Management And Technological Innovations: Is There A Virtuous Circle?

Purpose: The main aim of this paper is to analyse the association between management and technological innovations. Specifically, we determine whether organisational innovations influence technological ones or vice versa.Design/approach: This study is drawn from a sample of listed firms on the SBF1201 index and French Community Innovation Surveys (CIS) carried out between 2004 and 2016.Findings: Our study provides the following: First, we show that the introduction of new technological innovations could stimulate organisational changes in a firm’s structure. Second, the adoption of new management practices is likely to increase the introduction of new processes, however, it is not sufficient to favour the development of new or significantly improved products.Research limitations/implications: We studied different types of innovations, but we have ignored other forms of non-technological innovation, such as marketing innovations. It would be interesting to analyse the interaction between marketing and technological innovations.Practical implications: From a business perspective, we emphasise that firms should introduce new organisational methods in the firm’s business practices, workplace organisation, or external relations, and adopt managerial transformations to boost their innovation potential.Originality/value: To the best of our knowledge, this is the first paper that looks at the dynamic character between organisational and technological innovations, especially through a longitudinal study.1The SBF120 index consists of the largest 120 capitalizations listed on the French stock Exchange market (SBF: Société des Bourses Françaises).