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Organizational innovativeness: Exploring the relationship between organizational determinants of innovation, types of innovations, and measures of organizational performance

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  • Subramanian, A.
  • Nilakanta, S.
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    Abstract

    This research study examines the relationships between innovativeness of firms, their organizational characteristics, and organizational performance. Previous studies that have examined these relationships have yielded conflicting results. A fundamental assumption of this research is that these conflicting results may be due to a narrow definition of the construct of innovativeness. This research demonstrates that by using a multidimensional measure of innovativeness, the reasons for the conflicting findings of past research becomes evident. The results of this study show that substantive relationships do exist between organizational factors, organizational innovativeness, and organizational performance. These relationships, however, are complex, and can only be detected if innovativeness is measured as a multidimensional construct. Each of the organizational factors examined in this study showed significantly different effects on each dimension of two types of organizational innovativeness -- technical and administrative innovativeness. Further, the results show that innovativeness does improve organizational performance. However, each dimension of the two types of innovativeness affects different aspects of organizational performance.

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    Bibliographic Info

    Article provided by Elsevier in its journal Omega.

    Volume (Year): 24 (1996)
    Issue (Month): 6 (December)
    Pages: 631-647

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    Handle: RePEc:eee:jomega:v:24:y:1996:i:6:p:631-647

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    Related research

    Keywords: innovation management management of innovation organizational studies measurement methodology;

    References

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    1. N. Venkatraman, 1989. "Strategic Orientation of Business Enterprises: The Construct, Dimensionality, and Measurement," Management Science, INFORMS, vol. 35(8), pages 942-962, August.
    2. Henry Ogden Armour & David J. Teece, 1978. "Organizational Structure and Economic Performance: A Test of the Multidivisional Hypothesis," Bell Journal of Economics, The RAND Corporation, vol. 9(1), pages 106-122, Spring.
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    4. Antonelli, Cristiano, 1993. "Investment and adoption in advanced telecommunications," Journal of Economic Behavior & Organization, Elsevier, vol. 20(2), pages 227-245, February.
    5. Pennings, J.M. & Harianto, F., 1992. "Technological networking and innovation implementation," Open Access publications from Tilburg University urn:nbn:nl:ui:12-382784, Tilburg University.
    6. Robert W. Zmud, 1982. "Diffusion of Modern Software Practices: Influence of Centralization and Formalization," Management Science, INFORMS, vol. 28(12), pages 1421-1431, December.
    7. Kim, Linsu, 1980. "Organizational innovation and structure," Journal of Business Research, Elsevier, vol. 8(2), pages 225-245, June.
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    Cited by:
    1. Ana Pérez-Luño & Carmen Cabello Medina & Antonio Carmona Lavado & Gloria Cuevas Rodríguez, 2009. "Social capital and knowledge in interorganizational networks: Their joint effect on innovation," Working Papers 09.04, Universidad Pablo de Olavide, Department of Business Administration.
    2. Pant, Laxmi P., 2010. "Assessing Innovations in International Research and Development Practice," MERIT Working Papers 043, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Thierry Burger-Helmchen, 2011. "Cycle d’innovation dans les services, différences technologiques et similarités organisationnelles dans les entreprises de mécanique françaises et allemandes," Working Papers of BETA 2011-12, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    4. Fort, François, 2007. "Understanding the Structures and Dynamics of Socio-Technical Regimes Better in order to Improve Public Policies Supporting Innovation," Economics Papers from University Paris Dauphine 123456789/5014, Paris Dauphine University.
    5. Makkonen, Hannu & Pohjola, Mikko & Olkkonen, Rami & Koponen, Aki, 2014. "Dynamic capabilities and firm performance in a financial crisis," Journal of Business Research, Elsevier, vol. 67(1), pages 2707-2719.
    6. José Barbero & José Casillas & Mike Wright & Alicia Ramos Garcia, 2014. "Do different types of incubators produce different types of innovations?," The Journal of Technology Transfer, Springer, vol. 39(2), pages 151-168, April.
    7. 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.
    8. Wang, Eric T. G., 2001. "Linking organizational context with structure: a preliminary investigation of the information processing view," Omega, Elsevier, vol. 29(5), pages 429-443, October.
    9. J.W.B. Bos & J. Kolari & R. van Lamoen, 2009. "Competition and innovation: evidence from financial services," Working Papers 09-16, Utrecht School of Economics.
    10. Camelia DELCEA & Maria DASCALU, 2011. "A Method For Identifying The Possible Causes Of Failure In The Case Of Service Companies," Journal of Doctoral Research in Economics, The Bucharest University of Economic Studies, vol. 3(3), pages 48-61, September.
    11. Langerak, F. & Hultink, E.J. & Robben, H.R.S., 2000. "The Mediating Effect of NPD-Activities and NPD-Performance on the Relationship between Market Orientation and Organizational Performance," ERIM Report Series Research in Management ERS-2000-50-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    12. Laforet, Sylvie, 2013. "Organizational innovation outcomes in SMEs: Effects of age, size, and sector," Journal of World Business, Elsevier, vol. 48(4), pages 490-502.
    13. Che-Ha, Norbani & Mavondo, Felix T. & Mohd-Said, Saad, 2014. "Performance or learning goal orientation: Implications for business performance," Journal of Business Research, Elsevier, vol. 67(1), pages 2811-2820.
    14. Diéguez Castrillón, Mª I. & Sinde Cantorna, A.J., 2004. "Determinantes De La Política De Formación En Empresas Adoptantes De Nuevas Tecnologías De Fabricación Avanzada /," Investigaciones Europeas de Dirección y Economía de la Empresa (IEDEE), Academia Europea de Dirección y Economía de la Empresa (AEDEM), vol. 10(2), pages 115-130.
    15. Simpson, Penny M. & Siguaw, Judy A. & Enz, Cathy A., 2006. "Innovation orientation outcomes: The good and the bad," Journal of Business Research, Elsevier, vol. 59(10-11), pages 1133-1141, October.

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