Adaptability in Innovation Management: A Meta‐Analysis

Abstract

Academic Summary As firms navigate dynamic technological, market, and institutional environments, adaptability—and related notions such as flexibility and agility—have become central to innovation management. Yet, the literature is conceptually fragmented: multiple labels are applied with overlapping but inconsistent content, and few studies assess whether differing conceptualizations yield distinct predictions for innovation outcomes. Drawing on a dynamic capability lens, we synthesize prior research and define adaptability as an organizational capability grounded in the flexibility of abilities, resources, and processes that can, but need not, be paired with reactivity, proactivity, and/or speed to address shifting internal and external conditions. A multi‐level meta‐analysis of 549 effect sizes from 268 independent samples reveals an overall positive relationship between adaptability and innovation. Moreover, the meta‐analytical approach supports the configural structure of adaptability: the adaptability‐innovation relationship is most pronounced when all attributes of adaptability (flexibility, reactivity, proactivity, and speed) are present. Furthermore, the relationship is stronger for non‐incremental than for incremental innovation, for larger firms, and in unstable institutional environments. By synthesizing the fragmented literature on adaptability, we provide a coherent, testable conceptualization of adaptability and explain why its impact on innovation appears generally positive yet heterogeneous across studies. Managerial Summary Adaptability is an important organizational capability connected to innovation. However, what exactly adaptability is, remains unclear, especially since related terms, such as flexibility or agility, are sometimes used interchangeably. We quantitatively aggregate evidence from a large body of prior research and find a clear pattern: flexibility, that is the capability to change, is the foundation. However, innovation is highest when flexibility is paired with three additional capabilities: (1) sense‐and‐respond to external change (reactivity), (2) anticipate and shape emerging opportunities (proactivity), and (3) move quickly (speed). Organizations that combine all these elements consistently innovate more. This advantage is largest for non‐incremental innovation (e.g., new business models, new‐to‐the‐firm offerings, major technology shifts), in large firms (where inertia is common), and in institutionally unstable environments (where rules and conditions change abruptly). Managers should not treat adaptability, flexibility, or agility as a slogan: Instead, they should build flexibility first, and then improve routines for early sensing, proactivity, and fast decision‐making.