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Article
Publication date: 19 June 2023

Joby John and Ramendra Thakur

To reconceptualize the organizational environment in a comprehensive manner, it is important to specify not just the velocity but also other aspects of turbulent environments

Abstract

Purpose

To reconceptualize the organizational environment in a comprehensive manner, it is important to specify not just the velocity but also other aspects of turbulent environments. Concurrently, the purpose of this paper is to also propose that organizational adaptability and, particularly, the speed of adaptations are critical to moderate the impact of turbulence in the environment on organizational performance.

Design/methodology/approach

This paper uses a conceptual methodology to fully specify turbulent environments and commensurate managerial response appropriate for such environments. Based on a perspective borrowed from the field of fluid dynamics used to specify the phenomenon of turbulence, the authors develop a conceptual model with research propositions. Four dimensions that describe turbulence in fluid flow when applied metaphorically offer a comprehensive view of the organizational environment.

Findings

An extreme, unanticipated, sudden onslaught resulting in a prolonged disrupted environment such as during the recent coronavirus crisis is best characterized as having caused turbulent environmental conditions. Management theories have addressed disruptions as high-velocity environments in the context of rapid changes in information technology. With a broadened conceptualization of the organizational environment to better capture extreme disruptions, the authors provide a comprehensive model appropriate for turbulent environmental conditions and offer research directions for scholarly pursuit.

Originality/value

This paper provides a new perspective from the physical sciences to better conceptualize organizational environments during extreme disruptions such as in turbulent environmental conditions.

Details

International Journal of Organizational Analysis, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1934-8835

Keywords

Article
Publication date: 14 September 2021

Evrim Gemici and Cemal Zehir

The aim of this paper is to empirically examine whether environmental turbulence leads to the adoption of high-performance work systems (HPWS) and learning orientation (LO) in…

Abstract

Purpose

The aim of this paper is to empirically examine whether environmental turbulence leads to the adoption of high-performance work systems (HPWS) and learning orientation (LO) in organizations and, if so, how these two elements contribute to innovativeness. Past research studies widely demonstrated that HPWS and LO are strong determinants of innovativeness. This study incorporates environmental turbulence as an antecedent and explains the interactions between these concepts.

Design/methodology/approach

This paper involves a questionnaire-based survey of 233 firms. For hypothesis testing, structural equation modeling (SEM) was used.

Findings

The results revealed the antecedent role of environmental turbulence in HPWS and LO. Additionally, HPWS and LO mediated the relationship between environmental turbulence and organizational innovativeness.

Research limitations/implications

This research has the limitations of a cross-sectional study design. The study draws out some implications for firms facing turbulent conditions and intending to increase their innovativeness by stimulating a learning culture and focusing on human capital through HPWS.

Originality/value

The overarching contribution of this study is to test the assumption that organizations initiate changes in their internal systems as a response to environmental turbulence. By doing so, the study enriches current studies by exploring the mediator role of HPWS and LO between environmental turbulence and innovativeness. This research also contributes to the literature by demonstrating the antecedent role of environmental turbulence in HPWS for the first time. Additionally, it provides evidence for the relationship between environmental turbulence and LO.

Details

European Journal of Innovation Management, vol. 26 no. 2
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 9 December 2022

Ziqin Yu and Xiang Xiao

In recent years, environmental issues and resource depletion have posed significant challenges to firms and society. To address these environmental challenges, firms seek to build…

Abstract

Purpose

In recent years, environmental issues and resource depletion have posed significant challenges to firms and society. To address these environmental challenges, firms seek to build strategic alliances of green supply chain management (GSCM) with their supply chain partner. As the largest developing country in the Asia–Pacific region, China needs to take more responsibility for environmental protection, which requires more Chinese firms to participate in GSCM. Therefore, focusing on the issue of GSCM and innovation persistence in the context of an increasingly harsh ecological environment is essential.

Design/methodology/approach

To test the hypothesis, the authors perform an empirical analysis on a sample of 124 listed firms in China from 2014 to 2019. The results are robust to a battery of robustness analyses the authors performed to take care of endogeneity.

Findings

Empirical results indicate that GSCM can promote innovation persistence and both market environment turbulence and technology environment turbulence have a positive moderating effect on the relationship between the two. Mechanism tests show that GSCM can improve innovation efficiency, ensure innovation quality and alleviate financing constraints, thus promoting the innovation persistence of firms.

Originality/value

This study can provide a theoretical basis for the country to promote GSCM orientation, raise firms' awareness of the value of GSCM, convey the significance of GSCM to investors, influence firms' investment decisions and give experience to other developing countries.

Details

European Journal of Innovation Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 5 December 2022

Xiaohong Xiao, Chengxu Zhou and Hongyi Mao

This study aims to investigate the impact of the two essential subjects of servitization (service and goods innovation) on customer satisfaction. The authors explained the paradox…

Abstract

Purpose

This study aims to investigate the impact of the two essential subjects of servitization (service and goods innovation) on customer satisfaction. The authors explained the paradox of servitization by determining how service innovation and goods innovation affect customer satisfaction interacting with environmental turbulence and marketing intensity.

Design/methodology/approach

The authors obtained 376 observations of 84 listed Chinese companies. On the basis of content analysis and measurement from secondhand data, the authors first tested the hypotheses in the fixed-effects model. The authors conducted a split-sample analysis by dividing environmental turbulence into two samples to explain the results effectively and better interpret the relationship between two innovations to customer satisfaction.

Findings

The results show that goods and service innovations positively affect customer satisfaction, but the effect of service innovation is more substantial. Furthermore, environmental turbulence negatively moderates the relationship between service innovation and customer satisfaction. The empirical results indicated that, if enterprises enhance marketing intensity, then the growth of environmental turbulence weakens the positive impact of goods and services innovation on customer satisfaction.

Originality/value

This study provided an understanding of the impact of servitization on intangible assets. This study also responded to previous literature’s call for research on the impact of external environmental factors on servitization.

Details

Journal of Business & Industrial Marketing, vol. 38 no. 10
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 4 September 2023

Hsiao-Ting Tseng, Shizhen (Jasper) Jia, Tahir M. Nisar and Nick Hajli

The advantages of applying big data analytics for organizations to boost innovation performance are enormous. By collecting and analysing substantial amounts of data, firms can…

Abstract

Purpose

The advantages of applying big data analytics for organizations to boost innovation performance are enormous. By collecting and analysing substantial amounts of data, firms can discern what works for their customer needs and update existing products while innovating new ones. Notwithstanding the evidence about the effects of big data analytics, the link between big data analytics and innovation performance is still underestimated. Especially in today's fast-changing and complicated environments, companies cannot simply take big data analytics as one innovative technical tool without fully understanding how to deploy it effectively.

Design/methodology/approach

This study tries to investigate this relationship by building on the knowledge absorptive capacity perspective. The authors conceptualized effective use of big data analytics tools as one general absorptive capacity rather than a simple technical element or skill. Specifically, effectively utilize big data analytics tools can provide values and insights for new product innovation performance in a turbulent environment. Using online survey data from 108 managers, the authors assessed their hypotheses by applying the structural equation modelling method.

Findings

The authors found that big data analytics capacity, which can be conceptualized as one absorptive capacity, can positively influence product innovation performance. The authors also found that environmental turbulence has strong moderation effects on these two main relationships.

Originality/value

These results establish big data analytics can be regarded as one absorptive capacity, which can positively boost an organization's innovation performance.

Details

Information Technology & People, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0959-3845

Keywords

Article
Publication date: 21 May 2021

Shuting Chen and Dengke Yu

The authors aim to measure the effects of ambidextrous innovation and its mix strategy on organizational obsolescence with the moderating roles of environmental turbulence.

Abstract

Purpose

The authors aim to measure the effects of ambidextrous innovation and its mix strategy on organizational obsolescence with the moderating roles of environmental turbulence.

Design/methodology/approach

Hierarchical regression analysis was used to test the hypotheses on the basis of the survey data of 198 firm employees in China.

Findings

Both exploratory and exploitative innovations significantly restrain organizational obsolescence. The complementary strategy of ambidextrous innovation is negatively correlated to organizational obsolescence, but the impact of balanced strategy is not significant. Environmental turbulence negatively moderates the relationship between exploratory innovation and organizational obsolescence, whereas it cannot moderate the effect of exploitative innovation.

Originality/value

The empirical and conceptual findings have important implications for organizations countering obsolescence through the construction of a mix strategy of ambidextrous innovation. This study enriches and extends obsolescence theory by introducing the joint mechanism of ambidextrous innovation and environmental turbulence.

Article
Publication date: 16 March 2015

Veena Vohra

The purpose of this paper is to investigate the nature of the organizational environments of Indian business organizations and to identify the adaptive response mechanisms that…

Abstract

Purpose

The purpose of this paper is to investigate the nature of the organizational environments of Indian business organizations and to identify the adaptive response mechanisms that organizations use to cope with their environments. This paper also examines in detail the causal texture of the organizational environments and attempts to build a conceptual model mapping adaptive responses of organizations to different types of organizational environments.

Design/methodology/approach

A constructivist stance was adopted in this exploratory study to capture the perceptions of the organizational leaders through the multiple case study design to capture the features of the organizational environments and their causal texture. The multiple case study design used an embedded mixed-methods approach to collect data. Within-case analysis and cross-case analysis were conducted to draw out prominent themes across cases ordered for particular organizational environment types. The study was conducted by following construct validity, internal reliability and external validity guidelines.

Findings

The study highlights and describes in detail the characteristics of the different organizational environment types in India. It is revealed that a majority of Indian organizations exist in turbulent environments. There are differences in the adaptive response mechanisms of organizations in the environment types studied. The study specially focuses on the strategies adopted by Indian organizations to adapt to turbulent environments.

Practical implications

This study maps the causal texture of organizational environments in India and maps the organizational adaptive responses to the environment for greater effectiveness. This study offers various strategies to cope with turbulent organizational environments and adds to the research focus on causal texture and adaptive capacities of organizations across different types of environments.

Originality/value

This study contributes to an ignored subject area of organizational environments. Managing organizations in uncertain and turbulent environments is complex, and this study provides an understanding about the various types of adaptive mechanism that are used to cope with environmental turbulence. This study also attempts to answer several questions that previous research works have raised about strategies that organizations use when they fail to cope with environmental turbulence.

Details

Journal of Indian Business Research, vol. 7 no. 1
Type: Research Article
ISSN: 1755-4195

Keywords

Article
Publication date: 10 November 2020

Haixu Bao, Chunhsien Wang and Ronggen Tao

This study aims to explore the relationship between geographic search and business model innovation and proposed a contingent framework to focus on how governmental networking and…

Abstract

Purpose

This study aims to explore the relationship between geographic search and business model innovation and proposed a contingent framework to focus on how governmental networking and environment turbulence are interdependent moderate the relationship between geographic search and business model innovation.

Design/methodology/approach

A large-scale questionnaire survey was carried out among the firms in three high-tech parks of the Pearl River Delta, with a total of 287 firms as empirical samples. Hypotheses are tested using ordinary least squares analyzes on hierarchical multiple regression to find out how geographic search can drive business model innovation generations.

Findings

The empirical results showed that the more frequent geographic search is, the more favorable it is for firms to generate innovative business models, and firms may be more effective in geographic searching and business model innovation with better governmental networking. However, the above relationship may be weakened if the environment turbulence in emerging markets is further considered. It was argued that firms must take into account both the positive effects of governmental networking and the negative effects of environmental turbulence in conducting a geographic search for external knowledge resources to generate innovative business models. The study results showed how and why governmental networking can be a key catalyst for firms to generate innovative business models.

Research limitations/implications

This study contributes to the business model innovation literature by documenting the large-scale survey evidence that confirms the practicality of geographic search in the business model innovation generations. The findings advance previous studies in the business model innovation by identifying the moderating roles of governmental network and environment turbulence that predict business model innovation behaviors in the emerging market.

Practical implications

The results indicate that the geographic search can be easily operationalized for external resources acquisitions by managers in generating business model innovation. This has applications for external resource acquisitions on the basis of business model innovation in the emerging China market. In addition, to facilitate the business model innovation generations, the focus should be on critical contingency factors; on the one hand, to promote the continued use of external resources, the focus should be on enhancing benefits such as governmental networking.

Originality/value

The findings extend existing theory in three ways as the original value. First, the results show that geographic search is an important driver of business model innovation generations in an emerging market context. Second, this study is the first to take organizational learning and open innovation perspective to examine geographic search as a boundary-spanning search of external resources in business model innovation generations. Third, this study also explores the moderator role of governmental network and environmental turbulence on how to strengthen or impair the geographic search and business model innovation generations.

Details

Journal of Knowledge Management, vol. 25 no. 1
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 13 September 2021

Librita Arifiani, Harjanto Prabowo, Asnan Furinto Furinto and Wibowo Kosasih

This study aims to investigate solutions to answer several questions regarding the direct influence of the respond to environmental turbulence (ET) on firm performance (FP) and…

Abstract

Purpose

This study aims to investigate solutions to answer several questions regarding the direct influence of the respond to environmental turbulence (ET) on firm performance (FP) and indirectly through business model transformation (BMT) on telecommunication internet service provider (ISP) in Indonesia. Furthermore, given the importance of telecommunication services for Indonesia to continue developing amid volatility, uncertainty, complexity and ambiguity, technology disruption impacts the telecommunication business. Also, investigating the relationship between BMT and FP simultaneously by embracing ET. Referring to the phenomena above, it is necessary to analyze what factors affect company performance. Therefore, this study aims to examine the effect of ET on FP, the effect of ET on BMT and the effect of ET on FP through BMT.

Design/methodology/approach

This study surveyed 239 ISPs in Indonesia through their top-level management representatives. In addition, this study analyzed the overall model good of fit and causal relationship using confirmatory factor analysis and structural equation modeling. This type of research is verification research. This study takes a quantitative approach by measuring the sample variables built on the construct and representing the study population. Verification research aims to test answers to several research questions regarding ET variables, BMT and company performance. The data are primarily collected through questionnaires distributed online. Respondents are the top management of every ISP organization and company as the unit analysis in this study. Of the 298 questionnaires distributed, 239 valid responses (80.2%) were obtained using the cross-sectional time method, and samples that met these criteria were carried out using a simple random sampling technique. This study uses a multivariant measure in measuring construct dimensions. All items have been rated on a five-point Likert scale ranging from 1 (“strongly disagree”) to 5 (“strongly agree”).

Findings

The results prove that responding to ET does not directly affect FP but indirectly affects FP through BMT. Thus, solutions to improve FP rely on BMT and build by developing responses to ET. The author finds that novelty BMT design is significantly related to what factors drive the business transformation towards achieving performance. Although, this study also finds that BMT positively mediates the relationship between ET to influence performance. ET alone is no longer adequate, and organizations need to revamp the BMT to achieve FP. The organization needs to leverage ET to respond to a shifting basis of competition and create a creative strategy to bring unserved customer segments and offer a high value for customer experience. This study also contributed to the movement of research trends targeted at BMT. This study provides an appropriate riposte for quantitative empirical studies that elucidate the correlation between BMT and FP by simultaneously embracing and managing ET. The relationship between BMT and the factors that support it will be higher comprehend when contextualized. This paper finds different designs and impacts of BMT on business transformation results that culminate in firm business performance as it faces an uncertain business environment that grows dynamically. Although this novelty is important, the authors found no support for effectiveness. However, this study highlights the robustness of the important factors that drive BMT to work effectively to improve business performance.

Research limitations/implications

This research using the cross-sectional approach, thus cannot capture behavior over a period, might miss seizing the dynamic variable over an extensive period. Longitudinal studies can provide broader findings, especially by capturing the results of various dynamics levels in a certain period, and can analyze the causal relationship between variables in various time conditions. This research data was collected based on the provisions before COVID-19. Therefore, in the future, it may be useful to understand if there are differences in results during COVID-19. Further, researchers advise examining specific pandemic contingency factors as moderating variables for the current research model.

Practical implications

This study provides the implications of three factors such as: theoretical aspect: enriches the contingency theory view with RBV integrated industrial organization approach: systematically share organization to manage the business transformation based on the situation environment. This research contributes to leveraging contingency theory and dynamic capability theory by presenting organizational interactions that adapt to changes caused by ET changes in internal and based on external situations. Managerial aspect: This study provides managers with a comprehensive perspective on enhancing strategic dynamics by understanding and developing capabilities adapted from dynamic markets. Besides, regulation is an important driving factor for business continuity. Adaptive regulation is predictive in nature and anticipates various future changes in line with business developments in the 4.0 era. Investigating a set of antecedents of ET in changing business models has highlighted the importance of complementarity as a critical factor in developing future research. Regulatory aspect: Telecommunication regulations must be able to predict, anticipate and respond to challenges of technological development and the needs of society; involving practitioners who are competent in drafting regulations (fair business competition); involving independent bodies in carrying out regulations and regulations do not need to regulate technical details related to technology details because technology changes rapidly. Therefore, another recommendation for the managerial is managers need to improve skills to build ET strategic competencies on strategic resource flexibility, adapt to rapid changes and increase insight into opportunities associated with strategy implementation. Managers require developing a team that acts as a creative change agent to identify and predict unstable business conditions and harmonize changes from uncertainty in implementing policies and regulations. Managers must apply their leadership style effectively to appropriate situations to adapt to the effects of changing markets, regulations and competitors.

Social implications

Telecommunication regulations expect to answer the global community’s needs that have developed into a networked civil society via the internet, answering the community’s needs, not just to follow trends and technological speeds. The implication of research on regulators requires the need to quickly formulate new regulations because the lengthy process of drafting regulations will result in unclear rules of play between stakeholders involved in business and communication technology.

Originality/value

This study extends the contingency theory and dynamic capabilities through organizational interactions, collaborative with RBV theory, and this study also extends previous research on business model innovation. Respond to ET alone cannot face unpredictable business turbulence. Organizations need to revamp the business model to achieve performance and examine BMT’s central role as unique to the service context and distinct from the more studied innovation process. This study highlights the strength of the critical factors that drive the BMT to work effectively to improve business performance, which shows the importance of paradigm-shifting innovation through empirical studies that explain the correlation between BMT and FP while embracing response to ET.

Article
Publication date: 2 December 2020

Wenjun Cai, Jianlin Wu and Jibao Gu

Innovation has been identified as a critical element to achieve firms' growth. The purpose of this study is to investigate the impact of chief executive officer (CEO) passion on…

Abstract

Purpose

Innovation has been identified as a critical element to achieve firms' growth. The purpose of this study is to investigate the impact of chief executive officer (CEO) passion on firm innovation, including exploratory and exploitative innovation and examine the moderating roles of market and technological turbulence.

Design/methodology/approach

This study adopts the methodology of survey and uses multisource and time-lagged data of 146 firms in China. Seemingly unrelated regression (SUR) is used to test the hypotheses of this study.

Findings

This study finds that CEO passion promotes exploratory and exploitative innovation. Results also indicate that market turbulence strengthens the effect of CEO passion on exploratory and exploitative innovation, whereas technological turbulence weakens such an effect.

Originality/value

CEO passion is an important, positive affect which inspires CEOs to work for firms, but it has not yet received enough attention in the innovation literature. This study contributes to examining the impact of CEO passion on firm innovation and contributes to the contingency under which CEO passion influences firm innovation. Furthermore, this research finds that the moderating effects of market and technological turbulence are different in the relationship between CEO passion and firm innovation.

Details

Management Decision, vol. 59 no. 6
Type: Research Article
ISSN: 0025-1747

Keywords

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