Strategic Flexibility, Environmental Dynamism, and Innovation Performance: An Empirical Study

A new competitive landscape requires businesses to adapt quickly to changeable conditions. In other words businesses need strategic flexibility. Strategic flexibility refers to an ability of firms to respond and adapt to environmental changes. Strategic flexibility enables firms many advantages. For example, it may improve to innovation performance and develop the competitive advantage of a firm in a dynamic environment. Innovation can be either explorative or exploitative innovations. In this study, we examined the relationship among strategic flexibility, environmental dynamism, and innovation performance, using a sample of 69 firms from Kayseri (Turkey). We found empirical support for the positive relationships among strategic flexibility, innovation performance, and environmental dynamism.