Drivers of exploitative and explorative innovation efficiency

In today's fast-changing world, it is essential not only to be innovative but also to innovate efficiently. The latter can be measured through the multi-faceted construct of innovation efficiency. While researchers recently have started investigating factors and practices fostering innovation e...

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Main Authors: Arabella Nigg-Stock, Niklas Bayrle, Leo Brecht
Format: Article
Language:English
Published: Elsevier 2023-12-01
Series:Digital Business
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2666954423000108
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author Arabella Nigg-Stock
Niklas Bayrle
Leo Brecht
author_facet Arabella Nigg-Stock
Niklas Bayrle
Leo Brecht
author_sort Arabella Nigg-Stock
collection DOAJ
description In today's fast-changing world, it is essential not only to be innovative but also to innovate efficiently. The latter can be measured through the multi-faceted construct of innovation efficiency. While researchers recently have started investigating factors and practices fostering innovation efficiency, the fact that radical and incremental innovations require different structures and approaches has not been considered yet. This study, therefore, merges the innovation efficiency literature with the ambidexterity literature and divides innovation efficiency into exploitative and explorative innovation activities. As competition is an essential variable affecting innovation, this study explores its influence on explorative as well as exploitative innovation processes in terms of efficiency. Whereas exploitative and explorative innovation activities come together within general innovation efficiency to positively influence turnover growth, separately they have no effect on it. Data Envelopment Analysis is applied to determine the innovation efficiency, and ordinary linear and Tobit regressions are used to uncover different modes of operation of exploitative and explorative innovation activities. The results indicate that price competition hampers exploitative innovation efficiency, whereas explorative innovation efficiency might improve through outside pressure of product and quality competition. The results provide academics with a new perspective on explorative and exploitative innovation management, contribute to further detangling drivers and factors behind innovation efficiency, and help practitioners to better understand drivers of efficiency for the respective innovation processes.
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spelling doaj.art-2cd12bb93c6b4c038cf04ce3d6fffa9a2023-12-04T05:24:47ZengElsevierDigital Business2666-95442023-12-0132100062Drivers of exploitative and explorative innovation efficiencyArabella Nigg-Stock0Niklas Bayrle1Leo Brecht2Corresponding author.; Institute for Entrepreneurship, University of Liechtenstein, Fürst-Franz-Josef-Strasse 22, 9490 Vaduz, LiechtensteinInstitute for Entrepreneurship, University of Liechtenstein, Fürst-Franz-Josef-Strasse 22, 9490 Vaduz, LiechtensteinInstitute for Entrepreneurship, University of Liechtenstein, Fürst-Franz-Josef-Strasse 22, 9490 Vaduz, LiechtensteinIn today's fast-changing world, it is essential not only to be innovative but also to innovate efficiently. The latter can be measured through the multi-faceted construct of innovation efficiency. While researchers recently have started investigating factors and practices fostering innovation efficiency, the fact that radical and incremental innovations require different structures and approaches has not been considered yet. This study, therefore, merges the innovation efficiency literature with the ambidexterity literature and divides innovation efficiency into exploitative and explorative innovation activities. As competition is an essential variable affecting innovation, this study explores its influence on explorative as well as exploitative innovation processes in terms of efficiency. Whereas exploitative and explorative innovation activities come together within general innovation efficiency to positively influence turnover growth, separately they have no effect on it. Data Envelopment Analysis is applied to determine the innovation efficiency, and ordinary linear and Tobit regressions are used to uncover different modes of operation of exploitative and explorative innovation activities. The results indicate that price competition hampers exploitative innovation efficiency, whereas explorative innovation efficiency might improve through outside pressure of product and quality competition. The results provide academics with a new perspective on explorative and exploitative innovation management, contribute to further detangling drivers and factors behind innovation efficiency, and help practitioners to better understand drivers of efficiency for the respective innovation processes.http://www.sciencedirect.com/science/article/pii/S2666954423000108Innovation efficiencyCompetitionDEAExploitationExploration
spellingShingle Arabella Nigg-Stock
Niklas Bayrle
Leo Brecht
Drivers of exploitative and explorative innovation efficiency
Digital Business
Innovation efficiency
Competition
DEA
Exploitation
Exploration
title Drivers of exploitative and explorative innovation efficiency
title_full Drivers of exploitative and explorative innovation efficiency
title_fullStr Drivers of exploitative and explorative innovation efficiency
title_full_unstemmed Drivers of exploitative and explorative innovation efficiency
title_short Drivers of exploitative and explorative innovation efficiency
title_sort drivers of exploitative and explorative innovation efficiency
topic Innovation efficiency
Competition
DEA
Exploitation
Exploration
url http://www.sciencedirect.com/science/article/pii/S2666954423000108
work_keys_str_mv AT arabellaniggstock driversofexploitativeandexplorativeinnovationefficiency
AT niklasbayrle driversofexploitativeandexplorativeinnovationefficiency
AT leobrecht driversofexploitativeandexplorativeinnovationefficiency