Managing Innovation Paradox in the Sustainable Innovation Ecosystem: A Case Study of Ambidextrous Capability in a Focal Firm

Abstract

To achieve sustainable development, focal firms should balance two paradoxical kinds of innovation activities: exploitative and exploratory ones. Published works found that ambidexterity is an effective way to resolve paradoxical tensions, but few in-depth studies have been conducted to explore the innovation paradox of focal firms in the innovation ecosystem from an ambidextrous capability perspective. This paper takes China Spacesat Co., Ltd. as the case to study focal firms' management of innovation paradoxes in the sustainable innovation ecosystem and finds that: (1) Sustainable innovation is an ecosystem in which focal firms' internal functional departments, including the product department, technical center, and Makers' groups, cooperate with external organizations, including component suppliers, scientific research institutes, and government departments, closely and complementarily; (2) In the exploitative and exploratory innovations of complex products, focal firms in the sustainable innovation ecosystem mainly confront three paradoxes: profit drive vs. breakthroughs in the strategic intent of sustainable innovation of the profit-driven model, tight vs. loose coupling of sustainable innovation, and sustainable innovation driven by discipline vs. that by passion; (3) Focal firms in the innovation ecosystem resolve these three innovation paradoxes with structural, contextual, and coordinated ambidextrous capabilities, and build innovation paradox management mechanisms with three steps in sequence, namely by establishing dual sustainable strategic innovation units, strengthening sustainable organizational ties between the internal and external, while co-creating and sharing innovation values, and, finally, promoting the formation and development of their sustainable innovation ecosystem. This paper complements and enriches the innovation ecosystem and ambidextrous capability theory, providing significant practical guidance to the sustainable development of aerospace enterprises.

Understanding sustainable innovation: A systematic literature review

“…Given that sustainable innovation implies "a collective commitment of care for the future through responsible stewardship of science and innovation in the present" (Owen et al, 2013, p. 30) to achieve sustainable innovations, companies must effectively balance corporate objectives with environmental and social expectations (Zeng, Hu, & Ouyang, 2017 Given that sustainable innovation implies "a collective commitment of care for the future through responsible stewardship of science and innovation in the present" (Owen et al, 2013, p. 30) to achieve sustainable innovations, companies must effectively balance corporate objectives with environmental and social expectations (Zeng, Hu, & Ouyang, 2017 …”

“…In sustainable and innovative firms, structural ambidextrous capability may reduce firm conflicts to improve efficiency (Andriopoulos & Lewis, 2009). Contextual ambidextrous capability may reduce integration costs (Gibson & Birkinshaw, 2004;Güttel, Konlechner, & Trede, 2015), while coordinated ambidextrous capability is beneficial in balancing differing business strategies and in reducing conflicts (Chen et al, 2014;Du et al, 2013 Given that sustainable innovation implies "a collective commitment of care for the future through responsible stewardship of science and innovation in the present" (Owen et al, 2013, p. 30) to achieve sustainable innovations, companies must effectively balance corporate objectives with environmental and social expectations (Zeng, Hu, & Ouyang, 2017…”

Green Entrepreneurial Orientation and Green Innovation: The Mediating Effect of Supply Chain Learning

“…It is difficult for enterprises to achieve green innovation within a single organization, and complementary cooperation with relevant organizations is essential to create valuable green products and services (Zeng et al, 2017). As Guo et al (2019) have asserted, external knowledge acquisition may play a positive role in promoting green innovation.…”

On Technology in Innovation Systems and Innovation-Ecosystem Perspectives: A Cross-Linking Analysis

“…However, both fields of study are concerned with technology development and innovation; the former more at the macro level of institutional structures needed to take advantage of innovations for economic growth, and the latter at the industry or technological innovation level to sustain business growth. Moreover, both approaches are related to the concept of open innovation [4][5][6] and to the increasing importance of sustainability [36], with continuous interactions between the economy, society, and the environment [37].…”