Empirical research on strategic flexibility and innovation performance under dynamic environment

Fan Zhigang; Wu Xiaobo

Science Research Management ›› 2014, Vol. 35 ›› Issue (1) : 1-8.

Fan Zhigang¹, Wu Xiaobo²

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Abstract

Strategic flexibility in a dynamic environment has an important impact on enterprises' innovation performance, but an in-depth exploration still lacks in the present literature as to its specific working mechanism. This paper examines the effects of strategic flexibility on innovation performance by incorporating proactive and reactive strategic flexibility into the framework of strategic flexibility, and the moderating effects of environmental change. By conducting an empirical study of 228 sample Chinese manufacturing firms, the results show that: (1) Both proactive and reactive strategic flexibility have positive effects on innovation performance; (2) Rate of environmental change positively moderates the relationship between proactive strategic flexibility and innovation performance, and negatively moderates the relationship between reactive strategic flexibility and innovation performance; (3) Turbulence of environmental change positively moderates the relationship between reactive strategic flexibility and innovation performance. The results indicate that firms facing fast rate of environmental change should pay more attention to proactive strategic flexibility, while facing high turbulence of environmental change should pay more attention to reactive strategic flexibility. These results have not only deepened and broadened the theory of strategic flexibility, but also provided helpful references for the strategic practices of enterprises.

Key words

proactive strategic flexibility / reactive strategic flexibility / innovation performance / environmental dynamics

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Fan Zhigang, Wu Xiaobo. Empirical research on strategic flexibility and innovation performance under dynamic environment[J]. Science Research Management. 2014, 35(1): 1-8

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