Effect of Environmental Uncertainty, Innovation-Oriented Culture, and Industry-Public Research Institutes Cooperation: A Dynamic Capability Approach

Abstract

Purpose The purpose of this study is to analyze the effects of environmental uncertainty, innovation-oriented culture, and Industry-Public Research Institutes (I-PRIs) cooperation on a firm’s dynamic capability and competitive advantage in the dynamic capability view. Design/Methodology/Approach Based on the dynamic capability view and empirical research literature, we set the relationship between environmental uncertainty, innovation-oriented culture, I-PRIs cooperation, dynamic capability, and competitive advantage into nine hypotheses. The data necessary for hypothesis testing were collected through a survey conducted on the firm of Daedeok Innopolis. Partial least squares (PLS) was used to analyze the collected data. Findings Environmental uncertainty and innovation-oriented culture positively affected I-PRIs cooperation and dynamic capability, and I-PRIs cooperation positively affected dynamic capability. Also, dynamic capability was found to have a positive effect on competitive advantage. However, environmental uncertainty and I-PRIs cooperation did not have a significant effect on competitive advantage. On the other hand, dynamic capability was found to partially mediate between I-PRIs cooperation and competitive advantage. Research Implications This study presented empirical evidence that a firm’s dynamic capability is an important factor in improving its competitive advantage, and that this dynamic capability depends on environmental uncertainty, innovation-oriented culture, and I-PRIs cooperation.