Effective sense-and-respond strategies: Mediating roles of exploratory and exploitative innovation

Journal of Business Research

Volumn 94, Issue , 2019, Pages 154-161

  Ngo, Liem Viet ^a   Bucic, Tania ^a   Sinha, Ashish ^b   Lu, Vinh Nhat ^c  

^a UNIVERSITY OF NEW SOUTH WALES   (Australia)

^b UNIVERSITY OF TECHNOLOGY SYDNEY   (Australia)

^c AUSTRALIAN NATIONAL UNIVERSITY   (Australia)

Author keywords

Emerging markets; Exploitative innovation; Explorative innovation; Sense and respond strategies

Indexed keywords

EID: 85032892623     PISSN: 01482963     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jbusres.2017.10.050     Document Type: Article

References (72)

1. Agnihotri, A., Low cost innovation in emerging markets. Journal of Strategic Marketing 22 (2015), 399–411, 10.1080/0965254X.2014.970215.
2. Andriopoulos, C., Lewis, M.W., Exploitation-exploration tensions and organizational ambidexterity: Managing paradoxes of innovation. Organization Science 20:4 (2009), 696–717.
3. Arnold, D.J., Quelch, J.A., New strategies in emerging markets. MIT Sloan Management Review, 40(1), 1998, 7.
4. Atuahene-Gima, K., Resolving the capability–rigidity paradox in new product innovation. Journal of Marketing 69 (2005), 61–83, 10.1509/jmkg.2005.69.4.61.
5. Bagozzi, R.P., Yi, Y., Specification, evaluation, and interpretation of structural equation models. Journal of the Academy of Marketing Science 40 (2012), 8–34, 10.1007/s11747-011-0278-x.
6. Barney, J., Firm resources and sustained competitive advantage. Journal of Management 17 (1991), 99–120, 10.1177/014920639101700108.
7. Breu, M., Dobbs, R., Remes, J., Taking Vietnam's economy to the next level. Retrieved from http://www.mckinsey.com/insights/economic_studies/taking_vietnams_economy_to_the_next_level, 2012.
8. D'Aveni, R., Hypercompetition: Managing the dynamics of strategic management. 1994, Free Press, New York.
9. Dawar, N.D.N., Chattopadhyay, A., Rethinking marketing programs for emerging markets. Long Range Planning 35:5 (2002), 457–474.
10. Day, G.S., The capabilities of market-driven organizations. Journal of Marketing 58 (1994), 37–52, 10.2307/1251915.
11. Day, G.S., Closing the marketing capabilities gap. Journal of Marketing 75 (2011), 183–195, 10.1509/jmkg.75.4.183.
12. Day, G.S., An outside-in approach to resource-based theories. Journal of the Academy of Marketing Science 42 (2014), 27–28, 10.1007/s11747-013-0348-3.
13. Drucker, P.F., Maciariello, J.A., Management. (Revised edition), 2008, Harper Collins, New York.
14. Eyring, M.J., Johnson, M.W., Nair, H., New business models in emerging markets. Harvard Business Review 89:1/2 (2011), 88–95.
15. Foley, A., Fahey, J., Towards a further understanding of the development of market orientation in the firm: A conceptual framework based on the market-sensing capability. Journal of Strategic Marketing 12 (2004), 219–230, 10.1080/0965254042000308048.
16. Fornell, C., Larcker, D.F., Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research 18 (1981), 39–50, 10.2307/3151312.
17. Freeman, S., Edwards, R., Schroder, B., How smaller born-global firms use networks and alliances to overcome constraints to rapid internationalization. Journal of International Marketing 14:3 (2006), 33–63.
18. Geisser, S., A predictive approach to the random effect model. Biometrika 61 (1974), 101–107, 10.2307/2334290.
19. Gupta, S., Malhotra, N.K., Czinkota, M., Foroudi, P., Marketing innovation: A consequence of competitiveness. Journal of Business Research 69:12 (2016), 5671–5681.
20. Hair, J.F., Hult, G.T.M., Ringle, C., Sarstedt, M., A primer on partial least squares structural equation modeling (PLS-SEM). 2013, Sage Publications, Thousand Oaks, CA.
21. Hair, J.F. Jr, Hult, G.T.M., Ringle, C., Sarstedt, M., A primer on partial least squares structural equation modeling (PLS-SEM). 2016, Sage Publications.
22. Hamel, G., Prahalad, C.K., Competing for the future. 1994, Harvard Business School Press, Boston.
23. Harman, H.H., Modern factor analysis. 1976, University of Chicago Press, Chicago.
24. He, Z.L., Wong, P.K., Exploration vs. exploitation: An empirical test of the ambidexterity hypothesis. Organization Science 15 (2004), 481–494, 10.1287/orsc.1040.0078.
25. Hofstede, G., Culture's consequences: National differences in thinking and organizing. 1980, Sage, Thousand Oaks, CA.
26. Hoskisson, R.E., Eden, L., Lau, C.M., Wright, M., Strategy in emerging economies. Academy of Management Journal 43:3 (2000), 249–267.
27. Hult, G.T.M., Hurley, R.F., Knight, G.A., Innovativeness: Its antecedents and impact on business performance. Industrial Marketing Management 33:5 (2004), 429–438.
28. Jansen, J.J.P., Van Den Bosch, F.A.J., Volberda, H.W., Exploratory innovation, exploitative innovation, and performance: Effects of organizational antecedents and environmental moderators. Management Science 52 (2006), 1161–1674, 10.1287/mnsc.1060.0576.
29. Jayachandran, S., Hewett, K., Kaufman, P., Customer response capability in a sense-and-respond era: The role of customer knowledge process. Journal of the Academy of Marketing Science 32 (2004), 219–233, 10.1177/0092070304263334.
30. JFK School of Government, Choosing success: The lessons of East and Southeast Asia and Vietnam's future. Retrieved from http://www.vn.undp.org/content/dam/vietnam/docs/Publications/10729_harvard_choosing-success.pdf, 2008.
31. Junni, P., Sarala, R.M., Taras, V., Tarba, S.Y., Organizational ambidexterity and performance: A meta-analysis. Academy of Management Perspectives 27 (2013), 299–312, 10.5465/amp.2012.0015.
32. Kharabsheh, R.A., Jarrar, K., Simenova, B., The impact of competitive strategies on responsive market orientation, proactive market orientation, learning orientation and organizational performance. Journal of Strategic Marketing 23 (2015), 423–435, 10.1080/0965254X.2014.970217.
33. Kim, N., Atuahene-Gima, K., Using exploratory and exploitative market learning for new product development. Journal of Product Innovation Management 27:4 (2010), 519–536.
34. Kriz, A., Voola, R., Yuksel, U., The dynamic capability of ambidexterity in hypercompetition: Qualitative insights. Journal of Strategic Marketing 22 (2014), 287–299, 10.1080/0965254X.2013.876075.
35. Li, H., Atuahene-Gima, K., Product innovation strategy and the performance of new technology ventures in China. Academy of Management Journal 44 (2001), 1123–1134, 10.2307/3069392.
36. Lindell, M.K., Whitney, D.J., Accounting for common method variance in cross-sectional research designs. Journal of Applied Psychology 86 (2001), 114–121, 10.1037//0021-9010.86.1.114.
37. March, J.G., Exploration and exploitation in organizational learning. Organization Science 2 (1991), 71–87, 10.1287/orsc.2.1.71.
38. Maruyama, M., Le, V.T., Modern retailers in transition economies: The case of Vietnam. Journal of Macromarketing 32 (2012), 31–51, 10.1177/0276146711421932.
39. McGrath, R.G., The end of competitive advantage: How to keep your strategy moving as fast as your business. 2013, Harvard Business Review Press, Boston.
40. Menguc, B., Auh, S., Creating a firm-level dynamic capability through capitalizing on market orientation and innovativeness. Journal of the Academy of Marketing Science 34:1 (2006), 63–73.
41. Meyer, K.E., Tran, Y.T.T., Market penetration and acquisition strategies for emerging economies. Long Range Planning 39:2 (2006), 177–197, 10.1016/j.lrp.2006.04.004.
42. Morgan, N.A., Marketing and business performance. Journal of the Academy of Marketing Science 40:1 (2012), 102–119.
43. Morgan, N.A., Slotegraaf, R.J., Vorhies, D.W., Linking marketing capabilities with profit growth. International Journal of Research in Marketing 26 (2009), 284–293, 10.1016/j.ijresmar.2009.06.005.
44. Narver, J.C., Slater, S.F., MacLachlan, D.L., Responsive and proactive market orientation and new product success. Journal of Product Innovation Management 21:5 (2004), 334–347.
45. Ngo, L.V., O'Cass, A., Creating value offerings via operant resource-based capabilities. Industrial Marketing Management 38 (2009), 45–59, 10.1016/j.indmarman.2007.11.002.
46. Ngo, L.V., O'Cass, A., In search of innovation and customer-related performance superiority: The role of market orientation, marketing capability, and innovation capability interactions. Journal of Product Innovation Management 29 (2012), 861–877, 10.1111/j.1540-5885.2012.00939.x.
47. O'Cass, A., Heirati, N., Ngo, L.V., Achieving new product success via the synchronization of exploration and exploitation across multiple levels and functional areas. Industrial Marketing Management 43 (2014), 862–872, 10.1016/j.indmarman.2014.04.015.
48. O'Reilly, C.A., Tushman, M.L., Ambidexterity as a dynamic capability: Resolving the innovator's dilemma. Research in Organizational Behavior 28 (2008), 185–206.
49. O'Reilly, C.A., Tushman, M.L., Organizational ambidexterity: Past, present, and future. Academy of Management Perspectives 27 (2013), 324–338, 10.2139/ssrn.2285704.
50. Palmatier, R.W., Dant, R.P., Grewal, D., A comparative longitudinal analysis of theoretical perspectives of interorganizational relationship performance. Journal of Marketing 71 (2007), 172–194, 10.1509/jmkg.71.4.172.
51. Preacher, K.J., Hayes, A.F., Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models. Behavior Research Methods 40:3 (2008), 879–891.
52. Raisch, S., Birkinshaw, J., Probst, G., Tushman, M.L., Organizational ambidexterity: Balancing exploitation and exploration for sustained performance. Organization Science 20:4 (2009), 685–695.
53. Ringle, C.M., Wende, S., Becker, J.M., SmartPLS 3. Academy of Management Review 9 (2014), 419–445.
54. Sarkees, M., Understanding the links between technological opportunism, marketing emphasis and firm performance: Implications for B2B. Industrial Marketing Management 40 (2011), 785–795, 10.1016/j.indmarman.2010.09.001.
55. Sharma, P., Davcik, N.S., Pillai, K.G., Product innovation as a mediator in the impact of R&D expenditure and brand equity on marketing performance. Journal of Business Research 69:12 (2016), 5662–5669.
56. Sheng, S., Zhou, K.Z., Li, J.J., The effects of business and political ties on firm performance: Evidence from China. Journal of Marketing 75 (2011), 1–15, 10.1509/jmkg.75.1.1.
57. Sirmon, D.G., Hitt, M.A., Ireland, R.D., Managing firm resources in dynamic environments to create value: Looking inside the black box. Academy of Management Review 32 (2007), 273–292, 10.5465/AMR.2007.23466005.
58. Slater, S.F., Narver, J.C., Market orientation and the learning organization. Journal of Marketing 59:3 (1995), 63–74.
59. Srinivasan, R., Lilien, G.L., Rangaswamy, A., Technological opportunism and radical technology adoption: An application to e-business. Journal of Marketing 66 (2002), 47–60, 10.1509/jmkg.66.3.47.18508.
60. Srivastava, R.K., Shervani, T.A., Fahey, L., Market-based assets and shareholder value: A framework for analysis. Journal of Marketing 62 (1998), 2–18.
61. Stone, M., Cross-validatory choice and assessment of statistical predictions. Journal of the Royal Statistical Society: Series B: Methodological 36 (1974), 111–147.
62. Subramaniam, M., Hewett, K., Balancing standardization and adaptation for product performance in international markets: Testing the influence of headquarters-subsidiary contact and cooperation. Management International Review 44:2 (2004), 171–194.
63. Takata, H., Effects of industry forces, market orientation, and marketing capabilities on business performance: An empirical analysis of Japanese manufacturers from 2009 to 2011. Journal of Business Research 69:12 (2016), 5611–5619.
64. Teece, D., Pisano, G., Shuen, A., Dynamic capabilities and strategic management. Strategic Management Journal 18 (1997), 509–533, 10.1002/(SICI)1097-0266(199708)18:73.0.CO;2-Z.
65. Teece, D.J., Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal 28 (2007), 1319–1350, 10.1002/smj.640.
66. Tenenhaus, M., Vinzi, V.E., Chatelin, Y.M., Lauro, C., PLS path modeling. Computational Statistics and Data Analysis 48 (2005), 159–205, 10.1016/j.csda.2004.03.005.
67. Tuominen, M., Rajala, A., Möller, K., How does adaptability drive firm innovativeness?. Journal of Business Research 57 (2004), 495–506, 10.1016/S0148-2963(02)00316-8.
68. Vorhies, D.W., Morgan, N.A., Benchmarking marketing capabilities for sustainable competitive advantage. Journal of Marketing 69:1 (2005), 80–94.
69. Vorhies, D.W., Morgan, R.E., Autry, C.W., Product-market strategy and the marketing capabilities of the firm: Impact on market effectiveness and cash flow performance. Strategic Management Journal 30:12 (2009), 1310–1334.
70. Wernerfelt, B., A resource-based view of the firm. Strategic Management Journal 5 (1984), 171–180, 10.1002/smj.4250050207.
71. Wetzels, M., Odekerken-Schroder, G., Van Oppen, C., Using PLS path modeling for assessing hierarchical construct models: Guidelines and empirical illustration. Management Information Systems Quarterly 33 (2009), 177–195.
72. Zhou, K.Z., Li, C.B., How strategic orientations influence the building of dynamic capability in emerging economies. Journal of Business Research 63 (2010), 224–231, 10.1016/j.jbusres.2009.03.003.