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Innovative Behavior and Firm Competitive Advantage: The Moderating Effect of Environmental Dynamism

   | 14 paź 2021

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Biographical characteristics (Source: Author's data analysis)

Biographical characteristics Number

Age of respondent (years)
  Below 20 0
  20–30 24
  31–40 62
  41–50 32
  51–60 22
  Above 60 0

Level of education of respondent
  Below matric 0
  Matric 39
  Above matric 101

Gender
  Male 79
  Female 61

Role of respondent in the firm
  Manager 71
  Owner 69

Age of firm
  Less than 1 year 8
  1–5 years 39
  6–10 years 63
  10–15 years 36
  Above 15 years 2

Industry
  Manufacturing 36
    Services 18
  Retail and wholesale 51
  Accommodation 35

Size (number of employees)
  0–10 31
  11–50 83
  51–250 26

Results of regression analyses (Source: Author's data analysis)

Variable Competitive advantage
Model 1β Model 2β Model 3β Model 4β
Age 0.148 0.049 0.051 0.042
Size 0.142 −0.052 0.076 −0.071
Industry 0.146 0.102 0.107 0.102
IB 0.644* 0.649* 0.701
ED 0.074 0.079
IB × ED 0.013
R2 0.062 0.214 0.216 0.221
Adjusted R2 0.055 0.209 0.211 0.227
R2 change 0.154** 0.156** 0.172**
F 7.220 74.204 55.288 47.108

Descriptive statistics and correlation (Source: Author's data analysis)

Variable Mean Standard deviation Size Age Ind IB ED CA
Size 2.15 1.01 1
Age 2.20 0.92 0.49 1
Industry 1.95 0.59 −0.081 −0.208** 1
IB 3.58 0.89 0.31 0.24 0.31** 1
ED 3.12 0.81 0.18 0.12** 0.26* 0.41** 1
CA 3.35 0.77 0.16 0.29 0.19 0.53* 0.61** 1

j.fman-2021-0012.tab.004

Construct Item Source Response category
Perceived environmental dynamism

Environmental changes in our market are intense.

Product or service in our industry changes quickly.

The acts of competitors are difficult to predict.

The technology in our industry progresses quickly.

It is difficult to predict the change of customer needs.

Justin, Jansen, den Bosch and Volberda, 2006; Li and Liu, 2014 1 strongly disagree 5 strongly agree
Innovative behavior

Search out new working methods techniques.

Generate new ideas on how to improve our products and services.

Generate original solutions to problems.

Provide new solutions to old problems.

Make appropriate plan for the implementation of new ideas.

Endeavour to eliminate obstacles in the process of idea implementation.

Omri, 2013 1 strongly disagree to 5 strongly agree.
Competitive advantage Compared with our competitors, our firm has:

higher profit growth rate

higher sales revenue growth rate

lower operating costs

better product and service quality

higher market share

Wu and Chen, 2012; Li and Liu, 2014; 1 strongly disagree to 5 strongly agree.