Intra-organizational integration and innovation: organizational structure, environmental contingency and R&D performance
AbstractIt is widely thought that intra-firm integration has a positive effect on organizational performance, especially in environments characterized by complex and uncertain information. However, counter arguments suggest that integration may limit flexibility and thereby reduce performance in the face of uncertainty. Research and development activities of a firm are especially likely to face complex and uncertain information environments. Following prior work in contingency theory, this paper analyzes the effects of intra-organizational integration on manufacturing firms’ innovative performance. Based on a survey of R&D units in US manufacturing firms and patent data from the NBER patent database, we examine the relation between mechanisms for linking R&D to other units of the firm and the relative innovativeness of the firm. Furthermore, we argue that the impact of integration may vary by the importance of secrecy in protecting firms’ innovation advantages. We find that intra-firm integration is associated with higher self-reported innovativeness and more patents. We also find some evidence that this effect is moderated by the appropriability regime the firm faces, with the benefits of cross-functional integration being weaker in industries where secrecy is especially important. These results both support and develop the contingency model of organizational performance.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by ICER - International Centre for Economic Research in its series ICER Working Papers with number 20-2011.
Length: 40 pages
Date of creation: Feb 2012
Date of revision:
Innovation; Organizations; Contingency theory;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-02-27 (All new papers)
- NEP-CSE-2012-02-27 (Economics of Strategic Management)
- NEP-INO-2012-02-27 (Innovation)
- NEP-KNM-2012-02-27 (Knowledge Management & Knowledge Economy)
- NEP-PPM-2012-02-27 (Project, Program & Portfolio Management)
- NEP-SBM-2012-02-27 (Small Business Management)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Richard R. Nelson, 2003.
"On the Uneven Evolution of Human Know-How,"
LEM Papers Series
2003/25, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- Zvi Griliches, 1990.
"Patent Statistics as Economic Indicators: A Survey,"
NBER Working Papers
3301, National Bureau of Economic Research, Inc.
- Griliches, Zvi, 1990. "Patent Statistics as Economic Indicators: A Survey," Journal of Economic Literature, American Economic Association, vol. 28(4), pages 1661-1707, December.
- Zvi Griliches, 1998. "Patent Statistics as Economic Indicators: A Survey," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 287-343 National Bureau of Economic Research, Inc.
- Herbert A. Simon, 2002. "Organizing and coordinating talk and silence in organizations," Industrial and Corporate Change, Oxford University Press, vol. 11(3), pages 611-618, June.
- Manuel Trajtenberg & Adam B. Jaffe & Michael S. Fogarty, 2000. "Knowledge Spillovers and Patent Citations: Evidence from a Survey of Inventors," American Economic Review, American Economic Association, vol. 90(2), pages 215-218, May.
- Kortum, Samuel & Lerner, Josh, 1999. "What is behind the recent surge in patenting?1," Research Policy, Elsevier, vol. 28(1), pages 1-22, January.
- Ariel Pakes, 1986.
"Patents as Options: Some Estimates of the Value of Holding European Patent Stocks,"
NBER Working Papers
1340, National Bureau of Economic Research, Inc.
- Pakes, Ariel S, 1986. "Patents as Options: Some Estimates of the Value of Holding European Patent Stocks," Econometrica, Econometric Society, vol. 54(4), pages 755-84, July.
- Fosfuri, Andrea & Rønde, Thomas, 2009. "Leveraging resistance to change and the skunk works model of innovation," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 274-289, October.
- Liebeskind, Julia Porter, 1997. "Keeping Organizational Secrets: Protective Institutional Mechanisms and Their Costs," Industrial and Corporate Change, Oxford University Press, vol. 6(3), pages 623-63, September.
- Chuma, Hiroyuki, 2006. "Increasing complexity and limits of organization in the microlithography industry: implications for science-based industries," Research Policy, Elsevier, vol. 35(3), pages 394-411, April.
- Donald Gerwin, 1993. "Manufacturing Flexibility: A Strategic Perspective," Management Science, INFORMS, vol. 39(4), pages 395-410, April.
- John E. Ettlie, 1995. "Product-Process Development Integration in Manufacturing," Management Science, INFORMS, vol. 41(7), pages 1224-1237, July.
- Xing Zhong & Salih Zeki Ozdemir, 2010. "Structure, learning, and the speed of innovating: a two-phase model of collective innovation using agent based modeling," Industrial and Corporate Change, Oxford University Press, vol. 19(5), pages 1459-1492, October.
- Teece, David J., 1986.
"Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy,"
Elsevier, vol. 15(6), pages 285-305, December.
- Teece, David J., 1993. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," Research Policy, Elsevier, vol. 22(2), pages 112-113, April.
- Foss, Kirsten, 2001. "Organizing Technological Interdependencies: A Coordination Perspective on the Firm," Industrial and Corporate Change, Oxford University Press, vol. 10(1), pages 151-78, March.
- Giuri, Paola & Mariani, Myriam, 2007.
"Inventors and invention processes in Europe: Results from the PatVal-EU survey,"
Elsevier, vol. 36(8), pages 1105-1106, October.
- Giuri, Paola & Mariani, Myriam & Brusoni, Stefano & Crespi, Gustavo & Francoz, Dominique & Gambardella, Alfonso & Garcia-Fontes, Walter & Geuna, Aldo & Gonzales, Raul & Harhoff, Dietmar & Hoisl, Karin, 2007. "Inventors and invention processes in Europe: Results from the PatVal-EU survey," Research Policy, Elsevier, vol. 36(8), pages 1107-1127, October.
- Thomas Rønde, 2001. "Trade Secrets and Information Sharing," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 10(3), pages 391-417, 09.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alessandra Calosso).
If references are entirely missing, you can add them using this form.