Regarding the relationship between innovativeness
and performance in exploitative environments, scholars
have suggested that exploitative innovations engender
less uncertainty and build on firm synergies and existing
knowledge, through which performance is generated (e.g.,
Calantone et al., 2010). In addition, although the returns
from exploitative innovations may be considered shortterm,
they are typically positive and more predictable
than those from exploratory innovations (Menguc and
Auh, 2008). Accordingly, this study also hypothesizes that
exploitative innovations will have a positive effect on
project performance, as formally stated in the following
hypothesis:
H2b. There is a positive effect of innovativeness on project
performance in exploitative innovations.