IDEAS home Printed from https://ideas.repec.org/a/taf/ecinnt/v15y2006i3p195-217.html
   My bibliography  Save this article

Complementarities between organisational strategies and innovation

Author

Listed:
  • Brian Cozzarin
  • Jennifer Percival

Abstract

The purpose of this paper is to determine whether organizational strategies in various manufacturing industries are complementary with innovation. In particular, our interest is to discover which organizational strategies are complementary with major innovations (world-first and Canada-first). Knowledge of complementarity should pave the way for creating sustainable competitive advantage because the use of a complex strategy may be difficult to imitate. In other words, competitive advantage increases as the complexity of the strategy increases (i.e. because the number of strategy combinations follows a power law), which acts as a barrier to potential imitators (Rivkin, J.W. (2000) Imitation of Complex Strategies. Management Science, 46(6), 824-844.). Because of the static nature of our results (productivity and profit are for 1997), their interpretation can only be tentative. Thus, our research is really a first step along the road to understanding the (potential) importance of complementarities among firm strategies. Caveats aside, managers may want to compare their own firm's emphasis on particular strategies against what is empirically determined to be complementary with innovation and high-performance within their industry. The frequency of complementary pairs that involve innovation range from 40 to 50% depending on whether we are talking about profit, productivity, or strategies. This result is important—as it means that innovation outcomes are statistically significant for both increased productivity and increased profit. Furthermore, innovation was found to be complementary with many organizational strategies. The complementary strategies across industries were quite different, but this was expected to occur.

Suggested Citation

  • Brian Cozzarin & Jennifer Percival, 2006. "Complementarities between organisational strategies and innovation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(3), pages 195-217.
  • Handle: RePEc:taf:ecinnt:v:15:y:2006:i:3:p:195-217 DOI: 10.1080/10438590500222691
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/10438590500222691
    Download Restriction: Access to full text is restricted to subscribers.

    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. Jacques Mairesse & Pierre Mohnen, 2002. "Accounting for Innovation and Measuring Innovativeness: An Illustrative Framework and an Application," American Economic Review, American Economic Association, pages 226-230.
    2. Milgrom, Paul & Roberts, John, 1995. "The Economics of Modern Manufacturing: Reply," American Economic Review, American Economic Association, pages 997-999.
    3. Milgrom, Paul & Roberts, John, 1995. "Complementarities and fit strategy, structure, and organizational change in manufacturing," Journal of Accounting and Economics, Elsevier, vol. 19(2-3), pages 179-208, April.
    4. Rinaldo Evangelista, 2000. "Sectoral Patterns Of Technological Change In Services," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 9(3), pages 183-222.
    5. Evangelista, Rinaldo & Perani, Giulio & Rapiti, Fabio & Archibugi, Daniele, 1997. "Nature and impact of innovation in manufacturing industry: some evidence from the Italian innovation survey," Research Policy, Elsevier, pages 521-536.
    6. Milgrom, Paul & Roberts, John, 1990. "The Economics of Modern Manufacturing: Technology, Strategy, and Organization," American Economic Review, American Economic Association, pages 511-528.
    7. Argyres, Nicholas S., 1995. "Technology strategy, governance structure and interdivisional coordination," Journal of Economic Behavior & Organization, Elsevier, vol. 28(3), pages 337-358, December.
    8. Bruno Crépon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation and Productivity : An Econometric Analysis at the Firm Level," Working Papers 98-33, Center for Research in Economics and Statistics.
    9. Chenhall, R. H. & Langfield-Smith, K., 1998. "The relationship between strategic priorities, management techniques and management accounting: an empirical investigation using a systems approach," Accounting, Organizations and Society, Elsevier, vol. 23(3), pages 243-264, April.
    10. Karel O. Cool & Dan Schendel, 1987. "Strategic Group Formation and Performance: The Case of the U.S. Pharmaceutical Industry, 1963--1982," Management Science, INFORMS, pages 1102-1124.
    11. Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation And Productivity: An Econometric Analysis At The Firm Level," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(2), pages 115-158.
    12. Brian Cozzarin, 2004. "Innovation quality and manufacturing firms' performance in Canada," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 13(3), pages 199-216.
    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. Martin Carree & Boris Lokshin & René Belderbos, 2011. "A note on testing for complementarity and substitutability in the case of multiple practices," Journal of Productivity Analysis, Springer, pages 263-269.
    2. repec:enr:rpaper:0006 is not listed on IDEAS
    3. Caroline Mothe & Uyen T. Nguyen-Thi & Phu Nguyen-Van, 2015. "Assessing complementarity in organizational innovations for technological innovation: the role of knowledge management practices," Applied Economics, Taylor & Francis Journals, vol. 47(29), pages 3040-3058, June.
    4. Schmidt, Tobias & Rammer, Christian, 2007. "Non-technological and Technological Innovation: Strange Bedfellows?," ZEW Discussion Papers 07-052, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    5. Ganter, Alois & Hecker, Achim, 2014. "Configurational paths to organizational innovation: qualitative comparative analyses of antecedents and contingencies," Journal of Business Research, Elsevier, vol. 67(6), pages 1285-1292.
    6. Gerard Ballot & Fathi Fakhfakh & Fabrice Gallia & Ammon Salter, 2011. "The Fateful Triangle Complementarities between product, process and organizational innovation in the UK and France," TEPP Working Paper 2011-05, TEPP.
    7. Gilli, Marianna & Mancinelli, Susanna & Mazzanti, Massimiliano, 2014. "Innovation complementarity and environmental productivity effects: Reality or delusion? Evidence from the EU," Ecological Economics, Elsevier, vol. 103(C), pages 56-67.
    8. Caroline Mothe & Uyen T. Nguyen-Thi & Phu Nguyen-Van, 2014. "Are organizational innovation practices complements or substitutes for technological innovation performance?," Working Papers of BETA 2014-12, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    9. Aldónio Ferreira & Carly Moulang & Bayu Hendro, 2010. "Environmental management accounting and innovation: an exploratory analysis," Accounting, Auditing & Accountability Journal, Emerald Group Publishing, vol. 23(7), pages 920-948, September.
    10. Love, James H. & Roper, Stephen & Vahter, Priit, 2014. "Dynamic complementarities in innovation strategies," Research Policy, Elsevier, pages 1774-1784.
    11. Antonioli, Davide & Mancinelli, Susanna & Mazzanti, Massimiliano, 2013. "Is environmental innovation embedded within high-performance organisational changes? The role of human resource management and complementarity in green business strategies," Research Policy, Elsevier, pages 975-988.
    12. Kostoff, Ronald N. & Geisler, Elie, 2007. "The unintended consequences of metrics in technology evaluation," Journal of Informetrics, Elsevier, vol. 1(2), pages 103-114.
    13. Berulava, George & Gogokhia, Teimuraz, 2016. "Studying Complementarities between Modes of Innovation Strategies in Transition Economies," MPRA Paper 71277, University Library of Munich, Germany.
    14. Formaneck, Steven D. & Cozzarin, Brian P., 2013. "Technology adoption and training practices as a constrained shortest path problem," Omega, Elsevier, vol. 41(2), pages 459-472.
    15. repec:wsi:wschap:9781786343482_0001 is not listed on IDEAS
    16. Ennen, Edgar & Richter, Ansgar, 2009. "The Whole Is More Than the Sum of Its Parts - Or Is It? A Review of the Empirical Literature on Complementarities in Organizations," MPRA Paper 15666, University Library of Munich, Germany.
    17. Ganter, Alois & Hecker, Achim, 2013. "Deciphering antecedents of organizational innovation," Journal of Business Research, Elsevier, vol. 66(5), pages 575-584.
    18. repec:ipg:wpaper:2014-488 is not listed on IDEAS
    19. Rafael Cáceres & Joaquin Guzmán, 2015. "Seeking an innovation structure common to both manufacturing and services," Service Business, Springer;Pan-Pacific Business Association, pages 361-379.
    20. David Devins & George Lodorfos & Ioannis Kostopoulos & Don Webber, 2017. "Innovation And Growth In The City Region: Microeconomic Evidence Of Asymmetries," World Scientific Book Chapters,in: Promoting Innovation in New Ventures and Small- and Medium-Sized Enterprises, chapter 1, pages 3-27 World Scientific Publishing Co. Pte. Ltd..
    21. Martin Carree & Boris Lokshin & René Belderbos, 2011. "A note on testing for complementarity and substitutability in the case of multiple practices," Journal of Productivity Analysis, Springer, pages 263-269.
    22. Ballot, Gérard & Fakhfakh, Fathi & Galia, Fabrice & Salter, Ammon, 2015. "The fateful triangle: Complementarities in performance between product, process and organizational innovation in France and the UK," Research Policy, Elsevier, pages 217-232.

    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:taf:ecinnt:v:15:y:2006:i:3:p:195-217. 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: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/GEIN20 .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.