Antecedents of Innovativeness in Technology‐Based Services (TBS): Peering into the Black Box of Entrepreneurial Orientation

Abstract

Innovativeness is the organization's capability for developing and introducing innovations. We argue that new combinations and recombinations of prior and new knowledge (by way of creating, assembling, and transforming knowledge) result in innovativeness in an organization. We further assert that a knowledge‐based focus on innovativeness is particularly important for firms that are technology‐based. The majority of studies focusing on innovativeness are in the entrepreneurship arena, and a large number of studies consider innovativeness as one of three dimensions of the entrepreneurial orientation (EO) construct, the other two dimensions being proactiveness and risk‐taking. However, recent research has suggested peering into the black box of EO by disaggregating the EO construct and examining the interrelationships among its three components. Hence, using the knowledge‐based view and drawing from multiple disciplines, our study conceptualizes innovativeness as a criterion variable and investigates the antecedent role of proactiveness and risk‐taking propensity on innovativeness in the context of technology‐based services (TBS). We hypothesize that both proactiveness and risk‐taking propensity exhibit a curvilinear relationship with innovativeness and introduce organizational structure formality as a moderator to further explicate these relationships. Our results show that proactiveness has a curvilinear (inverted U relationship) with innovativeness, and that this relationship is attenuated by organizational structure formality. Additional analysis indicates that in TBS firms, risk‐taking propensity has a positive linear relationship with innovativeness, and this relationship is accentuated by organizational structure formality. Finally, we discuss important conceptual and practical implications of our study and provide suggestions for future research.

Disruptive innovation through a dynamic capabilities lens: an exploration of the auto component sector in India

“…When the same respondent provides inputs concerning both dependent and independent variables, a common method bias may exist (Joshi et al, 2015). However, occasionally a researcher must rely on a single respondent.…”

“…Under such circumstances, precaution must be taken to reduce the potential for common method bias (Podsakoff and Organ, 1986). As per the guidance provided by Podsakoff and Organ (1986), we avoided socially desirable responses by assuring respondents that we were seeking their opinion and that there were no correct or incorrect responses, we interspersed items representing dependent and independent variables to reduce any attempt to game the survey, we used a reverse scale for several items to ascertain that choices from the respondents were deliberate and thoughtful and, as per Joshi et al (2015), we pursued senior level managers who were knowledgeable about firm activities. Also, while most constructs were measured by a five point Likert scale, the R&D expenditure variable was measured by a range based scale.…”

“…Organisational capabilities, and recently DC, have been linked to organisational innovation, if not DI, by several researchers (Breznik and Hisrich, 2014;Teece, 2007;Parashar and Singh, 2005;Rothaermel and Hess, 2007;Hill and Rothaermel, 2003;Newey and Zahra, 2009;Das and Joshi, 2007;Joshi et al, 2015). Further, researchers have argued that to achieve DI or any breakthrough innovation in domestic or global markets, organisations must focus on developing DC (Cheng and Chen, 2013;Michailova and Zhan, 2015).…”

Corporate Entrepreneurship in the Digital Era: The Cascading Effect through Operations

“…Third, we have empirically examined the "black box" nature of the relationships among constructs such as environmental change and organisational processes (Joshi, Das and Mouri, 2015). Further, in examining this black box, we applied an integrative approach by drawing from the field of corporate entrepreneurship, strategic management, and operations management.…”

An empirical investigation of the antecedents and performance outcomes of export innovativeness

“…This scarcity of knowledge represents an important research gap, considering the crucial role that exporting can play for the survival and growth of firms, particularly smalland medium-sized ones, and the potential positive contribution of innovativeness to export success. In recent years, the concept of innovativeness and its relationship with other organizational variables has attracted attention in several business disciplines (Joshi, Das, & Mouri, 2015). Furthermore, the wide recognition that innovativeness is related to enhanced business performance has spurred a large volume of research that examines the factors that 2 stimulate firm innovativeness, the innovation process, and the chain of effects that link innovativeness to performance Menguc & Auh, 2010;Zhou, Yim & Tse, 2005).…”