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  • articleNo Access

    THE IMPACT OF ENVIRONMENTAL UNCERTAINTY DIMENSIONS ON ORGANISATIONAL INNOVATIVENESS: AN EMPIRICAL STUDY ON SMEs

    The purpose of this study is to examine the effects of factors of environmental uncertainty on the innovativeness of small and medium enterprises (SMEs). Innovativeness is widely accepted as an important characteristic for firm competitiveness and it has been studied by both researchers as well as business managers. Environmental uncertainty is a measure of the complexity of changing external forces faced by an organisation and it crucially impacts the responses of organisations in order to stay competitive. Based on approaches in existing literature, this study conceptualises environmental uncertainty comprised three separate dimensions — competitive intensity, market/demand turbulence, technological turbulence. Data for the study were collected from 156 SMEs in Turkey. SMEs are regarded as an important ingredient in the economic growth of nations and especially so in developing nations such as Turkey. The findings of the study reveal that market/demand turbulence and technological turbulence have a positive effect on the innovativeness of SMEs. Interestingly and contrary to popular belief, competitive intensity was not found to have significant effect on an SME's innovativeness. The implication of the results from this research is that the degree of organisational innovativeness for SMEs tends to increase and therefore should be supported in environments with greater technological and market/demand turbulence. This research makes an important contribution to the developing body of innovation literature and provides directions for managers and researchers in influencing innovativeness of firms.

  • articleNo Access

    OPEN INNOVATION AND ITS EFFECTIVENESS TO EMBRACE TURBULENT ENVIRONMENTS

    The paper focuses on the challenges of integrating external sources in the innovation process and investigates the role of environmental turbulence in this context. Building on the resources-based view and the dynamic capabilities perspective the authors propose that open innovation strategies assist companies in navigating through turbulent times. Empirical testing of this assumption in a sample of 101 manufacturing firms indicates that open innovation activities are more important in turbulent than in non-turbulent markets and that supplier integration is vital when technological turbulence is high, whilst customer integration is critical in environments characterized by high market turbulence. From a practical point of view, these findings highlight the importance of stakeholder integration in the innovation process and provide details on the successful implementation of this strategy under different environmental settings.

  • articleNo Access

    ENVIRONMENT TURBULENCE EFFECT ON THE DYNAMICS OF INTELLECTUAL CAPITAL ACCUMULATION AND AMBIDEXTROUS INNOVATION

    The aim of this paper is to study the influence of the environment on the link between intellectual capital and ambidextrous innovation. The environment has been considered taking into account the technological turbulence and the market turbulence. Using a questionnaire survey approach, data were obtained from 155 directors representing Tunisian SMEs. Two main theoretical implications were highlighted. The first is the extent of the intellectual capital contribution, with its human, organizational and relational components, to the reading of the ambidextrous innovation within the organization. The second is the moderating role of environmental turbulence. From a practical side, the study tried to reap the intellectual capital benefits and the intermediate effect of environmental turbulence to improve the manager’s yields in term of innovation. Interestingly, results show that human capital affects ambidextrous innovation. It influences radical innovation more than incremental innovation. Relationship capital promotes only incremental innovation. Organizational capital influences ambidextrous innovation. Its effect on incremental innovation is greater than on radical innovation. Both technological and market turbulences moderate negatively the human capital effect on incremental innovation. Counter to our expectations, however, environmental turbulence does not moderate the interrelationships selectively between relational capital, organizational capital and ambidextrous innovation. The present study is one of the few studies conducted in Tunisia investigating the field of intellectual capital and the first studying its effect on the ambidextrous innovation in a turbulent environment.

  • articleNo Access

    EXAMINING THE INFLUENCE OF ENVIRONMENTAL TURBULENCE ON FIRM INNOVATION PERFORMANCE IN EMERGING MARKETS: USING AN ENVIRONMENT-STRATEGY-PERFORMANCE FRAMEWORK

    Evidence suggests that turbulent environment exposure is a significant driving force for business innovation. The automotive industry is strongly influenced by environmental dynamics due to continuous technological changes. Car OEMs require an accurate landscape of industrial uncertainties. The purpose of this study is to investigate the role of business environmental turbulence (BET) in innovation performance. Applied to the environment-strategy-performance framework and underpinned by the dynamic capability view (DCV) and contingency theory, our research model concerns both the antecedent and moderation roles of BET in innovation performance. A sample of 306 questionnaire data is collected from the management of Iranian automotive firms, and PLS-SEM is used for the analysis. The results suggest that BET improves innovation performance through enhancing networking capability (NC) and collaborative innovation capability (CIC). Besides, BET positively moderates the relationship between NC and innovation performance. This study contributes to understanding business innovation in a turbulent environment setting. Our findings offer important implications for managers to set strategies, particularly in a dynamic environment.

  • articleNo Access

    CREATIVE AND PURE IMITATION UNDER ENVIRONMENTAL TURBULENCE: EVIDENCE FROM AN EMERGING ECONOMY

    Due to the significance of imitation in business success and economic growth, there is an increasing interest of scholars in exploring different dimensions of imitation, illuminating the ‘black box’ of imitation. Given the increasingly turbulent nature of business environments, this study aims to investigate creative and pure imitation-based competitive strategies and their performance under different levels of environmental turbulence. A theoretical framework was tested using a sample of manufacturing firms in Vietnam. The results revealed that creative imitation is positively associated with sustained competitive advantage, while the impact of pure imitation on sustained competitive advantage is negligible. Furthermore, environmental turbulence affects both creative and pure imitation, with only creative imitation mediating the effects of environmental turbulence on sustained competitive advantage. Lastly, environmental turbulence amplifies the effect of pure imitation on sustained competitive advantage, while it has minimal moderating effects on the relationship between creative imitation and sustained competitive advantage. This study contributes to the literature by being the first to examine the effect of environmental turbulence on the performance of both creative and pure imitation strategies.

  • chapterNo Access

    Chapter 7: THE IMPACT OF ENVIRONMENTAL UNCERTAINTY DIMENSIONS ON ORGANISATIONAL INNOVATIVENESS: AN EMPIRICAL STUDY ON SMEs

    The purpose of this study is to examine the effects of factors of environmental uncertainty on the innovativeness of small and medium enterprises (SMEs). Innovativeness is widely accepted as an important characteristic for firm competitiveness and it has been studied by both researchers as well as business managers. Environmental uncertainty is a measure of the complexity of changing external forces faced by an organisation and it crucially impacts the responses of organisations in order to stay competitive. Based on approaches in existing literature, this study conceptualises environmental uncertainty comprised three separate dimensions — competitive intensity, market/demand turbulence, technological turbulence. Data for the study were collected from 156 SMEs in Turkey. SMEs are regarded as an important ingredient in the economic growth of nations and especially so in developing nations such as Turkey. The findings of the study reveal that market/demand turbulence and technological turbulence have a positive effect on the innovativeness of SMEs. Interestingly and contrary to popular belief, competitive intensity was not found to have significant effect on an SME's innovativeness. The implication of the results from this research is that the degree of organisational innovativeness for SMEs tends to increase and therefore should be supported in environments with greater technological and market/demand turbulence. This research makes an important contribution to the developing body of innovation literature and provides directions for managers and researchers in influencing innovativeness of firms.

  • chapterNo Access

    Chapter 8: The Impact of Environmental Uncertainty Dimensions on Organisational Innovativeness: An Empirical Study on SMEs

    The purpose of this study is to examine the effects of factors of environmental uncertainty on the innovativeness of small and medium enterprises (SMEs). Innovativeness is widely accepted as an important characteristic for firm competitiveness and it has been studied by both researchers as well as business managers. Environmental uncertainty is a measure of the complexity of changing external forces faced by an organisation and it crucially impacts the responses of organisations in order to stay competitive. Based on approaches in existing literature, this study conceptualises environmental uncertainty comprised three separate dimensions — competitive intensity, market/demand turbulence, technological turbulence. Data for the study were collected from 156 SMEs in Turkey. SMEs are regarded as an important ingredient in the economic growth of nations and especially so in developing nations such as Turkey. The findings of the study reveal that market/demand turbulence and technological turbulence have a positive effect on the innovativeness of SMEs. Interestingly and contrary to popular belief, competitive intensity was not found to have significant effect on an SME’s innovativeness. The implication of the results from this research is that the degree of organisational innovativeness for SMEs tends to increase and therefore should be supported in environments with greater technological and market/demand turbulence. This research makes an important contribution to the developing body of innovation literature and provides directions for managers and researchers in influencing innovativeness of firms.

  • chapterNo Access

    Chapter 15: Green Innovation, Green Entrepreneurship, and Vietnamese SME Development: The Role of Market Turbulence

    Micro, small, and medium enterprises (MSMEs) are a significant part of Vietnam’s national economy, contributing up to 40% of GDP. However, in today’s globalized world, competition in the marketplace is increasingly complex. Besides, the state is more concerned with environmental sustainability. Thus, Vietnamese enterprises, especially MSMEs or small-medium enterprises (SMEs) that want to stand up and develop, should pay attention to innovation by not only considering business opportunities but also the benefits of being environmentally friendly businesses. The goals of this study are to investigate the impact of green innovation (GI) on SME development (SMED) in turbulent market conditions with the mediation effect of green entrepreneurship (GE). Based on the research results, the study provides useful solutions to help SMEs develop and policymakers adjust their policies. The activating of SMEs’ activities in Ho Chi Minh City business corresponds to the demographic census of this study. A sample comprising 280 senior managers of SMEs is surveyed for the study. The questionnaire tool is used to measure the research variables. A 5-point Likert scale is used to measure the questionnaire. To test the hypotheses, the study uses the SEM method with the support of Amos software.