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Moderating Effect of Business Environmental Dynamism in the Innovativeness—Company Performance Relationship of Congolese Manufacturing Companies

Author

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  • Remo Metalor Ruba

    (Faculty of Management and Economics, Université Shalom de Bunia, Bunia, Democratic Republic of the Congo)

  • Germinah E. Chiloane-Tsoka

    (College of Economic and Management Sciences, School of Public and Operations Management, Department of Applied Management, University of South Africa, Pretoria 0002, South Africa)

  • Thea Van der Westhuizen

    (School of Management, Information Technology and Governance, Discipline of Management and Entrepreneurship, University of KwaZulu-Natal, Durban 4000, South Africa)

Abstract

Research has shown that innovativeness is a key factor in business performance. However, the link between innovativeness and organisational performance and the role of environmental dynamism are still being debated. This study thus sought to analyse the moderating effect of the dynamism of the business environment in the relationship between innovativeness and performance of manufacturing companies. In order to do this, a questionnaire was distributed to 344 owners and managers of manufacturing companies operating in the north-eastern Democratic Republic of Congo. One hundred and seventy-eight of these questionnaires were returned and used to test the study’s hypotheses. The study used an ordinary least squares (OLS) regression under the hierarchical regression analysis approach. The results confirm the positive and significant effect of innovativeness on company performance. On the other hand, results indicate that business environmental dynamism has a direct positive and significant effect on company performance. However, the dynamism of the business environment negatively influences the relationship between innovativeness and company performance. Based on these results, recommendations and further research perspectives are suggested.

Suggested Citation

  • Remo Metalor Ruba & Germinah E. Chiloane-Tsoka & Thea Van der Westhuizen, 2023. "Moderating Effect of Business Environmental Dynamism in the Innovativeness—Company Performance Relationship of Congolese Manufacturing Companies," Economies, MDPI, vol. 11(7), pages 1-16, July.
    • Handle: RePEc:gam:jecomi:v:11:y:2023:i:7:p:191-:d:1193745
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    References listed on IDEAS

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    1. Henk W. Volberda & Niels van der Weerdt & Ernst Verwaal & Marten Stienstra & Antonio J. Verdu, 2012. "Contingency Fit, Institutional Fit, and Firm Performance: A Metafit Approach to Organization–Environment Relationships," Organization Science, INFORMS, vol. 23(4), pages 1040-1054, August.
    2. Syed Hasanat Shah & Muhammad Abdul Kamal & Hafsa Hasnat & Li Jun Jiang, 2019. "Does institutional difference affect Chinese outward foreign direct investment? Evidence from fuel and non-fuel natural resources," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 24(4), pages 670-689, October.
    3. Li, Da-yuan & Liu, Juan, 2014. "Dynamic capabilities, environmental dynamism, and competitive advantage: Evidence from China," Journal of Business Research, Elsevier, vol. 67(1), pages 2793-2799.
    4. Qinghua Fu & Muhammad Safdar Sial & Muhammad Zulqarnain Arshad & Ubaldo Comite & Phung Anh Thu & József Popp, 2021. "The Inter-Relationship between Innovation Capability and SME Performance: The Moderating Role of the External Environment," Sustainability, MDPI, vol. 13(16), pages 1-14, August.
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