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

  • Subramanian, A.
  • Nilakanta, S.
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    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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    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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    1. Antonelli, Cristiano, 1993. "Investment and adoption in advanced telecommunications," Journal of Economic Behavior & Organization, Elsevier, vol. 20(2), pages 227-245, February.
    2. repec:ner:tilbur:urn:nbn:nl:ui:12-382784 is not listed on IDEAS
    3. N. Venkatraman, 1989. "Strategic Orientation of Business Enterprises: The Construct, Dimensionality, and Measurement," Management Science, INFORMS, vol. 35(8), pages 942-962, August.
    4. Kim, Linsu, 1980. "Organizational innovation and structure," Journal of Business Research, Elsevier, vol. 8(2), pages 225-245, June.
    5. John E. Ettlie & William P. Bridges & Robert D. O'Keefe, 1984. "Organization Strategy and Structural Differences for Radical Versus Incremental Innovation," Management Science, INFORMS, vol. 30(6), pages 682-695, June.
    6. 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.
    7. Robert W. Zmud, 1982. "Diffusion of Modern Software Practices: Influence of Centralization and Formalization," Management Science, INFORMS, vol. 28(12), pages 1421-1431, December.
    8. Robert D. Dewar & Jane E. Dutton, 1986. "The Adoption of Radical and Incremental Innovations: An Empirical Analysis," Management Science, INFORMS, vol. 32(11), pages 1422-1433, November.
    9. E. Burton Swanson, 1994. "Information Systems Innovation Among Organizations," Management Science, INFORMS, vol. 40(9), pages 1069-1092, September.
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