Timing is everything: A meta-analysis of the relationships between organizational performance and innovation
The relationship between innovation and firm performance has been uncertain. In previous empirical tests of both causal directions of the organizational performance and innovation relationship, the temporal sequence of research designs has often been flawed. We meta-analytically test both temporal sequences of this relationship using 158 effect sizes from 55 empirical studies. We find that many empirical studies hypothesized one temporal sequence (e.g. innovation and future performance), but used data based on the opposite temporal sequence (e.g. past performance and innovation). Correcting the studies based on the actual temporal sequence used reveals that while the relationship between innovation and future performance is positive (based on economic rent-seeking), the relationship between past performance and innovation is less clear, especially when the study's framing is taken into account. Focusing on temporal sequencing suggests new research avenues on the organizational performance and innovation relationship.
References listed on IDEAS
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.:
- Daniel, Francis & Lohrke, Franz T. & Fornaciari, Charles J. & Turner, R. Jr., 2004. "Slack resources and firm performance: a meta-analysis," Journal of Business Research, Elsevier, vol. 57(6), pages 565-574, June.
- Zhou, Kevin Zheng & Gao, Gerald Yong & Yang, Zhilin & Zhou, Nan, 2005. "Developing strategic orientation in China: antecedents and consequences of market and innovation orientations," Journal of Business Research, Elsevier, vol. 58(8), pages 1049-1058, August.
- Gooding, Richard Z. & Goel, Sanjay & Wiseman, Robert M., 1996. "Fixed versus variable reference points in the risk-return relationship," Journal of Economic Behavior & Organization, Elsevier, vol. 29(2), pages 331-350, March.
- Matsuo, Makoto, 2006. "Customer orientation, conflict, and innovativeness in Japanese sales departments," Journal of Business Research, Elsevier, vol. 59(2), pages 242-250, February.
- Ritter, Thomas & Gemunden, Hans Georg, 2004. "The impact of a company's business strategy on its technological competence, network competence and innovation success," Journal of Business Research, Elsevier, vol. 57(5), pages 548-556, May.
- Fariborz Damanpour, 2001. "The Dynamics of the Adoption of Product and Process Innovations in Organizations," Journal of Management Studies, Wiley Blackwell, vol. 38(1), pages 45-65, 01.
- Blazevic, Vera & Lievens, Annouk, 2004. "Learning during the new financial service innovation process: Antecedents and performance effects," Journal of Business Research, Elsevier, vol. 57(4), pages 374-391, April.
- S. Trevis Certo & Richard H. Lester & Catherine M. Dalton & Dan R. Dalton, 2006. "Top Management Teams, Strategy and Financial Performance: A Meta-Analytic Examination," Journal of Management Studies, Wiley Blackwell, vol. 43(4), pages 813-839, 06.
- Nakata, Cheryl & Im, Subin & Park, Heungsoo & Ha, Young-Won, 2006. "Antecedents and consequence of Korean and Japanese new product advantage," Journal of Business Research, Elsevier, vol. 59(1), pages 28-36, January.
When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:63:y:2010:i:11:p:1179-1185. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.