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Purpose Although Industry 4.0 has created a digital disruption in the business world, there is a huge demand for competent personnel to adapt to innovation in a highly volatile environment. This study aims to develop a conceptual framework on innovation adoption, thus creating a sustainable business performance in the Indian automobile industry. Design/methodology/approach A sample of 272 employees working in the Indian automobile industry was empirically tested to examine the hypothesized relationships. The proposed relationships were further tested using structural equation modelling (SEM) with AMOS 26 software. Findings Results highlight that knowledge management, climate for innovation, learning agility and internal corporate communication positively affect innovation adoption. Perceived innovation characteristics also have a significant relationship with innovation adoption and sustainable business performance. Furthermore, innovation adoption has a positive relationship with sustainable business performance. However, ambidextrous leadership has a non-significant relationship with innovation adoption. Research limitations/implications This study was confined to the Indian automobile industry, which restricts its generalizability. Thus, future research can be conducted in other sectors and country contexts. Practical implications The paper provides valuable insights to practitioners, HR professionals and managers to develop an agile talent who quickly adapts innovative practices to deliver desired results. Organizations must incorporate digital leadership style, robust knowledge management, climate for innovation, learning agility and corporate communication into their talent development practices that further enhance strategic capabilities and lessen expenditures. Originality/value This paper provides a holistic framework of innovation adoption in the Indian automobile industry to attain sustainable business performance.
Gouda et al. (Fri,) studied this question.
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