Management approach for innovation success in unstable and stable environments

Abstract

Purpose This paper aims to examine the management approaches that play a key role for innovation success in a stable and unstable environment. Design/methodology/approach Tunisia and Japan were chosen as a research sites to assess the accuracy of management approach adopted in each environment. Japan, as a developed, stable and predictable market, involves a traditional/conventional management mode known as administrative control approach (ACA) for successful innovation. However, we argue that a developing country is characterized by its unstable environment and requires an opportunity-based approach (OBA) that lies in the firm’s openness to search and benefit from environmental opportunities. Findings The paper confirms that OBA improves product innovation success in an unstable environment, for innovation in a stable one. Originality/value The paper provides a comprehensive comparison between innovation driven management approaches towards stable and unstable environments through multi-group structural equation modeling.