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Organizational learning and innovation as sources of strategic fit

Organizational learning and innovation as sources of strategic fit PurposeThe purpose of this paper is to analyze the roles played by organizational learning (OL) and innovation in organizations immersed in the processes of adaptation and strategic fit in dynamic and turbulent environments. The authors analyze whether OL and innovation act as sources of strategic fit, and whether strategic fit positively affects performance.Design/methodology/approachThe authors use data from a survey of a representative sample of 204 respondents from European firms active in high-technology sectors (response rate: 10.42 percent) and structural equation modeling (using the EQS 6.1 program) to undertake a transversal study.FindingsThe model confirms that OL and the capacity to innovate positively influence managers’ decisions to adapt their organizations to changes in dynamic environments. The achievement of strategic fit, in turn, improves organizational performance. The authors propose considering the innovation climate as a facilitator of new product and process development, although the innovation climate is not a direct antecedent of fit.Research limitations/implicationsThis study is limited by the fact that the analysis is cross-sectional and by the fact that all measures used are based on managers’ perceptions.Practical implicationsManagers should create and support an entrepreneurial culture that stresses continuous learning. They should also foster programs aimed at developing abilities, and promote the development of capabilities that facilitate acceptance of organizational change. Investments in building certain capabilities, such as OL and the capacity to innovate, are strategically justified, especially in turbulent environments.Originality/valueThis study is one of the first to investigate the complex interactions among OL, innovation, strategic fit, and performance. The results improve our understanding of the links between strategic fit and performance. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Industrial Management & Data Systems Emerald Publishing

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0263-5577
DOI
10.1108/IMDS-12-2015-0518
Publisher site
See Article on Publisher Site

Abstract

PurposeThe purpose of this paper is to analyze the roles played by organizational learning (OL) and innovation in organizations immersed in the processes of adaptation and strategic fit in dynamic and turbulent environments. The authors analyze whether OL and innovation act as sources of strategic fit, and whether strategic fit positively affects performance.Design/methodology/approachThe authors use data from a survey of a representative sample of 204 respondents from European firms active in high-technology sectors (response rate: 10.42 percent) and structural equation modeling (using the EQS 6.1 program) to undertake a transversal study.FindingsThe model confirms that OL and the capacity to innovate positively influence managers’ decisions to adapt their organizations to changes in dynamic environments. The achievement of strategic fit, in turn, improves organizational performance. The authors propose considering the innovation climate as a facilitator of new product and process development, although the innovation climate is not a direct antecedent of fit.Research limitations/implicationsThis study is limited by the fact that the analysis is cross-sectional and by the fact that all measures used are based on managers’ perceptions.Practical implicationsManagers should create and support an entrepreneurial culture that stresses continuous learning. They should also foster programs aimed at developing abilities, and promote the development of capabilities that facilitate acceptance of organizational change. Investments in building certain capabilities, such as OL and the capacity to innovate, are strategically justified, especially in turbulent environments.Originality/valueThis study is one of the first to investigate the complex interactions among OL, innovation, strategic fit, and performance. The results improve our understanding of the links between strategic fit and performance.

Journal

Industrial Management & Data SystemsEmerald Publishing

Published: Sep 12, 2016

References