Incremental versus Radical Innovation and Sustainable Competitive Advantage: A Moderated Mediation Model

Xiaoping Chen, Hongming Xie () and Huanhuai Zhou
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Xiaoping Chen: School of Management, Zhejiang University of Technology, Hangzhou 310023, China
Hongming Xie: School of Management, Guangzhou University, Guangzhou 510006, China
Huanhuai Zhou: School of Management, Zhejiang University of Technology, Hangzhou 310023, China

Sustainability, 2024, vol. 16, issue 11, 1-18

Abstract: Innovation is critical for organizations seeking to build and maintain a sustainable advantage in the competitive market. This study aims to construct a moderated mediation model to examine the effects of incremental and radical innovations on competitive advantage, which considers the mediating role of innovation speed and the moderating role of a supportive culture. Data from 201 Chinese firms were collected through questionnaires and the research hypotheses were tested using multiple regression analysis and bootstrapping techniques. The empirical results show that incremental and radical innovations have a significant positive effect on competitive advantage. Radical innovation has a greater impact on competitive advantage compared to incremental innovation. Innovation speed mediates the relationship between incremental and radical innovations and competitive advantage. Supportive culture positively moderates the relationship between incremental and radical innovations and innovation speed. Moreover, supportive culture positively moderates the conditional indirect effect of incremental and radical innovation on competitive advantage through innovation speed. Theoretical and practical implications are further discussed.

Keywords: radical innovation; incremental innovation; supportive culture; innovation speed; competitive advantage (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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