Adaptive innovation strategies under protectionist trade pressures in emerging economies: The mediating role of managerial response

The resurgence of protectionist trade policies has introduced significant volatility into global value chains, with firms in emerging economies facing disproportionate exposure. Prior research has largely treated trade barriers and innovation strategies as separate phenomena, leaving the integrative pathway linking trade pressure, managerial cognition, and adaptive innovation underexplored, particularly within Indonesia. This study investigates how protectionist trade pressure shapes adaptive innovation strategies, and examines the mediating role of managerial response in converting institutional pressure into innovation outcomes among Indonesian firms. Drawing on survey data from ۱۵۷ mid to senior level managers across manufacturing, services, consumer goods, and technology sectors, the study applies Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS ۴.۰, with validity confirmed via composite reliability, average variance extracted, and Fornell-Larcker and HTMT criteria. All eight hypothesized paths were supported, with managerial response emerging as the strongest mechanism (beta = ۰.۶۱۳, p < ۰.۰۰۱) linking trade pressure to innovation strategy, while adaptive innovation strategies strongly predicted performance (beta = ۰.۵۰۲, p < ۰.۰۰۱). Integrating institutional theory with dynamic capabilities, the study identifies managerial response as a mediating mechanism and extends the innovation typology to trade-disruption contexts, offering guidance for resilience.

کلیدواژه ها:

Adaptive Innovation Strategy ، Managerial Response ، Emerging Economies ، Protectionist Trade Policy ، structural equation modeling