Assessing innovativeness through organisational adaptability: a contingency approach

Abstract

Characteristics of the post-industrial era include increasing knowledge and competence, competitive and technological dynamics, and growing environmental complexity. A firm can handle market- and technology-driven uncertainties if its repertoire of knowledge and competencies is expanded continuously, and its ability to exploit such a repertoire is correspondingly improved. Hence, we examine in this study how competence-based adaptability affects the level of innovativeness, and how internal and external strategic postures influence this interplay. Our findings provide strong empirical evidence for a positive association between adaptability and innovativeness. This interplay is significantly influenced by the underlying mechanism of a firm's dominant business logic and environmental uncertainty. Thus, companies are able to improve success in new product development and commercialisation, by enhancing their ability to adapt to constantly changing environmental conditions, in line with the dominant business logic utilised.