Organizational and environmental factors as moderators of the relationship between multidimensional innovation and performance

Abstract

Primary objectives: This article provides empirical evidence regarding the moderating role of organizational and environmental factors in the relationship between innovation and business performance. Research design and methods: Specifically, it analyses the relationship between different types of innovation and performance and establishes two blocks of hypotheses regarding the possible moderating effects of business factors (e.g., firm size with regard to structure, market orientation with respect to the organizational culture), and the business environment, relative to the sector and competition. The empirical analysis includes 440 Spanish companies and encompasses four sectors of activity: Industry, construction, agriculture, and services. Results and conclusions: Marketing, management, and product innovation actions provide the best performance for companies. Such results are moderated by organizational and environmental factors. The role of market orientation and environmental dynamism are specially significant on relationship. Originality/value: Previous literature on moderates of the innovation–performance relationship is limited. This research contribute on several aspects: (1) Determine the size and market orientation act as moderators of the relationship; (2) differentiate whether the individual moderators differently affect any particular act of innovation (management, organization, marketing, product or production processes); (3) distinguish between various types of business performance indicators and grouping them according to their effectiveness, efficiency or adaptability.

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