A Study of Firms’ Perception of Environmental Dynamism and Innovativeness in Non-Dynamic Environments

Managers in mature or non-dynamic industries operate under very challenging conditions and need to create competitive advantages. One potential route to do this is through innovations. This is easier said than done. Most of the studies on innovation have been concentrated in high-technology industries where the environment is highly dynamic and volatile. Limited studies have been conducted in non-dynamic environment. This study is an attempt to unravel the following research question: How does perception of environmental dynamism and pressures from competition affect firms’ strategic emphasis on innovation in non-dynamic environments? Based on a survey of 164 respondents in Singapore and Hong Kong, the study explores the impact of perception of environmental dynamism and competitive pressures on innovativeness.