Abstract

ABSTRACT Purpose: the objective of this study was to analyze innovation in Brazilian organizations when enabled through SIS, in the strategy-as-practice approach, on the influence of moderating environmental dynamism. Methods: we performed structural equation modeling using the statistical technique of partial least squares path modeling (PLS-PM) and post hoc analysis to identify unobserved heterogeneity, with a sample of 256 Brazilian companies from different sectors. Results: the results revealed that the SIS had a strong and significant influence on the innovation of exploitation and exploration. The environmental uncertainty of dynamism moderation was not present in the relationship between SIS and the innovation of exploitation. However, SIS showed a strong and significant influence on innovation of exploration in high levels of dynamism. The existence of unobserved heterogeneity was identified for two segments of the sample, demonstrating a strong path effect between SIS and innovation of exploration and exploitation on the high presence of dynamism in service companies with a size greater than 500 employees. Conclusions: the study contributed to the extension of the strategy-as-practice and innovation literature, by identifying SIS as an alternative in the planning process to enable innovation in the organization, in environments with a high rate of change and unpredictability.

Highlights

  • Studies by Song, Im, Van Der Bij and Song (2011) and Arend, Zhao, Song and Im (2017) have found negative effects of the strategic planning process on innovation activities

  • Statistical technique The hypotheses were tested using partial least squares path modeling (PLS-PM) and SmartPLS v3 software (Hair, Hult, Ringle, & Sarstedt, 2017). This approach proved adequate in testing the relationships between the latent variables, analyzing collection bias through formative indicators of the measured latent marker variable (MLMV) variable, analyzing the moderation of the continuous variable, comparing differences in path effects of the different groups of the same sample (PLSMGA), and identifying heterogeneity not observed through PLS-FIMIX and PLS-POS

  • This study examined relationships between the constructs of strategic information systems (SIS) and innovation in the midst of environmental uncertainty

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Summary

Introduction

Studies by Song, Im, Van Der Bij and Song (2011) and Arend, Zhao, Song and Im (2017) have found negative effects of the strategic planning process on innovation activities. Innovation studies (on exploration and exploitation innovation) first emerged from theoretical perspectives of the field of organizational learning (Jansen, Van Den Bosch, & Volberda, 2006; March, 1991) and later reached other fields such as strategy-as-practice (Whittington, 2014; Wolf & Floyd, 2017) and information systems (IS) (Marabelli & Galliers, 2017; Merali, Papadopoulos, & Nadkarni, 2012; Yoshikuni & Albertin, 2018). A recent study on SIS using the strategy-as-practice approach (Yoshikuni & Albertin, 2018) demonstrates positive effects of the approach in promoting the capacity and flexibility to create competitive innovation strategies in response to environmental changes

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