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THE IMPACT OF ENVIRONMENTAL UNCERTAINTY DIMENSIONS ON ORGANISATIONAL INNOVATIVENESS: AN EMPIRICAL STUDY ON SMEs

Author

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  • CEVAHIR UZKURT

    (Eskisehir Osmangazi University, Faculty of Economics and Administrative Sciences, Meselik Kampus, 26480 Eskisehir, Turkey)

  • RACHNA KUMAR

    (Alliant School of Management, Alliant International University, San Diego, CA92131, USA)

  • HALIL SEMIH KIMZAN

    (Eskisehir Osmangazi University, Faculty of Economics and Administrative Sciences, Meselik Kampus, 26480 Eskisehir, Turkey)

  • HANIFE SERT

    (Eskisehir Osmangazi University, Social Sciences Institute, Meselik Kampus, 26480 Eskisehir, Turkey)

Abstract

The purpose of this study is to examine the effects of factors of environmental uncertainty on the innovativeness of small and medium enterprises (SMEs). Innovativeness is widely accepted as an important characteristic for firm competitiveness and it has been studied by both researchers as well as business managers. Environmental uncertainty is a measure of the complexity of changing external forces faced by an organisation and it crucially impacts the responses of organisations in order to stay competitive. Based on approaches in existing literature, this study conceptualises environmental uncertainty comprised three separate dimensions — competitive intensity, market/demand turbulence, technological turbulence. Data for the study were collected from 156 SMEs in Turkey. SMEs are regarded as an important ingredient in the economic growth of nations and especially so in developing nations such as Turkey. The findings of the study reveal that market/demand turbulence and technological turbulence have a positive effect on the innovativeness of SMEs. Interestingly and contrary to popular belief, competitive intensity was not found to have significant effect on an SME's innovativeness. The implication of the results from this research is that the degree of organisational innovativeness for SMEs tends to increase and therefore should be supported in environments with greater technological and market/demand turbulence. This research makes an important contribution to the developing body of innovation literature and provides directions for managers and researchers in influencing innovativeness of firms.

Suggested Citation

  • Cevahir Uzkurt & Rachna Kumar & Halil Semih Kimzan & Hanife Sert, 2012. "THE IMPACT OF ENVIRONMENTAL UNCERTAINTY DIMENSIONS ON ORGANISATIONAL INNOVATIVENESS: AN EMPIRICAL STUDY ON SMEs," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 16(02), pages 1-23.
    • Handle: RePEc:wsi:ijimxx:v:16:y:2012:i:02:n:s1363919611003647
    DOI: 10.1142/S1363919611003647
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    References listed on IDEAS

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    1. Kwangsoo Kim & Fan Li & Jae Wook Yoo & Choo Yeon Kim, 2020. "The Relationships among Environments, External Knowledge Acquisition, and Innovation," Sustainability, MDPI, vol. 12(14), pages 1-23, July.
    2. Rangus, Kaja & Slavec, Alenka, 2017. "The interplay of decentralization, employee involvement and absorptive capacity on firms' innovation and business performance," Technological Forecasting and Social Change, Elsevier, vol. 120(C), pages 195-203.
    3. Boris Urban, 2018. "Effectuation And Opportunity Recognition In The Renewable Energy Sector In South Africa: A Focus On Environmental Dynamism And Hostility," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 23(02), pages 1-17, June.
    4. Caroline Zimuto & Maxwell Sandada & Tinashe Chuchu & Tinashe Ndoro, 2019. "The Impact of Environmental Turbulence on Product Innovation in Small to Medium Enterprises in Harare, Zimbabwe," Journal of Economics and Behavioral Studies, AMH International, vol. 10(6), pages 56-63.
    5. Lina Mao & Jinghua Li & Changwei Guo, 2019. "Integrator’s Coordination on Technological Innovation Performance in China: The Dual Moderating Role of Environmental Dynamism," Sustainability, MDPI, vol. 12(1), pages 1-24, December.
    6. Fanar Shwedeh & Ahmad Aburayya & Raghad Alfaisal & Ayotunde Adetola Adelaja & Gbemisola Ogbolu & Abid Aldhuhoori & Said Salloum, 2022. "SMEs’ Innovativeness and Technology Adoption as Downsizing Strategies during COVID-19: The Moderating Role of Financial Sustainability in the Tourism Industry Using Structural Equation Modelling," Sustainability, MDPI, vol. 14(23), pages 1-18, December.
    7. Mariarosaria Agostino & Cristiana Donati & Sabrina Ruberto, 2023. "Family firms, political connections, and R&D activities in Eastern European Countries," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 50(3), pages 725-754, August.
    8. Shuanglian Chen & Benhuan Nie & Xiaohua Huang, 2024. "Nonlinear Impact of Corporate Financialization on Sustainable Development Ability: Evidence from Listed Companies in China," Sustainability, MDPI, vol. 16(8), pages 1-23, April.
    9. ur Rehman, Attique & Shakeel Sadiq Jajja, Muhammad & Farooq, Sami, 2022. "Manufacturing planning and control driven supply chain risk management: A dynamic capability perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 167(C).
    10. Ana Ferreira & Ana Lúcia Teixeira, 2016. "Intra- And Extra-Organisational Foundations Of Innovation Processes — The Information And Communication Technology Sector Under The Crisis In Portugal," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(06), pages 1-44, August.
    11. Patrizia de Luca & Giovanna Pegan, 2016. "Business innovation and Internationalisation: Focus on the Italian Coffee Industry," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2016(2), pages 63-81.
    12. Yang Yang & Zhongqiu Li & Yingying Su, 2018. "The Effectiveness of Service Innovation Practices to Reduce Energy Consumption Based on Adaptive Theory," Sustainability, MDPI, vol. 10(9), pages 1-16, September.

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