Session 104

Resource Allocation and Innovation

Track I

Date: Sunday, October 4, 2015


Time: 16:15 – 17:30


Room: Governor's Square 15

Session Chair:

  • Qian Gu, Georgia State University

Title: Exploring the S-curve Relationship between Ambidextrous Innovation and Firm Performance


  • Lin-Hua Lu, National University of Singapore
  • Poh Kam Wong, National University of Singapore
  • Qian Gu, Georgia State University

Abstract: A growing number of studies have argued that firms pursue ambidexterity to achieve competitive advantage. However, empirical evidence on the performance implication of ambidextrous innovation remains unclear. In this study, we propose a horizontal S-shaped relationship between ambidextrous innovation and firm performance. Specifically, at high and low levels of ambidexterity, the pursuit of exploratory and exploitative innovation is negatively associated with firm performance, while at moderate levels of ambidexterity, greater exploratory and exploitative innovation is accompanied by higher performance. Further, the S-shaped relationship is moderated by the involvement of firms’ controlling owners and professional managers. Performance attributable to ambidextrous innovation decreases with the dominance of controlling owners, yet increases with the involvement of professional managers. We test our theory with Taiwanese listed firms from 1997-2013.

Title: Leviathan As an Entrepreneur: State Owned Firms and the Creation of Breakthrough Inventions


  • Sergio Lazzarini, Insper
  • Luiz Mesquita, Arizona State University
  • Felipe Monteiro, INSEAD
  • Aldo Musacchio, Brandeis University

Abstract: We study breakthrough inventions (primordial discoveries with potential for commercially-viable innovations) as a function of ownership structure—i.e., whether a firm is private or state owned (SOMNCs). Departing from the notion that SOMNCs (which are less disciplined with their cash-flows) have routines permitting slow and steady investments in riskier outcomes, are not necessarily more or less creative than private firms. But their innate capabilities trigger experimentations with intermediary technologies (i.e., new to the firm and to the industry), which in turn make breakthrough inventions more likely. We consider three moderators affect this process: the severity of business cycles and rivalry increase it, while pro-market economic-institutions decrease it. Empirical support arises from analyses of 904 private and SOMNC firms. We discuss implications for theory and practice.

Title: Understanding How to Leverage Competences through Innovation: Creating a Context to Provide Impetus and Double Loop Linking


  • Bart Clarysse, ETH Zurich
  • Peter Bruun, Technical University Denmark

Abstract: Leveraging innovations build either on existing technological competences while developing new customer competences, or the other way around. Being at the nexus of exploiting and exploring competences, these innovations need a context that stimulates both. The organizational context literature has explained the contextual mechanisms leading to alignment and adaptability, but falls short in explaining long-term innovation. Using case studies of six leveraging innovations, which we observe from ideation to implementation over an eight-year period, we theorize about contextual mechanisms that invoke and nurture these forms of innovation. The contextual factors which facilitate this form of innovation are successively an “acceleration”-environment to de-link, a “bend-the-rules”-mentality to re-link, a “tolerance for further learning”-context to de-link again and a “stimulate growth”-vision to re-link technology and market competences.

Title: Winners and Losers from the Development of Markets for Technology


  • Raffaele Morandi Stagni, IE Business School
  • Andrea Fosfuri, Bocconi University

Abstract: We study how the development of markets for technologies (MFTs) impacts a firm’s performance as a function of its strategy and resources. Consistent with predictions derived from the Resource-Based Theory (RBT) we find that the development of MFTs has a stronger positive effect on the performance of companies endowed with a large technological portfolio. Instead, companies with a high degree of technological specialization with regard to their operating product markets and those pursuing a product diversification strategy benefit the least from the development of MFTs. More in general, our results highlight the importance of external market conditions in the determination of the value of a company’s resources.

All Sessions in Track I...

Sun: 08:00 – 09:15
Session 276: K&I Sunday Panel: Big Data & Analytics in Strategy
Sun: 09:45 – 11:00
Session 277: K&I Foundations Session: A Conversation with Dan Levinthal
Sun: 11:15 – 12:30
Session 278: K&I Sunday Panel: Knowledge and Innovation in models of Business Models
Sun: 16:15 – 17:30
Session 104: Resource Allocation and Innovation
Session 261: Knowledge Creation and Sharing in Virtual Communities
Sun: 17:45 – 00:00
Session 317: Knowledge and Innovation Business Meeting
Mon: 08:00 – 09:15
Session 62: Multi-level perspectives on capability development
Session 105: Sourcing Strategies for Knowledge
Session 256: Innovation and the Strategy-Performance Relationship
Mon: 11:15 – 12:30
Session 203: Post Acquisition Learning
Session 204: Acquiring human capital: Process and outcomes
Mon: 13:45 – 15:00
Session 107: Evolving Industries, Evolving Products
Session 205: Knowledge Recombination and Interdependencies
Mon: 16:45 – 18:00
Session 100: Innovation Management in Networks, Ecosystems, and Innovation Hubs
Session 200: Strategic Leadership, Learning, and Exploration
Tue: 08:00 – 09:15
Session 136: Innovating and Learning in Collaborative Alliances
Session 255: Processes for Innovation and Ideation
Tue: 11:00 – 12:15
Session 101: Strategic Patenting
Session 137: Entrepreneurial Experience and Cognition: Implications for Venture Performance
Tue: 14:15 – 15:30
Session 198: Emerging Market Strategies
Session 206: Knowledge Replication, Transfer and Absorption
Tue: 15:45 – 17:00
Session 17: Human Capital and Entrepreneurship
Session 108: Open Innovation: Antecedents and Performance Effects
Session 262: Pioneering Knowledge
Tue: 17:30 – 18:45
Session 60: Blurring the Boundaries of Strategy Work
Session 202: Team Dynamics and Creativity
Session 271: Spinouts

Strategic Management Society