Uncovering the role of competitor orientation and emotional capability in enhancing innovation performance

Purpose: Competitor orientation (CO) has been considered as a traditional driver of innovation performance (IP), being an important source of innovative ideas. Nevertheless, the slowness of the analytical information processing implicit in CO has been recently questioned in the literature, given the internal resistance in firms to use knowledge coming from rivals. Hence, the purpose of this study is to analyze the mediating effect of emotional capability (EC), which is believed to help overcome this barrier by improving the use of knowledge from such innovation source. Design/methodology/approach: Structural equation modeling through the partial least squares method was used to test the research model with survey data from a sample of 123 firms. Findings: Contrary to what was assumed, EC mediation is partial and CO has a very significant and direct influence on IP. Nonetheless, the fact that EC mediation accounts for 28% of the total effect of CO on IP indicates that EC plays a complementary role in terms of making the information processing on rivals more agile and intuitive, as well as reducing internal resistance. Practical implications: When competitor information is analyzed and used to improve innovation outcomes, a culture where first impressions or hunches expressed by employees must be encouraged and legitimized. Originality/value: The development of EC is an alternative way of maximizing the exploitation of the competition as source of innovation. Ignoring its role implies wasting a representative percentage of the benefits of information coming from this external actor, thereby missing the opportunity to capitalize on innovation results.