IDEAS home Printed from https://ideas.repec.org/a/eee/eurman/v33y2015i5p407-422.html
   My bibliography  Save this article

Management innovation and firm performance: An integration of research findings

Author

Listed:
  • Walker, Richard M.
  • Chen, Jiyao
  • Aravind, Deepa

Abstract

While the effect of technological innovations (TI) on firm performance is established, the performance contributions of management innovations (MI) are as yet undetermined. Theoretical discourse on the motivation for the adoption of MIs questions their performance outcome, and an integration of empirical research of the MI-performance relationship is lacking. This study thus examines three questions: (1) is the adoption of MI beneficial to organizations; (2) is the impact of MI on performance at par with that of TI; and (3) what are the potential sources of inconsistency in the MI-performance relationship? We quantitatively integrated the empirical findings using 52 independent samples from 44 articles published in peer-reviewed journals via two different procedures―support score and meta-analysis―for complementarity and reliability. The results from both procedures indicate that: (1) MI positively affects performance; (2) the direction and strength of the effect of MI on performance does not differ from that of TI; and (3) industrial sector (manufacturing vs service) and construct measurement (both innovation and performance) moderate the MI-performance relationship. We discuss the implications of our findings for future research on innovation and performance in organizations.

Suggested Citation

  • Walker, Richard M. & Chen, Jiyao & Aravind, Deepa, 2015. "Management innovation and firm performance: An integration of research findings," European Management Journal, Elsevier, vol. 33(5), pages 407-422.
    • Handle: RePEc:eee:eurman:v:33:y:2015:i:5:p:407-422
    DOI: 10.1016/j.emj.2015.07.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0263237315000766
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.emj.2015.07.001?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.

    References listed on IDEAS

    as
    1. Bowen, Frances E. & Rostami, Mahdi & Steel, Piers, 2010. "Timing is everything: A meta-analysis of the relationships between organizational performance and innovation," Journal of Business Research, Elsevier, vol. 63(11), pages 1179-1185, November.
    2. Margaret A. Abernethy & Jan Bouwens, 2005. "Determinants of accounting innovation implementation," Abacus, Accounting Foundation, University of Sydney, vol. 41(3), pages 217-240, October.
    3. Yamin, Shahid & Mavondo, Felix & Gunasekaran, A & Sarros, James C., 1997. "A study of competitive strategy, organisational innovation and organisational performance among Australian manufacturing companies," International Journal of Production Economics, Elsevier, vol. 52(1-2), pages 161-172, October.
    4. Nicholas Bloom & John Van Reenen, 2007. "Measuring and Explaining Management Practices Across Firms and Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(4), pages 1351-1408.
    5. Richard Whittington & Andrew Pettigrew & Simon Peck & Evelyn Fenton & Martin Conyon, 1999. "Change and Complementarities in the New Competitive Landscape: A European Panel Study, 1992–1996," Organization Science, INFORMS, vol. 10(5), pages 583-600, October.
    6. Chung-Leung Luk & Oliver H M Yau & Leo Y M Sin & Alan C B Tse & Raymond P M Chow & Jenny S Y Lee, 2008. "The effects of social capital and organizational innovativeness in different institutional contexts," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(4), pages 589-612, June.
    7. Mol, Michael J. & Birkinshaw, Julian, 2009. "The sources of management innovation: When firms introduce new management practices," Journal of Business Research, Elsevier, vol. 62(12), pages 1269-1280, December.
    8. Marvin B. Lieberman & David B. Montgomery, 1988. "First‐mover advantages," Strategic Management Journal, Wiley Blackwell, vol. 9(S1), pages 41-58, June.
    9. Charles Edquist & Leif Hommen & Maureen McKelvey, 2001. "Innovation and Employment," Books, Edward Elgar Publishing, number 2138.
    10. Michele Kremen Bolton, 1993. "Organizational Innovation and Substandard Performance: When is Necessity the Mother of Innovation?," Organization Science, INFORMS, vol. 4(1), pages 57-75, February.
    11. Richard A. Wolfe, 1994. "Organizational Innovation: Review, Critique And Suggested Research Directions," Journal of Management Studies, Wiley Blackwell, vol. 31(3), pages 405-431, May.
    12. Jiménez-Jiménez, Daniel & Sanz-Valle, Raquel, 2011. "Innovation, organizational learning, and performance," Journal of Business Research, Elsevier, vol. 64(4), pages 408-417, April.
    13. Spyros Arvanitis, 2005. "Computerization, workplace organization, skilled labour and firm productivity: Evidence for the Swiss business sector," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(4), pages 225-249.
    14. Hipp, Christiane & Grupp, Hariolf, 2005. "Innovation in the service sector: The demand for service-specific innovation measurement concepts and typologies," Research Policy, Elsevier, vol. 34(4), pages 517-535, May.
    15. Davide Antonioli, 2009. "Industrial Relations, Techno-Organizational Innovation and Firm Economic Performance," Economia politica, Società editrice il Mulino, issue 1, pages 21-52.
    16. Fariborz Damanpour & Deepa Aravind, 2012. "Managerial Innovation: Conceptions, Processes, and Antecedents," Management and Organization Review, The International Association for Chinese Management Research, vol. 8(2), pages 423-454, July.
    17. Elias Sanidas, 2005. "Organizational Innovations and Economic Growth," Books, Edward Elgar Publishing, number 3411.
    18. Fariborz Damanpour & Richard M. Walker & Claudia N. Avellaneda, 2009. "Combinative Effects of Innovation Types and Organizational Performance: A Longitudinal Study of Service Organizations," Journal of Management Studies, Wiley Blackwell, vol. 46(4), pages 650-675, June.
    19. Vijay Pothukuchi & Fariborz Damanpour & Jaepil Choi & Chao C Chen & Seung Ho Park, 2002. "National and Organizational Culture Differences and International Joint Venture Performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(2), pages 243-265, June.
    20. Subramanian, A. & Nilakanta, S., 1996. "Organizational innovativeness: Exploring the relationship between organizational determinants of innovation, types of innovations, and measures of organizational performance," Omega, Elsevier, vol. 24(6), pages 631-647, December.
    21. G. Tomas M. Hult & David J. Ketchen, 2001. "Does market orientation matter?: a test of the relationship between positional advantage and performance," Strategic Management Journal, Wiley Blackwell, vol. 22(9), pages 899-906, September.
    22. Harvie Ramsay & Dora Scholarios & Bill Harley, 2000. "Employees and High‐Performance Work Systems: Testing inside the Black Box," British Journal of Industrial Relations, London School of Economics, vol. 38(4), pages 501-531, December.
    23. Barras, Richard, 1990. "Interactive innovation in financial and business services: The vanguard of the service revolution," Research Policy, Elsevier, vol. 19(3), pages 215-237, June.
    24. Damanpour, Fariborz & Aravind, Deepa, 2012. "Managerial Innovation: Conceptions, Processes and Antecedents," Management and Organization Review, Cambridge University Press, vol. 8(2), pages 423-454, July.
    25. Tether, Bruce S. & Tajar, Abdelouahid, 2008. "The organisational-cooperation mode of innovation and its prominence amongst European service firms," Research Policy, Elsevier, vol. 37(4), pages 720-739, May.
    26. Thuc Uyen Nguyen-Thi & Caroline Danièle Mothe, 2010. "The Link Between Non Technological Innovations And Technological Innovation," Post-Print hal-00920069, HAL.
    27. Christopher D. Ittner & David F. Larcker, 1997. "The Performance Effects of Process Management Techniques," Management Science, INFORMS, vol. 43(4), pages 522-534, April.
    28. Arvanitis, Spyros & Loukis, Euripidis N., 2009. "Information and communication technologies, human capital, workplace organization and labour productivity: A comparative study based on firm-level data for Greece and Switzerland," Information Economics and Policy, Elsevier, vol. 21(1), pages 43-61, February.
    29. Rosenbusch, Nina & Brinckmann, Jan & Bausch, Andreas, 2011. "Is innovation always beneficial? A meta-analysis of the relationship between innovation and performance in SMEs," Journal of Business Venturing, Elsevier, vol. 26(4), pages 441-457, July.
    30. Peter W. Roberts & Raphael Amit, 2003. "The Dynamics of Innovative Activity and Competitive Advantage: The Case of Australian Retail Banking, 1981 to 1995," Organization Science, INFORMS, vol. 14(2), pages 107-122, April.
    31. George A. Boyne, 2002. "Public and Private Management: What’s the Difference?," Journal of Management Studies, Wiley Blackwell, vol. 39(1), pages 97-122, January.
    32. Gunday, Gurhan & Ulusoy, Gunduz & Kilic, Kemal & Alpkan, Lutfihak, 2011. "Effects of innovation types on firm performance," International Journal of Production Economics, Elsevier, vol. 133(2), pages 662-676, October.
    33. Mazzanti, Massimiliano & Pini, Paolo & Tortia, Ermanno, 2006. "Organizational innovations, human resources and firm performance: The Emilia-Romagna food sector," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(1), pages 123-141, February.
    34. Morten Balle Hansen, 2010. "Marketization and Economic Performance," Public Management Review, Taylor & Francis Journals, vol. 12(2), pages 255-274, March.
    35. Daphne W. Yiu & Chung–Ming Lau, 2008. "Corporate Entrepreneurship as Resource Capital Configuration in Emerging Market Firms," Entrepreneurship Theory and Practice, , vol. 32(1), pages 37-57, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Khosravi, Pouria & Newton, Cameron & Rezvani, Azadeh, 2019. "Management innovation: A systematic review and meta-analysis of past decades of research," European Management Journal, Elsevier, vol. 37(6), pages 694-707.
    2. Arranz, N. & Arroyabe, M.F. & Li, Jun & de Arroyabe, J.C. Fernandez, 2019. "An integrated model of organisational innovation and firm performance: Generation, persistence and complementarity," Journal of Business Research, Elsevier, vol. 105(C), pages 270-282.
    3. Christian Rupietta & Johannes Meuer & Uschi Backes-Gellner, 2018. "How do apprentices moderate the influence of organizational innovation on the technological innovation process?," Economics of Education Working Paper Series 0145, University of Zurich, Department of Business Administration (IBW), revised Jan 2021.
    4. Osman Gök & Sinem Peker, 2017. "Understanding the links among innovation performance, market performance and financial performance," Review of Managerial Science, Springer, vol. 11(3), pages 605-631, July.
    5. Pino, Cesar & Felzensztein, Christian & Zwerg-Villegas, Anne Marie & Arias-Bolzmann, Leopoldo, 2016. "Non-technological innovations: Market performance of exporting firms in South America," Journal of Business Research, Elsevier, vol. 69(10), pages 4385-4393.
    6. Černe, Matej & Kaše, Robert & Škerlavaj, Miha, 2016. "Non-technological innovation research: evaluating the intellectual structure and prospects of an emerging field," Scandinavian Journal of Management, Elsevier, vol. 32(2), pages 69-85.
    7. Chang, Yuan-Chieh & Chen, Min-Nan, 2016. "Service regime and innovation clusters: An empirical study from service firms in Taiwan," Research Policy, Elsevier, vol. 45(9), pages 1845-1857.
    8. Dimitrios Kafetzopoulos & Evangelos Psomas, 2016. "ORGANISATIONAL LEARNING, NON-TECHNICAL INNOVATION AND CUSTOMER SATISFACTION OF SMEs," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(03), pages 1-28, April.
    9. Manuel Guisado-González & Len Tiu Wright & Manuel Guisado-Tato, 2017. "Product–process matrix and complementarity approach," The Journal of Technology Transfer, Springer, vol. 42(3), pages 441-459, June.
    10. Carmen González-Velasco & Marcos González-Fernández & José-Luis Fanjul-Suárez, 2019. "Does innovative effort matter for corporate performance in Spanish companies in a context of financial crisis? A fuzzy-set QCA approach," Empirical Economics, Springer, vol. 56(5), pages 1707-1727, May.
    11. Andreas Kallmuenzer & Ursula Scholl-Grissemann, 2017. "Disentangling antecedents and performance effects of family SME innovation: A knowledge-based perspective," International Entrepreneurship and Management Journal, Springer, vol. 13(4), pages 1117-1138, December.
    12. Ganter, Alois & Hecker, Achim, 2014. "Configurational paths to organizational innovation: qualitative comparative analyses of antecedents and contingencies," Journal of Business Research, Elsevier, vol. 67(6), pages 1285-1292.
    13. Dung Nguyen‐Van & Chia‐Hua Chang, 2021. "Internationalization and product innovation in ASEAN: The moderating role of organizational innovation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(2), pages 437-462, March.
    14. Lurdes Barroso Simao & Luísa Cagica Carvalho & Maria José Madeira, 2021. "Intellectual structure of management innovation: bibliometric analysis," Management Review Quarterly, Springer, vol. 71(3), pages 651-677, July.
    15. Camisón, César & Villar-López, Ana, 2014. "Organizational innovation as an enabler of technological innovation capabilities and firm performance," Journal of Business Research, Elsevier, vol. 67(1), pages 2891-2902.
    16. Černe, Matej & Jaklič, Marko & Škerlavaj, Miha, 2013. "Decoupling management and technological innovations: Resolving the individualism–collectivism controversy," Journal of International Management, Elsevier, vol. 19(2), pages 103-117.
    17. Hervas-Oliver, Jose-Luis & Sempere-Ripoll, Francisca, 2015. "Disentangling the influence of technological process and product innovations," Journal of Business Research, Elsevier, vol. 68(1), pages 109-118.
    18. Samuel Afriyie & Jianguo Duo & Kingsley Appiah & Abdul-Aziz Ibn Musah, 2018. "The Nexus between Types of Innovation and Marketing Performance of SME in an Emerging Economy," International Review of Management and Marketing, Econjournals, vol. 8(6), pages 78-92.
    19. Cécile Ayerbe & Sandra Dubouloz & Sophie Mignon & Marc Robert, 2020. "Management Innovation and Open Innovation: For and Towards Dialogue," Post-Print hal-02985953, HAL.
    20. Christophe Favoreu & Christophe Maurel & David Carassus & Pierre Marin, 2019. "Influence and Complementarity of Follow-on Managerial Innovations within a Public Organization," Public Organization Review, Springer, vol. 19(3), pages 345-365, September.

    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:eee:eurman:v:33:y:2015:i:5:p:407-422. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/115/description#description .

    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.