How unlearning affects radical innovation: The dynamics of social capital and slack resources

Radical innovations have enormous impacts on organizations, industries, and societies. The success of a radical innovation requires multiple facilitators within and across organizational boundaries. In this study, we distinguished the effects of two dimensions of organizational unlearning on radical innovation; these dimensions correspond to the different levels of social relations and slack resources possessed by the organizations. We conducted the research in the context of high-technology industries, including semiconductors, telecommunications, optoelectronics, and others. In total, 279 responses were received, representing 193 sample firms. The results showed that the change dimension of unlearning positively affects radical innovation, whereas the forgetting dimension has a negative effect. In addition, slack resources strengthen the positive relationship between the change dimension of unlearning and radical innovation. The findings contribute to a better understanding of the manner in which the integration of the theoretical perspectives of organizational unlearning, organizational resources, and social networks facilitates radical innovation. Theoretical and practical implications are provided.