Organizational Innovativeness: The Role of Innovation Adoption Capability

Abstract

Organizations develop capabilities to manage activities and generate value for their customers. This study focuses on the adoption capability of innovation adopting organizations. Adoption capability is a complex, and multidimensional concept that includes a high level of uncertainty, making it difficult to measure. This study attempts to find a systematic methodology to measure the innovation adoption capability of firms, through which management can monitor and evaluate a firm’s strengths and weaknesses in each capability dimension compared with competitors, predict their future needs for improvements, and plan necessary activities to stay competitive in the market. The proposed model considers multiple quantitative and qualitative adoption capability dimensions simultaneously and utilizes a relatively comprehensive set of adoption capability elements by developing 35 items and classifying them into six dimensions. This study uses the fuzzy weighted aggregated sum product assessment (WASPAS) method as a multi-attribute decision-making (MADM) approach. The model is applied to three competing firms in the consumer electronics sector, and the results are discussed.