A dynamic capabilities-based framework of organizational sensemaking through combinative capabilities towards exploratory and exploitative product innovation in turbulent environments
“…At the same time, this investigation gives important clues on how companies and their managers may take advantage of their dynamic capabilities. In addition to the intrinsic value and importance of dynamic capabilities, specific capabilities like innovative and managerial capabilities, associated with a strategic orientation, may help companies take a better advantage of their resources and boost performance and competitiveness (Cheng & Chen, 2013;Sheng, 2018). Investments on new resources and the reinforcement of dynamic capabilities are an important step but only if companies develop their capabilities to better operate these resources and transform them in effective competitiveness.…”
“…At the same time, this investigation gives important clues on how companies and their managers may take advantage of their dynamic capabilities. In addition to the intrinsic value and importance of dynamic capabilities, specific capabilities like innovative and managerial capabilities, associated with a strategic orientation, may help companies take a better advantage of their resources and boost performance and competitiveness (Cheng & Chen, 2013;Sheng, 2018). Investments on new resources and the reinforcement of dynamic capabilities are an important step but only if companies develop their capabilities to better operate these resources and transform them in effective competitiveness.…”
“…Knowledge acquired by boundary‐spanning search does not provide direct benefit for firms, and the firm's current knowledge and capability determine how much external knowledge can be utilized by the firm (Fabrizio, ). As Sheng () found, the capability of orchestrating knowledge resources is vital for firms' exploitative and exploratory innovations. Similarly, Huang, Yang, and Wong () suggested that green capability plays an important role for firms to adopt green product innovation.…”
Section: Theoretical Background and Hypothesesmentioning
confidence: 99%
“…We also suggest that resource orchestration capability moderates the link between boundary-spanning search and green innovation. Unfortunately, when studying the innovation process, prior research mostly focused on firms' absorptive capability (Flor, Cooper, & Oltra, 2018;Pacheco et al, 2018;Sheng & Chien, 2016), combinative capability (Sheng, 2017), and social media capability (Benitez, Castillo, Llorens, & Braojos, 2018) but neglected resource orchestration capability. As an important capability to facilitate green innovation, resource orchestration capability deserves more research, and it may help to explain the contradictory results between boundary-spanning search and innovation.…”
Building on resource-based theory and resource orchestration theory, we investigate the impact of two characteristics of boundary-spanning search, search breadth and search depth, on firms' exploitative and exploratory green innovations. We also examine the moderating role of resource orchestration capability. The results of data analysis from 186 manufacturing firms in China show that both search breadth and search depth have inverted U-shaped relationships with exploitative and exploratory green innovations. Furthermore, resource orchestration capability is found to moderate the inverted U-shaped relationship between boundary-spanning search and green innovation. Specifically, with high resource orchestration capability, the inverted U-shaped relationships of search breadth with exploitative and exploratory green innovations are flattened, whereas the relationships of search depth with exploitative and exploratory green innovations are almost linear. Our research contributes to the literature on green innovation by uncovering the complex effects of boundary-spanning search on exploitative and exploratory green innovations. KEYWORDS boundary-spanning search, exploitative green innovation, exploratory green innovation, resource orchestration capability, sustainable development
“…Therefore, the disruptive environment factors are an enacted disruptive environment, as perceived by individuals in the organisation. It is also reflected by individuals' entrepreneurial mindset when looking or sensing the business organisations or so-called organisational sensemaking (Weick, 1995) which is the continuous process through which a firm seeks, construes, and responses on information about its environment (Weick, 1995;Sheng, 2017). Therefore the disruptive environment is a proxy of entrepreneurial mindset affected by dynamic or disruptive changes due to technology advancement and disruptive innovation that make the existing market, industry, or technology irrelevant and create a new normal.…”
Section: Entrepreneurial Mindset In a Disruptive Environmentmentioning
Digital disruption leads to high-level risk in innovation management that will impact established firms in disrupted industries. This study investigates the key variables to enhance innovation performance (IP) in a disruptive environment by applying strategic entrepreneurship framework from [Hitt, MA, DG Sirmon, RD Ireland and CA Trahms (2011). Strategic entrepreneurship: Creating value for individuals, organizations, and society. Academic of Management Executive, 25(5), 57–75]. This study sampled the managers of two largest established firms in telecommunication and banking industries in Indonesia. Both industries are in top five of the most disrupted industries. Entrepreneurial leadership (EL) is essential in formulating innovation strategy. This leadership variable has multicollinearity with that of entrepreneurial culture (EC). It indicates that both variables are symbiotic. While in implementing innovation strategy, the configuring core innovation capabilities that combine exploring the opportunity and exploiting the firm’s advantage enhance the IP. Due to core rigidities, this configuring core innovation capabilities should not be orchestrated with collaborative innovation.
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