An integrated model of organisational innovation and firm performance: Generation, persistence and complementarity

Abstract

An integrated model of organisational innovation and firm performance: generation, persistence and complementarity Our paper encompasses an integral view of organizational innovation (OI), covering from the generation of OI to the effect of OI on firm performance, tackling the gap identified by Damanpour et al. (2009) about the lack of studies that comprehensively study OI. We empirically test this question using data from the Spanish Technological Innovation Panel (PITEC, 2016) carried out in the years 2008-2013, focusing on a sample of 3,795 manufacturing firms. The results provide empirical evidence that confirms OI as an innovation capability. We conclude that innovation capabilities operate through a reciprocity and complementarity relation, where technological, product and process, innovations and OI are all determining factors of one another. Last, our paper explores the effect of OI on firm performance, expanding the current analysis of the effect of process and product innovation on firm performance.

Performance implications of combining creative and imitative innovation strategies

“…Thus, the results from our overall sample provide support for the viability of those three innovation strategies. The findings are consistent with studies that extol the benefits of creative innovation (Bach et al, 2019;Damanpour and Evan, 1984;Damanpour et al, 2009), imitative innovation (Wang et al, 2019), and the synergistic (Lee et al, 2019) or combinative effects of different types of innovation (Arranz et al, 2019;Ballot et al, 2015;Doran, 2012;Tavassoli and Karlsson, 2016).…”

“…Such efficiency-based imitative innovation strategy may have to be supplemented with creative innovation strategy in order to secure its viability and sustainable competitiveness. The finding that there is an incremental performance difference between the pursuit of the combination innovation strategy and the imitative innovation strategy is consistent with some of the studies using CIS data from Europe (Arranz et al, 2019;Tavassoli and Karlsson, 2016). However, these studies using CIS data from Europe focused on combining technological and nontechnological innovations versus either a single technological or nontechnological innovation.…”

“…Recent studies focusing on different types of innovations such as product, process, marketing, technological and organizational innovations have revealed that firms pursuing more than one type of innovation at the same time perform better than those that pursue only one type of innovation at a time (Arranz et al, 2019;Ballot et al, 2015;Lee et al, 2019;Tavassoli and Karlsson, 2016). Thus, we present the following hypotheses: H3.…”

Exploring firm-level and sectoral variation in total factor productivity (TFP)

“…Determinants and variations in the overall productivity have been intensively studied in the past decades, resulting in a plentiful number of both theoretical and empirical approaches to the research of productivity within the numerous socio-economic contexts across the globe. Productivity improvement is acknowledged to be the key to sustained long-term growth (Dobbs and Hamilton, 2007;Harris and Moffat, 2015;Innocenti and Zampi, 2019;Kim et al, 2016;Williams et al, 2016) and one of the most reliable indicators for the competitiveness of a firm, industry or country over the long term (Arranz et al, 2019;Castellacci, 2008;European Commission, 2009;Feder, 2018). Moreover, Giang et al (2019), among others, argue that an increase in the macroeconomic growth is conditioned by the rise in productivity at the microlevel.…”

Stimulating Components for Business Development in Latin American SMEs

“…The scientific literature describes some models for organizational development, such as Organizational models related to behavioural change, which refer to those that generate changes in an organization's personnel's behaviour, use training to promote greater participation and communication in the organization. Organizational Models related to structural change are related by the organization's senior management and vary according to the situation, the work environment, and the organisation's structure and technology [10]. Furthermore, the Models of organizational development related to structural and behavioural changes, where managers must create awareness of their contribution in driving changes to improve their performance, must also clarify who is responsible for each task to clarify the distribution of responsibilities [11,12].…”