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Learning during the New Financial Service Innovation Process: Antecedents and Performance Effects

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  • Blazevic,Vera
  • Lievens,Annouk

    (METEOR)

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    Abstract

    This article theoretically and empirically examines the antecedents and consequences of project learning during the new financial service innovation process. We analyze the impact of project learning on project performance and performance of the financial institution. Next we investigate the antecedent role of the nature of communication and organizational design on project learning. Following the development of a propositional framework, a survey research has been developed within the Belgian banking industry. Our research findings indicate that the level of project learning contributes to the corporate reputation of the financial institution. Moreover, learning during project innovation enhances the cost and the competitive position of the innovating bank. Our study empirically supports the crucial influence of management support, harmonious cross-functional interfaces, organizational diversity and participative decision-making on the level of project learning. Both innovative and coordinative communication are needed to balance the information needs throughout the innovation process. However, our findings underline the fact that the impact of innovative communication on the level of project learning is contingent upon the quality of the planning stage. The up-front activities of the innovation process seem to have an important leveraging effect on learning, and hence on project and bank performance.

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    Bibliographic Info

    Paper provided by Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR) in its series Research Memorandum with number 040.

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    Date of creation: 2003
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    Handle: RePEc:unm:umamet:2003040

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    Keywords: Economics ;

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    1. Mary Beth Pinto & Jeffrey K. Pinto & John E. Prescott, 1993. "Antecedents and Consequences of Project Team Cross-Functional Cooperation," Management Science, INFORMS, vol. 39(10), pages 1281-1297, October.
    2. Hult, G. Tomas M. & Ferrell, O. C., 1997. "A global learning organization structure and market information processing," Journal of Business Research, Elsevier, vol. 40(2), pages 155-166, October.
    3. Constance E. Helfat, 1994. "Evolutionary Trajectories in Petroleum Firm R&D," Management Science, INFORMS, vol. 40(12), pages 1720-1747, December.
    4. Ghemawat, Pankaj & Ricart, Joan E., 1993. "Organizational tension between static and dynamic efficiency, The," IESE Research Papers D/255, IESE Business School.
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