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Synergistic effects of organizational innovation practices and firm performance

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  • MOTHE Caroline
  • NGUYEN Thi Thuc Uyen
  • NGUYEN-VAN Phu

Abstract

Organizational innovation has been shown to be favourable for technological innovation. However, the question of which organizational practices should be combined – and thus of their compatibility – remains unanswered. We here empirically investigate the complementarities between different organizational practices (business practices, knowledge management, workplace organization and external relations). Firm-level data were drawn from the Community Innovation Survey (CIS) carried out in 2008 in Luxembourg. Supermodularity tests provide evidence of the impact of complementary asset management to raise firms’ innovative performance. The organizational practices’ combinations differ according to whether the firm is in the first step of the innovation process (i.e. being innovative) or in a later step (i.e. performing as far as innovation is concerned). When adopting organizational practices, managers should therefore be aware of their effects on technological innovation. These results also have implications for public policies in terms of innovation support.

Suggested Citation

  • MOTHE Caroline & NGUYEN Thi Thuc Uyen & NGUYEN-VAN Phu, 2011. "Synergistic effects of organizational innovation practices and firm performance," LISER Working Paper Series 2011-32, Luxembourg Institute of Socio-Economic Research (LISER).
    • Handle: RePEc:irs:cepswp:2011-32
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    1. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie Mathématique et Applications 98.15, Université Panthéon-Sorbonne (Paris 1).
    2. 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.
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