What does firm do when innovation firms inherent needs conflict with external environment?
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When a firm's inherent innovation needs conflict with the external environment, it can strategically navigate this challenge by focusing on divergent innovation. This approach involves generating patented environmental innovations in areas where competitors are less focused, known as technological divergence, which can lead to improved market-based firm performance. Additionally, firms facing external pressures, such as market turbulence or resource scarcity, can leverage product and process innovativeness to counteract the negative effects of hostile environments on performance. Moreover, top management team (TMT) dynamics play a crucial role in firm innovativeness, where affective conflict negatively impacts innovativeness, while cognitive conflict has a negative curvilinear relationship, especially in uncertain environments. Ultimately, firms can enhance their environmental performance by mediating the relationship between sales and environmental performance through corporate innovation, showcasing a positive spatial spillover effect.
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| Papers (4) | Insight |
|---|---|
| Firms facing conflict between internal innovation needs and external environment adapt strategies based on top management team dynamics, influenced by affective and cognitive conflicts, particularly in uncertain environments. | |
28 Citations | Firms adjust product and process innovativeness based on the type of hostile environment to align with external pressures, mitigating conflicts and enhancing performance. |
| Firms prioritize green process innovation under environmental regulation and green product innovation under market turbulence to align internal innovation needs with external pressures for sustainability. | |
2 Citations | Firms can innovate divergently to balance internal needs with external environmental concerns, enhancing ethical and market performance by focusing on less competitive domains for patented environmental innovations. |
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