How formalisation and connectedness moderate the effect of foresight on radical innovation: empirical evidence from european companies

While strategic foresight is relevant for radical innovation, many companies fail to produce radical innovation despite blown-up foresight units. We take into consideration the extent of formalisation and social connectedness in a firm to consider how they moderate the effect of strategic foresight on a firm's ability to produce radical innovations. In a multi-industry study among 212 European companies, we find that formalisation and connectedness interact to enhance the effect of strategic foresight on radical innovation. When formalisation and connectedness are both high, they jointly improve a firm's ability to use strategic foresight to produce radical innovation. When social connectedness is low, high formalisation, however, reduces a firm's ability to turn foresight action into radical innovation. We discuss these findings relative to the controversial role of formalisation in radical innovation and provide managerial advice based on our findings.