What Makes Firms More Innovative? A Look at Organizational and Environmental Factors
Journal of Business and Industrial Marketing, Vol. 12, No. 6, pp. 400-416, November 1997
Posted: 18 Apr 2006
The determinants of innovativeness in a firm are often elusive and complex. A holistic investigation is presented where strategic posture, organizational structure, and environmental uncertainty and hostility are integrated into a model depicting how each construct contributes to firm innovativeness. The model is tested with a two stage approach that separates the structural model from the measurement model. Findings suggest that strategic posture is a major factor determining the innovativeness of firms while organization structure mediates the effects of strategic posture, uncertainty, and hostility.
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