Knowledge and Ambidexterity’s Impact on Product Innovation

Abstract

This paper aims to evaluate the relationship between external sources of knowledge and innovation ambidexterity and then analyze how innovation ambidexterity improves product innovation. This study presents evidence based on a sample of 355 low-medium-tech (LMT) firms participating in the National Survey of Innovation in the Manufacturing Industry and Knowledge-Intensive Service Firms in Peru. A structural equation model approach was applied. The results indicate a positive relationship between external sources of knowledge and exploration and exploitation, and technological innovation improves product innovation. These results provide more profound knowledge about how LMT firms in an emerging economy can apply open innovation practices to develop innovation ambidexterity, thus enhancing their product innovation capability.