Strategic orientations and firm innovativeness: a necessary condition analysis
ISSN: 1746-5265
Article publication date: 22 March 2019
Issue publication date: 18 June 2019
Abstract
Purpose
The purpose of this paper is to decipher the levels of three strategic orientations – learning orientation, entrepreneurial orientation (proactiveness and risk taking) and marketing orientation (responsiveness to customers, responsiveness to competitors, responsiveness to the macro-environment and business relationship quality) – that are necessary for firm innovativeness.
Design/methodology/approach
Data were collected from a sample of 316 firms in Ho Chi Minh City, Vietnam. Multiple regression analysis (MRA) was employed to examine the net effects of seven factors (learning orientation, proactiveness, risk taking, responsiveness to customers, responsiveness to competitors, responsiveness to changes in the macro-environment and business relationship quality) on firm innovativeness. Necessary condition analysis (NCA) was then employed to discover the level of these factors as necessary conditions for firm innovativeness.
Findings
The results produced by MRA show that learning orientation, proactiveness, responsiveness to customers and responsiveness to competitors have positive effects on firm innovativeness. The results from the NCA reveal that six out of seven conditions exhibit varying necessary levels for firm innovativeness.
Practical implications
The findings are relevant to senior managers and suggest that the levels of strategic orientations necessary for firm innovativeness vary. Firms therefore should pay attention not only to the net effects (beta weights) but also to their necessary levels. Based on their resources and capabilities, firms should take into account the necessary level of each strategic orientation in order to achieve their innovativeness goal.
Originality/value
This study is among the first to decipher the levels of three strategic orientations (learning orientation, entrepreneurial orientation and marketing orientation) that are necessary for firm innovativeness.
Keywords
Acknowledgements
This work was supported by a grant from the UEH International School of Business (Grant No. UEH.ISB.16.003).
Citation
Tho, N.D. (2019), "Strategic orientations and firm innovativeness: a necessary condition analysis", Baltic Journal of Management, Vol. 14 No. 3, pp. 427-442. https://doi.org/10.1108/BJM-07-2018-0280
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited