The relationship between extreme contexts, organizational change capacity, and firm product and process innovation

Abstract

PurposeThis study investigates the mediating role of organizational change capacity (OCC) in the relationship between the perception of extreme contexts and firm product and process innovation, which was not empirically investigated in the literature. In addition, this study explores the moderating role of the perception of extreme contexts-related variables, which were not operationalized in ordinary firms, on the relationship between OCC and firm product and process innovation.Design/methodology/approachA questionnaire-based research was conducted to test the suggested hypotheses. The data were gathered from 90 firms during the peak period of COVID-19.FindingsThis study shows that OCC, which covers contexts, process and learning dimensions, fully mediates the relationship between the perception of extreme contexts and firm product and process innovation. Also, this study discovers that the perception of extreme contexts, including temporal ordering of extremity, the magnitude of consequences, proximity among people and operational deficiencies, positively moderate the relationship between OCC and firm product innovation.Research limitations/implicationsThis study has constraints inherited in survey design, primarily sampling and country context.Originality/valueThis study identifies, conceptualizes and operationalizes the term extreme context, conceptually argued for particular organizations/units in ordinary/mundane organization settings so far. In addition, this study extends the current understanding of how the perception of extreme contexts interacts with a firm's capability to increase innovation efforts. Further, this study shows how OCC mediates the relationship between extreme contexts and firm product and process innovation.

Role of strategic knowledge management practices in enhancing strategic perspectives of an organisation to improve entrepreneurial performance

“…Additionally, ST lays the groundwork for identifying and managing the changes required to fit with new strategies, enabling effective organisational transformation. Organisation change management also entails executing strategic initiatives; these elements work together to improve organisational success and EP (Akgu ¨n et al, 2023a(Akgu ¨n et al, , 2023bKlarner et al, 2008). Similar to this, a strong SO gives entrepreneurial initiatives a clear direction and purpose, helping firms to coordinate their operations with long-term objectives and competitive positioning.…”

“…Ultimately, a strong organisational change capacity matters to the success of a firm, as it empowers the company to respond to shifting market conditions and preserve its competitive edge over time. It also enables the firm to innovate more effectively and lead the competition, even in the face of significant challenges and disruptions (Akgün et al , 2023a; Liozu et al , 2014; Pudjiarti, 2018). A company that has strategic flexibility can rapidly react and effectively to the dynamism of the corporate environment (Kokil and Sharma, 2006; Mu et al , 2018; Nadkarni and Narayanan, 2007; Sanchez and Mahoney, 1996; Yoshikuni et al , 2023).…”