Technological sensing and response capabilities as drivers for radical innovation in the context of apocalyptic uncertainty

Abstract

This paper introduces a new conceptual model to examine the impact of technological opportunism (technology sensing and response capabilities) on the adoption of incremental and radical technological innovation by small and medium enterprises (SMEs). We tested our hypotheses with data from 228 Indian SMEs using a symmetric method of partial least square structural equation modeling (PLS‐SEM) and the asymmetric method of fuzzy–set qualitative comparative analysis (fsQCA) followed by sensitivity analysis done by an artificial neural network (ANN) modeling. PLS‐SEM results highlighted the roles of technology sensing and response capabilities as key drivers of both incremental and radical product innovations and the strengthening of these relationships by market uncertainty triggered by external events and crises. Apart from this, the results of fsQCA demonstrated multiple configurations of dimensions associated with the adoption of technological innovations by SMEs. This paper extends the current literature by exploring the process by which SMEs may adopt different types of technological innovation. Our findings also have useful implications for SMEs aiming to adopt technological innovations.