Uncertain Environment and Organizational Performance: The Mediating Role of Organizational Innovation

Abstract

Purpose: How to survive in dynamic and uncertain business environment?, is one of the biggest challenge for corporations today. To answer this question, current study examines the role of organizational innovation for improving performance in today's competitive, dynamic and uncertain business environment. Design:The study used structured closed-ended survey questionnaire and data is collected through self-administered technique to increase the response rate. The unit of analysis is the employees working in cellular industry in Pakistan. The analysis techniques includes, validity analysis through confirmatory factor analysis (CFA) reliability analysis through Cronbach alpha, correlation analysis, hypotheses testing utilizing structure equation modeling (SEM) in AMOS software whereas, mediation through method of Baron and Kenny (1986). Findings:Results show that organizational innovation plays the mediating role between uncertain environment and organizational performance. Practical implications:The study proposes that organizational innovation is inevitable for maintaining organizational performance in uncertain business environment particularly in dynamic industries. Originality:The current study proposed and tested an important conceptual model that explains the mediating role of organizational innovation to enhance the organizational performance in uncertain business environment.

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