DO ORGANISATIONS REFLECT THEIR UPPER ECHELONS WHILE RESPONDING TO DISRUPTIVE INNOVATION?

Abstract

PurposeUtilising the upper echelon theory (UET), the purpose of this study is to investigate the impact of dynamic managerial capabilities (i.e., managerial human capital, managerial social capital (MSC), and managerial cognition (MC)) on organisations’ response strategies to disruptive innovation, under the mediating role of unlearning.Design/methodology/approachFollowing a deductive approach, quantitative methodology and survey strategy, data was collected through an online questionnaire from (491) managers and top executives of PSF operating in Dubai-UAE and analysed using covariance-based structural equation modelling.FindingsThe findings revealed that dynamic managerial capabilities played mixed role in predicting firms’ response strategies to disruptive innovation. MSC and MC played a significant role with unlearning as a partial mediator, while managerial human capital did not.Practical implicationsThe findings are important to managers, practitioners, and policymakers, shedding light on which dynamic managerial capabilities is of significance if creative economy is being pursued through adaptive response strategies to disruptive innovation.