The Influence of Knowledge Base on the Dual-Innovation Performance of Firms

Abstract

Dual innovation, which includes exploratory innovation and exploitative innovation, is crucial for firms to obtain a sustainable competitive advantage. The knowledge base of firms greatly influences or even determines the scope, direction, and path of their dual-innovation activities, which drive their innovation process and produce different innovation performances. This study uses data source patents obtained by 285 focal firms in the Chinese new-energy vehicle industry in the period 2015–2020. Five knowledge-base features are selected by analyzing the correlation and multicollinearity, and four different firm clusters are found by using the k-means clustering algorithm. Based on the classification and regression tree (CART) algorithm, we mine the potential decision rules governing the dual-innovation performance of firms. The results show that the exploratory innovation performance of firms in different clusters is mainly affected by two different knowledge-base features. Knowledge-base scale is a key factor affecting the exploitative innovation performance of firms. Firms in different clusters can improve their dual-innovation performance by rationally tuning the combination of knowledge-base features.