How can Strategy-as-Practice Enable Innovation under the Influence of Environmental Dynamism?

Abstract

ABSTRACT Purpose: the objective of this study was to analyze innovation in Brazilian organizations when enabled through SIS, in the strategy-as-practice approach, on the influence of moderating environmental dynamism. Methods: we performed structural equation modeling using the statistical technique of partial least squares path modeling (PLS-PM) and post hoc analysis to identify unobserved heterogeneity, with a sample of 256 Brazilian companies from different sectors. Results: the results revealed that the SIS had a strong and significant influence on the innovation of exploitation and exploration. The environmental uncertainty of dynamism moderation was not present in the relationship between SIS and the innovation of exploitation. However, SIS showed a strong and significant influence on innovation of exploration in high levels of dynamism. The existence of unobserved heterogeneity was identified for two segments of the sample, demonstrating a strong path effect between SIS and innovation of exploration and exploitation on the high presence of dynamism in service companies with a size greater than 500 employees. Conclusions: the study contributed to the extension of the strategy-as-practice and innovation literature, by identifying SIS as an alternative in the planning process to enable innovation in the organization, in environments with a high rate of change and unpredictability.