Process innovation objectives and management complementarities: patterns, drivers, co-adoption and performance effects
The excessive concentration of the innovation literature on product development, its drivers and effects, has almost neglected an important strategy which develops and sustains a firm's competitive advantage: process development or innovation. This is an examination of process innovation as more than a mere dependent variable for predicting innovators. It provides insights into the poor attention that process innovation variable has received as an indicator of a firm's performance. In addition, the paper relates this process with the management innovation phenomenon. Using 8,977 firms from Spain through CIS data, findings suggest: (1) most process innovation performance is explained without R&D variables; (2) process innovation process innovation was observed to have a strong dependence on external sources of knowledge, mainly via the acquisition of embodied knowledge; (3) an important "implementation" effect or "learning by trying" effect is observed in which the acquisition of embodied knowledge requires the organization to couple the new technology with existing processes; (4) the simultaneous co-adoption of management innovation positively moderates and improves process performance (5) product innovation is not related to process innovation performance. The latter result is unrelated to consideration of co-adoption of product and process innovation. Two-step Heckman procedures control for the selection process. The paper presents important implications for policymakers and scholars.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (31) (0)43 3883875
Fax: (31) (0)43 3216518
Web page: http://www.merit.unu.edu/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rinaldo Evangelista & Simona Iammarino & Valeria Mastrostefano & Alberto Silvani, 2002. "Looking for Regional Systems of Innovation: Evidence from the Italian Innovation Survey," Regional Studies, Taylor & Francis Journals, vol. 36(2), pages 173-186.
- Vega-Jurado, Jaider & Gutiérrez-Gracia, Antonio & Fernández-de-Lucio, Ignacio & Manjarrés-Henriquez, Liney, 2008. "The effect of external and internal factors on firms' product innovation," Research Policy, Elsevier, vol. 37(4), pages 616-632, May.
- Jensen, Morten Berg & Johnson, Bjorn & Lorenz, Edward & Lundvall, Bengt Ake, 2007. "Forms of knowledge and modes of innovation," Research Policy, Elsevier, vol. 36(5), pages 680-693, June.
- Stephen Flowers, 2007. "Organizational capabilities and technology acquisition: why firms know less than they buy," Industrial and Corporate Change, Oxford University Press, vol. 16(3), pages 317-346, June.
- Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 1999.
"Information Technology, Workplace Organization and the Demand for Skilled Labor: Firm-Level Evidence,"
NBER Working Papers
7136, National Bureau of Economic Research, Inc.
- Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, And The Demand For Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, MIT Press, vol. 117(1), pages 339-376, February.
- Michael Polder & George van Leeuwen & Pierre Mohnen & Wladimir Raymond, 2010.
"Product, Process and Organizational Innovation: Drivers, Complementarity and Productivity Effects,"
CIRANO Working Papers
- Polder, Michael & Leeuwen, George van & Mohnen, Pierre & Raymond, Wladimir, 2010. "Product, process and organizational innovation: drivers, complementarity and productivity effects," MERIT Working Papers 035, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- Michael Polder & George van Leeuwen & Pierre Mohnen & Wladimir Raymond, 2010. "Product, Process and Organizational Innovation: Drivers, Complementarity and Productivity Effects," DRUID Working Papers 10-24, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Polder, Michael & Van Leeuwen, George & Mohnen, Pierre & Raymond, Wladimir, 2010. "Product, process and organizational innovation: drivers, complementarity, and productivity effects," MPRA Paper 23719, University Library of Munich, Germany.
- M. Lynne Markus & Daniel Robey, 1988. "Information Technology and Organizational Change: Causal Structure in Theory and Research," Management Science, INFORMS, vol. 34(5), pages 583-598, May.
- Fleck, James, 1994. "Learning by trying: the implementation of configurational technology," Research Policy, Elsevier, vol. 23(6), pages 637-652, November.
- Petri Rouvinen, 2002. "Characteristics of product and process innovators: some evidence from the Finnish innovation survey," Applied Economics Letters, Taylor & Francis Journals, vol. 9(9), pages 575-580.
- Mary M. Crossan & Marina Apaydin, 2010. "A Multi-Dimensional Framework of Organizational Innovation: A Systematic Review of the Literature," Journal of Management Studies, Wiley Blackwell, vol. 47(6), pages 1154-1191, 09.
- Toke Reichstein & Ammon Salter, 2006. "Investigating the sources of process innovation among UK manufacturing firms," Industrial and Corporate Change, Oxford University Press, vol. 15(4), pages 653-682, August.
- Fritsch, Michael & Meschede, Monika, 1998.
"Product Innovation, Process Innovation, and Size,"
Freiberg Working Papers
1998,13, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
- Christian Rammer & Dirk Czarnitzki & Alfred Spielkamp, 2009.
"Innovation success of non-R&D-performers: substituting technology by management in SMEs,"
Small Business Economics,
Springer, vol. 33(1), pages 35-58, June.
- Spielkamp, Alfred & Czarnitzki, Dirk & Rammer, Christian, 2008. "Innovation Success of Non-R&D-Performers: Substituting Technology by Management in SMEs," ZEW Discussion Papers 08-092, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Klepper, Steven, 1996. "Entry, Exit, Growth, and Innovation over the Product Life Cycle," American Economic Review, American Economic Association, vol. 86(3), pages 562-83, June.
- Baldwin, John & Lin, Zhengxi, 2002.
"Impediments to advanced technology adoption for Canadian manufacturers,"
Elsevier, vol. 31(1), pages 1-18, January.
- Lin, Zhengxi & Baldwin, John R., 2001. "Impediments to Advanced Technology Adoption for Canadian Manufacturers," Analytical Studies Branch Research Paper Series 2001173e, Statistics Canada, Analytical Studies Branch.
- Utterback, James M & Abernathy, William J, 1975. "A dynamic model of process and product innovation," Omega, Elsevier, vol. 3(6), pages 639-656, December.
- Alessandro Muscio, 2007. "THE IMPACT OF ABSORPTIVE CAPACITY ON SMEs' COLLABORATION," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 16(8), pages 653-668.
- Bougrain, Frederic & Haudeville, Bernard, 2002. "Innovation, collaboration and SMEs internal research capacities," Research Policy, Elsevier, vol. 31(5), pages 735-747, July.
- Voss, C. A., 1988. "Implementation: A key issue in manufacturing technology: The need for a field of study," Research Policy, Elsevier, vol. 17(2), pages 55-63, April.
- Samuel Hollander, 1965. "The Sources of Increased Efficiency: A Study of DuPont Rayon Plants," MIT Press Books, The MIT Press, edition 1, volume 1, number 026258235x, June.
- Gopalakrishnan, S. & Damanpour, F., 1997. "A review of innovation research in economics, sociology and technology management," Omega, Elsevier, vol. 25(1), pages 15-28, February.
- Cohen, Wesley M & Klepper, Steven, 1996. "Firm Size and the Nature of Innovation within Industries: The Case of Process and Product R&D," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 232-43, May.
- Huang, Can & Arundel, Anthony & Hollanders, Hugo, 2010.
"How Firms Innovate: R&D, Non-R&D, and Technology Adoption,"
9854, University of Tasmania, School of Economics and Finance, revised 19 Nov 2012.
- Huang, Can & Arundel, Anthony & Hollanders, Hugo, 2010. "How Firms Innovate: R&D, Non-R&D, and Technology Adoption," MERIT Working Papers 027, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- Kenneth E. Knight, 1967. "A Descriptive Model of the Intra-Firm Innovation Process," The Journal of Business, University of Chicago Press, vol. 40, pages 478.
- Freel, Mark S., 2003. "Sectoral patterns of small firm innovation, networking and proximity," Research Policy, Elsevier, vol. 32(5), pages 751-770, May.
- Thuc Uyen Nguyen-Thi & Caroline Mothe, 2010. "The Link Between Non Technological Innovations And Technological Innovation," Post-Print hal-00920069, HAL.
- Cesaltina Pacheco Pires & Soumodip Sarkar & Luísa Carvalho, 2008. "Innovation in services -- how different from manufacturing?," The Service Industries Journal, Taylor & Francis Journals, vol. 28(10), pages 1339-1356, December.
- Escribano, Alvaro & Fosfuri, Andrea & Tribó, Josep A., 2009. "Managing external knowledge flows: The moderating role of absorptive capacity," Research Policy, Elsevier, vol. 38(1), pages 96-105, February.
- Larry W. Hunter & Annette Bernhardt & Katherine L. Hughes & Eva Skuratowicz, 2000. "It's Not Just the ATMs: Technology, Firm Strategies, Jobs, and Earnings in Retail Banking," Center for Financial Institutions Working Papers 00-31, Wharton School Center for Financial Institutions, University of Pennsylvania.
- Fariborz Damanpour & Richard M. Walker & Claudia N. Avellaneda, 2009. "Combinative Effects of Innovation Types and Organizational Performance: A Longitudinal Study of Service Organizations," Journal of Management Studies, Wiley Blackwell, vol. 46(4), pages 650-675, 06.
- Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall.
- Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-96, September.
- Santamara, Llus & Nieto, Mara Jess & Barge-Gil, Andrs, 2009. "Beyond formal R&D: Taking advantage of other sources of innovation in low- and medium-technology industries," Research Policy, Elsevier, vol. 38(3), pages 507-517, April.
- Andrea Vaona & Mario Pianta, 2008.
"Firm Size and Innovation in European Manufacturing,"
Small Business Economics,
Springer, vol. 30(3), pages 283-299, March.
- Mario Pianta & Andrea Vaona, 2006. "Firm size and Innovation in European Manufacturing," Kiel Working Papers 1284, Kiel Institute for the World Economy.
- Cabral, Ricardo & Leiblein, Michael J, 2001. "Adoption of a Process Innovation with Learning-by-Doing: Evidence from the Semiconductor Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 49(3), pages 269-80, September.
- Mark Freel & Richard Harrison, 2006. "Innovation and cooperation in the small firm sector: Evidence from 'Northern Britain'," Regional Studies, Taylor & Francis Journals, vol. 40(4), pages 289-305.
- Henderson, Rebecca. & Cockburn, Iain., 1994. "Measuring competence? : exploring firm effects in pharmaceutical research," Working papers 3712-94., Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Baetjer, Howard, Jr, 2000. " Capital as Embodied Knowledge: Some Implications for the Theory of Economic Growth," The Review of Austrian Economics, Springer, vol. 13(2), pages 147-74, September.
- Hagedoorn, John, 2002. "Inter-firm R&D partnerships: an overview of major trends and patterns since 1960," Research Policy, Elsevier, vol. 31(4), pages 477-492, May.
When requesting a correction, please mention this item's handle: RePEc:unm:unumer:2012051. 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: (Ad Notten)
If references are entirely missing, you can add them using this form.