Does Death Anxiety Inhibit Product Innovation? An Exploratory Study in Small Manufacturing Companies

The study analyzed the entrepreneurs’ choice for explorative and exploitative innovation and their effects on product innovation. Death anxiety, a psychological factor, is analyzed as it is assumed to be important in mediating the relationship between explorative or exploitative innovation and product innovation. A sample of 60 entrepreneurs from small manufacturing companies was analyzed in three waves over three consecutive years, while the data was analyzed using PLS-SEM. Empirical evidence supports the assumption that entrepreneurs’ fear of death partially mediates explorative and exploitative innovation influence on product innovation. The findings show that death anxiety is negatively affecting explorative innovation, with negative effects for radical innovation, and positively influencing exploitative innovation, supporting incremental innovation. The effects may be far reaching, only if considering the current SARS-COV-2 epidemics, which may radically change not only the social landscape, but also the way the entrepreneurs are substantiating their decisions.