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UNDERSTANDING THE DRIVERS OF RADICAL AND INCREMENTAL INNOVATION PERFORMANCE: THE ROLE OF A FIRM’S KNOWLEDGE-BASED CAPITAL AND ORGANISATIONAL AGILITY

Innovation and Entrepreneurship Group (WIN) – TIME Research Area, RWTH Aachen University, Kackertstr. 7, 52072 Aachen, Germany

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ANDREA GREVEN

Entrepreneurship and Innovation Group, WHU – Otto Beisheim School of Management, Campus Vallendar, Burgplatz 2, 56179 Vallendar, Germany

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MAREIKE GRIMM

https://orcid.org/0000-0002-6562-7731

Innovation and Entrepreneurship Group (WIN) – TIME Research Area, RWTH Aachen University, Kackertstr. 7, 52072 Aachen, Germany

E-mail Address: [email protected]

Corresponding author.

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DENISE FISCHER-KREER

Innovation and Entrepreneurship Group (WIN) – TIME Research Area, RWTH Aachen University, Kackertstr. 7, 52072 Aachen, Germany

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, and

MALTE BRETTEL

Innovation and Entrepreneurship Group (WIN) – TIME Research Area, RWTH Aachen University, Kackertstr. 7, 52072 Aachen, Germany

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https://doi.org/10.1142/S1363919622500207Cited by:4 (Source: Crossref)

Abstract

Organisational agility, a specific dynamic capability, constitutes a key success factor in today’s dynamic business environments. However, it is unclear whether and how firms’ knowledge-based capital enables organisational agility. Moreover, mechanisms through which organisational agility translates knowledge-based capital into innovation performance are poorly understood. This study fills these gaps by investigating direct effects of knowledge-based capital (i.e., human, social, and organisational capital) on organisational agility and, in turn, indirect effects on radical and incremental innovation performance. Leveraging survey data from 385 German firms, this study contributes to the organisational agility and the strategic innovation management literature. First, our analysis validates human and social capital as antecedents of organisational agility, yielding evidence for the premises of the knowledge-based view in a novel context. Second, it substantiates the dynamic capability view as a pivotal theoretical lens for explaining the mechanisms underlying the relationships between firms’ knowledge-based capital, organisational agility, and incremental innovation performance.

Keywords:

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