Firm Growth Performance and Relative Innovation Orientation of Exploration vs Exploitation: Moderating Effects of Cluster Relationships

Li, Z; Zhang, MY; Zhang, H

Firm Growth Performance and Relative Innovation Orientation of Exploration vs Exploitation: Moderating Effects of Cluster Relationships

Li, Z Zhang, MY Zhang, H

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Publisher:: CAMBRIDGE UNIV PRESS
Publication Type:: Journal Article
Citation:: Management and Organization Review, 2021, 17, (1), pp. 143-172
Issue Date:: 2021-02-01

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Field	Value	Language
dc.contributor.author	Li, Z
dc.contributor.author	Zhang, MY
dc.contributor.author	Zhang, H
dc.date.accessioned	2022-06-30T21:08:07Z
dc.date.available	2022-06-30T21:08:07Z
dc.date.issued	2021-02-01
dc.identifier.citation	Management and Organization Review, 2021, 17, (1), pp. 143-172
dc.identifier.issn	1740-8776
dc.identifier.issn	1740-8784
dc.identifier.uri	http://hdl.handle.net/10453/158480
dc.description.abstract	This article studies the latent mechanisms underlying the non-linear correlation between a firm's relative innovation orientation of exploration vs exploitation and performance. We also investigate the moderating effects of cluster relationships on this relationship. Using a sample of 638 SMEs in four industry clusters in Tianjin, China, we confirm an inverted U-shaped correlation between a firm's relative innovation orientation and performance, and explicate the latent mechanisms underlying such an inverted U shape. We find that the number and strength of a firm's cluster relationships can moderate this inverted U-shaped curve: the former moves the turning point of the inverted U shape toward exploratory orientation, and the latter moves the turning point toward exploitative orientation. For improved performance, we discuss appropriate innovation balancing strategies for cluster firms with different cluster relationships, and optimal cluster strategies under different innovation-balancing conditions. This study adds to the increasing scholarly effort on latent mechanisms behind U-shaped relationships and moderating effects on such relationships in management research.
dc.language	English
dc.publisher	CAMBRIDGE UNIV PRESS
dc.relation.ispartof	Management and Organization Review
dc.relation.isbasedon	10.1017/mor.2020.35
dc.rights	info:eu-repo/semantics/closedAccess
dc.subject	1503 Business and Management
dc.title	Firm Growth Performance and Relative Innovation Orientation of Exploration vs Exploitation: Moderating Effects of Cluster Relationships
dc.type	Journal Article
utslib.citation.volume	17
utslib.for	1503 Business and Management
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/DVC (International)
pubs.organisational-group	/University of Technology Sydney/DVC (International)/Australia-China Relations Institute
utslib.copyright.status	closed_access	*
dc.date.updated	2022-06-30T21:08:06Z
pubs.issue	1
pubs.publication-status	Published
pubs.volume	17
utslib.citation.issue	1

Abstract:

This article studies the latent mechanisms underlying the non-linear correlation between a firm's relative innovation orientation of exploration vs exploitation and performance. We also investigate the moderating effects of cluster relationships on this relationship. Using a sample of 638 SMEs in four industry clusters in Tianjin, China, we confirm an inverted U-shaped correlation between a firm's relative innovation orientation and performance, and explicate the latent mechanisms underlying such an inverted U shape. We find that the number and strength of a firm's cluster relationships can moderate this inverted U-shaped curve: the former moves the turning point of the inverted U shape toward exploratory orientation, and the latter moves the turning point toward exploitative orientation. For improved performance, we discuss appropriate innovation balancing strategies for cluster firms with different cluster relationships, and optimal cluster strategies under different innovation-balancing conditions. This study adds to the increasing scholarly effort on latent mechanisms behind U-shaped relationships and moderating effects on such relationships in management research.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/158480