Purpose This study examines how innovation strategy enables the survival of entrepreneurial ventures in Ghana's challenging business environment. Drawing on the dynamic capabilities theory, we investigate whether organizational adaptability, conceptualized as a meta-capability that integrates sensing, seizing and transforming capacities, mediates the relationship between innovation and survival. We also examine whether competitive intensity, regulatory environment and market dynamism condition this pathway. Design/methodology/approach Using a two-wave time-lagged survey of formal entrepreneurial ventures in Ghana conducted between April and May 2024, the study employs hierarchical regression and bootstrapped moderated mediation analysis. Of the 377 questionnaires distributed, 328 valid responses were received (87% response rate), with 178 male respondents (54.3%) and 150 female respondents (45.7%). Multiple procedural and statistical safeguards, including temporal separation and marker variable techniques, ensure robust findings free from common method bias. Findings Innovation strategy enhances the survival of entrepreneurial ventures both directly and indirectly through organizational adaptability, which functions as an integrated meta-capability that combines sensing, seizing and transforming capabilities. While competitive intensity and supportive regulatory environments amplify the innovation-adaptability-survival pathway, market dynamism shows no significant moderating effect. This non-effect is consistent with Ghana's “consistently dynamic” conditions, where firms internalize adaptive routines as standard practice rather than reacting to each shift as exceptional. Research limitations/implications The focus on formal ventures may overlook informal enterprises, which constitute a significant portion of entrepreneurial activity in emerging economies. Practical implications Entrepreneurial ventures should not only build comprehensive innovation strategies but also translate these into adaptive routines that support survival. In markets where change is the norm, firms benefit more from developing stable internal adaptive frameworks than from reactive responses to each market shift. Policymakers should streamline regulatory processes and provide targeted support for innovation to enhance capability building. Originality/value This study advances dynamic capabilities theory by demonstrating how innovation builds survival capacity in emerging economies. It challenges conventional assumptions about environmental dynamism, showing its influence is more limited than expected when volatility becomes normalized.
Amoa-Gyarteng et al. (2026) studied this question.