Aligning Knowledge Assets for Exploitation, Exploration, and Ambidexterity: A Study of Companies in High‐Tech Parks in China

TLDR

Research on how aligning knowledge assets influences exploitation and exploration strategies is scarce. The study investigates how aligning organizational, human, and social capital affects a firm’s ambidexterity and the relative impact of these capitals on exploitation versus exploration. The authors apply alignment theory and survey 127 high‑tech park firms to assess how organizational, human, and social capital alignment influences ambidexterity. The survey shows that higher organizational‑over‑human capital boosts exploitative innovation, that this advantage is amplified by social capital for exploratory innovation, and that all three capitals together enable ambidexterity.

Abstract

There is little research that has explored the effects of how knowledge assets are aligned with each other in exploitation and exploration innovation strategies. This study uses alignment theory to explore the effects of aligning knowledge assets on facilitating a firm's ability to pursue ambidexterity, which is defined as the simultaneous pursuit of explorative and exploitative innovation strategies. We also explore the relative influence of organizational and human capital in fostering an exploitation innovation strategy on the one hand, and an exploration innovation strategy on the other. Using a primary survey sample of 127 companies in two high‐tech parks in China, we found that greater reliance on relatively more organizational capital versus human capital has a significantly positive impact on the success of an exploitative innovation strategy. The amount of organizational capital relative to the amount of human capital has a stronger positive association with exploratory innovation strategy when social capital is greater. We also found that the combination of organizational, human, and social capital fosters ambidexterity, i.e., the simultaneous pursuit of exploration and exploitation. This study extends alignment theory and examines the effects of aligning these knowledge assets on a firm's ability to foster organizational ambidexterity.