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Organizational incentives and structures play a crucial role in realizing explorative and exploitative innovations in firms. Existing studies have neglected the role of trade-off mechanisms between the two on innovation ambidexterity. This study aims to investigate these trade-off mechanisms and their position on innovation ambidexterity.Design/methodology/approachGiven the limited theoretical understanding, the authors conducted a case study with a sample of two Chinese firms with abundant interview and secondary data.FindingsThe results show that firms can develop innovation ambidexterity at two levels, namely, the time and space levels, using incentive synergy as well as organizational structures. Furthermore, the authors explain the role of the trade-off between incentive synergy and organizational structure in promoting a balance between explorative and exploitative innovation.Originality/valueThe authors propose trade-off mechanisms between incentive synergy and organizational structure and explore how trade-off mechanisms can play a role in promoting a balance of explorative and exploitative innovation at both time and space levels.
Journal of Knowledge Management – Emerald Publishing
Published: Jan 12, 2023
Keywords: Exploitative innovation; Explorative innovation; Incentive synergy; Innovation ambidexterity; Organizational structures
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