Structural process model of organizational innovativeness types for sustainability: a dynamic capability perspective

Abstract

PurposeThis paper aims to present an empirical test to analyze a structural process model based on constructs of organizational innovativeness types considering sustainability aspects. It explores interdependency among constructs of organizational innovativeness identified as product, process, behavioral, market, strategic and risk innovativeness. It integrates a dynamic capability perspective to strengthen the existing literature.Design/methodology/approachSample for data analysis covers 389 managers of firms demonstrating some traits of sustainability orientation and operating in a developing economy like India. Structural equation modeling is applied to test the causal model.FindingsStudy reveals that risk innovativeness along with strategic innovativeness leads to behavioral innovativeness which further causes product innovativeness and business process innovativeness. Business process innovativeness supports product innovativeness leading to market innovativeness of a firm. Characteristics of organizational innovativeness linked with the risk-taking ability of top management can be a critical differentiating factor between conventional and sustainability-oriented firms.Research limitations/implicationsThe factor of risk innovativeness was applied as per the existing measurement scale and has a scope for further exploration. It also offers an opportunity to reassess organizational innovativeness processes considering sustainability aspects.Practical implicationsThe study may help organizations to develop a systemic approach to evolve and develop business processes linked to organizational innovativeness considering sustainability challenges and uncertain market conditions.Social implicationsDevelopment of organizational innovativeness considering sustainability aspects may lead to innovative and disruptive products/services leading to mitigate climate change issues, thus helping global societies in long run.Originality/valueThe study offers common ground linked to the bodies of research related to dynamic capabilities, micro-foundations of dynamic capabilities, innovative capability and sustainability.