Innovation Ambidexterity: Antecedents and its impact on New Product Performance

Linking the literature of resource-based view (RBV) with ambidexterity, the purpose of this study is to assess the effect of information technology, knowledge management and Marketing capabilities on innovation ambidexterity and its influence on the performance of new product development of Small- and Medium-sized Enterprises (SMEs) active in the Iranian medical and pharmaceutical industry. To this end, this paper develops an integrative research model, which analyzes the network of relations using covariance-based Structural Equation Modeling on a data set of 294 SMEs present at the 21st International Exhibition of Medical and Pharmaceutical Equipment in Tehran in June 2018. Accordingly, the questionnaires were assigned to senior and middle managers whose primary responsibilities were related to strategic innovation activities of the firms. Findings show that the complementary capabilities of information technology, knowledge management and marketing are positively associated with innovation ambidexterity. In addition, innovation ambidexterity is found to strengthen the performance of the new product development. As a result, it can be argued that selected organizations to be successful in new product development, must by striking a balance between two dimensions of exploration and exploitation of innovation; become ambidextrous.