Innovative behavior and venture performance of SMEs: the moderating effect of environmental dynamism
March 23, 2015 Editor 0
European Journal of Innovation Management, Volume 18, Issue 2, May 2015.
Purpose This study explores the relationship between innovative behavior and firm performance to determine empirically whether managers’ innovative behavior impacts directly or indirectly on firm performance through innovative output. A proposed conceptual model is tested with the moderating effects of environmental dynamism Design/methodology/approach An empirical study tests the conceptual model of a multi-industry sample of Tunisian SMEs. For this analysis we apply the Partial Least Squares (PLS) technique using the software package SmartPLS, version 2.0 Findings Empirical findings reveal that innovative behavior acts on innovation output thus having a positive and significant effect on business performance. Direct effect on business performance is found to be positive but weakly significant. These positive relationships tend to decrease when market conditions are highly dynamic. Practical implications Managers should be aware of the strategic potential of their innovative skills which can reinforce a firm’s innovativeness in order to improve business performance. Originality/value This article proposes a model showing how a manager’s innovative behavior affects innovation output thus enhancing firm performance. The proposed conceptual model gives a more specific vision with the introduction of environmental dynamism as a moderating factor.
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