Quadratic effects of dynamic decision-making capability on innovation orientation and performance: Evidence from Chinese exporters
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Date
2019-11-10
Journal Title
Journal ISSN
Volume Title
Publisher
Industrial Marketing Management
Abstract
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.
Description
Research Article
Keywords
Dynamic capabilities, Exporting, Decision-making, Innovation, Export market performance, Quadratic effects, China