A study of the relationship between the knowledge base and the innovation performance under the organizational slack regulating

Purpose – The purpose of this paper is to examine how the knowledge breadth and depth and the balance of the two affect various dimensions of the innovation performance under the consideration of the organizational slack as a moderating factor of the analysis framework. Design/methodology/approach – This study constructs and verifies a research model of knowledge breadth and depth to the explorative and exploitative innovation performance, using the exploratory factor analysis and the hierarchical regression analysis based on a survey sample of 320 Chinese companies. Findings – The knowledge base is a critical foundation for improving innovation performance of an enterprise. A more detailed analysis reveals that first knowledge breadth provides more benefits for explorative innovation performance while the knowledge depth is more advantageous to exploitative innovation performance of an organization. Second, organizational slack can positively facilitate the improvement of the knowledge depth for the explorative innovation performance while an optimal balance of the knowledge breadth and depth can significantly enhance exploitative innovation performance. Originality/value – This paper contributes to previous research work by providing both specific comparative studies and a clear explanation of the impacts of different dimensions of the knowledge base, i.e., knowledge breadth and knowledge depth, on innovation performance measures of both exploration and exploitation through a comprehensive empirical study. In particular, organizational slack is found to play a much more complicated moderation role between the knowledge base and the two different dimensions of innovation performance than has been demonstrated in previous research.