Quadratic effects of dynamic decision-making capability on innovation orientation and performance: Evidence from Chinese exporters

Hughes, Paul; Souchon, Anne L.; Nemkova, Ekaterina; Hodgkinson, Ian R.; Oliveira, Joao S.; Boso, Nataniel; Hultman, Magnus; Yeboah-Banin, Abena A.; Sy-Changco, Joseph

Abstract

© 2018 Elsevier Inc. This study examines quadratic effects of three export decision-making approaches (planning, creativity and spontaneity) on innovation orientation, and the direct effect of innovation orientation on export market performance. The model, anchored in decision theory and dynamic capabilities, is tested on a sample of Chinese exporting firms using structural equation modelling. Findings indicate that while a greater proclivity to innovate is beneficial for export market performance, a more complex web of relationships is revealed between the three export decision-making approaches and innovation orientation, providing insights on the operationalization of a dynamic decision-making capability. Specifically, while an increasing level of export planning reduces an exporter's capacity to innovate, creativity has a positive direct effect on exporters’ innovation orientation, which also benefits from extreme spontaneity in export decision-making. We discuss theoretical contributions and export managerial implications of this dynamic decision-making capability for industrial marketing management.

Citation

Hughes, P., Souchon, A. L., Nemkova, E., Hodgkinson, I. R., Oliveira, J. S., Boso, N., …Sy-Changco, J. (in press). Quadratic effects of dynamic decision-making capability on innovation orientation and performance: Evidence from Chinese exporters. Industrial Marketing Management, 83, 59-69. https://doi.org/10.1016/j.indmarman.2018.11.005

• Journal Article Type: Article
• Acceptance Date: Nov 14, 2018
• Online Publication Date: Dec 10, 2018
• Deposit Date: Nov 19, 2018
• Publicly Available Date: Dec 11, 2020
• Journal: Industrial Marketing Management
• Print ISSN: 0019-8501
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 83
• Pages: 59-69
• DOI: https://doi.org/10.1016/j.indmarman.2018.11.005
• Keywords: dynamic capabilities, exporting, decision-making, innovation, export market performance, quadratic effects, China
• Public URL: https://nottingham-repository.worktribe.com/output/1283945
• Publisher URL: https://www.sciencedirect.com/science/article/abs/pii/S0019850117308167?via%3Dihub