The impact of buyer–supplier interaction on ambidextrous innovation and business performance : the moderating role of competitive environment

Purpose: This study is based on knowledge-based view to examine the relationships among buyer–supplier interaction, ambidextrous innovation and business performance. It includes competitive intensity and dysfunctional competition to clarify boundary conditions. Design/methodology/approach: The ordinary least squares regression was conducted to test hypotheses. The survey data were collected from 182 Hong Kong manufacturing firms. Findings: Buyer–supplier interaction facilitates ambidextrous innovation, namely exploitative innovation and exploratory innovation. In turn, exploitative innovation enhances business performance, whereas exploratory innovation has no influence on business performance. Competitive intensity strengthens while dysfunctional competition weakens the impact of buyer–supplier interaction on ambidextrous innovation. Research limitations/implications: This study is based on the knowing processes of knowledge-based view. It contends that business performance is derived from ambidextrous innovation, which depends on the utilization of acquired supplier knowledge and the influence of external competitive environment. The test of relationships is constrained by the single-source and cross-sectional data. Practical implications: Firms should engage in buyer–supplier interaction to acquire and utilize supplier knowledge. Meanwhile, they should monitor competitive environment to seize opportunities and avoid threats. Originality/value: This study builds a holistic framework for buyer–supplier interaction, which reconciles the mixed arguments by distinguishing its effects on ambidextrous innovation, and by clarifying boundary conditions in terms of competitive intensity and dysfunctional competition.