A contingency view to novelty: The role of product-service strategy, sensing capability and environmental turbulence

Abstract

Purpose

The aim of this study is to examine the impact of the fit between product-service strategy and sensing capability on novelty, and the potential moderating impact of contextual factors (i.e. technological and market turbulence) on novelty.

Design/methodology/approach

In line with the aim of the study, a quantitative approach is adopted and a multi-item scale survey is designed to collect primary data. Using a mixed mode survey, a total number of 491 questionnaires are collected from a sample of UK-based telecommunications firms. Multiple regression is used to test the hypotheses and predict the outcomes.

Findings

The results support the positive contribution of a contingency approach to the study of the impact of the fit between product-service strategy and sensing dynamic capability on novelty. The results also partially confirm the reinforcing impact of technological and market turbulence on novelty.

Originality/value

This study extends research on product-service strategy and sensing capability by adopting a contingency view, which intends to serve two purposes: to complement the existing reductionistic explanations and to explore how the relationship between product-service strategy and sensing capability could create novelty as well as the degree to which this relationship could be moderated in light of the external contextual factors.

Citation

Rashidirad, M., Salimian, H. and Soltani, E. (2018), "A contingency view to novelty: The role of product-service strategy, sensing capability and environmental turbulence", European Business Review, Vol. 30 No. 3, pp. 218-245. https://doi.org/10.1108/EBR-12-2016-0160