Knowledge exploration and innovation: A review and an inverse S-curve proposition

Abstract

Firms today thrive on innovation. Knowledge exploration, the nonlocal search for new knowledge beyond the firm’s current expertise, is posited to be critical for innovation. This paper seeks to contribute to the research on knowledge exploration in two ways. First, this paper provides a comprehensive review of key empirical studies on knowledge exploration and innovation. Second, this paper proposes a recombinatory search framework of innovation to reconceptualise extant understanding of knowledge exploration on innovation. This new framework focusses on the evolution of the benefits and costs of knowledge exploration, and puts forward an inverse S-curve proposition between knowledge exploration and innovation. Two company cases, IBM and Procter & Gamble, are then used to illustrate the new proposition.

Interorganizational learning, green knowledge integration capability and green innovation

“…When the knowledge need is complex and varied or firms cannot cope with current problems using existing capabilities, firms may develop new capabilities and adopt innovation through EJIM 24,4 acquiring knowledge from external organizations (Powell et al, 1996;Lane and Lubatkin, 1998). That is, the aim of interorganizational learning is to lessen constraints of resources and capabilities, since learning from external organizations not only can expand firms' knowledge base and facilitate innovation by integrating external and internal knowledge (Luo et al, 2018;Hartley and Rashman, 2018) but also improve firms' core competence to adapt in the changing environment (Beeby and Booth, 2000). Moreover, prior research suggests that knowledge from supply chain partners, research institutions, universities and competitors is vital to firms' GI (Lin and Chang, 2009;Albort-Morant et al, 2018;Leal-Mill an et al, 2016;Zubeltzu-Jaka et al, 2018;Mart ı nez-Ros and Kunapatarawong, 2019).…”

“…Exploitative learning is to refine and leverage familiar knowledge within a firm's existing repository to improve operation efficiency (Li et al, 2008;Westerlund and Rajala, 2010). Explorative learning searches for completely new knowledge resources (Li et al, 2008); it can stimulate the potential of organizational internal knowledge (Luo et al, 2018), expand the diversity of organizational creativity and improve an organization's ability (McGrath, 2001). Also, the focus firms may be familiar with knowledge from vertical organizations, and they may explore new knowledge from lateral organizations.…”

“…De Marchi (2012) and Mart ı nez-Ros and Kunapatarawong (2019) also emphasized that external knowledge from research institutions and universities is more important for GI than traditional innovation. Luo et al (2018) pointed out that heterogeneous knowledge from different fields is meaningful and valuable. Hence, it is vital for firms to learn from universities, research institutions and the government to improve green development.…”

March’s foolish views on leadership, or how to fail optimistically, pursue ethical authenticity, choose mindful resilience and enable ambiguous innovation

“…For him, leadership is about pursuing a vision with commitment "failure after failure," just like Don Quixote did (Zich, 2003, p. 2). This willingness is what Luo et al (2018) seemed to use to support their inverse Scurve relationship, where that willingness to learn continuously, and to engage in constant exploration, leads to increased innovation. Although the authors say that their approach differs from March's unidimensional approach, it is evident from March's statement above that he probably would have agreed with their new perspective.…”

“…Similarly, Ikujiro Nonaka considers that "knowledge is the source of innovation", and explains that "the process of knowledge creation itself is the innovation" (Kawamura, 2016, p. 644). Zheng (2018) also recognizes that the "process component of innovation is in fact the process of learning" because it results from the exchange of knowledge and a willing "recombination" (p. 740); a concept that seems to compare to the process of reflection and refraction, by mixing old and new knowledge elements (Luo et al, 2018). Consequently, if leaders want to support an environment that encourages change, they must relax the way in which they observe rules and routines, without relaxing commitment to their values.…”