The impact of social ties on balanced vs combined innovation: the role of dynamic capabilities and innovation climate in knowledge-intensive business services firms

Abstract

Purpose This study aims to investigate the impact of business ties, political ties and dynamic capabilities on balanced and combined ambidextrous innovation within the knowledge-intensive business services sector using the dynamic capability view framework. It explores the mediation role of dynamic capabilities in the relationship between business and political tie with these forms of innovation. In addition, it examines how innovation climate moderates the relationship between dynamic capabilities and ambidextrous innovation. Design/methodology/approach Multilevel analysis was conducted on 520 individuals from 61 KIBSs firms in the UAE using AMOS 26. Findings Results showed that BT indirectly affect both balanced and combined AI, with a greater impact on combined innovation. However, DCs did not significantly mediate the relationship between PT and AI. In addition, the IC was found to moderate the effects of DCs on both types of AI, with a stronger effect on combined innovation. Originality/value This study contributes to the literature by highlighting the importance of DCs and climate in the context of innovation and ambidexterity and by advancing the understanding of how these capabilities and organizational factors promote superior innovation.