IDEAS home Printed from https://ideas.repec.org/a/spr/rvmgts/v13y2019i1d10.1007_s11846-017-0243-2.html
   My bibliography  Save this article

Organizational wisdom practices and firm product innovation

Author

Listed:
  • Ali E. Akgün

    (Gebze Technical University)

  • Halit Keskin

    (Yildiz Technical University)

  • Sumeyye Y. Kırçovalı

    (Gebze Technical University)

Abstract

The manner in which organizational wisdom-related variables or practices (e.g., reasoning, intuition, virtue, prudence, and aesthetics) are related to firm product innovativeness, and financial performance is rarely addressed empirically in the management literature. By studying 202 Turkish firms and employing both structural equation modeling analysis and fuzzy set qualitative comparative analysis, this study demonstrates that (a) aesthetic practice is a core antecedent of firm product innovativeness, (b) intuitive practice has an inverted U-shaped relationship with firm product innovativeness, and (c) different combinations of organizational wisdom practices are indeed related to firm product innovativeness. This study also shows the mediating role of product innovativeness partially based on the relationship between wisdom practices and firm financial performance. In addition, this study demonstrates that environmental uncertainty is positively associated with virtuous and prudent practices.

Suggested Citation

  • Ali E. Akgün & Halit Keskin & Sumeyye Y. Kırçovalı, 2019. "Organizational wisdom practices and firm product innovation," Review of Managerial Science, Springer, vol. 13(1), pages 57-91, February.
    • Handle: RePEc:spr:rvmgts:v:13:y:2019:i:1:d:10.1007_s11846-017-0243-2
    DOI: 10.1007/s11846-017-0243-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11846-017-0243-2
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11846-017-0243-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ikujiro Nonaka & Ryoko Toyama, 2007. "Strategic management as distributed practical wisdom (phronesis)," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 16(3), pages 371-394, June.
    2. David Oliver & Matthew Statler & Johan Roos, 2010. "A Meta-Ethical Perspective on Organizational Identity," Journal of Business Ethics, Springer, vol. 94(3), pages 427-440, July.
    3. Abeba Nigussie Turi & Josep Domingo-Ferrer & David Sánchez & Dritan Osmani, 2017. "A co-utility approach to the mesh economy: the crowd-based business model," Review of Managerial Science, Springer, vol. 11(2), pages 411-442, March.
    4. Ole Fogh Kirkeby, 2009. "Phronesis as the Sense of the Event," International Journal of Action Research, Rainer Hampp Verlag, vol. 5(1), pages 69-113.
    5. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and Sustainability of Competitive Advantage," Management Science, INFORMS, vol. 35(12), pages 1504-1511, December.
    6. Friederike Wall, 2016. "Agent-based modeling in managerial science: an illustrative survey and study," Review of Managerial Science, Springer, vol. 10(1), pages 135-193, January.
    7. Akgün, Ali E. & Keskin, Halit & Byrne, John C. & Lynn, Gary S., 2014. "Antecedents and consequences of organizations' technology sensemaking capability," Technological Forecasting and Social Change, Elsevier, vol. 88(C), pages 216-231.
    8. Natàlia Cugueró-Escofet & Marion Fortin, 2014. "One Justice or Two? A Model of Reconciliation of Normative Justice Theories and Empirical Research on Organizational Justice," Journal of Business Ethics, Springer, vol. 124(3), pages 435-451, October.
    9. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and the Sustainability of Competitive Advantage: Reply," Management Science, INFORMS, vol. 35(12), pages 1514-1514, December.
    10. Edwin Hartman, 2008. "Socratic Questions and Aristotelian Answers: A Virtue-Based Approach to Business Ethics," Journal of Business Ethics, Springer, vol. 78(3), pages 313-328, March.
    11. Steven S. Taylor & Hans Hansen, 2005. "Finding Form: Looking at the Field of Organizational Aesthetics," Journal of Management Studies, Wiley Blackwell, vol. 42(6), pages 1211-1231, September.
    12. Koonce, Lisa & Seybert, Nick & Smith, James, 2011. "Causal reasoning in financial reporting and voluntary disclosure," Accounting, Organizations and Society, Elsevier, vol. 36(4), pages 209-225.
    13. Osman Gök & Sinem Peker, 2017. "Understanding the links among innovation performance, market performance and financial performance," Review of Managerial Science, Springer, vol. 11(3), pages 605-631, July.
    14. Kent D. Miller & Shu-Jou Lin, 2015. "Analogical reasoning for diagnosing strategic issues in dynamic and complex environments," Strategic Management Journal, Wiley Blackwell, vol. 36(13), pages 2000-2020, December.
    15. Meissner, Philip & Wulf, Torsten, 2014. "Antecendents and effects of decision comprehensiveness: The role of decision quality and perceived uncertainty," European Management Journal, Elsevier, vol. 32(4), pages 625-635.
    16. Sarah Michaels & Nancy P. Goucher & Dan McCarthy, 2006. "Considering Knowledge Uptake within a Cycle of Transforming Data, Information, and Knowledge," Review of Policy Research, Policy Studies Organization, vol. 23(1), pages 267-279, January.
    17. Laura Dunham, 2010. "From Rational to Wise Action: Recasting Our Theories of Entrepreneurship," Journal of Business Ethics, Springer, vol. 92(4), pages 513-530, April.
    18. Said Elbanna & John Child, 2007. "Influences on strategic decision effectiveness: Development and test of an integrative model," Strategic Management Journal, Wiley Blackwell, vol. 28(4), pages 431-453, April.
    19. Constance E. Helfat & Margaret A. Peteraf, 2003. "The dynamic resource‐based view: capability lifecycles," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 997-1010, October.
    20. Izak, Michal, 2013. "The foolishness of wisdom: Towards an inclusive approach to wisdom in organization," Scandinavian Journal of Management, Elsevier, vol. 29(1), pages 108-115.
    21. Shapiro, Stewart & Spence, Mark T., 1997. "Managerial intuition: A conceptual and operational framework," Business Horizons, Elsevier, vol. 40(1), pages 63-68.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Paola Castellani & Chiara Rossato & Elena Giaretta & Raffaela Davide, 2021. "Tacit knowledge sharing in knowledge-intensive firms: the perceptions of team members and team leaders," Review of Managerial Science, Springer, vol. 15(1), pages 125-155, January.
    2. Chun-Liang Chen, 2021. "Cultural product innovation strategies adopted by the performing arts industry," Review of Managerial Science, Springer, vol. 15(5), pages 1139-1171, July.
    3. Astadi Pangarso, 2020. "A New Theoretical Framework of Organizational Effectiveness from Knowledge and Ambidexterity Perspectives," GATR Journals jmmr257, Global Academy of Training and Research (GATR) Enterprise.
    4. Paulin Gohoungodji & Nabil Amara, 2023. "Art of innovating in the arts: definitions, determinants, and mode of innovation in creative industries, a systematic review," Review of Managerial Science, Springer, vol. 17(8), pages 2685-2725, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lin, Hsing-Er & Hsu, I-Chieh & Hsu, Audrey Wenhsin & Chung, Hsi-Mei, 2020. "Creating competitive advantages: Interactions between ambidextrous diversification strategy and contextual factors from a dynamic capability perspective," Technological Forecasting and Social Change, Elsevier, vol. 154(C).
    2. Caloghirou, Yannis & Giotopoulos, Ioannis & Kontolaimou, Alexandra & Korra, Efthymia & Tsakanikas, Aggelos, 2021. "Industry-university knowledge flows and product innovation: How do knowledge stocks and crisis matter?," Research Policy, Elsevier, vol. 50(3).
    3. Andrew D. Henderson & Melissa E. Graebner, 2020. "Entering a Golden Age of Sustained Superiority: Entrepreneurial Creation or Discovery?," Organization Science, INFORMS, vol. 31(6), pages 1432-1451, November.
    4. Parast, Mahour Mellat, 2020. "The impact of R&D investment on mitigating supply chain disruptions: Empirical evidence from U.S. firms," International Journal of Production Economics, Elsevier, vol. 227(C).
    5. Majumdar, Sumit K., 2014. "Technology and wages: Why firms invest and what happens," Technology in Society, Elsevier, vol. 39(C), pages 44-54.
    6. Busby, J.S., 2019. "The co-evolution of competition and parasitism in the resource-based view: A risk model of product counterfeiting," European Journal of Operational Research, Elsevier, vol. 276(1), pages 300-313.
    7. Shinjinee Chattopadhyay & Janet Bercovitz, 2020. "When one door closes, another door opens … for some: Evidence from the post‐TRIPS Indian pharmaceutical industry," Strategic Management Journal, Wiley Blackwell, vol. 41(6), pages 988-1022, June.
    8. Sminia, Harry & Ates, Aylin & Paton, Steve & Smith, Marisa, 2019. "High value manufacturing: Capability, appropriation, and governance," European Management Journal, Elsevier, vol. 37(4), pages 516-528.
    9. Aurora Irma Maynez-Guaderrama & Judith Cavazos-Arroyo & Vianey Torres-Arguelles & Maria Teresa Escobedo-Portillo, 2013. "Capabilities To Customize Production And Reconfigure Internally: Do Capabilities Influence Perceived Operating Performance And Competitive Advantage?, Las Capacidades De La Empresa Para Personalizar S," Revista Internacional Administracion & Finanzas, The Institute for Business and Finance Research, vol. 6(7), pages 47-65.
    10. Tessa Christina Flatten & Andreas Engelen & Timo Möller & Malte Brettel, 2015. "How Entrepreneurial Firms Profit from Pricing Capabilities: An Examination of Technology–Based Ventures," Entrepreneurship Theory and Practice, , vol. 39(5), pages 1111-1136, September.
    11. Claudius Bachmann & André Habisch & Claus Dierksmeier, 2018. "Practical Wisdom: Management’s No Longer Forgotten Virtue," Journal of Business Ethics, Springer, vol. 153(1), pages 147-165, November.
    12. Zhang, Yucheng & Hou, Zhongwei & Yang, Feifei & Yang, Miles M. & Wang, Zhiling, 2021. "Discovering the evolution of resource-based theory: Science mapping based on bibliometric analysis," Journal of Business Research, Elsevier, vol. 137(C), pages 500-516.
    13. Qamar, A. & Gardner, E.C. & Buckley, T. & Zhao, K., 2021. "Home-owned versus foreign-owned firms in the UK automotive industry: Exploring the microfoundations of ambidextrous production and supply chain positioning," International Business Review, Elsevier, vol. 30(1).
    14. Tippmann, Esther & Ambos, Tina C. & Del Giudice, Manlio & Monaghan, Sinéad & Ringov, Dimo, 2023. "Scale-ups and scaling in an international business context," Journal of World Business, Elsevier, vol. 58(1).
    15. Symeonidou, Noni & Leiponen, Aija & Autio, Erkko & Bruneel, Johan, 2022. "The origins of capabilities: Resource allocation strategies, capability development, and the performance of new firms," Journal of Business Venturing, Elsevier, vol. 37(4).
    16. Stephan M Liozu, 2016. "The evolution and future of pricing capabilities," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 15(3), pages 306-316, July.
    17. Nicolai J. Foss & Peter G. Klein & Lasse B. Lien & Thomas Zellweger & Todd Zenger, 2021. "Ownership competence," Strategic Management Journal, Wiley Blackwell, vol. 42(2), pages 302-328, February.
    18. Bernat, Stefan & Karabag, Solmaz Filiz, 2019. "Strategic alignment of technology: Organising for technology upgrading in emerging economy firms," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 295-306.
    19. Kannan Srikanth & Jaideep Anand & Mihaela Stan, 2021. "The origins of time compression diseconomies," Strategic Management Journal, Wiley Blackwell, vol. 42(9), pages 1573-1599, September.
    20. Huemer, Lars & Wang, Xiaobei, 2021. "Resource bundles and value creation: An analytical framework," Journal of Business Research, Elsevier, vol. 134(C), pages 720-728.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:rvmgts:v:13:y:2019:i:1:d:10.1007_s11846-017-0243-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.