Exploring the relationship between risk management and adoptive innovation: A case study approach
| Pages | 29-37 |
| Published date | 01 March 2011 |
| Date | 01 March 2011 |
| DOI | https://doi.org/10.1108/20425961201000003 |
| Author | Zhongqi Jin,Jyoti Navare |
| Subject Matter | Public policy & environmental management |
World Journal of Enterprenuership, Management and Sustainable Development, Vol. 6, Nos. 1/2, 2010
29
Copyright © 2010 WASD
Abstract: Adoptive innovation becomes increasingly important in today’s
competitive world. However, in the presence of current economic downturn,
cautions are voiced against potential risks; these innovative activities can bring to
from firm to country level. Our research addresses such concerns. The research
is drawn from two key streams of literature: risk management and innovation
management. We developed a conceptual framework that consists of three
components: risk behaviour, environmental conditions and adoptive innovative
(REAI). Applying the REAI framework, we examined the risk management efficacy
of adoptive innovation activities of one organisation under a historical perspective.
We conclude that although adopters have a high tolerance for managing uncertainty
and appetite for risk taking in line with competitors, there are two key elements that
deter mine the performance of such behaviour: level of environmental turbulence
and the role of senior management. It is the first time research determining the
relationship between risk and adoptive innovative behaviour is being undertaken
and will also provide direct guidance for managers regarding how to manage risk
and uncertainty under different circumstances of their innovative practices.
Keywords: Innovation, Risk Management, Global Sustainability
Zhongqi Jin1 and Jyoti Navare2
University of Middlesex, UK
EXPLORING THE RELATIONSHIP
BETWEEN RISK MANAGEMENT
AND ADOPTIVE INNOVATION:
A CASE STUDY APPROACH
INTRODUCTION
With the increasing change in technology,
economic crises resulting in shocks with
global systemic repercussions organisations
have no alternative but to adapt such
change by undertaking strategic options
that enable them to sustain the future of
their business (Naman and Slevin, 1993). In
this paper, we are interested in what we have
termed adoptive innovation. It refers to the
capability of an organisation to source and
use new ideas from outside that organisation
or even the industry to make strategic or
struc tural changes. Adoptive innovation
has become increasingly important in the
last two decades when the environment
has accelerated from stable low uncertainty
environments to environment with high
levels of uncertainty.
However, in the presence of current
economic downturn, cautions are voiced
against potential risks; these innovative
activities can bring to from firm to country
level. Our research addresses two key
1Senior Lecturer, Department, Marketing & Enterprise, University of Middlesex, The Burroughs, London
NW4 4BT, United Kingdom, E-mail: Z.Jin@mdx.ac.uk
2Reader and Head of Department, Marketing & Enterprise, University of Middlesex, The Burroughs, London
NW4 4BT, United Kingdom, E-mail: J.Navare@mdx.ac.uk
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