IDEAS home Printed from https://ideas.repec.org/a/wsi/ijimxx/v27y2023i07n08ns136391962350041x.html
   My bibliography  Save this article

Disruptive And Sustaining Innovation: Do They Matter For Technical Efficiency In A Firm’S Production Technology?

Author

Listed:
  • OLUGBENGA MICHAEL ADEWUMI

    (Inland School of Business and Social Sciences, Inland Norway University of Applied Sciences, Lillehammer, Norway)

  • GUDBRAND LIEN

    (Inland School of Business and Social Sciences, Inland Norway University of Applied Sciences, Lillehammer, Norway)

  • ØRJAN MYDLAND

    (Inland School of Business and Social Sciences, Inland Norway University of Applied Sciences, Lillehammer, Norway)

Abstract

This study explores the influence of disruptive and sustaining innovation on the technical efficiency of Norwegian firms and its implications for production efficiency. It employs stochastic frontier analysis with unbalanced panel data from manufacturing (7,056 observations) and service firms (6,066 observations). The results show that the individual effects of sustaining and disruptive innovation improve technical efficiency in firms’ production technologies with a superior effect from sustaining innovation. Additionally, it reveals that while hybridisation can be more beneficial for technical efficiency in manufacturing firms, service firms benefit more from sustaining innovation. In summary, it highlights that disruptive and sustaining innovation can optimize firms’ technical efficiency, and the specific effects vary by industry. Furthermore, the results indicate that manufacturing firms may respond to disruption effectively through hybridisation. Thus, the study contributes to the literature on innovation and business performance studies and provides valuable insights for business managers on strategic innovation management with production efficiency implications.

Suggested Citation

  • Olugbenga Michael Adewumi & Gudbrand Lien & ØRjan Mydland, 2023. "Disruptive And Sustaining Innovation: Do They Matter For Technical Efficiency In A Firm’S Production Technology?," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 27(07n08), pages 1-33, October.
    • Handle: RePEc:wsi:ijimxx:v:27:y:2023:i:07n08:n:s136391962350041x
    DOI: 10.1142/S136391962350041X
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S136391962350041X
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S136391962350041X?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:ijimxx:v:27:y:2023:i:07n08:n:s136391962350041x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ijim/ijim.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.