IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i6p5364-d1100274.html
   My bibliography  Save this article

Examining Environmental Turbulence Intensity: A Strategic Agility and Innovativeness Approach on Firm Performance in Environmental Turbulence Situations

Author

Listed:
  • Tugkan Arici

    (Faculty of Business, Gebze Technical University, Kocaeli 41400, Turkey)

  • M. Sahin Gok

    (Faculty of Business, Gebze Technical University, Kocaeli 41400, Turkey)

Abstract

Environmental turbulence refers to the unpredictable changes, developments, and uncertainties in a firm’s external environment. Environmental turbulence consists of market turbulence, technological turbulence, and competition intensity. It causes a shortening of firms’ product life cycles, changes in customer demands, and rapid technological developments. Companies do not control the changes in their external environment. In addition, they cannot manage change by using traditional methods where environmental factors are constantly changing. Thus, environmental turbulence and strategic plans might be reconsidered in today’s business world. This article examines the intensity of environmental turbulence from the strategic agility and innovativeness perspective. The study was conducted using data from Turkey, including medium-high or high technology firms that were located in a technopark or had an R&D center. The survey method was used to collect data for the study and the SPSS Process macro was used to analyze the effects of moderator variables on the relationship between strategic agility and firm innovativeness. Findings indicate that strategic agility positively affects firm innovativeness and that this effect might decrease due to increases in turbulence intensity. Moreover, firm innovativeness positively affects performance, and this effect becomes more robust with increases in turbulence intensity. This study provides practical implications for companies and researchers depending on environmental turbulence diversity.

Suggested Citation

  • Tugkan Arici & M. Sahin Gok, 2023. "Examining Environmental Turbulence Intensity: A Strategic Agility and Innovativeness Approach on Firm Performance in Environmental Turbulence Situations," Sustainability, MDPI, vol. 15(6), pages 1-17, March.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:6:p:5364-:d:1100274
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/6/5364/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/6/5364/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Terawatanavong, Civilai & Whitwell, Gregory J. & Widing, Robert E. & O'Cass, Aron, 2011. "Technological turbulence, supplier market orientation, and buyer satisfaction," Journal of Business Research, Elsevier, vol. 64(8), pages 911-918, August.
    2. Haarhaus, Tim & Liening, Andreas, 2020. "Building dynamic capabilities to cope with environmental uncertainty: The role of strategic foresight," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    3. Iwona Staniec, 2018. "Technological Entrepreneurship: How does Environmental Turbulence Impact upon Collaboration Risk?," Sustainability, MDPI, vol. 10(8), pages 1-18, August.
    4. Chung‐Jen Chen & Jing‐Wen Huang & Yung‐Chang Hsiao, 2010. "Knowledge management and innovativeness," International Journal of Manpower, Emerald Group Publishing Limited, vol. 31(8), pages 848-870, November.
    5. Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: an Inverted-U Relationship," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(2), pages 701-728.
    6. Heckmann, Nadine & Steger, Thomas & Dowling, Michael, 2016. "Organizational capacity for change, change experience, and change project performance," Journal of Business Research, Elsevier, vol. 69(2), pages 777-784.
    7. Dirk Clercq & Narongsak Thongpapanl & Maxim Voronov, 2018. "Sustainability in the Face of Institutional Adversity: Market Turbulence, Network Embeddedness, and Innovative Orientation," Journal of Business Ethics, Springer, vol. 148(2), pages 437-455, March.
    8. Wang, Guangping & Dou, Wenyu & Zhu, Weichun & Zhou, Nan, 2015. "The effects of firm capabilities on external collaboration and performance: The moderating role of market turbulence," Journal of Business Research, Elsevier, vol. 68(9), pages 1928-1936.
    9. Chen, Tingting & Li, Fuli & Chen, Xiao-Ping & Ou, Zhanying, 2018. "Innovate or die: How should knowledge-worker teams respond to technological turbulence?," Organizational Behavior and Human Decision Processes, Elsevier, vol. 149(C), pages 1-16.
    10. Shin, Hojung & Lee, Jae-Nam & Kim, DaeSoo & Rhim, Hosun, 2015. "Strategic agility of Korean small and medium enterprises and its influence on operational and firm performance," International Journal of Production Economics, Elsevier, vol. 168(C), pages 181-196.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Emilia Herman & Kinga-Emese Zsido, 2023. "The Financial Sustainability of Retail Food SMEs Based on Financial Equilibrium and Financial Performance," Mathematics, MDPI, vol. 11(15), pages 1-26, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Larbi-Siaw, Otu & Xuhua, Hu & Owusu, Ebenezer & Owusu-Agyeman, Abigail & Fulgence, Brou Ettien & Frimpong, Samuel Akwasi, 2022. "Eco-innovation, sustainable business performance and market turbulence moderation in emerging economies," Technology in Society, Elsevier, vol. 68(C).
    2. AlQershi, Nagwan & Saufi, Roselina Binti Ahmad & Ismail, Noor Azizi & Mohamad, Mohd Rosli Bin & Ramayah, T. & Muhammad, Nik Maheran Nik & Yusoff, Mohd Nor Hakimin Bin, 2023. "The moderating role of market turbulence beyond the Covid-19 pandemic and Russia-Ukraine crisis on the relationship between intellectual capital and business sustainability," Technological Forecasting and Social Change, Elsevier, vol. 186(PB).
    3. Wang, Chenxiao & Qureshi, Israr & Guo, Feng & Zhang, Qingpu, 2022. "Corporate social responsibility and disruptive innovation: The moderating effects of environmental turbulence," Journal of Business Research, Elsevier, vol. 139(C), pages 1435-1450.
    4. Nicholas Bloom & Raffaella Sadun & John Van Reenen, 2015. "Do Private Equity Owned Firms Have Better Management Practices?," American Economic Review, American Economic Association, vol. 105(5), pages 442-446, May.
    5. Herrmann, Roland & Schröck, Rebecca, 2011. "Determinanten des Innovationserfolgs: eine Analyse mit Scannerdaten für den deutschen Joghurtmarkt," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 60(03), pages 1-16, August.
    6. Liliana Meza-González & Jaime Marie Sepulveda, 2019. "The impact of competition with China in the US market on innovation in Mexican manufacturing firms," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 28(1), pages 1-21, December.
    7. Patrick Legros & Andrew F. Newman & Eugenio Proto, 2014. "Smithian Growth through Creative Organization," The Review of Economics and Statistics, MIT Press, vol. 96(5), pages 796-811, December.
    8. Kumar, Sanjesh & Singh, Baljeet, 2019. "Barriers to the international diffusion of technological innovations," Economic Modelling, Elsevier, vol. 82(C), pages 74-86.
    9. Qing Li & Long Hai Vo, 2021. "Intangible Capital and Innovation: An Empirical Analysis of Vietnamese Enterprises," Economics Discussion / Working Papers 21-02, The University of Western Australia, Department of Economics.
    10. Ufuk Akcigit & Sina T. Ates, 2023. "What Happened to US Business Dynamism?," Journal of Political Economy, University of Chicago Press, vol. 131(8), pages 2059-2124.
    11. Christian Rammer & Gastón P Fernández & Dirk Czarnitzki, 2021. "Artificial Intelligence and Industrial Innovation: Evidence from Firm-Level Data," Working Papers of Department of Economics, Leuven 674605, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    12. Alberto BUCCI, 2004. "Economic growth in an enlarged Europe: the human capital and R&D dimensions," Departmental Working Papers 2004-22, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    13. repec:use:tkiwps:1818 is not listed on IDEAS
    14. Barge-Gil, Andrés & López, Alberto, 2014. "R&D determinants: Accounting for the differences between research and development," Research Policy, Elsevier, vol. 43(9), pages 1634-1648.
    15. Fabiano Schivardi & Eliana Viviano, 2007. "Entry barriers in Italian retail trade," Temi di discussione (Economic working papers) 616, Bank of Italy, Economic Research and International Relations Area.
    16. Bruno Amable & Jean-Bernard Chatelain & Kirsten Ralf, 2004. ""Deep Pockets": Research and Development Persistence and Economic Growth," Money Macro and Finance (MMF) Research Group Conference 2004 47, Money Macro and Finance Research Group, revised 13 Oct 2004.
    17. Boone, J., 2003. "Optimal Competition : A Benchmark for Competition Policy," Discussion Paper 2003-3, Tilburg University, Center for Economic Research.
    18. Koellinger, Ph.D. & Schade, C., 2010. "The Influence of Installed Technologies on Future Adoption Decisions: Empirical Evidence from E-Business," ERIM Report Series Research in Management ERS-2010-012-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    19. Polemis, Michael & Tselekounis, Markos, 2019. "Does deregulation drive innovation intensity? Lessons learned from the OECD telecommunications sector," MPRA Paper 92770, University Library of Munich, Germany.
    20. Raquel Ortega-Argilés, 2022. "The evolution of regional entrepreneurship policies: “no one size fits all”," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(3), pages 585-610, December.
    21. Aghion, Philippe & Akcigit, Ufuk & Howitt, Peter, 2014. "What Do We Learn From Schumpeterian Growth Theory?," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 0, pages 515-563, Elsevier.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:6:p:5364-:d:1100274. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.