STRATEGIC INNOVATION, STRATEGIC RESPONSIVENESS, ENVIRONMENTAL DYNAMISM AND ORGANIZATIONAL PERFORMANCE: A REVIEW OF LITERATURE

Abstract: Organizations today operate in highly dynamic and competitive environments characterized by rapid technological change, shifting customer preferences, and intensified competition. In such contexts, the ability to innovate strategically and respond effectively to environmental changes has become critical for sustaining superior organizational performance. This study examined the relationship between strategic innovation, strategic responsiveness, environmental dynamism, and organizational performance, with a view to explaining how organizations achieve sustainable performance outcomes under conditions of uncertainty. The study was anchored on dynamic capabilities theory and Schumpeter’s innovation theory provide the theoretical foundation for strategic innovation by explaining how firms renew competencies and introduce novel products, processes, and business models. Contingency Theory and Strategic Choice Theory underpin strategic responsiveness by emphasizing the need for organizations and managers to align strategic actions with environmental conditions. Environmental Turbulence Theory and Complexity Theory explain environmental dynamism by highlighting the unpredictability, non-linearity, and rapid pace of change in external environments. Finally, Resource-Based View and Expectation Confirmation Theory support organizational performance by linking internal capabilities, stakeholder satisfaction, and sustained competitive outcomes. Through an extensive review of conceptual, theoretical, and empirical literature, the study develops an integrated theoretical model that explains how strategic innovation and strategic responsiveness interact with environmental dynamism to influence organizational performance. Organizational performance was conceptualized in terms of financial outcomes, customer satisfaction, operational efficiency, and innovation outcomes. The study argues that organizations that continuously innovate, respond proactively to environmental changes, and effectively manage environmental uncertainty are better positioned to achieve superior performance and long-term growth. The findings of this review contribute to strategic management literature by providing a multi-theoretical explanation of performance in dynamic environments and offer practical insights for managers seeking to enhance organizational adaptability, competitiveness, and sustainability. Keywords: Strategic Innovation, Strategic Responsiveness, Environmental Dynamism, Organizational Performance. Title: STRATEGIC INNOVATION, STRATEGIC RESPONSIVENESS, ENVIRONMENTAL DYNAMISM AND ORGANIZATIONAL PERFORMANCE: A REVIEW OF LITERATURE Author: Lizzy Awuor Odwar, Dr. Godfrey Kinyua International Journal of Social Science and Humanities Research ISSN 2348-3156 (Print), ISSN 2348-3164 (online) Vol. 14, Issue 1, January 2026 - March 2026 Page No: 353-377 Research Publish Journals Website: www.researchpublish.com Published Date: 26-March-2026 DOI: https://doi.org/10.5281/zenodo.19232082 Paper Download Link (Source) https://www.researchpublish.com/papers/strategic-innovation-strategic-responsiveness-environmental-dynamism-and-organizational-performance-a-review-of-literature