Building Dynamic Capabilities: Innovation Driven by Individual-, Firm-, and Network-Level Effects

Abstract

Following the dynamic capabilities perspective, we suggest that antecedents to innovation can be found at the individual, firm, and network levels. Thus, we challenge two assumptions common in prior research: (1) that significant variance exists at the focal level of analysis, whereas other levels of analysis are assumed to be homogeneous, and (2) that the focal level of analysis is independent from other levels of analysis. Accordingly, we advance a set of hypotheses to simultaneously assess the direct effects of antecedents at the individual, firm, and network levels on innovation output. We then investigate whether a firm's antecedents to innovation lie across different levels. To accomplish this, we propose two competing interaction hypotheses. We juxtapose the hypothesis that the individual-, firm-, and network-level antecedents to innovation are substitutes versus the proposition that these innovation mechanisms are complements. We test our multilevel theoretical model using an unusually comprehensive and detailed panel data set that documents the innovation attempts of global pharmaceutical companies within biotechnology over a 22-year time period (1980–2001). We find evidence that the antecedents to innovation lie across different levels of analysis and can have compensating or reinforcing effects on firm-level innovative output.

External technology acquisition: a double-edged sword

“…The methodology used is based on prior research measuring the innovation performance based on the number of patents (Hagedoorn and Schakenraad 1994;Henderson and Cockburn 1994;Ahuja 2000;Stuart 2000;Owen-Smith and Powell 2004;Rothaermel and Hess 2007;Rothaermel and Thursby 2007;Rothaermel and Alexandre 2009). Patent count is not only a typical method for measuring technological innovation but is also highly correlated with other indicators of firm innovativeness, such as the number of new product introductions (Hagedoorn and Cloodt 2003).…”

Cognitive Performance: A Cross-Sectional Study on Serum Vitamin D and Its Interplay With Glucose Homeostasis in Dutch Older Adults

“…This explains the importance of the individual level or, as it is framed by Hesselbarth and Schaltegger (2014), the level of "the change agent". Change agents are crucial for the development of the necessary flexibility and adaptability of businesses in dealing with new and changing sustainability challenges, it is assumed that the flexibility and adaptability of change agents lie embedded in individual competencies (Rothaermel and Hess, 2007;Wals, 2010). Although it is clear that the individual level is crucial to the achievement of sustainability goals, current research in business and management literature mainly concentrates on factors affecting or enhancing sustainability performance emanating from the institutional and organisational level (see Aguinis and Glavas, 2012 for a review; Veldhuizen et al, 2013).…”

Independent inventors and inbound open innovation: using a resource-based approach to create a tool for screening inventor approaches in order to facilitate technology in-licensing

“…While the resource-based perspective traditionally focusses upon understanding how firms achieve a sustainable competitive advantage (Barney, 1991), the theory has also been associated with developing strategic advantage (Barney, 2001) and innovative advantage (Lacetera et al, 2004;Rothaermel and Hess, 2007). In the context of this paper we are concerned with analysis of innovative advantage; in particular the independent inventors' capacity to succeed in achieving a licensing deal.…”