The organizational demography, sensemaking, and high reliability literatures often assert that requisite variety enables organizations to notice more, develop a broader repertoire of responses, and be more adaptive over time. While this assertion remains intuitively appealing it has received little focused empirical attention. The empirical tests that have claimed to test requisite variety have
... [Show full abstract] focused on variety to the exclusion of requisite. We rectify this gap by testing the effects of requisite variety on risk detection (noticing), innovation (responding), and firm performance (adapting) on a sample of 174 IPO software firms.