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Examining The Influence Of Environmental Turbulence On Firm Innovation Performance In Emerging Markets: Using An Environment-Strategy-Performance Framework

Author

Listed:
  • NIMA GAROUSI MOKHTARZADEH

    (,‡Faculty of Management, University of Tehran, Tehran, Iran)

  • HANNAN AMOOZAD MAHDIRAJI

    (��School of Business, University of Leicester, Leicester, United Kingdom)

  • ISMAIL JAFARPANAH

    (,‡Faculty of Management, University of Tehran, Tehran, Iran)

  • DONGMEI CAO

    (�School of Strategy and Leadership, Faculty of Business and Law, Coventry University, Coventry, West Midland, United Kingdom)

Abstract

Evidence suggests that turbulent environment exposure is a significant driving force for business innovation. The automotive industry is strongly influenced by environmental dynamics due to continuous technological changes. Car OEMs require an accurate landscape of industrial uncertainties. The purpose of this study is to investigate the role of business environmental turbulence (BET) in innovation performance. Applied to the environment-strategy-performance framework and underpinned by the dynamic capability view (DCV) and contingency theory, our research model concerns both the antecedent and moderation roles of BET in innovation performance. A sample of 306 questionnaire data is collected from the management of Iranian automotive firms, and PLS-SEM is used for the analysis. The results suggest that BET improves innovation performance through enhancing networking capability (NC) and collaborative innovation capability (CIC). Besides, BET positively moderates the relationship between NC and innovation performance. This study contributes to understanding business innovation in a turbulent environment setting. Our findings offer important implications for managers to set strategies, particularly in a dynamic environment.

Suggested Citation

  • Nima Garousi Mokhtarzadeh & Hannan Amoozad Mahdiraji & Ismail Jafarpanah & Dongmei Cao, 2022. "Examining The Influence Of Environmental Turbulence On Firm Innovation Performance In Emerging Markets: Using An Environment-Strategy-Performance Framework," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 26(04), pages 1-34, May.
    • Handle: RePEc:wsi:ijimxx:v:26:y:2022:i:04:n:s1363919622500281
    DOI: 10.1142/S1363919622500281
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    Cited by:

    1. Qaisar Iqbal & Katarzyna Piwowar-Sulej, 2023. "Frugal innovation embedded in business and political ties: transformational versus sustainable leadership," Asian Business & Management, Palgrave Macmillan, vol. 22(5), pages 2225-2248, November.

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