Abstract Different from the existing “exogenous approaches” (i.e. imitative innovation or cooperative innovation), this study proposes an “endogenous approach” of innovation to argue bricolage as a way to facilitate SMEs’ substitute innovation. Based on mode ambidexterity theory, we argue bricolage as a combination of “conception exploration” and “resource exploitation” to promote innovation through organizational learning and balance mechanism. Through the comparative study of three classical SMEs, we find that SMEs can improve their innovation through enhancing their bricolage thinking/orientation to increase their mode ambidexterity of conceptual exploration and resource exploitation. Different level of mode ambidexterity balance can lead to different innovation outcomes for these firms. “HighHigh mode” (high resource exploitation and high conceptual exploration) can bring brilliant innovation. While “HighLow” mode (high resource exploitation and low conceptual exploration) is more easily leading to “just so so” innovation. Differing from engineering mindset, substitute innovation, as a result of bricolage, is more substandard, quick and lowcost.
2015, Vol. 12 
