Using a sample of 70 global pharmaceutical firms, this study examined how cross-national knowledge affected the creation of exploitative (incremental) and explorative (breakthrough) types of technological innovations both of which are necessary for organizational ambidexterity. We found that there were significant differences for effectively using cross-national knowledge, which reinforces the need for organizational ambidexterity. The data used to study cross-national knowledge consisted of patent analyses of commercialized products, which is a step further than most studies that stop at just the patents themselves. Through the use of double-log regression analysis, the results suggested a notable conclusion: while the sourcing of intrafirm, cross-national knowledge enhanced explorative or breakthrough innovation, it did not enhance the development of exploitative or incremental innovation. The article concludes with managerial implications for managing ambidexterity.
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