AMBIGUOUS EFFECT OF ENVIRONMENTAL TURBULENCE ON INNOVATION AND PERFORMANCE: ANALYZING TECHNOLOGY SECTORS

Abstract

Environmental Turbulence (ET) refers to the uncertainty caused by unforeseen changes in a firm's external environment. Process Quality Management (PQM) is a sub-dimension of Total Quality Management (TQM). However, the literature has not examined the effects of ET on TQM and PQM applications. For firms that want to survive in a dynamic market structure, it is crucial to understand how sub-factors of ET (Market Turbulence (MT), Technological Turbulence (TT), and Competition Intensity (CI)) affect existing relations. We examined whether ET has a moderating or mediating effect on innovation, performance, and PQM. As a result of the study, we discovered that PQM has essential effects on reducing market turbulence and competition intensity.

Keywords

• process quality management (pqm)
• environmental turbulence (et)
• firm innovation
• firm performance