The influence of organizational flexibility on incremental innovation and radical innovation

Based upon the generalization of those theories in corporate technological innovation approaches, resources flexibility and competence flexibility, the essay presents a conceptual model and its relevant hypotheses. On analyzing the effective sample data from 463 enterprises of different industries in more than 10 provinces, we have confirmed the theoretical model. The results indicate that it is more appropriate for high competence flexible corporation to undertake incremental innovation and radical innovation, while it is more appropriate for high resource flexible corporation to undertake incremental innovation, not radical innovation. In practices, firms must improve organizational resource flexibility and competence flexibility, ensure that continuous innovations will reflect ever-changing external business environment, effectively avoid the risks in the process of innovation and create sustained competitive advantages.