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Financial constraints in innovation projects: When is less more?

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  • Hoegl, Martin
  • Gibbert, Michael
  • Mazursky, David

Abstract

This article aims to reconcile the seemingly contradicting arguments put forth in different literatures regarding the role of financial resource constraints as inhibitors or enablers of innovation in organizations. Recognizing that innovative endeavors are regularly carried out through team projects, we examine when, i.e., under what conditions, financial resource constraints enable, rather than inhibit, the performance of innovation teams. Specifically, we propose that the relationship between financial constraints and innovation project performance is moderated by a bounded creativity approach, a team process that leverages the team's domain-relevant skills, an engaging project objective, strong team cohesion, and team potency.

Suggested Citation

  • Hoegl, Martin & Gibbert, Michael & Mazursky, David, 2008. "Financial constraints in innovation projects: When is less more?," Research Policy, Elsevier, vol. 37(8), pages 1382-1391, September.
  • Handle: RePEc:eee:respol:v:37:y:2008:i:8:p:1382-1391
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    References listed on IDEAS

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    1. repec:eee:jbrese:v:82:y:2018:i:c:p:192-201 is not listed on IDEAS
    2. García-Quevedo, José & Segarra-Blasco, Agustí & Teruel, Mercedes, 2018. "Financial constraints and the failure of innovation projects," Technological Forecasting and Social Change, Elsevier, vol. 127(C), pages 127-140.
    3. Armand Hatchuel & Milena Klasing Chen, 2017. "Creativity under Strong Constraints: the Hidden Influence of Design Models traduction," Post-Print hal-01465689, HAL.
    4. Pansera, Mario & Owen, Richard, 2015. "Framing resource-constrained innovation at the ‘bottom of the pyramid’: Insights from an ethnographic case study in rural Bangladesh," Technological Forecasting and Social Change, Elsevier, vol. 92(C), pages 300-311.
    5. repec:spr:manint:v:52:y:2012:i:4:d:10.1007_s11575-011-0114-z is not listed on IDEAS
    6. Hirunyawipada, Tanawat & Paswan, Audhesh K., 2013. "Effects of team cognition and constraint on new product ideation," Journal of Business Research, Elsevier, vol. 66(11), pages 2332-2337.
    7. Grichnik, Dietmar & Brinckmann, Jan & Singh, Luv & Manigart, Sophie, 2014. "Beyond environmental scarcity: Human and social capital as driving forces of bootstrapping activities," Journal of Business Venturing, Elsevier, vol. 29(2), pages 310-326.
    8. Ine Paeleman & Tom Vanacker, 2015. "Less is More, or Not? On the Interplay between Bundles of Slack Resources, Firm Performance and Firm Survival," Journal of Management Studies, Wiley Blackwell, vol. 52(6), pages 819-848, September.
    9. Sarkar, Soumodip & Pansera, Mario, 2017. "Sustainability-driven innovation at the bottom: Insights from grassroots ecopreneurs," Technological Forecasting and Social Change, Elsevier, vol. 114(C), pages 327-338.
    10. de Leeuw, Tim & Lokshin, Boris & Duysters, Geert, 2014. "Returns to alliance portfolio diversity: The relative effects of partner diversity on firm's innovative performance and productivity," Journal of Business Research, Elsevier, vol. 67(9), pages 1839-1849.
    11. Karen Johson & Akil Amiraly, 2017. "Bringing entrepreneurial methods into the scientific classroom
      [L'introduction d'une approche entrepreneuriale dans un cours de sciences fondamentales]
      ," Post-Print hal-01574725, HAL.
    12. Adel Tlili, 2011. "Une analyse binomiale de la décision d’innovation dans un échantillon d’entreprises privées en Tunisie," Working Papers 605, Economic Research Forum, revised 08 Jan 2011.
    13. Roxana Adam, 2015. "The Romanian Product Innovative Enterprises - A Statistical Analysis Using "R"," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 3(1), pages 101-107, May.
    14. Ozer, Muammer, 2009. "The roles of product lead-users and product experts in new product evaluation," Research Policy, Elsevier, vol. 38(8), pages 1340-1349, October.

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