How Does Paradox Strategic Cognition Affect Radical Innovation Performance in Established Firms?

Paradox theory generally suggests that paradox strategic cognition promotes willingness of established firms to invest in radical innovation development. However, literature neglects how paradox strategic cognition guides established firms to orchestrate resource facing resource tension. Integrating resource orchestration theory with paradox theory, we identified cannibalization and complementarity strategy as potential resource orchestration strategy for radical innovation development in established firms. The results indicate that paradox strategic cognition encourages the use of a complementarity strategy and discourages the use of a cannibalization strategy. Demand uncertainty also weakens the effect of paradox strategic cognition on resource leverage. We reveal the link between paradox strategic cognition and radical innovation by explaining how established firms choose between the two strategies. Moreover, our identification of the complementarity strategy enhances the literature on cannibalization and radical innovation.