Management approach for innovation success in unstable and stable environments

Purpose: This paper aims to examine the management approaches that play a key role for innovation success in a stable and unstable environment. Design/methodology/approach: Tunisia and Japan were chosen as a research sites to assess the accuracy of management approach adopted in each environment. Japan, as a developed, stable and predictable market, involves a traditional/conventional management mode known as administrative control approach (ACA) for successful innovation. However, we argue that a developing country is characterized by its unstable environment and requires an opportunity-based approach (OBA) that lies in the firm’s openness to search and benefit from environmental opportunities. Findings: The paper confirms that OBA improves product innovation success in an unstable environment, for innovation in a stable one. Originality/value: The paper provides a comprehensive comparison between innovation driven management approaches towards stable and unstable environments through multi-group structural equation modeling.