Dynamic positioning matters : uncovering its fundamental role in organization’s innovation performance

Purpose: This paper aims to propose the following questions: How does dynamic positioning influence organization’s innovation performance? Does knowledge base mediate the relationship between them? Design/methodology/approach: The empirical setting of this study is the smartphone collaboration network from 2004 to 2017; the authors selected one-site schemes and data of patents from the Derwent Innovation Database. Furthermore, the authors adopted the negative binomial model with random effects to test the hypotheses. Findings: The regression results show that organization’s dynamic positioning has an inverted-U-shaped relationship with its exploratory innovation. Similarly, organization’s dynamic positioning has an inverted-U-shaped relationship with its exploitative innovation. Besides, knowledge base mediates the relationship between dynamic positioning and organization’s innovation performance. Originality/value: This study empirically confirms the relationship between dynamic positioning and organization’s innovation performance by separately examining exploratory and exploitative innovation. Furthermore, this study provides a contribution to the literature linking dynamic positioning and organization’s innovation performance by investigating the mediating role of knowledge base.