Innovative Behavior and Firm Competitive Advantage: The Moderating Effect of Environmental Dynamism

Biographical characteristics	Number
Age of respondent (years)
Below 20	0
20–30	24
31–40	62
41–50	32
51–60	22
Above 60	0
Level of education of respondent
Below matric	0
Matric	39
Above matric	101
Gender
Male	79
Female	61
Role of respondent in the firm
Manager	71
Owner	69
Age of firm
Less than 1 year	8
1–5 years	39
6–10 years	63
10–15 years	36
Above 15 years	2
Industry
Manufacturing	36
Services	18
Retail and wholesale	51
Accommodation	35
Size (number of employees)
0–10	31
11–50	83
51–250	26

Descriptive statistics and correlation (Source: Author's data analysis)

Variable	Mean	Standard deviation	Size	Age	Ind	IB	ED	CA
Size	2.15	1.01	1
Age	2.20	0.92	0.49	1
Industry	1.95	0.59	−0.081	−0.208^**	1
IB	3.58	0.89	0.31	0.24	0.31^**	1
ED	3.12	0.81	0.18	0.12^**	0.26^*	0.41^**	1
CA	3.35	0.77	0.16	0.29	0.19	0.53^*	0.61^**	1

* p < 0.01,

** p < 0.05

Results of regression analyses (Source: Author's data analysis)

* p < 0.01,

** p < 0.05

Construct	Item	Source	Response category
Perceived environmental dynamism	Environmental changes in our market are intense. Product or service in our industry changes quickly. The acts of competitors are difficult to predict. The technology in our industry progresses quickly. It is difficult to predict the change of customer needs.	Justin, Jansen, den Bosch and Volberda, 2006; Li and Liu, 2014	1 strongly disagree 5 strongly agree
Innovative behavior	Search out new working methods techniques. Generate new ideas on how to improve our products and services. Generate original solutions to problems. Provide new solutions to old problems. Make appropriate plan for the implementation of new ideas. Endeavour to eliminate obstacles in the process of idea implementation.	Omri, 2013	1 strongly disagree to 5 strongly agree.
Competitive advantage	Compared with our competitors, our firm has: higher profit growth rate higher sales revenue growth rate lower operating costs better product and service quality higher market share	Wu and Chen, 2012; Li and Liu, 2014;	1 strongly disagree to 5 strongly agree.