Quadratic Effects of Dynamic Decision-making Capability on Innovation Orientation and Performance: Evidence from Chinese Exporters

Paul Hughes, Anne L. Souchon, Ekaterina Nemkova, Ian R. Hodgkinson, João S. Oliveira*, Nathaniel Boso, Magnus Hultman, Abena A. Yeboah-Banin, Joseph Sy-Changco

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

This study examines quadratic effects of three export decision-making approaches (planning, creativity and spontaneity) on innovation orientation, and the direct effect of innovation orientation on export market performance. The model, anchored in decision theory and dynamic capabilities, is tested on a sample of Chinese exporting firms using structural equation modelling. Findings indicate that while a greater proclivity to innovate is beneficial for export market performance, a more complex web of relationships is revealed between the three export decision-making approaches and innovation orientation, providing insights on the operationalization of a dynamic decision-making capability. Specifically, while an increasing level of export planning reduces an exporter’s capacity to innovate, creativity has a positive direct effect on exporters’ innovation orientation, which also benefits from extreme spontaneity in export decision-making. We discuss theoretical contributions and export managerial implications of this dynamic decision-making capability for industrial marketing management.
Original languageEnglish
JournalIndustrial Marketing Management
Volume83
Pages (from-to)59-69
Number of pages11
ISSN0019-8501
DOIs
Publication statusPublished - Nov 2019
Externally publishedYes

Keywords

  • Dynamic capabilities
  • Exporting
  • Decision-making
  • Innovation
  • Export market performance
  • Quadratic effects
  • China

Cite this