540-5915.02326
Chandy, R. K., & Tellis, G. J. (2000). The incumbent's curse? Incumbency, size, and radical product innovation. Journal of Marketing, 64(3), 1-17.
https://doi.org/10.1509/jmkg.64.3.1.18033
Chang, Y., Hughes, M., & Hotho, S. (2011). Internal and external antecedents of SMEs’ innovation ambidexterity outcomes. Management Decision, 49(10), 1658–1676. https://doi.org/10.1108/00251741111183816
Chang, Y. Y., & Hughes, M. (2012). Drivers of innovation ambidexterity in small- to medium-sized firms. European Management Journal, 30(1), 1–17.
https://doi.org/10.1016/j.emj.2011.08.003
Chou, C., Liu, Y. H., & Yang, K. P. (2024). Impacts of strategic exploitation and exploration on firms’ survival likelihood after crises: A decision-tree analysis. Long Range Planning, 57(1). https://doi.org/10.1016/j.lrp.2023.102374
Clauss, T., Kraus, S., Kallinger, F. L., Bican, P. M., Brem, A., & Kailer, N. (2021). Organizational ambidexterity and competitive advantage: The role of strategic agility in the exploration-exploitation paradox. Journal of Innovation and Knowledge, 6(4), 203–213. https://doi.org/10.1016/j.jik.2020.07.003
Dabi?, M., Stoj?i?, N., Simi?, M., Potocan, V., Slavkovi?, M., & Nedelko, Z. (2021). Intellectual agility and innovation in micro and small businesses: The mediating role of entrepreneurial leadership. Journal of Business Research, 123, 683–695. https://doi.org/10.1016/j.jbusres.2020.10.013
Distanont, A., & Khongmalai, O. (2020). The role of innovation in creating a competitive advantage. Kasetsart Journal of Social Sciences, 41(1), 15–21.
https://doi.org/10.1016/j.kjss.2018.07.009
Dong, Q., Wu, Y., Lin, H., Sun, Z., & Liang, R. (2024). Fostering green innovation for corporate competitive advantages in big data era: the role of institutional benefits. Technology Analysis & Strategic Management, 36(2), 181–194.
https://doi.org/10.1080/09537325.2022.2026321
Edwards-Schachter, M. E., Matti, C. E., & Alcántara, E. (2012). Fostering Quality of Life through Social Innovation: A Living Lab Methodology Study Case. Review of Policy Research, 29(6), 672–692. https://doi.org/10.1111/j.1541-1338.2012.00588.x
Fan, X., Zhao, S., Zhang, B., Wang, S., & Shao, D. (2023). The impact of corporate digital strategic orientation on innovation output. Heliyon, 9(5).
https://doi.org/10.1016/j.heliyon.2023.e16371
Ferreira, J., Coelho, A., & Moutinho, L. (2020). Dynamic capabilities, creativity and innovation capability and their impact on competitive advantage and firm performance: The moderating role of entrepreneurial orientation. Technovation, 92–93. https://doi.org/10.1016/j.technovation.2018.11.004
Franco, C., & Landini, F. (2022). Organizational drivers of innovation: The role of workforce agility. Research Policy, 51(2). https://doi.org/10.1016/j.respol.2021.104423
Hattar, C. (2020). The Role of Entrepreneurship and Human Resources in Supporting Sustainability-Oriented Innovations in Food Supply Chain Management (Doctoral dissertation, University of Northampton).
Huang, Q., Xu, C., Xue, X., & Zhu, H. (2023). Can digital innovation improve firm performance: Evidence from digital patents of Chinese listed firms. International Review of Financial Analysis, 89, 102810. https://doi.org/10.1016/j.irfa.2023.102810
Hubner, S., Frese, M., Song, Z., Tripathi, N., Kaschner, T., & Le Kong, X. (2022). An Asia-centric approach to team innovation: Cultural differences in exploration and exploitation behavior. Journal of Business Research, 138, 408–421.
https://doi.org/10.1016/j.jbusres.2021.09.009
Iborra, M., Safón, V., & Dolz, C. (2020). What explains the resilience of SMEs? Ambidexterity capability and strategic consistency. Long Range Planning, 53(6).
https://doi.org/10.1016/j.lrp.2019.101947
Jacob, J., Mei, M. Q., Gunawan, T., & Duysters, G. (2022). Ambidexterity and innovation in cluster SMEs: evidence from Indonesian manufacturing. Industry and Innovation, 29(8), 948–968. https://doi.org/10.1080/13662716.2022.2072712
Jaidi, N., Siswantoyo, Liu, J., Sholikhah, Z., & Andhini, M. M. (2022). Ambidexterity Behavior of Creative SMEs for Disruptive Flows of Innovation: A Comparative Study of Indonesia and Taiwan. Journal of Open Innovation: Technology, Market, and Complexity, 8(3). https://doi.org/10.3390/joitmc8030141
Khan, Z., Amankwah-Amoah, J., Lew, Y. K., Puthusserry, P., & Czinkota, M. (2022). Strategic ambidexterity and its performance implications for emerging economies multinationals. International Business Review, 31(3). https://doi.org/10.1016/j.ibusrev.2020.101762
Kim, N., & Atuahene?Gima, K. (2010). Using exploratory and exploitative market learning for new product development. Journal of product innovation management, 27(4), 519-536. https://doi.org/10.1111/j.1540-5885.2010.00733.x
Koo, J., Choi, Y. J., & Park, I. (2020). Innovation and welfare: The marriage of an unlikely couple. Policy and Society, 39(2), 189–207. https://doi.org/10.1080/14494035.2019.1641380
Leite, M., & Braz, V. (2016). Agile manufacturing practices for new product development: Industrial case studies. Journal of Manufacturing Technology Management, 27(4), 560–576. https://doi.org/10.1108/JMTM-09-2015-0073
Lennerts, S., Schulze, A., & Tomczak, T. (2020). The asymmetric effects of exploitation and exploration on radical and incremental innovation performance: An uneven affair. European Management Journal, 38(1), 121–134
https://doi.org/10.1016/j.emj.2019.06.002
Lundvall, B.-Å. (1992). The Learning economy and The economics of hope. Anthem Press.
Markham, S. K., & Griffin, A. (1998). The breakfast of champions: Associations between champions and product development environments, practices and performance. Journal of Product Innovation Management: An International Publication of The Product Development & Management Association, 15(5), 436-454. https://doi.org/10.1111/1540-5885.1550436
Mccarthy, I. P., & Gordon, B. R. (2011). Achieving contextual ambidexterity in R&D organizations: A management control system approach. R&D Management, 41(3), 240-258. https://doi.org/10.1111/j.1467-9310.2011.00642.x
Ndubisi, N. O., Zhai, X. (Amy), & Lai, K. hung. (2021). Small and medium manufacturing enterprises and Asia’s sustainable economic development. In International Journal of Production Economics (Vol. 233). Elsevier B.V.
https://doi.org/10.1016/j.ijpe.2020.107971
Pan, X., Chen, X., & Qiu, S. (2024). Pushing boundaries or overstepping? Exploring the paradoxical impact of radical innovation on government subsidies in Chinese SMEs. Technovation, 132. https://doi.org/10.1016/j.technovation.2024.102988
Peters, K., & Buijs, P. (2022). Strategic ambidexterity in green product innovation: Obstacles and implications. Business Strategy and the Environment, 31(1), 173–193. https://doi.org/10.1002/bse.2881
Ranjan, P. (2024). Unraveling the mystery of the link between digital orientation and innovation performance: The interplay of digital business capability and environmental dynamism. Technovation, 131, 102966.
https://doi.org/10.1016/j.technovation.2024.102966
Rosing, K., & Zacher, H. (2017). Individual ambidexterity: the duality of exploration and exploitation and its relationship with innovative performance. European Journal of Work and Organizational Psychology, 26(5), 694–709.
https://doi.org/10.1080/1359432X.2016.1238358
Rumanti, A. A., Rizana, A. F., & Achmad, F. (2023). Exploring the role of organizational creativity and open innovation in enhancing SMEs performance. Journal of Open Innovation: Technology, Market, and Complexity, 9(2).
https://doi.org/10.1016/j.joitmc.2023.100045
Schumpeter, J. A. (1949). Economic theory and entrepreneurial history. In Explorations in Enterprise (pp. 45–64). Harvard University Press.
https://doi.org/10.4159/harvard.9780674594470.c5
Sirén, C. A., Kohtamäki, M., & Kuckertz, A. (2012). Exploration and exploitation strategies, profit performance, and the mediating role of strategic learning: Escaping the exploitation trap. Strategic Entrepreneurship Journal, 6(1), 18–41. https://doi.org/10.1002/sej.1126
Tamayo-Torres, J., Gutierrez-Gutierrez, L., & Ruiz-Moreno, A. (2014). The relationship between exploration and exploitation strategies, manufacturing flexibility and organizational learning: An empirical comparison between Non-ISO and ISO certified firms. European Journal of Operational Research, 232(1), 72–86.
https://doi.org/10.1016/j.ejor.2013.06.040
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
Tian, P., & Yang, Q. (2023). The impact of online customer reviews on product iterative innovation. European Journal of Innovation Management. https://doi.org/10.1108/EJIM-09-2022-0501
Tsou, H. T., Chen, J. S., & Liao, W. H. (2014). Market and Technology Orientations for Service Delivery Innovation: The Link of Innovative Competence. Journal of Business and Industrial Marketing, 29(6), 499–513. https://doi.org/10.1108/JBIM-09-2011-0128
Turner, J. A., Klerkx, L., White, T., Nelson, T., Everett-Hincks, J., Mackay, A., & Botha, N. (2017). Unpacking systemic innovation capacity as strategic ambidexterity: How projects dynamically configure capabilities for agricultural innovation. Land Use Policy, 68, 503–523. https://doi.org/10.1016/j.landusepol.2017.07.054
Voss, G. B., & Voss, Z. G. (2013). Strategic ambidexterity in small and medium-sized enterprises: Implementing exploration and exploitation in product and market domains. Organization Science, 24(5), 1459–1477. https://doi.org/10.1287/orsc.1120.0790
Wang, N., Wan, J., Ma, Z., Zhou, Y., & Chen, J. (2023). How digital platform capabilities improve sustainable innovation performance of firms: The mediating role of open innovation. Journal of Business Research, 167. https://doi.org/10.1016/j.jbusres.2023.114080
Wang, Y. Z., & Ahmad, S. (2024). Green process innovation, green product innovation, leverage, and corporate financial performance; evidence from system GMM. Heliyon, 10(4), e25819. https://doi.org/10.1016/j.heliyon.2024.e25819
Wu, J., Wood, G., Chen, X., Meyer, M., & Liu, Z. (2020). Strategic ambidexterity and innovation in Chinese multinational vs. indigenous firms: The role of managerial capability. International Business Review, 29(6). https://doi.org/10.1016/j.ibusrev.2019.101652
Zhang, J. A., O’Kane, C., & Chen, G. (2020). Business ties, political ties, and innovation performance in Chinese industrial firms: The role of entrepreneurial orientation and environmental dynamism. Journal of Business Research, 121, 254–267. https://doi.org/10.1016/j.jbusres.2020.08.055
AL-Saeed, A. S., & Md. Saad, N. H. (2024). A Review of Strategic Ambidexterity in Product Innovativeness. International Journal of Academic Research in Business and Social Sciences, 14(7), 1855–1872.
Copyright: © 2024 The Author(s)
Published by HRMARS (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode