Commercial Strategies

Commercial Strategies

Investigating the influence of exploitation and exploration activities on performance through product and service innovation in manufacturing companies

Document Type : مقاله مستخرج از پایان نامه

Authors
Hassan Abedini 1
Naser Yazdani 2
1 Student. Shahed University
2 Associate Professor , Shahed University
10.22070/cs.2022.16500.1238
Abstract
Abstract
So an organization needs strategic ambidexterity and consequently Increasing the efficiency and productivity of companies in order to survive, grow, Performance improvements, Product-service innovation, and the Possibility of competitiveness in today's dynamic environment. To maximize firm’s performance, Product-service innovation must be developed through a sequential Exploitation-Exploration pathway.
To do so, initially, reviewing the literature, the conceptual model of this study was extracted, and then in order to analyze the research model and hypotheses, we examined 333 industrial firms in Isfahan city. For the validity of this questionnaire, the comments of professors and experts were used. For reliability, Cronbach's alpha was used and its value was determined to be 0.941. Path analysis method was used to analyze the data.
According to the research model, data analysis indicates the existence of a positive and significant effect of exploitation and exploration on performance through product and service innovation and the mediating role of exploration in the impact of exploitation on performance Also, there is a positive and significant effect of exploitation activities in manufacturing companies developing product and service innovation on exploration activities and a positive and significant effect of product and service innovation on performance.
The results showed that there is an optimal sequential Exploitation Exploration pathway in product and service innovation and exploitation-exploration pathway and the path to achieving profitable product and service innovation begins with the use of existing resources and capabilities of the firm and is followed by exploration to determine and develop appropriate technological applications.
Keywords
” Exploitation”
“Exploration”
“performance”
“Product-service innovation”
“strategic ambidexterity”
  1. Visnjic, I., Taija, T., & Neely, A. When innovation follows promise: Why service innovation is different, and why that matters. Cambridge: Cambridge Service AllianceAvailableat http://www.ifm.eng.cam.ac.uk/uploads/Resources/Briefings/4506 When_Innov_follows_Promise_A4.pdf (2013).
  2. He, Z. L., & Wong, P. K. Exploration vs. exploitation: An empirical test of the ambidexterity hypothesis. Organization Science. 2004; 15(4): 481–494.
  3. Martin, S. L., Javalgi, R. G., & Cavusgil, E. Marketing capabilities, positional advantage, and performance of born global firms: Contingent effect of ambidextrous innovation. International Business Review. 2017; 26(3): 527–543.
  4. Aoki, K., & Wilhelm, M. The role of ambidexterity in managing buyer–Supplier relationships: The Toyota case. Organization Science. 2017; 28(6): 1080–1097.
  5. Visnjic, I., Wiengarten, F., & Neely, A. Only the brave: Product innovation, service business model innovation, and their impact on performance. The Journal of Product Innovation Management. 2016; 33(1), 36–52.
  6. Kowalkowski, C., Gebauer, H., Kamp, B., & Parry, G. Servitization and deservitization: Overview, concepts, and definitions. Industrial Marketing Management. 2017; 60: 4–10.
  7. Raisch, S., Birkinshaw, J., Probst, G., & Tushman, M. L. Organizational ambidexterity: Balancing exploitation and exploration for sustained performance. Organization Science,. 2009; 20(4): 685–695.
  8. Khan, Z., Rao-Nicholson, R., & Tarba, S. Y. Global networks as a mode of balance for exploratory innovations in a late liberalizing economy. Journal of World Business. 2018; 53(3): 392–402.
  9. O’Reilly III, C.A. and Tushman, M.L. Organizational ambidexterity: past, present, and future, Academy of Management Perspectives. 2013; 27(4): 324–338.
  10. March, J. G. Exploration and exploitation in organizational learning. Organization Science.1991; 2(1): 71–87.
  11. Chen, J.X. and Ling, Y. CEO golden-mean thinking, ambidextrous orientation and organizational performance in Chinese context, Nankai Business Review International. 2010; 1(4): 460–479.
  12. Alamayreh, E. M., Sweis, R. J., Obeidat. B. Y. The relationship among innovation, organisational ambidexterity and organisational performance, International Journal of Business Innovation and Research.2019; 19(4): 554 – 579.
  13. Shirokova, G., Vega, G. and Sokolova, L. Performance of Russian SMEs: exploration, exploitation and strategic entrepreneurship, Critical Perspectives on International Business. 2013; 9, 1/2: 173–203.
  14. Wang, T. and Chen, Y. Capability stretching in product innovation, Journal of Management. 2015; 44(2): 784–810.
  15. O’Reilly, C.A. and Tushman, M. ‘Ambidexterity as a dynamic capability: resolving the innovator’s dilemma’, Research in Organizational Behaviour, 2008; 28: 185–206, DOI: org/10.1016/j.riob.2008.06.002.
  16. Utterback, M.J. and Abernathy, J.W. ‘A dynamic model of process and product innovation. OMEGA.1975; 3: 639–656.
  17. Baines, T., Bigdeli, A. Z., Bustinza, O. F., Shi, V. G., Baldwin, J., & Ridgeway, K. Servitization: Revisiting the state-of-the-art and research priorities. International Journal of Operations & Production Management. 2017; 37(2): 256–278.
  18. Ulaga, W. and Reinartz, W.J. Hybrid offerings: how manufacturing firms combine goods and services successfully. Journal of Marketing. 2011; 75: 5–23.
  19. Matthyssens, P. and Vandenbempt, K. Moving from basic offerings to value-added solutions: strategies, barriers and alignment. Industrial Marketing Management. 2008; 37: 316–328.
  20. Tallon, P.P. A process-oriented perspective on the alignment of information technology and business strategy. Journal of Management Information Systems. 2007; 24: 227–268.
  21. Bustinza, O.F., Parry, G., and Vendrell-Herrero, F. Supply and demand chain management: the effect of adding services to product offerings. Supply Chain Management: An International Journal. 2013; 18: 618–629.
  22. McFarlane, D. and Cuthbert, R. Modelling information requirements in complex engineering services. Computers in Industry. 2012; 63: 349–360.
  23. Damanpour, F. Organizational complexity and innovation: Developing and testing multiple contingency models. Management Science. 1996; 42(5): 693–716.
  24. Vendrell-Herrero, F., Parry, G., Bustinza, O., & Gomes, E. Digital business models: Taxonomy and future research avenues. Strategic Change. 2018; 27(2): 87–90.
  25. Teeratansirikool, L., Siengthai, S., Badir, Y. and Charoenngam, C. Competitive strategies and firm performance: the mediating role of performance measurement, International Journal of Productivity and Performance Management. 2013; 62(2): 168–184.
  26. Randeree, K. and Al Youha, H. Strategic management of performance: an examination of public sector organizations in the United Arab Emirates, International Journal of Knowledge, Culture and Change Management. 2009; 9(4): 123–134.
  27. Richard, P.J., Devinney, T.M., Yip, G.S. and Johnson, G. Measuring organizational performance: towards methodological best practice, Journal of Management. 2009; 35(3): 718–804.
  28. Wheelen, T.L. and Hunger, J.D. Strategic Management and Business Policy, Pearson, Upper Saddle River. 2010.
  29. Lebas, M. and Euske, K. A conceptual and operational delineation of performance, in Neely, A. (Ed.): Business Performance Measurement: Unifying Theory and Integrating Practice, pp.125–140, Cambridge University Press, Cambridge. 2007. DOI: 10.1017/ CBO9780511488481.008.
  30. Hamon, T.T. Organizational Effectiveness as Explained by Social Structure in a Faith-based Business Network Organization, unpublished Doctoral dissertation, Regent University, Virginia Beach, VA. 2003.
  31. Semuel, H., Siagian, H. and Octavia, S. The effect of leadership and innovation on differentiation strategy and company performance, Procedia – Social and Behavioural Sciences. 2017; 237: 1152–1159, DOI: org/10.1016/j.sbspro.2017.02.171.
  32. Chen, J.X. and Ling, Y. CEO golden-mean thinking, ambidextrous orientation and organizational performance in Chinese context, Nankai Business Review International. 2010; 1(4):460–479.
  33. Mehralian, G., Nazari, J.A., Nooriparto, G. and Rasekh, H. TQM and organizational performance using the balanced scorecard approach, International Journal of Productivity and Performance Management. 2017; 66(1): 111–125.
  34. Jeong, D.Y., Kim, S.M. and Yoon, D.J. Customer orientation and organizational performance: mediating role of CRM’, Advanced Science and Technology Letters. 2014; 57: 35–39, DOI: 10.14257/astl.2014.57.09.
  35. Camison, C. and Villar-Lopez, A. Organizational innovation as an enabler of technological innovation capabilities and firm performance, Journal of Business Research. 2012; 3(2): 190–205.
  36. Ramezan, M., Sanjaghi, M.E. and Rahimian Kalateh Baly, H. Organizational change capacity and organizational performance: an empirical analysis on an innovative industry, Journal of Knowledge-based Innovation in China.2013; 5 (3): 188–212.
  37. بندریان، رضا. دوسوتوانی همزمان، الگوی مناسب سازماندهی فعالیت های اکتشاف و بهر برداری در سازمان های پژوهش و فناوری، دوفصلنامة توسعة تکنولوژی صنعتی. 1393; 22: 21-33.
  38. Bandarian, Reza. Simultaneous ambidextrous, the appropriate model for organizing exploration and exploitation activities in research and technology organizations, two-quarter journal of industrial technology development. 2013,22:21-33(In Persian)
  39. Simsek, Z., Heavey, C., Veiga J.F. and Souder, D. ‘A typology for aligning organizational ambidexterity’s conceptualizations, antecedents, and outcomes’, Journal of Management Studies.2009; 46)5:( 864–894.
  40. Suarez, F.F., Cusumano, M.A., and Kahl, S. Services and the business models of product firms: an empirical analysis of the software industry. Management Science. 2013; 59: 420–435.
  41. Kafouros, M., Wang, C., Piperopoulos, P., & Zhang, M. Academic collaborations and firm innovation performance in China: The role of region-specific institutions. Research Policy. 2015; 44(3): 803–817.
  42. Cao, Q., Gedajlovic, E.,& Zhang ,H. unpacking organizational ambidexterity : Dimensions , contingencies , and synergistic effects . organization science. 2009; 20(4): 1272-1296.
  43. Bustinza, O. F., Vendrell-Herrero, F., Gomes, E. Unpacking the effect of strategic ambidexterity on performance: A crosscountry comparison of MMNEs developing product-service innovation. International Business Review 2019.
  44. Rabetino, R., Harmsen, W., Kohtamäki, M., & Sihvonen, J. Structuring servitization-related research. International Journal of Operations & Production Management.2018; 38(2): 350–371.
  45. Lisboa, A., Skarmeas, D., & Lages, C. Innovative capabilities: Their drivers and effects on current and future performance. Journal of Business Research. 2011; 64(11): 1157–1161.
  46. Yalcinkaya, G., Calantone, R.J. and Griffith, D.A. An examination of exploration and exploitation capabilities: implications for product innovation and market performance, Journal of International Marketing. 2007; 15(4): 63–93.
  47. Benner, M. J., & Tushman, M. L. Exploitation, exploration, and process management: The productivity dilemma revisited. The Academy of Management Review. 2003; 28(2): 238–256.
  48. Sirén, C., Kohtamaki, M., & Kuckertz, A. Exploration and exploitation strategies, profit performance, and the mediating role of strategic learning: Escaping the exploitation trap. Strategic Entrepreneurship Journal. 2012; 6(1): 18–41.
  49. Hayes, A. F. Introduction to mediation, moderation, and conditional process analysis: A regression-based approach. Guilford Publications. 2017.
  50. Barney, J. Firm resources and sustained competitive advantage. Journal of Management. 1991; 17: 99–120.
  51. Bustinza, O. F., Bigdeli, A. Z., Baines, T., & Elliot, C. Servitization and competitive advantage: The importance of organizational structure and value chain position. Research-Technology Management.2015; 58(5): 53–60.
  52. سعدی، حسن؛ دایی کریم زاده، سعید؛ اعتباریان خوراسگانی، اکبر. بررسی تأثیر توانایی نوآوری بر عملکرد نوآوری شرکت های تولیدی پذیرفته شده در بورس اوراق بهادار شهر تهران: با میانجی نوآوری فرایند و محصول. اقتصاد و مدیریت شهری. 1398؛ 8(29): 39-58.
  53. Saadi, Hassan; Daei Karimzadeh's, Saeed; Etebarian Khorasgani, Akbar. Investigating the effect of innovation ability on the innovation performance of manufacturing companies admitted to the Tehran Stock Exchange: with the mediation of process and product innovation. Economics and urban management. 2018,8(29):39-58, (In Persian)
  54. رضایی، رسول؛ عابدینی، هاجر؛ قراخانی داود. تاثیر بازارگرایی بر توسعه خدمات جدید با تاکید بر نقش میانجی استراتژیهای نوآوری اکتشافی و بهره بردارانه. مجله مدیریت توسعه و تحول. 1398؛ 39: 69-77.
  55. Rezaei, Rasul; Abedini, Hajar; Karakhani, Davood, The effect of marketing on the development of new services with an emphasis on the mediating role of exploratory and exploitative innovation strategies. Journal of development and transformation mmanagement.2018,39:69-77, (In Persian
  56. Anzenbacher, A., Wagner,M. The role of exploration and exploitation for innovation success: effects of business models on organizational ambidexterity in the semiconductor industry. International Entrepreneurship and Management Journal. 2019; 16(2).
  57. Jie, W., Geoffrey, W., Xiaoyun, C., Martin, M. and Zhiyang, L. Strategic ambidexterity and innovation in Chinese multinational vs. indIgenous firms: The role of managerial capability, International Business Review.2019.
  58. Barbosa,Danilo C S. ,Giovany D. Cajaiba-Santana. Different Strategies for Different Fields? Exploration, Exploitation, Ambidexterity, and the Performance of Self-Employed Musicians. Journal of small Business Management. 2019; 58(6). 1121-1154.
  59. Bustinza, O. F., Gomes, E., Vendrell-Herrero, F., & Tarba, S. An organizational change framework for digital servitization: Evidence from the Veneto region. Strategic Change. 2018; 27(2): 111–1
  60. صاحبدل، سینا؛ نساجی صرافی، محمد علی؛ ملک لی، محسن؛ اجاقی، سعیده. بررسی نقش اکتشاف و بهره برداری از دانش در توسعه ابعاد نوآوری در مؤسسات تحقیقات کشاورزی استان البرز. مجله تحقیقات اقتصاد و توسعه کشاورزی ایران، 1396؛ 2(4): 693-703.
  61. Sahibdel, Sina; Nasaji Sarafi, Mohammad Ali; Malek Lee, Mohsen; Ojaghi, Saeedeh. Investigating the role of discovery and exploitation of knowledge in the development of innovation dimensions in agricultural research institutions of Alborz province. Journal of Economic Research and Agricultural Development of Iran, 2016,2(4)693-703, (In Persian)
  62. Kaui-Hwang Chen, Chun-Hsien Wang, Shi-Zheng Huang, George C. Shen. Service innovation and new product performance: the influence of market-linking capabilities and market turbulence. International journal of production economics. 2015; 172: 54-64.
  63. ابراهیم پور ازبری مصطفی، نوع پسند اصیل سید محمد، کاظمی امید. تأثیر فعالیت های اکتشاف و بهره برداری بازار بر عملکرد بازار شرکت. فصلنامه علمی-پژوهشی تحقیقات بازاریابی نوین. 1395; 4(23): 107-124.
  64. Ebrahimpour Azbari Mostafa, No Pasand Asil, syed Mohammad, Kazemi Omid. The impact of market exploration and exploitation activities on the company's market performance. The scientific-research quarterly of modern marketing research.2015; 4(23):107-124(In Persian)
  65. شیوا آیدا، آقازاده هاشم، حیدری علی. بررسی تأثیر بازارگرایی اکتشافی و بهره‌بردارانه بر نوآوری و عملکرد بنگاه (مورد مطالعه: صنایع غذایی). نشریه مدیریت بازرگانی. 1396؛ (3)9: 596-616.
  66. Shiva Aida, Aghazadeh Hashem, Heydari Ali. Investigating the impact of exploratory and exploitative market orientation on innovation and company performance (case study: food industry). Journal of Business Management.2016;(3)9:596-616, (In Persian)
  67. احمدی، پرویز ؛ فیاض قاضیانی، مینا. دوسوتوانی سازمانی: ایجاد توازن میان بهره برداری و اکتشاف برای عملکرد پایدار. رویکردهای پژوهشی نوین در مدیریت و حسابداری. 1397؛ 5: 48-65.
  68. Ahmadi, Parvez; Fayaz Ghaziani, Mina. Organizational Ambivalence: Balancing Exploitation and Exploration for Sustainable Performance. New research approaches in management and accounting. 2017;5:48-65,(In Persian)
  69. Hillbun, D.H., Ruichang, L. Performance implications of marketing exploitation and exploration: Moderating role of supplier collaboration, Journal of Business Research.2014.
  70. Alamayreh, E. M., Sweis, R. J., Obeidat. B. Y. The relationship among innovation, organisational ambidexterity and organisational performance, International Journal of Business Innovation and Research, 2019; 19(4): 554 – 579.
  71. نیک رفتار، طیبه؛ طالبی، کامبیز؛سعیدی آرانی، فاطمه. بررسی رابطة نوآوری سازمانی و عملکرد با متغیر میانجی نوآوری بازاریابی. 1394؛ 7(2): 485-500.
  72. Nik Raftar, tayebeh; Talebi, Cambiz; Saidi Arani, Fatemeh. Investigating the relationship between organizational innovation and performance with the mediating variable of marketing innovation. 2014; 7(2): 485-500. (In Persian)
Commercial Strategies
Volume 18, Issue 18
June 2022
Pages 66-86