Linking business strategy with organisational innovation

Recently, the emerging competitions in the business environment compel organisations for developing dynamic business strategies to be innovative for competitive advantage. Few organisations are using defender, prospector, analyser and reactor business strategy for the competitive advantages. However, limited empirical evidences are available to show the linkage of these business strategies with organisational innovation, either open or closed innovation. This paper examines the influence of the business strategies on organisational innovation. For this purpose, we used a quantitative research design and collected data from 250 employees of SEMs in Malaysia through a self-administrated questionnaire. The results indicated that the defender and prospector business strategies are not linked with open innovation while reactor business strategy is not linked with closed innovation. While analyser and reactor business strategies are positively influencing the open innovation in the organisation and the defender, prospector and analyser strategies are positively influencing towards close innovation.