Economics
  • ISSN: 2155-7950
  • Journal of Business and Economics

Strategic Flexibility, Organizational Commitment, and Innovative

Behavior among Foreign Subsidiaries and Domestic Japanese Firms

 
 
Koichi Takaishi1, Rei Hasegawa2, Shinji Hasegawa3
(1. Asia University, Japan; 2. Daito Bunka University, Japan; 3. Waseda University, Japan)
 
 
Abstract: This study clarifies how firms’ strategic flexibilities affect employees’ innovative behaviors. An employee’s innovative behavior is hypothesized to be directly influenced by a perceived strategic flexibility and through the mediating effects of organizational commitment in foreign subsidiaries and domestic Japanese firms. This study sampled Japanese employees working for the subsidiaries of European, US, and Asian subsidiaries and domestic Japanese firms. Data were collected via a web survey from the monitor members of a marketing firm. The results show that strategic flexibility directly affects the innovative behavior only among employees of domestic Japanese firms. Perceived strategic flexibility affects the innovative behavior via organizational commitment among employees of European and Asian subsidiaries and domestic Japanese firms. No relationship between the strategic flexibility and the employees’ innovative behaviors is evident at US subsidiaries. This study highlights how strategic flexibility and organizational commitment enhance an employee’s innovative behavior. The findings suggest that companies should encourage employees to identify with their organizations and implement policies that recommends, evaluates, and rewards employees’ innovative behaviors. This study advances the theoretical development of strategic flexibility, thereby clarifying how it affects innovative behavior through organizational commitment at the diverse types of firms in Japan.
 
 
Key words: strategic flexibility; innovative behavior; organizational commitment; Japan; foreign
subsidiaries; mediation analysis
 
JEL codes: M12, M16




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