Environmental uncertainty, participative corporate political activity and radical innovation in China: a sensemaking perspective
Journal of Business & Industrial Marketing
ISSN: 0885-8624
Article publication date: 25 April 2022
Issue publication date: 22 January 2023
Abstract
Purpose
Drawing on a sensemaking perspective, this study aims to theoretically and empirically investigate the effects of participative corporate political activity (PCPA) on radical innovation and how regulatory uncertainty and technological uncertainty affect firms’ choice of PCPA as well as its effectiveness on radical innovation.
Design/methodology/approach
Hierarchical regression analyses were conducted to test the research model based on survey data collected from 227 Chinese manufacturing firms.
Findings
The results indicate that PCPA has a significantly positive effect on radical innovation. Both regulatory and technological uncertainty are positively related to PCPA. In addition, regulatory uncertainty strengthens the positive relationship between PCPA and radical innovation, whereas technological uncertainty weakens this relationship.
Practical implications
This study reveals that firm managers should be mindful that PCPA is beneficial to firms’ radical innovation activities in China. Additionally, although regulatory uncertainty and technological uncertainty can drive firms to engage in PCPA to cope with the ambiguity they experienced, managers should also be alert to the complicated role of environment forces in enlarging or discounting the positive effect of PCPA on radical innovation.
Originality/value
The findings offer fresh insights into the use of PCPA to manage the uncertain external environment when pursuing radical innovation activities in China.
Keywords
Acknowledgements
The authors thank the reviewers and editorial team for their encouragement, comments, and guidance in shaping this manuscript.
This research was supported by the National Natural Science Foundation of China (No. 71832009) and the Ministry of Education and Humanities and Social Science Project (No. 20YJA630063).
Citation
Song, M., Wang, L., Wang, L. and Chen, W. (2023), "Environmental uncertainty, participative corporate political activity and radical innovation in China: a sensemaking perspective", Journal of Business & Industrial Marketing, Vol. 38 No. 3, pp. 593-608. https://doi.org/10.1108/JBIM-05-2021-0256
Publisher
:Emerald Publishing Limited
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