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Purpose The purpose of this paper is to enrich the explanation of the interplay between internal and external – or district shared – exploration and exploitation capabilities as antecedents of a firm’s radical and incremental innovation. Previous studies do not differentiate between exploration and exploitation in district shared capabilities and how they interact with internal capabilities.Design/methodology/approach The paper uses hierarchical regression analysis to test the quadratic and moderating effects in a sample of 1,019 Spanish firms.Findings Results show an increasingly positive effect on radical innovation of exploration capabilities, enhanced by shared capabilities in exploration. In the case of incremental innovation, the study finds evidence of an increasingly positive influence of exploitation capabilities and a concave relationship of exploration capabilities. Moreover, shared exploitation capabilities weaken the effect of internal exploitation capabilities and also have a direct effect on incremental innovation. Therefore, the two capabilities are interchangeable in the effect they have on incremental innovation.Practical implications Depending on the firm’s innovation strategy, intra-district firms should develop specific capabilities and/or concentrate on adopting the shared capabilities in the destination.Originality/value The study furthers the understanding of the relationship between exploration and radical innovation, and between exploitation and incremental innovation, which is more complex than previously depicted. The study also differentiates between exploration and exploitation in shared capabilities, enriching understanding of the competitiveness of district firms. [ABSTRACT FROM AUTHOR]

This paper provides empirical evidence on the relationship between market competitive pressure and firms' innovation using panel data of Spanish manufacturing firms for 1990-2006. We depart from standard measures of competition, and construct variables capturing the fundamentals of competitive pressure (product substitutability, market size and entry costs) to test the theoretical predictions of Vives [2008, The Journal of Industrial Economics] for free entry. Our results line up favourably with these predictions. We obtain that greater product substitutability and higher costs of entry lead to more process innovation but less product innovation, whereas market enlargement spurs both product and process innovation. [ABSTRACT FROM AUTHOR]

The authors describe the intensity and orientation of the corporate social responsibility (CSR) reporting in four Spanish industries and explore the relationship that exists between both concepts and an independent measurement of reputation for CSR (CSRR). The results demonstrate that the CSR reporting is especially relevant and useful in the finance industry. Finance companies report significantly more CSR information than most industries in Spain, and this reporting is more closely linked to their CSRR than the CSR reporting of basic, consumer goods and services industries. [ABSTRACT FROM AUTHOR]

There is an intense debate in the literature on the impact of process management on innovation, and the division of opinions becomes particularly apparent with regard to radical innovation. Furthermore, organisational ambidexterity, the organisational capability to undertake incremental as well as radical innovation activities, has been underlined as a key source of competitiveness. In this article, we analyse how the cultural divergence driven by process management can affect organisational ambidexterity. Through a survey carried out on a sample of Spanish firms in the furniture and textile sectors, both of which have been drastically hit by competition from Asian firms, we conclude that the cultural context created by process management practices applied in a total quality management framework, which embraces exploitation along with exploration values, acts as a platform for developing organisational ambidexterity. Since organisational ambidexterity constitutes the capability of undertaking a rich variety of learning and innovation activities, these results could also have significant implications for practitioners, pointing to the need for close coordination between different functional areas in order to manage cultural change. [ABSTRACT FROM AUTHOR]