Pro-innovation culture, ambidexterity and new product development performance: Polynomial regression and response surface analysis

Abstract

This study examines the intervening role of organizational ambidexterity in the relationship between pro-innovation culture and new product development (NPD) performance. The results indicate that organizational ambidexterity positively mediates the relationship between pro-innovation culture and NPD performance. The results show that when both exploration and exploitation are increased simultaneously, after an initial decline, NPD performance shows a rising trend. NPD performance tends to decline generally when there is an imbalance between the two though the plateau is at a point where exploitation is slightly higher than exploration. Additionally, pro-innovation culture can increase the gap between exploration and exploitation for exploration-oriented firms, which can lower their NPD performance. Overall, this study contributes to a deeper understanding of the underlying mechanisms that explain why firms with pro-innovation culture have higher NPD performance. Further, it enhances our understanding of the role of pro-innovation culture as an organizational context for building organizational ambidexterity, and provides new insights that can help reconcile the combined and balanced views of ambidexterity in enhancing NPD performance.