Innovation through Strategic Fit in Emerging Market: The Role of Dynamic Managerial Capabilities and Business Strategy

Articles in Press

Document Type : Research Paper

Authors

Malek Ashtar University of Technology

10.22059/ijms.2025.383106.677067

Abstract

This study examines how the alignment of dynamic managerial capabilities (DMCs)—human capital, social capital, and cognitive capabilities—with business strategies impacts innovation performance in Iran’s industrial sector. Based on data from 344 managers across diverse industries, the research identifies 12 managerial profiles and explores their fit with prospector, analyzer, defender, and reactor strategies. The findings, derived from hierarchical regression analysis and ANOVA, reveal that managers with high human and social capital, paired with balanced cognitive capabilities, achieve significant innovation under prospector and analyzer strategies. In contrast, managers with lower DMC configurations struggle to drive innovation, particularly under reactive and defensive strategies. This study highlights the critical role of strategic alignment in fostering innovation in resource-constrained environments. It offers actionable insights for managers and policymakers, emphasizing the need for targeted DMC development and strategic coherence. By advancing the understanding of DMCs in emerging markets, this research contributes to the literature on innovation and strategic management.

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Interdisciplinary Journal of Management Studies

Articles in Press, Accepted Manuscript
Available Online from 03 March 2025

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