Role of Feedback on Innovative Outcomes: Moderating Role of Resource-Constrained Environments

Abstract

Emerging economies necessitate innovative new products to be developed using limited resources. This encourages scholars to explore factors that enhance innovative outcomes in environments with different levels of resource constraints. Extending the theory of feedback at workplaces to the context of innovation and new product development, in this article, we explore the effects of supportive and constructive feedback on innovative outcomes during new product development. We examine the moderating effect of resource-constrained environments on the relationship between feedback and innovative outcomes. To test our hypotheses, we conducted two studies to collect data from 191 executives in the first study and 92 engineers in the second study as they create innovative outcomes within low and high levels of resource-constrained environments along with different levels of supportive and constructive feedback. Both studies highlight that supportive and constructive feedback was valuable in enhancing innovative outcomes. Furthermore, our findings suggest that resource-constrained environment moderates these relationships. Our study adds to the existing literature by highlighting ways by which innovative outcomes in new product development could be enhanced in resource-constrained environments in emerging economies.