MEDIATING ROLE OF INNOVATION HEURISTICS ON THE RELATIONSHIP BETWEEN PIONEERING INNOVATIVE ORIENTATION AND ORGANISATIONAL PERFORMANCE: INSIGHTS FROM DIVERSE STAKEHOLDERS

We conducted two studies (N = 263) to examine a multiple-mediator model, wherein two proposed innovation heuristics mediate the relationship between the pioneering-innovative orientation of managers and organisational performance. Study 1, containing a diverse sample of MBA interns, mid-level managers, and entrepreneurs (n = 201), yielded two factors named search and adapt heuristics, and fast and frugal heuristics. The two innovation heuristics significantly mediated the relationship between the pioneering innovative orientation and perceived organisational performance. The proposed research model reflected adequate reliability, validity, and measurement invariance for the sample groups. The robustness check did not show any nonlinear effects or endogeneity problems. In Study 2, analysis based on a sample of senior business leaders and entrepreneurs (n = 62) confirmed that pioneering innovative orientation and the two identified innovation heuristics significantly predicted the 3-year average annual turnover of the studied firms. Our research expands the meagre literature on innovation heuristics. The study findings may stimulate the exploration of more innovation heuristics in the future, enriching the managerial heuristic literature.