Investigating the Effect of Networking Capability on Ambidextrous Innovation Mediated by Knowledge Applications

Document Type : Original Article

Authors

• Vahid Khashei Varnamkhasti ¹
• Rouzbeh Darvishi ²
• Sajad Farsi ²

¹ Associate Professor, Business Management, Faculty of Business and Accounting, Allameh Tabataba'i University, Tehran, Iran.

² M.Sc. in Business Management, Faculty of Business and Accounting, Allameh Tabataba'i University, Tehran, Iran.

https://doi.org/10.22067/tmj.2024.86592.1539

Abstract

 
 
1- INTRODUCTION
Knowledge-based firms are the engine of economic growth and development of a country. These businesses are too important because they contribute to the countries' economic growth and development by creating jobs. These businesses operate in highly dynamic and competitive environments that face significant and often unpredictable technological, political, and economic changes. For this purpose, the development of ambidextrous innovation has become one of the basic requirements for these businesses to maintain their competitive position. Today, factors such as embargoes, government laws, traditional businesses, instability of economic conditions, and currency fluctuations prevail and increase the level of uncertainty in this environment. On the other hand, the provision of banking services has also been accompanied by many changes and differences such that they should meet the special needs of their customers. Today, knowledge-based firms in banking information technology are considered the banks' technological arms for providing new financial products and services. For this reason, improving ambidextrous innovation capability through absorbing knowledge and creating a network with stakeholders and key partners is very important. For this purpose, the current research seeks to answer the question, "How does networking capability affect ambidextrous innovation of banking information technology firms?"
 
2- THEORETICAL FRAMEWORK
Networking capability is the ability of an organization to build, expand, and benefit from internal and external organizational relationships. Ambidextrous innovation can be defined as simultaneously implementing exploitative and explorative innovation activities. Therefore, ambidextrous innovation helps organizations to achieve optimal performance both in the short- and long-term. Networking capability allows the organization to actively seek external knowledge, compare it with its internal knowledge, and use it to identify opportunities. Organizations use networking capabilities to search across a wide range of strategic partners to discover or exploit ideas or practices that are not accessible through conventional routines. Knowledge application refers to a set of activities that explain how to connect external knowledge elements within or between organizational areas, analyze the connections between them, and prepare the absorbed knowledge for use in the relevant unit.
 
3- METHODOLOGY
In terms of purpose, this is a practical, cross-sectional quantitative research. In terms of method and data collection, it is a descriptive survey. The needed data was collected through a written questionnaire. The target population was comprised of 19 knowledge-based firms in the field of information technology and banking communication located in Tehran, all of which were sampled by distributing 5 questionnaires among their senior and middle managers. The sample members had more than 3 years of job tenure and relevant positions. Finally, 91 well-qualified questionnaires were returned. The gathered data was analyzed by conducting structural equation modeling to test the research hypotheses.
 
4- RESULTS & DISCUSSION
The results of the data analysis confirmed all the research hypotheses. Accordingly, networking capability had a direct and significant effect on ambidextrous innovation. Furthermore, networking capability directly affected the application of knowledge, which in turn had a significant effect on ambidextrous innovation. The results of the Sobel test revealed that the application of knowledge significantly mediated the relationship between networking capability and ambidextrous innovation.
 
5- CONCLUSIONS & SUGGESTIONS
Based on the research findings, it is suggested that managers cooperate with other firms by creating strategic alliances. Developing such collaborations leads new knowledge to entering the organization and improves organizational explorative innovation. Strategic alliances may increase strategic flexibility by attracting new resources, reducing possible costs and risks, and improving the organization's efficiency. Consequently, it increases exploitative innovation in the organization. Networking capability allows firms to improve the provision of new banking services, provide consulting services, and increase customer satisfaction. This capability allows firms to create a consortium from scientific centers as well as strategic partners for research and development in line with identifying and exploiting market opportunities. Managers are also recommended to attract new knowledge to their firms by establishing partnerships with research centers as well as their strategic partners. Creating such networks leads to the exchange of information and experiences between the members, which ultimately improves the organization's explorative innovation. Through analyzing financial transactions as well as customer feedback data, managers should pay attention to the absorption of transformative knowledge to improve the firm's innovative performance.

Keywords

• Networking Capability
• Ambidextrous Innovation
• knowledge Absorption Application
• knowledge Transformation Application
• Knowledge-based Companies

©2024 The author(s). This is an open access article distributed under Creative Commons Attribution 4.0 International License (CC BY 4.0).

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