ORGANIZATIONAL IMPROVATION AND FIRM PERFORMANCE: THE ROLE OF BUSINESS MODEL INNOVATION, INNOVATION CLIMATE AND INTELLECTUAL CAPITAL

Abstract

In the uncertain times as today, organizations need more resources and skills to help with their growth and to deal with any unforeseen circumstances. Organizational improvisation can help companies overcome any turbulent situation. To understand this, a positivist epistemology and quantitative method was employed. Data was collected via questionnaire from 250 companies from the IT sector. The end result and findings of this study provide insight on the existing strength of the relationship between firm performance and organizational improvisation. Business model innovation is acting as the mediating factor that depicts the relationship between organizational improvisation and firm performance. Furthermore, this relationship is strengthened by intellectual capital. The innovation climate in the firm further strengthens the relationship between organizational improvisation and firm performance. Hence, use of existing resources in a firm like the intellectual capital, enhancement of innovative climate and continuous innovation in business model helps the firm perform better and eventually leads to a better market standing for the firm. This study adds to the existing research by emphasizing the role organizational improvisation can play by incorporating business model innovation, intellectual capital and innovative climate to increase the performance of any firm and help the managers with the success and growth of their organization. These findings provide grounds for managers to bring about the required changes to their organizations for improved final results. It also gives future researchers the groundwork for studying different factors that can help contribute to better performance for firms so that maximum efficiency can be achieved.