IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i14p6251-d1697076.html

Promoting the Sustainable Development of Organizations: Technological Capability, Environmental Uncertainty, and Enterprise Exploratory Innovation

Author

Listed:
  • Jie Zhang

    (School of Business, Nanjing University, Nanjing 211100, China)

  • Yalin Qi

    (School of Business, Nanjing University, Nanjing 211100, China)

  • Huanyu Xu

    (School of Government, Nanjing University, Nanjing 211100, China)

  • Miao Chang

    (School of Business, Nanjing University, Nanjing 211100, China)

  • Lei Yang

    (School of Business, Nanjing University, Nanjing 211100, China)

Abstract

Exploratory innovation plays a crucial role in the high-quality and sustainable development of organizations, but how enterprises engage in exploratory innovation within volatility, uncertainty, complexity, and ambiguity (VUCA) contexts remains unclear. Drawing on strategy choice theory and continuous innovation theory, this study explores the positive effects of technological capability on exploratory innovation via entrepreneurial orientation while considering environmental uncertainty as a moderating variable to elucidate the internal logic of continuous innovation within organizations. We conducted a large-scale survey of 313 Chinese firms and found the following: (1) technological capability has a significant positive impact on exploratory innovation; (2) entrepreneurial orientation plays a partial mediating role between technological capability and exploratory innovation; and (3) environmental uncertainty exerts a differential moderating influence within this mediating framework: technological uncertainty enhances the positive effect of technological capability on entrepreneurial orientation, whereas demand uncertainty intensifies the supportive effect of entrepreneurial orientation on exploratory innovation. This study reveals the internal mechanism by which technological capabilities drive exploratory innovation through entrepreneurial orientation under environmental uncertainty, providing theoretical support for enterprises to deepen their technological capability and pursue exploratory innovation and sustainable development.

Suggested Citation

  • Jie Zhang & Yalin Qi & Huanyu Xu & Miao Chang & Lei Yang, 2025. "Promoting the Sustainable Development of Organizations: Technological Capability, Environmental Uncertainty, and Enterprise Exploratory Innovation," Sustainability, MDPI, vol. 17(14), pages 1-25, July.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:14:p:6251-:d:1697076
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/14/6251/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/14/6251/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ge, Shuang & Liu, Xielin, 2022. "The role of knowledge creation, absorption and acquisition in determining national competitive advantage," Technovation, Elsevier, vol. 112(C).
    2. Brander, James A. & Spencer, Barbara J., 2015. "Intra-industry trade with Bertrand and Cournot oligopoly: The role of endogenous horizontal product differentiation," Research in Economics, Elsevier, vol. 69(2), pages 157-165.
    3. Jeffrey G. Covin & G.T. Lumpkin, 2011. "Entrepreneurial Orientation Theory and Research: Reflections on a Needed Construct," Entrepreneurship Theory and Practice, , vol. 35(5), pages 855-872, September.
    4. Jean, Ruey-Jer Bryan & Kim, Daekwan & Chiou, Jyh-She & Calantone, Roger, 2018. "Strategic orientations, joint learning, and innovation generation in international customer-supplier relationships," International Business Review, Elsevier, vol. 27(4), pages 838-851.
    5. Haibin Yang & Gregory G. Dess & James A. Robins, 2019. "Does entrepreneurial orientation always pay off? The role of resource mobilization within and across organizations," Asia Pacific Journal of Management, Springer, vol. 36(3), pages 565-591, September.
    6. Kevin Zheng Zhou & Fang Wu, 2010. "Technological capability, strategic flexibility, and product innovation," Strategic Management Journal, Wiley Blackwell, vol. 31(5), pages 547-561, May.
    7. Jafari-Sadeghi, Vahid & Garcia-Perez, Alexeis & Candelo, Elena & Couturier, Jerome, 2021. "Exploring the impact of digital transformation on technology entrepreneurship and technological market expansion: The role of technology readiness, exploration and exploitation," Journal of Business Research, Elsevier, vol. 124(C), pages 100-111.
    8. Huo, Baofeng & Ye, Yuxiao & Zhao, Xiande & Wei, Jiang & Hua, Zhongsheng, 2018. "Environmental uncertainty, specific assets, and opportunism in 3PL relationships: A transaction cost economics perspective," International Journal of Production Economics, Elsevier, vol. 203(C), pages 154-163.
    9. Ranjan, Piyush, 2024. "Unraveling the mystery of the link between digital orientation and innovation performance: The interplay of digital business capability and environmental dynamism," Technovation, Elsevier, vol. 131(C).
    10. Luo, Xueming & Hassan, Morsheda, 2009. "The role of top management networks for market knowledge creation and sharing in China," Journal of Business Research, Elsevier, vol. 62(10), pages 1020-1026, October.
    11. Feng-Jyh Lin & ChihuFeng Lai, 2021. "Key factors affecting technological capabilities in small and medium-sized Enterprises in Taiwan," International Entrepreneurship and Management Journal, Springer, vol. 17(1), pages 131-143, March.
    12. Shi, Jincheng, 2024. "Adaptive change: Emerging economy enterprises respond to the international business environment challenge," Technovation, Elsevier, vol. 133(C).
    13. Sheth, Ananya & Sinfield, Joseph V., 2022. "An analytical framework to compare innovation strategies and identify simple rules," Technovation, Elsevier, vol. 115(C).
    14. Do, Hoa & Budhwar, Pawan & Shipton, Helen & Nguyen, Hai-Dang & Nguyen, Bach, 2022. "Building organizational resilience, innovation through resource-based management initiatives, organizational learning and environmental dynamism," Journal of Business Research, Elsevier, vol. 141(C), pages 808-821.
    15. Jeffrey G. Covin & Dennis P. Slevin, 1989. "Strategic management of small firms in hostile and benign environments," Strategic Management Journal, Wiley Blackwell, vol. 10(1), pages 75-87, January.
    16. Tobias Kollmann & Christoph Stöckmann, 2014. "Filling the Entrepreneurial Orientation–Performance Gap: The Mediating Effects of Exploratory and Exploitative Innovations," Entrepreneurship Theory and Practice, , vol. 38(5), pages 1001-1026, September.
    17. Martinelli, Arianna, 2012. "An emerging paradigm or just another trajectory? Understanding the nature of technological changes using engineering heuristics in the telecommunications switching industry," Research Policy, Elsevier, vol. 41(2), pages 414-429.
    18. Markard, Jochen, 2020. "The life cycle of technological innovation systems," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    Full references (including those not matched with items on IDEAS)

    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. Eduardo Sánchez-García & Bartolomé Marco-Lajara & Pedro Seva-Larrosa & Javier Martínez-Falcó, 2022. "Driving Innovation by Managing Entrepreneurial Orientation, Cooperation and Learning for the Sustainability of Companies in the Energy Sector," Sustainability, MDPI, vol. 14(24), pages 1-17, December.
    2. Yang Lu & Peixin Zuo & José C. Alves & Jinliang Wang, 2023. "Unlocking the relationship between entrepreneurial orientation and international performance: A systematic review," Journal of International Entrepreneurship, Springer, vol. 21(4), pages 464-504, December.
    3. Lin Wang & Murad Ali & Hyun Jeong Kim & Sareum Lee & Felipe Hernández Perlines, 2021. "Individual entrepreneurial orientation, value congruence, and individual outcomes: Does the institutional entrepreneurial environment matter?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2293-2312, July.
    4. Dayan, Mumin & Ng, Poh Yen & Husain, Zafar & Zacca, Robert, 2023. "Effects of constructive politics and market turbulence on entrepreneurial orientation–performance relationship: A moderated mediation model," European Management Journal, Elsevier, vol. 41(3), pages 385-394.
    5. Li Chen & Shaoming Zou & Hui Xu & Yiwen Chen, 2020. "Entrepreneurial Orientation in Multinational Corporations: Antecedents and Effects," Management International Review, Springer, vol. 60(1), pages 123-148, February.
    6. Wales, William J. & Kraus, Sascha & Filser, Matthias & Stöckmann, Christoph & Covin, Jeffrey G., 2021. "The status quo of research on entrepreneurial orientation: Conversational landmarks and theoretical scaffolding," Journal of Business Research, Elsevier, vol. 128(C), pages 564-577.
    7. Sam Liu, Chih-Hsing & Jack Liu, Hsiou-Hsiang & Ng, Yen-Ling, 2021. "Investigation of entrepreneurial orientation development with airline employees: Moderating roles of a cooperation-competition mechanism," Journal of Air Transport Management, Elsevier, vol. 94(C).
    8. Lixin Sheng & Jibao Gu & Jianlin Wu, 2023. "How does entrepreneurial orientation influence firm performance? The roles of corporate social responsibility and institutional environments," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 2021-2036, July.
    9. Francisco Javier Forcadell & Fernando Úbeda, 2022. "Individual entrepreneurial orientation and performance: the mediating role of international entrepreneurship," International Entrepreneurship and Management Journal, Springer, vol. 18(2), pages 875-900, June.
    10. D’Angelo, Alfredo & Presutti, Manuela, 2019. "SMEs international growth: The moderating role of experience on entrepreneurial and learning orientations," International Business Review, Elsevier, vol. 28(3), pages 613-624.
    11. Yi Liang & Jung-Mo Koo & Min-Jae Lee, 2024. "The Interplay of Environmental Dynamism, Digitalization Capability, Green Entrepreneurial Orientation, and Sustainable Performance," Sustainability, MDPI, vol. 16(17), pages 1-17, September.
    12. Carnes, Christina Matz & Gilstrap, Frank E. & Hitt, Michael A. & Ireland, R. Duane & Matz, Jack W. & Woodman, Richard W., 2019. "Transforming a traditional research organization through public entrepreneurship," Business Horizons, Elsevier, vol. 62(4), pages 437-449.
    13. Anna Watson & Olufunmilola (Lola) Dada & Owen Wright & Rozenn Perrigot, 2019. "Entrepreneurial Orientation Rhetoric in Franchise Organizations: The Impact of National Culture," Entrepreneurship Theory and Practice, , vol. 43(4), pages 751-772, July.
    14. Vishal Gupta & Sandra C. Mortal & Tina Yang, 2018. "Entrepreneurial orientation and firm value: Does managerial discretion play a role?," Review of Managerial Science, Springer, vol. 12(1), pages 1-26, January.
    15. Santos, Gina & Marques, Carla Susana & Ferreira, João J.M., 2020. "Passion and perseverance as two new dimensions of an Individual Entrepreneurial Orientation scale," Journal of Business Research, Elsevier, vol. 112(C), pages 190-199.
    16. Brian S. Anderson & Jens Schueler & Matthias Baum & William J. Wales & Vishal K. Gupta, 2022. "The Chicken or the Egg? Causal Inference in Entrepreneurial Orientation–Performance Research," Entrepreneurship Theory and Practice, , vol. 46(6), pages 1569-1596, November.
    17. Jeffrey E. Stambaugh & John Martinez & G. T. Lumpkin & Niyati Kataria, 0. "How well do EO measures and entrepreneurial behavior match?," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-21.
    18. Conti, Claudio Ramos & Goldszmidt, Rafael & Vasconcelos, Flávio Carvalho de, 2020. "Firm characteristics and capabilities that enable superior performance in recessions," Journal of Business Research, Elsevier, vol. 119(C), pages 553-561.
    19. Tânia Gonçalves & Mário Sérgio Teixeira & José G. Dias & Sofia Gouveia & Ricardo Jorge Correia, 2021. "Commitment to exporting as an antecedent of organizational skills and firm performance," Journal of Business Economics, Springer, vol. 91(7), pages 1063-1084, September.
    20. Wales, W. & Shirokova, G. & Bogatyreva, K. & Germain, R., 2018. "Foreign Motivations: How International Exposure Shapes Firms' Entrepreneurial Orientation in Emerging Market," Working Papers 15121, Graduate School of Management, St. Petersburg State University.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:17:y:2025:i:14:p:6251-:d:1697076. 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.