Innovation and Strategic Renewal for Sustaining Long-Term Organizational Success

Abstract

Organizational survival in the ever-changing world environment is increasingly contingent upon innovation and strategic renewal based on the ever-changing world environment. This study looks at the relationship between innovation, strategic renewal, organizational learning, and commitment to the success of organizational survival. The study adopts a mixed method approach grounded in the theoretical framework of dynamic capability theory and resource-based view. Survey research was conducted on 320 top level managers across six diverse sectors. It has been established via structural equation modeling that innovation orientation and leadership commitment emerge to be the strongest drivers of organizational performance. Renewal capability became the mediator of the relationship between organizational learning and performance. The technological adoption rates were much higher in sectors with higher capability renewal at 79% on average than those sectors with low technological adoption rates of 55%. This finding goes against the inertia-led managerial mindset and stresses the importance of ambidextrous innovation by firms. The primary contribution from the study is the formation of a valid conceptual model that incorporates different precursors of organization survival as well as tips for managers on how to cope with the disruption. Organizations practicing renewal have 1.6 times more opportunities of preserving their competitive advantage in the coming ten years.