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The Impact of Environmental Turbulence on the Perceived Importance of Innovation and Innovativeness in SMEs

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  • Mateja Bodlaj
  • Barbara Čater

Abstract

This study investigates how market turbulence, technological turbulence, and competitive intensity affect the perceived importance of innovation and innovativeness, and thus SMEs’ business performance. Structural equation modeling is conducted on a sample of 373 SMEs. Our findings show that both market and technological turbulence increase the perceived importance of innovation, but only market turbulence impacts SMEs’ innovativeness directly. The perceived importance of innovation mediates environmental turbulence’s influence on a firm’s innovativeness. Competitive intensity has no significant effect on the perceived importance of innovation and innovativeness. Finally, innovativeness enhances business performance when using both perceptual and lagged objective performance data.

Suggested Citation

  • Mateja Bodlaj & Barbara Čater, 2019. "The Impact of Environmental Turbulence on the Perceived Importance of Innovation and Innovativeness in SMEs," Journal of Small Business Management, Taylor & Francis Journals, vol. 57(S2), pages 417-435, November.
    • Handle: RePEc:taf:ujbmxx:v:57:y:2019:i:s2:p:417-435
    DOI: 10.1111/jsbm.12482
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    Citations

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    Cited by:

    1. Rubio-Andrés, Mercedes & Ramos-González, Mª del Mar & Sastre-Castillo, Miguel Ángel & Gutiérrez-Broncano, Santiago, 2023. "Stakeholder pressure and innovation capacity of SMEs in the COVID-19 pandemic: Mediating and multigroup analysis," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    2. Dragana Ćirović & Marina Dabić & Boban Melović & Tamara Backović, 2026. "Unleashing SME innovation in small open economies: the strategic role of market dynamism, R&D, and organizational capabilities," Review of Managerial Science, Springer, vol. 20(3), pages 737-773, March.
    3. Gia Ninh Nguyen & Sandeep Salunke, 2025. "The role of servitization in turbulent markets: evidence from Malaysian manufacturing companies," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 52(2), pages 313-357, June.
    4. Xiaokai Li & Lijing Zhao & Shenyang Hai, 2025. "CEO’s entrepreneurial orientation and employees’ innovative behaviour: the roles of environmental turbulence and felt responsibility," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-9, December.
    5. Sergey Mikhailovich Vasin & Daria Mikhailovna Timokhina, 2024. "Specific Effect of Innovation Factors on Socioeconomic Development of Countries in View of the Global Crisis," Economies, MDPI, vol. 12(8), pages 1-38, July.
    6. Namal Mete Kaan & Tufan Cenk & Köksal Kemal & Mert İbrahim Sani, 2023. "The Effect of Market and Technological Turbulence on Innovation Performance in Nascent Enterprises: The Moderating Role of Entrepreneur’s Courage," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 17(1), pages 1-19.
    7. Nguyen, Tessa Tien & Le, Angelina Nhat Hanh & Johnston, Wesley J. & Cheng, Julian Ming Sung, 2025. "When learning from limited experience takes off: Linear/curvilinear relationships between decision-making comprehensiveness and sustainable supply chain performance under contingent conditions," Omega, Elsevier, vol. 134(C).
    8. Jonathan H. Reed, 2025. "Duration matters: the interaction of the degree and the duration of environmental turbulence," Operations Management Research, Springer, vol. 18(3), pages 1029-1044, September.
    9. José Antonio Clemente-Almendros & Marcelo Vallejo García & María Blanco-Hernández, 2025. "SMEs and Sustainable Practices: Identifying Key Factors from Spanish Evidence," SAGE Open, , vol. 15(1), pages 21582440251, March.
    10. Tuyen, Bui Quang & Phuong Anh, Do Vu & Mai, Nguyen Phuong & Long, To Quang, 2023. "Does corporate engagement in social responsibility affect firm innovation? The mediating role of digital transformation," International Review of Economics & Finance, Elsevier, vol. 84(C), pages 292-303.

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