Strategic entrepreneurship behaviour and the innovation ambidexterity of young technology-based firms in incubators

Abstract

Innovation ambidexterity is especially complex for young technology-based firms because they are resource-challenged and knowledge deficient in strategic terms; but they possess considerable scope for entrepreneurship. Strategic entrepreneurship may provide a solution. Incubators emerged as a policy solution precisely due to this dilemma. We conceptualise that strategic entrepreneurship, as a synthesis of opportunity-seeking and advantage-seeking behaviours of young technology-based firms, can affect both explorative and exploitative innovation activities in these firms and expect that subsequent innovation ambidexterity affects profitability. Our empirical analyses reveal complex and competing interrelationships that both ease and exacerbate the tensions associated with innovation ambidexterity. We contribute to theory by testing strategic entrepreneurship as it applies to innovation ambidexterity and evidence behaviours that contribute to its foundations. To entrepreneurs and managers, we offer a set of prescriptions for innovation ambidexterity in young firms that accounts for the complementarities between complex and theoretically opposing constructs.

Entrepreneurial orientation, competitive advantage and strategic knowledge management capability in Malaysian family firms

“…Concerning innovativeness, family firms may come across innovations that exceed their ability to implement effective strategies, risking extreme losses (Singh and Fleming, 2010;Taylor and Greve, 2006). For instance, firms (especially knowledge-intensive ones) tend to absorb resources from existing firm activities in the process of experimenting with new product development (Hughes et al, 2021;Wiklund and Shepherd, 2011). Manifesting the innovativeness dimension of EO consumes many resources and, therefore, does so continuously while in use (Yin et al, 2020).…”

“…For example, Hughes et al (2010) demonstrate that investments into innovation strategy can help a new venture realize cost and differentiation advantages. Innovativeness sets in place routines for creativity and experimentation that develop and upgrade existing products to assert temporary competitive advantages while setting a longer-term emphasis on new product breakthroughs for longer-term advantage (Hughes et al, 2021). Innovativeness is then central to the adaptive fitness and health of the firm (March, 2006) because of its potential to generate and renew competitive advantage first and foremost.…”

Towards a network-based view of effective entrepreneurial ecosystems

“…High-growth ventures, especially the high-technology variety, burn through resources at a relatively fast rate (Hughes et al 2020). These firms may not have the internal capacity to generate the knowledge required for timely new ventures (Perez-Luno et al 2011), respond to market changes (Rothwell 1994), or the capabilities needed to compete within risky initiatives (Powell 1990).…”

Entrepreneurial Orientation in Supply Chain Management: A Systematic Review

“…A firm that acts entrepreneurially will seek new ways of doing business that will cause disruption in the rules of competition of the industry (Kuratko & Audretsch, 2009). Consequently, the generation and implementation of new internal processes, the introduction of new products and the expansion into new markets, or the radical development of new product-markets are key efforts of entrepreneurial activity (Covin & Slevin, 1989;Hughes et al, 2021) that can enhance efficiency, effectiveness, and differentiation when resources are managed properly (Ireland et al, 2009). For example, entrepreneurial firms not only enhance firm differentiation with new products and services but also strive to eliminate waste by divesting older products (Covin & Miles, 1999).…”