Network Orientation, Organisational Improvisation and Innovation: An Empirical Examination

In today's highly competitive world market, businesses can hardly maintain their competitiveness without strong innovation abilities. In the past, many Chinese enterprises have enjoyed success through imitation. But to continue to succeed in a global marketplace, they must develop ambidextrous innovation abilities. The resource‐based theory eloquently posits that competitive advantage is associated with different and heterogeneous resources. To obtain such resources, firms must establish an external network to acquire necessary knowledge and skills. In this paper, we develop a theoretical model linking network orientation, organisational improvisation, ambidexterity and competitive tension. We postulate that organisational improvisation has a mediating effect and competitive tension is a moderator. Empirical results (N = 340) show that (1) network orientation leads to both exploratory and exploitative innovations, (2) the above effect is mediated by organisational improvisation and (3) competitive tension positively moderates the effect between network orientation and organisational improvisation.