Does Competitive Environment Predict Firm Innovativeness in Service Industry? Investigating the Role of Strategic Flexibility

Abstract

This study aims to test the role of the competitive environment on firm innovativeness. The study also analyzed the mediating role of strategic flexibility in the relationship between the competitive environment and firm innovativeness. This research paper is based on distinct certain quantitative approaches with cross-sectional data. This study used hierarchal regression analysis (three-step) and Sobel to analyze the data collected from 587 Executives/Managers/Owners of service industry firms to test the theoretical model. Results proved that a competitive environment helps the firm to attain firm innovativeness. The findings of this research study also revealed that strategic flexibility perform a mediating role between a competitive environment and firm innovativeness. This research contributes in two different ways; first one, it provides experimental facts and evidence which could be helpful for a firm to perceive the competitive environment as a major antecedent of firm innovativeness