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Recent technological and social changes have challenged manufacturing firms to remain competitive in increasingly dynamic markets. A way of facing these challenges is to foster organizational structures that encourage creativity. Although the general importance of organizational creativity for market success is undeniable, few studies on manufacturing firms have provided a nuanced view of how this relationship is affected by firm-external factors (e.g. different levels of market dynamism) and whether and how this leads to greater market success.

This research uses survey data from 255 chief executive officers (CEOs) and top managers of manufacturing firms in Germany. The authors performed different regression analyses to test for direct, mediation, moderation and moderated mediation effects.

The findings show that, in highly dynamic markets, organizational …