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On Factors explaining Organizational Innovation and its Effects

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Author Info
Koson Sapprasert (Centre for Technology, Innovation and Culture, University of Oslo)

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Abstract

This paper shows how the probability of attempts at organizational innovation and its effects can be explained by firm age and size and other determinants. The integrated firm-level dataset obtained from the latest two Norwegian Community Innovation Surveys (CIS3 & 4) and annual accounts is used to investigate these complex relationships. The analysis employing Heckman two-step estimation to correct potential sample selection bias demonstrates that firm age and size have different impacts on the firm’s decision to undertake organizational innovation and on the effects of such innovation on firm performance. Older and larger firms are found to be more inclined to make an attempt at organizational change; while, concerning the outcome, smaller firms are more able to benefit from such an attempt. The results further reveal that different types of organizational change do foster firm performance where even greater effects can be led by persistence of organizational innovation as well as complementarity of organizational and technological innovation. In addition, it is evidence that past economic performance and high costs of innovation influence the firm’s decision to pursue organizational change.

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File URL: http://www.tik.uio.no/InnoWP/Organizational%20Innovation%20Koson%20Sapprasert.pdf
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Publisher Info
Paper provided by Centre for Technology, Innovation and Culture, University of Oslo in its series Working Papers on Innovation Studies with number 20080601.

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Length: 26 pages
Date of creation: Jun 2008
Date of revision:
Handle: RePEc:tik:inowpp:20080601

Note: Paper presented at the DRUID summer conference 2008
Contact details of provider:
Postal: Postboks 1108 Blindern N-0317 Oslo
Phone: 22 84 16 00
Fax: : 22 84 16 01
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Web page: http://www.tik.uio.no/Innovation
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Related research
Keywords: Organizational Innovation; Age & Size; Structural Inertia; Firm Performance; Complementarity; Persistence.;

Find related papers by JEL classification:
L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
O21 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
O39 - Economic Development, Technological Change, and Growth - - Technological Change - - - Other

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This page was last updated on 2009-11-22.

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