The Moderating Impact of Organizational Identity Strength between Strategic Improvisation and Organizational Memory and Their Effects on Competitive Advantage

Abstract

In the ever-changing environment, companies are often required to adopt improvised responses to certain unpredicted events and sometimes need to improvise strategically to sustain or thrive. However, the mechanism between strategic improvisation and competitive advantage is understudied. In this study, we try to unveil the mechanism by proposing a moderated mediation model investigating the relationships among strategic improvisation, organizational memory, organizational identity strength, and competitive advantage. Using survey data collected among top managers and members of funding teams in Jiangsu Province, China, we find that strategic improvisation is positively related to competitive advantage, and most importantly, this relationship is partially mediated by organizational memory. However, the moderating effect of organizational identity strength on the relationship between strategic improvisation and organizational memory is not proven. We contribute to the existing literature by making up for the deficiency of the traditional resource-based view to some extent, enhancing the understanding of strategic improvisation, and contributing to achieving sustainable development goals 8 and 12. We also offer some practical suggestions to top managers in terms of cultivating improvising learning as well.

Soft organizational memory: a new insight using resource-based theory

“…While Cegarra-Navarro and Martelo-Landroguez (2020) found that OM will enhance organizational agility, which will improve the organization's success and survival (Felipe et al. , 2016), on the same line, Yu et al. (2021) found that OM partially mediates the relationship between strategic improvisation and competitive advantage.…”

“…Recent studies have indicated that organizations that bettering employ and benefit from OM are enhancing performance in different aspects, such as new development product performance (Lee et al, 2017), customer satisfaction and innovativeness (Kmieciak, 2019), on the organizational level (Antunes and Pinheiro, 2020). While Cegarra-Navarro and Martelo-Landroguez (2020) found that OM will enhance organizational agility, which will improve the organization's success and survival (Felipe et al, 2016), on the same line, Yu et al (2021) found that OM partially mediates the relationship between strategic improvisation and competitive advantage. Similarly, Antunes and Pinheiro (2020) asserted that OM illuminates the venue of OM, its preservation formation, acquisition, storing and recall activities.…”

Determination of Critical Factors for Success in Business Incubators and Startups in East Java

“…The success of the Business Incubator is a business support process that can accelerate the successful development of startup companies so that they can motivate the millennial generation to have new companies ranging from technology, and retail, to media. Although other aspects have appeared in some scientific literacy, sustainable supply chain management [7], strategic improvisation and organizational memory [8], human resources management strategies [9], sustainable supply chain management [10], and smart contracts improve procurement efficiency through cost, time, and quality [11]. Some of the startups are growing and successful, but some of them have had to close their business due to one or two factors that the company did not do well.…”