Complementarity constraints and induced innovation: some evidence from the first IT regime

Reinstaller, Andreas; Hoelzl, W.

doi:10.4337/9781845421564.00011

Cited by 7 publications

(10 citation statements)

References 23 publications

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“…Firms can potentially face a wide variety of challenges. Challenges can stem from challenging regulations (e.g., Porter & van der Linde, ; Moorman, Du & Mela, ), knowledge and information scarcity (e.g., Reinstaller & Hölzl, ; Rosenzweig & Mazursky, ) or working conditions (e.g., stress; Pauchant & Mitroff, ; Dayan & Di Benedetto, ). However, the management literature discusses three principal resource challenges far more than other resource challenges.…”

Section: Conceptual Frameworkmentioning

confidence: 99%

“…For example, in a business environment where information and knowledge are key success factors, future work should focus on studying challenges such as information scarcity, technology unavailability, and so forth. These resources have thus far received limited research attention (e.g., Bawden, Holtham & Courtney, ; Reinstaller & Hölzl, ; Rosenzweig & Mazursky, ). Additionally, resource challenges can take the simple form of a shortage in raw materials.…”

Section: Conclusion and Future Researchmentioning

confidence: 99%

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How Resource Challenges Can Improve Firm Innovation Performance: Identifying Coping Strategies

Rosenzweig¹,

Grinstein²

2015

Creat Innov Manage

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Researchers recently suggested that challenges in the form of adversities and constraints can actually promote individuals, teams and firms. However, it remains unclear how such challenges elicit positive innovation performance. Moreover, we still cannot distinguish between the conditions under which challenges enhance or hinder firm innovation performance. In this paper, we review the literature on coping with a specific and central type of challengeresource challenge, such as a lack of financial or human resources -and propose an underlying mechanism through which firms can benefit from resource challenges. The paper presents an integrative conceptual framework and looks at the key constructs that explain the effects of resource challenges on firm innovation performance. Further, it proposes two key strategies for coping with resource challenges: simplification-focus and compensation.

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Section: Conceptual Frameworkmentioning

confidence: 99%

Section: Conclusion and Future Researchmentioning

confidence: 99%

How Resource Challenges Can Improve Firm Innovation Performance: Identifying Coping Strategies

Rosenzweig¹,

Grinstein²

2015

Creat Innov Manage

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“…Others reduce internal costs only. As discussed by Reinstaller and Hölzl (2004), ICTs that were limited in their application to internal administrative activities (such as calculators, typewriters, Hollerith electric tabulating machines, and book-keeping machines) played an important role in the development of uform and m-form hierarchies. Chandler (1977) and Yates (2000) have discussed the way in which these technologies were essential for the emergence of the modern hierarchial organisation in the period between the 1850s and the 1930s.…”

Section: Organisational Innovationmentioning

confidence: 99%

Organizational Innovation, Information Technology, and Outsourcing to Business Services

Hölzl¹,

Reinstaller²,

Windrum³

2007

Business Services in European Economic Growth

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This paper examines the relationship between organisational innovation, the introduction of new internet-based ICTs, de-verticalisation, and the rapid growth in business service outsourcing over the last decade. In order to examine this issue, we develop a model of organisational innovation. In this model, the goal of managers is to identify an organisational design that more effectively integrates all the administrative activities of the firm. As part of the process of innovation, the managers can choose to carry out an administrative activity in-house, or to outsource that activity. A key factor influencing this decision are the relative information costs of organising activities internally and the information costs associated with setting up and maintaining interfaces with external suppliers. The framework has been implemented in a novel model of organisational innovation. Simulations conducted on this model enabled us to consider the short-and long-run impacts of outsourcing on administration overheads and on long-term productivity growth. The interesting finding is that managers of a firm can become locked into a low productivity growth trajectory, associated with the outsourcing of activities, if they are myopic and learn through their own actions. They perceive outsourcing to cut overhead costs in the short-run (as expected), and so engage in further outsourcing thereafter. This is to the detriment of long-run productivity gains (system economies) generated though organisational innovation. This occurs because the potential for organisational innovation is reduced when modular components are outsourced, placing them beyond the control of the firms' management. The findings accord well with the empirical data, and provide a salutary warning for managers and policy-makers about the potential long-term implications of outsourcing forthcoming in: L. Rubalcaba and H. Kox (eds), Business services in European economic growth,

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“…The elements influencing and mediating the interactions of many others can be considered to represent the 'core' of a complex system (Frenken, 2001b;Reinstaller and Hölzl, 2004). The elements influencing and mediating the interactions of many others can be considered to represent the 'core' of a complex system (Frenken, 2001b;Reinstaller and Hölzl, 2004).…”

Section: The Nk and The Generalized Nk Modelmentioning

confidence: 99%

Convergence of financial systems: towards an evolutionary perspective

Hölzl¹

2006

Journal of Institutional Economics

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This paper provides an evolutionary perspective on financial systems based on complex systems theory. This perspective is used to organize the discussion about the convergence and non-convergence of financial systems. Based on a notion of financial systems as configuration of complementary elements, it is suggested that the convergence of financial systems is best conceptualized as a path-dependent process of institutional change and innovation. The implication of the evolutionary perspective on the dynamics of financial systems is that neither convergence theories using a simple evolutionary argument of survival of the fittest nor divergence theories related to strong complementarities can provide much guidance for analyzing institutional transformations of financial systems.

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Complementarity constraints and induced innovation: some evidence from the first IT regime

Abstract: Abstract

Cited by 7 publications

References 23 publications

How Resource Challenges Can Improve Firm Innovation Performance: Identifying Coping Strategies

How Resource Challenges Can Improve Firm Innovation Performance: Identifying Coping Strategies

Organizational Innovation, Information Technology, and Outsourcing to Business Services

Convergence of financial systems: towards an evolutionary perspective

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