Linking networking capability and ambidextrous innovation strategies: the mediating roles of knowledge assimilation application and knowledge transformation application

Purpose From the perspective of social networks and knowledge networks, this study aims to empirically examine an updated four-dimension networking capability (NC) construct and test the relationships between it and innovation strategies through knowledge application activities in the context of Chinese manufacturing firms. Design/methodology/approach Data analysis is conducted on a quantitative survey of 219 manufacturing firms in China with a mixed method of partial least squares structural equation modeling and fuzzy-set qualitative comparative analysis. Findings The results indicate that knowledge assimilation application (KAA) and knowledge transformation application (KTA) fully mediate the relationships between NC and ambidextrous innovation strategies. KAA has a stronger association with exploitative innovation (EL) than with exploratory innovation (ER), and KTA has a stronger association with ER than with EL. Research limitations/implications The authors develop the conceptualization of NC and examine its role in knowledge application activities within a firm. Further, the authors adopt an alternative perspective to highlight the importance of KAA and KTA in mediating the relationships between NC and exploratory and exploitative innovation strategies. Practical implications The findings indicate that firms should build NC based on their knowledge requirements and knowledge network structure. Additionally, managers should possess in-depth insights regarding an effective knowledge application toward different types of external knowledge from partners. More specific, firms are more likely to conduct KAA for a high degree of knowledge relatedness, while for a low degree of knowledge relatedness, firms are more likely to conduct KTA. Originality/value The authors provide a novel alternative insight into knowledge application activities. From the perspective of knowledge networks, the authors argue that there are two distinct and parallel activities (i.e. KAA and KTA). The authors empirically examined the mediating roles of KAA and KTA in the NC–ambidextrous innovation strategies relationships as well as enriched the literature on their relationships.