LEVERAGING STRATEGIC MANEUVERABILITY TO AUGMENT BUSINESS MODEL INNOVATION FOR COMPETITIVE ADVANTAGE DURING ENVIRONMENTAL TURBULENCE

Main Article Content

Shahida Mariam mariam
Kausar Fiaz Khawaja Khawaja
Hafiz Ghufran Ali Khan Khan

Abstract

ABSTRACT


 


Purpose: Ensuring that businesses thrive in turbulent environments is as challenging as navigating the proverbial stormy waters. Drawing upon attention-based and action-based views of firms’ dynamic capabilities, we examined whether firms with high strategic maneuverability can gain a competitive advantage in turbulent environments by adopting business model innovation.

Article Details

How to Cite
mariam, S. M., Khawaja, K. F. K., & Khan, H. G. A. K. (2023). LEVERAGING STRATEGIC MANEUVERABILITY TO AUGMENT BUSINESS MODEL INNOVATION FOR COMPETITIVE ADVANTAGE DURING ENVIRONMENTAL TURBULENCE. NUST Business Review, 5(1). https://doi.org/10.37435/NBR23041901
Section
Articles

References

Abbas, M. W., & Hassan, M. U. (2017). Moderating impact of environmental

turbulence on business innovation and business performance . Pakistan

Journal of Commerce and Social Sciences , 11(2), 576–596.

Alfuqaha, O. A., Al-Hammouri, M. M., Rababah, J. A., Alfoqha, B. A., Alfuqaha, O.

N., Haha, M. F. F., Musa, S. S., & Matter, A. A. (2022). Psychometric

properties of the Arabic version of the Existence Scale. PLOS ONE, 17(4),

e0267321. https://doi.org/10.1371/journal.pone.0267321

Ali, A., Nawaz, Q., & Awais, A. (2020). Machavilinism and work performance. Journal

of Public Affairs, 25(2), 45–56.

Anwar, M. (2018). Business model innovation and SMES performance — does

competitive advantage mediate? International Journal of Innovation

Management, 22(07), 1850057. https://doi.org/10.1142/S1363919618500573

Baba, M., Mahmood, R., & Halipah, A. (2017). The moderating role of environmental

turbulence on the relationship between organizational learning and firm

innovativeness. International Journal of Management Research and Reviews, 7(2),

Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of

Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108

Bashir, M., & Verma, R. (2017). Why business model innovation is the new

competitive advantage. IUP Journal of Business Strategy, 14(1), 7–17.

Bhatti, S. H., Santoro, G., Khan, J., & Rizzato, F. (2021). Antecedents and consequences

of business model innovation in the IT industry. Journal of Business Research,

, 389–400. https://doi.org/10.1016/j.jbusres.2020.10.003

Bodlaj, M., & Čater, B. (2019). The Impact of Environmental Turbulence on the

Perceived Importance of Innovation and Innovativeness in SMEs. Journal of

Small Business Management, 57(sup2), 417–435.

https://doi.org/10.1111/jsbm.1248220

Boyne, G. A., & Meier, K. J. (2009). Environmental Turbulence, Organizational

Stability, and Public Service Performance. Administration & Society, 40(8),

–824. https://doi.org/10.1177/0095399708326333

Calantone, R., Garcia, R., & Droge, C. (2003). The Effects of Environmental Turbulence

on New Product Development Strategy Planning. Journal of Product

Innovation Management, 20(2), 90–103. https://doi.org/10.1111/1540-

2002003

Castiaux, A. (2012). Developing dynamic capabilities to meet sustainable

development challenges. International Journal of Innovation Management,

(6), 1240013. https://doi.org/10.1142/S1363919612400130

Cruz-Ros, S., Guerrero-Sánchez, D. L., & Miquel-Romero, M.-J. (2021). Absorptive

capacity and its impact on innovation and performance: findings from SEM

and fsQCA. Review of Managerial Science, 15(2), 235–249.

https://doi.org/10.1007/s11846-018-0319-7

Cuervo-Cazurra, A., Ciravegna, L., Melgarejo, M., & Lopez, L. (2018). Home country

uncertainty and the internationalization-performance relationship: Building

an uncertainty management capability. Journal of World Business, 53(2), 209–

https://doi.org/10.1016/j.jwb.2017.11.002

Danneels, E., & Sethi, R. (2011). New Product Exploration Under Environmental

Turbulence. Organization Science, 22(4), 1026–1039.

https://doi.org/10.1287/orsc.1100.0572

Delmas, M., Hoffmann, V. H., & Kuss, M. (2011). Under the Tip of the Iceberg:

Absorptive Capacity, Environmental Strategy, and Competitive Advantage.

Business & Society, 50(1), 116–154. https://doi.org/10.1177/0007650310394400

Dixon, S., Meyer, K., & Day, M. (2014). Building Dynamic Capabilities of Adaptation

and Innovation: A Study of Micro-Foundations in a Transition Economy.

Long Range Planning, 47(4), 186–205. https://doi.org/10.1016/j.lrp.2013.08.011

Dreyer, B., & Grønhaug, K. (2004). Uncertainty, flexibility, and sustained competitive

advantage. Journal of Business Research, 57(5), 484–494.

https://doi.org/10.1016/S0148-2963(02)00315-6

Drucker, P. F. (1994). The theory of the business. In J. C. Wood & M. C. Wood (Eds.),

Alfred P. Sloan: Critical evaluations in business and management (Vol. 2, pp. 258–

.

Dymitrowski, A., & Mielcarek, P. (2021). Business Model Innovation Based on New

Technologies and Its Influence on a Company’s Competitive Advantage.

Journal of Theoretical and Applied Electronic Commerce Research, 16(6), 2110–

https://doi.org/10.3390/jtaer16060118

Fachrudin, D. H., Rahayu, A., Fattah, N., & Wibowo, L. A. (2021). The Mediating Role

of Dynamic Capabilities and Business Model Innovation on the Relationship

Between Environment Turbulence and Firm Performance. 3rd Annual

International Conference on Public and Business Administration, 20–25.21

Gemici, E., & Zehir, C. (2021). High-performance work systems, learning orientation

and innovativeness: the antecedent role of environmental turbulence.

European Journal of Innovation Management. https://doi.org/10.1108/EJIM-05-

-0243

George, D., & Mallery, P. (2018). Descriptive statistics . In IBM SPSS Statistics 25 Step

by Step (pp. 126–134). Routledge.

Gomes, L. A. de V., dos Santos, M. G., & Facin, A. L. F. (2022). Uncertainty

management in global innovation ecosystems. Technological Forecasting and

Social Change, 182, 121787. https://doi.org/10.1016/j.techfore.2022.121787

Gyedu, S., Tang, H., Ntarmah, A. H., & Manu, E. K. (2021). The moderating effect of

environmental turbulence on the relationship between innovation capability

and business performance. International Journal of Innovation Science, 13(4),

–476. https://doi.org/10.1108/IJIS-10-2020-0189

Hair, J. F., Black, W., Babin, B., & Anderson, R. (2010). Multivariate data analysis (7th

ed.). Prentice-Hall, Inc.

Hair, J. F., Howard, M. C., & Nitzl, C. (2020). Assessing measurement model quality

in PLS-SEM using confirmatory composite analysis. Journal of Business

Research, 109, 101–110. https://doi.org/10.1016/j.jbusres.2019.11.069

Hauser, J., Tellis, G. J., & Griffin, A. (2006). Research on Innovation: A Review and

Agenda for Marketing Science. Marketing Science, 25(6), 687–717.

https://doi.org/10.1287/mksc.1050.0144

Hayes, A. F. (2013). Introduction to Mediation, Moderation, and Conditional Process

Analysis: A Regression-Based Approach. Guilford Press.

Hayes, A. F. (2015). The PROCESS macro for SPSS and SAS.

http://www.processmacro.org

Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing

discriminant validity in variance-based structural equation modeling.

Journal of the Academy of Marketing Science, 43(1), 115–135.

https://doi.org/10.1007/s11747-014-0403-8

Hung, K.-P., & Chou, C. (2013). The impact of open innovation on firm performance:

The moderating effects of internal R&D and environmental turbulence.

Technovation, 33(10–11), 368–380.

https://doi.org/10.1016/j.technovation.2013.06.006

Ilinova, A., Dmitrieva, D., & Kraslawski, A. (2021). Influence of COVID-19 pandemic

on fertilizer companies: The role of competitive advantages. Resources Policy,

, 102019. https://doi.org/10.1016/j.resourpol.2021.102019

Jiménez-Jiménez, D., & Sanz-Valle, R. (2011). Innovation, organizational learning, and

performance. Journal of Business Research, 64(4), 408–417.

https://doi.org/10.1016/j.jbusres.2010.09.01022

Joseph, J., & Gaba, V. (2020a). Organizational Structure, Information Processing, and

Decision-Making: A Retrospective and Road Map for Research. Academy of

Management Annals, 14(1), 267–302. https://doi.org/10.5465/annals.2017.0103

Joseph, J., & Gaba, V. (2020b). Organizational Structure, Information Processing, and

Decision-Making: A Retrospective and Road Map for Research. Academy of

Management Annals, 14(1), 267–302. https://doi.org/10.5465/annals.2017.0103

Joshi, M. (2010). Embracing competitive renaissance by steering innovation velocity.

World Review of Entrepreneurship, Management and Sustainable Development,

(1–2), 149–162.

Khouroh, U., Sudiro, A., Rahayu, M., & Indrawati, N. K. (2020). The mediating effect

of entrepreneurial marketing in the relationship between environmental

turbulence and dynamic capability with sustainable competitive advantage:

An empirical study in Indonesian MSMEs. Management Science Letters, 709–

https://doi.org/10.5267/j.msl.2019.9.007

Kornelius, H., Bernarto, I., & Widjaja, A. W. (2021). Crafting Strategic Maneuverability

to Boost Business Performance. ADI International Conference Series, 3(1), 776–

Kornelius, H., Supratikno, H., Bernarto, I., & Widjaja, A. W. (2020). Competitive

Strategic Maneuverability: The Missing Link Between Strategic Planning

and Firm’s Performance. International Journal of Advanced Science and

Technology, 29(3), 7413–7422.

Kornelius, H., Supratikno, H., Bernarto, I., & Widjaja, A. W. (2021). Strategic planning

and firm performance: The mediating role of strategic maneuverability. The

Journal of Asian Finance, Economics and Business, 8(1), 479–486.

Kuankuan, L., & Zhang, L. (2022). Effect of Environmental Turbulence on New

Product Development: A Case of Serial Mediation of Strategic Flexibility and

Bricolage in High-Tech Industries of Chengdu, China. Preprints, 2022060157.

Laamanen, T. (2019). Dynamic attention-based view of corporate headquarters in

MNCs. Journal of Organization Design, 8(1), 16.

https://doi.org/10.1186/s41469-019-0056-7

Lee, S., & Yoo, J. (2021). Determinants of a Firm’s Sustainable Competitive

Advantages: Focused on Korean Small Enterprises. Sustainability, 13(1), 346.

https://doi.org/10.3390/su13010346

Li, H., & Atuahene-Gima, K. (2001). Product Innovation Strategy and the Performance

of New Technology Ventures in China. Academy of Management Journal, 44(6),

–1134. https://doi.org/10.5465/3069392

Madhavan, M., Sharafuddin, M. A., & Chaichana, T. (2022). Impact of Business Model

Innovation on Sustainable Performance of Processed Marine Food Product

SMEs in Thailand—A PLS-SEM Approach. Sustainability, 14(15), 9673.

https://doi.org/10.3390/su1415967323

Madhok, A., & Marques, R. (2014). Towards an action-based perspective on firm

competitiveness. BRQ Business Research Quarterly, 17(2), 77–81.

https://doi.org/10.1016/j.brq.2014.03.002

Meng, M., Lei, J., Jiao, J., & Tao, Q. (2020). How does strategic flexibility affect

bricolage: The moderating role of environmental turbulence. PLOS ONE,

(8), e0238030. https://doi.org/10.1371/journal.pone.0238030

Miller, D., & Friesen, P. H. (1983). Strategy-making and environment: The third link.

Strategic Management Journal, 4(3), 221–235.

https://doi.org/10.1002/smj.4250040304

Mitchell, D., & Coles, C. (2003). The ultimate competitive advantage of continuing

business model innovation. Journal of Business Strategy, 24(5), 15–21.

https://doi.org/10.1108/02756660310504924

Murphy, R., & Seriki, O. (2021). The impact of environmental turbulence on the

strategic decision-making process in Irish quantity surveying (QS)

professional service firms (PSFs). Construction Management and Economics,

(9), 739–758. https://doi.org/10.1080/01446193.2021.1952632

Ocasio, W. (1997). Towards an attention-based view of the firm. Strategic Management

Journal, 18(S1), 187–206.

Ojha, D., Struckell, E., Acharya, C., & Patel, P. C. (2021). Managing environmental

turbulence through innovation speed and operational flexibility in B2B

service organizations. Journal of Business & Industrial Marketing, 36(9), 1627–

https://doi.org/10.1108/JBIM-01-2020-0026

Olavarrieta, S., & Friedmann, R. (2008). Market orientation, knowledge-related

resources and firm performance. Journal of Business Research, 61(6), 623–630.

https://doi.org/10.1016/j.jbusres.2007.06.037

Pandit, D., Joshi, M. P., Sahay, A., & Gupta, R. K. (2018). Disruptive innovation and

dynamic capabilities in emerging economies: Evidence from the Indian

automotive sector. Technological Forecasting and Social Change, 129, 323–329.

https://doi.org/10.1016/j.techfore.2017.09.035

Piening, E. P., & Salge, T. O. (2015). Understanding the Antecedents, Contingencies,

and Performance Implications of Process Innovation: A Dynamic

Capabilities Perspective. Journal of Product Innovation Management, 32(1), 80–

https://doi.org/10.1111/jpim.12225

Podsakoff, P. M., MacKenzie, S. B., Lee, J.-Y., & Podsakoff, N. P. (2003). Common

method biases in behavioral research: a critical review of the literature and

recommended remedies. Journal of Applied Psychology, 88(5), 879–903.

Podsakoff, P. M., MacKenzie, S. B., & Podsakoff, N. P. (2012). Sources of Method Bias

in Social Science Research and Recommendations on How to Control It.

Annual Review of Psychology, 63(1), 539–569. https://doi.org/10.1146/annurevpsych-120710-10045224

Pratono, A. H., & Mahmood, R. (2014). Social capital and firm performance:

moderating effect of environmental turbulence. Asian Social Science, 10(19).

Reed, J. H. (2022). Operational and strategic change during temporary turbulence:

evidence from the COVID-19 pandemic. Operations Management Research,

(1–2), 589–608. https://doi.org/10.1007/s12063-021-00239-3

Schneckenberg, D., Velamuri, V. K., Comberg, C., & Spieth, P. (2017). Business model

innovation and decision making: uncovering mechanisms for coping with

uncertainty. R&D Management, 47(3), 404–419.

https://doi.org/10.1111/radm.12205

Schoemaker, P. J. H., Heaton, S., & Teece, D. J. (2018). Innovation, Dynamic

Capabilities, and Leadership. California Management Review, 61(1), 15–42.

https://doi.org/10.1177/0008125618790246

Scoblic, J. P. (2020). Strategic foresight as dynamic capability: A new lens on Knightian

uncertainty.

Seimon, A. T. M., & Endagamage, D. M. (2022). Is Organizational Ambidexterity a

Good Booster to Supply Chain Flexibility in the Textile and Apparel

Industry? International Journal of Multidisciplinary: Applied Business and

Education Research, 3(6), 1043–1059. https://doi.org/10.11594/ijmaber.03.06.09

Shabbir, S., Danish, R. Q., Rehman, M., Hasnain, M., & Asad, H. (2021). An Empirical

Investigation of Environmental Turbulence and Fear in Predicting

Entrepreneurial Improvisation. Journal of Open Innovation: Technology,

Market, and Complexity, 7(2), 157. https://doi.org/10.3390/joitmc7020157

Song, S., Hossin, M. A., Yin, X., & Hosain, M. S. (2021). Accelerating Green Innovation

Performance from the Relations of Network Potential, Absorptive Capacity,

and Environmental Turbulence. Sustainability, 13(14), 7765.

https://doi.org/10.3390/su13147765

Teece, D. J. (2007). Explicating Dynamic Capabilities: The Nature and

Microfoundations of (Sustainable) Enterprise Performance. Strategic

Management Journal, 1350(August), 1319–1350. https://doi.org/10.1002/smj

Teece, D. J. (2012). Dynamic Capabilities: Routines versus Entrepreneurial Action.

Journal of Management Studies, 49(8), 1395–1401.

https://doi.org/10.1111/j.1467-6486.2012.01080.x

Teece, D. J. (2019). Strategic renewal and dynamic capabilities: managing uncertainty,

irreversibilities, and congruence. In Strategic Renewal (pp. 21–51). Routledge.

Teece, D. J., & Leih, S. (2016). Uncertainty, Innovation, and Dynamic Capabilities: An

Introduction. California Management Review, 58(4), 5–12.

https://doi.org/10.1525/cmr.2016.58.4.5

Tehseen, S., Ramayah, T., & Sajilan, S. (2017). Testing and Controlling for Common

Method Variance: A Review of Available Methods. Journal of Management

Sciences, 4(2), 142–168. https://doi.org/10.20547/jms.2014.170420225

Turulja, L., & Bajgoric, N. (2019). Innovation, firms’ performance and environmental

turbulence: is there a moderator or mediator? European Journal of Innovation

Management, 22(1), 213–232. https://doi.org/10.1108/EJIM-03-2018-0064

Vlas, C. O., Vlas, R., Garg, G., & Liu, A. (2019). Ambiguity-based antecedents of

innovation velocity: A congruence perspective. Academy of Management

Proceedings, 2019(1), 11209.

https://doi.org/10.5465/AMBPP.2019.11209abstract

Wang, C., Qureshi, I., Guo, F., & Zhang, Q. (2022). Corporate social responsibility and

disruptive innovation: The moderating effects of environmental turbulence.

Journal of Business Research, 139, 1435–1450.

https://doi.org/10.1016/j.jbusres.2021.10.046

Wang, M.-C., Chen, P.-C., & Fang, S.-C. (2021). How environmental turbulence

influences firms’ entrepreneurial orientation: the moderating role of

network relationships and organizational inertia. Journal of Business &

Industrial Marketing, 36(1), 48–59. https://doi.org/10.1108/JBIM-05-2019-0170

Wernerfelt, B., & Karnani, A. (1987). Competitive strategy under uncertainty. Strategic

Management Journal, 8(2), 187–194. https://doi.org/10.1002/smj.4250080209

Witschel, D., Baumann, D., & Voigt, K.-I. (2022). How manufacturing firms navigate

through stormy waters of digitalization: the role of dynamic capabilities,

organizational factors and environmental turbulence for business model

innovation. Journal of Management & Organization, 28(3), 681–714.

https://doi.org/10.1017/jmo.2022.44

Wright, R. E., Palmer, J. C., & Perkins, D. (2004). Types of Product Innovations and

Small Business Performance in Hostile and Benign Environments. Journal of

Small Business Strategy, 15(2), 33–44.

YahiaMarzouk, Y., & Jin, J. (2022). Impact of environmental scanning on

organizational resilience and competitive advantage: a study of Egyptian

SMEs. Continuity & Resilience Review, 4(2), 192–223.

https://doi.org/10.1108/CRR-10-2021-0037

Yaniv, E. (2011). ORGANIZATIONAL ATTENTION: A METAPHOR FOR A CORE

COGNITIVE PROCESS. International Journal of Organization Theory &

Behavior, 14(3), 329–353. https://doi.org/10.1108/IJOTB-14-03-2011-B002

Zahra, S. A., Petricevic, O., & Luo, Y. (2022). Toward an action-based view of dynamic

capabilities for international business. Journal of International Business Studies,

(4), 583–600. https://doi.org/10.1057/s41267-021-00487-2