Empirical research on strategic flexibility and innovation performance under dynamic environment

Abstract

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

CLC Number:

F279.23

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

References

[1] Nadkarni, S. and V. Narayanan. Strategy frames, strategic flexibility and firm performance: the moderating role of industry clockspeed. Academy of Management, 2004.383-397.
[2] Harrigan, K., Exit barriers and vertical integration [J]. The Academy of Management Journal, 1985. 28(3): 686-697.
[3] Matusik, S. and C. Hill, The utilization of contingent work, knowledge creation, and competitive advantage [J]. The Academy of Management Review, 1998. 23(4): 680-697.
[4] Hatch, J. and J. Zweig, Strategic flexibility: The key to growth [J]. Ivey Business Journal, 2001. 65(4): 44-47.
[5] Tao, W.T.C. and J. Rongxia, An Empirical Study on the Effect of Strategic Flexibility on Enterprise Performance [J]. Chinese Journal of Management, 2011. 08(3):78-91.
[6] Zhang, M., Information systems, strategic flexibility and firm performance: An empirical investigation [J]. Journal of Engineering and Technology Management, 2005. 22(3): 163-184.
[7] Zhou, K.Z. and F. Wu, Technological capability, strategic flexibility, and product innovation [J]. Strategic Management Journal, 2010. 31(5): 547-561.
[8] Evans, J., Strategic flexibility for high technology manoeuvres: A conceptual framework [J]. Journal of Management Studies, 1991. 28(1): 69-89.
[9] Johnson, J., et al., Market-focused strategic flexibility: conceptual advances and an integrative model [J]. Journal of the Academy of Marketing Science, 2003. 31(1): 74-89.
[10] Garcia, R., R. Calantone, and R. Levine, The role of knowledge in resource allocation to exploration versus exploitation in technologically oriented organizations [J]. Decision Sciences, 2003. 34(2): 323-349.
[11] Golden, W. and P. Powell, Towards a definition of flexibility: in search of the Holy Grail? [J]. Omega, 2000. 28(4): 373-384.
[12] Sutcliffe, K. and A. Zaheer, Uncertainty in the transaction environment: an empirical test [J]. Strategic management journal, 1998. 19(1): 1-23.
[13] Cooper, R. and S. Edgett, Maximizing Productivity in Product Innovation [J]. Research-Technology Management, 2008. 51(2): 47-58.
[14] Griffith, D., G. Yalcinkaya, and R. Calantone, Do marketing capabilities consistently mediate effects of firm intangible capital on performance across institutional environments? [J]. Journal of World Business, 2010(45):217-227..
[15] Moorman, C. and A. Miner, Organizational improvisation and organizational memory [J]. The Academy of Management Review, 1998. 23(4): 698-723.
[16] Dess, G. and D. Beard, Dimensions of organizational task environments [J]. Administrative science quarterly, 1984. 29(1): 52-73.
[17] Fine, C., Clockspeed: Winning industry control in the age of temporary advantage[M]. 1998: Basic Books.17-19.
[18] Buganza, T., C. Dell'Era, and R. Verganti, Exploring the relationships between product development and environmental turbulence: the case of mobile TLC services [J]. Journal of Product Innovation Management, 2009. 26(3): 308-321.
[19] Weiss, A. and J. Heide, The nature of organizational search in high technology markets [J]. Journal of Marketing Research, 1993. 30(2): 220-233.
[20] Koka, B., R. Madhavan, and J. Prescott, The evolution of interfirm networks: Environmental effects on patterns of network change [J]. Academy of management review, 2006. 31(3): 721-734.
[21] Schreyogg, G. and M. Kliesch-Eberl, How dynamic can organizational capabilities be? Towards a dual-process model of capability dynamization [J]. Strategic management journal, 2007. 28(9): 913-928.
[22] Churchill Jr, G., A paradigm for developing better measures of marketing constructs [J]. Journal of Marketing Research, 1979(01): 64-73.
[23] Hinkin, T., A brief tutorial on the development of measures for use in survey questionnaires [J]. Organizational Research Methods, 1998. 1(1): 104-121.
[24] Karri, R., Strategic flexibility and firm performance, Washington State University. 2001.45-76.
[25] Jaworski, B. and A. Kohli, Market orientation: antecedents and consequences [J]. The Journal of Marketing, 1993. 57(3): 53-70.
[26] Lane, P.J., J.E. Salk, and M.A. Lyles, Absorptive capacity, learning, and performance in international joint ventures [J]. Strategic management journal, 2001. 22(12): 1139-1161.
[27] 温忠麟, 侯., 张雷, 调节效应与中介效应的比较和应用[J]. 心理学报, 2005. 37(2): 268-274.
[28] Malone, T.W., Modeling coordination in organizations and markets [J]. Management science, 1987(03): 1317-1332.
[29] Paik, Y., The impact of strategic flexibility on business performance in the international business environment, University of Washington. 1991.72-79.
[30] Celuch, K., G. Murphy, and S. Callaway, More bang for your buck: Small firms and the importance of aligned information technology capabilities and strategic flexibility [J]. Journal of High Technology Management Research, 2007. 17(2): 187-197.
[31] Narver, J.C., S.F. Slater, and D.L. MacLachlan, Responsive and Proactive Market Orientation and New-Product Success [J]. Journal of Product Innovation Management, 2004. 21(5): 334-347.