Innovation Management Practices, Strategic Adaptation, and Business Results: Evidence from the Electronics Industry
Keywords:Innovation management, Strategic adaptation, Business results, Technology management, Product management
AbstractThis research contributes to the understanding of how different practices of innovation management are related to mid- and long-term growth and profitability. Governments and regional development agencies invest relevant budgets to foster innovation in small and medium enterprises (SMEs) and improve their innovation management practices to make them more competitive. Nevertheless, it is not clear what impact these practices have on a company's performance over a long period of time. We propose a model to audit and classify innovation practices and empirically test the impact of innovation practices on the firms’ long–term financial performance, using a broad sample of companies in the electronics sector. Our empirical results show that, within a regional context, companies that are similar in terms of size, position in the value chain, and ownership structure follow similar innovative practices. Furthermore, the use of a systematic approach for innovation leads to revenue growth but does not necessarily increase profit or productivity.
ADAMS, R., Bessant, J., Phelps, R. (2006). Innovation management measurement: A review. International Journal of Management Reviews 8 (1), 21-47.
ADLER, P.S., Shenbar, A. (1990). Adapting your technological base: the organisational challenge. Sloan Management Review 25, 25-37.
ADLER, P.S., McDonald, W.D., McDonald, F.(1992). Strategic management of technical functions. Sloan Management Review 33(2), 19-37.
ALDRICH, H.E. (1979). Organizations and Environments. Prentice-Hall, Englewood Cliffs, New Jersey.
ANDREWS, K.R. (1971). The Concept of Corporate Strategy. Homewood, Ill, Irwin.
ANSOFF, I. (1965). Corporate Strategy. McGraw-Hill, New York.
AVLONITIS, G., Papastathopoulou, P. y Gounaris, S. (2001). An empirically - based typology for product inno-vativeness for new financial services: success and failure scenarios. The Journal of Product Innovation Management 18, 324-342.
BARCLAY, I. (1992). New product development process: past evidence and future practical application. R&D Management 22 (3), 255-264.
BARNEY, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management 17, 99-120.
BATTISTI, G., Iona, A. (2009). The intra-firm diffusion of complementary innovations: Evidence from the adoption of management practices by British establishments. Research Policy 38(8), 1326-1339.
BAYUS, B. L., Erickson, G., Jacobson, R. (2003). The finan -cial rewards of new product introductions in the personal computer industry. Management Science 49 (2), 197-210.
BECKER, B., Gerhart, B. (1996). The Impact of Human Resource Management on Organizational Performance: Progress and Prospects. The Academy of Management Journal 39 (4), 779-801.
BLINDENBACH-DRIESSEN, F., Ende, J. (2006). Innovation in project-based firms: The context dependency of success factors. Research Policy 35(4), 545-561.
BURGELMAN, R.A., Maidique, M.A., Wheelwright, S.C. (2004). Strategic Management of Technology and Innovation. McGraw Hill, New York.
BURNS, T., Stalker, G. (1961). The Management of Innovation. Tavistock Publications, London.
CHANDLER, A.D. (1962). Strategy and Structure: Chapters in the History of the American Industrial Enterprise. MIT Press, Cambridge, Mass.
CHIESA, V., Coughlan, P., Voss, C.A. (1996). Development of a technical innovation audit. Journal of Product Innovation Management 13(2), 105-136.
CHILD, J. (1997). Strategic choice in the analysis of action, structure, organizations and environment: Retrospect and prospect. Organization Studies 18(1), 43-76.
CHRISTENSEN, J.F. (1995). Asset profiles for technological innovation. Research Policy 24(5), 727-745.
CHRISTENSEN, C. M. (1997). The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail. Harvard Business School Press, Boston.
COLLINS, J., Porras, J. I. (1994). Built to last. HarperBu-siness, New York.
COOMBS, R., Hull, R. (1998). Knowledge management practices' and path-dependency in innovation. Research Policy 27(3), 237-253.
COOPER, R.G., Kleinschmidt, E.J. (1995). Benchmarking firms' new product performance and practices. Engineering Management Review, 23 (3), 112-120.
COOPER, R.G., Edgett, S.J., Kleinschmidt, E.J. (2004). Benchmarking best NPD practices-II. Reseach Technology Management 47(3), 50-59.
COOPER, R.G., Kleinschmidt, E.J. (1991). The impact of product innovativeness on performance. Journal of Product Innovation Management 8(4), 240-251.
CORMICAN, K., O'Sullican, D. (2004). Auditing best practice for effective product innovation management. Technovation 24 (10), 819-829.
CRAWFORD, C.M. (1980). Defining the charter for product innovation. Sloan Management Review (Fall), 3-12.
DAMANPOUR, F. (1991). Organizational innovation: A meta-analysis of effects of determinants and models. Academy of Management Journal 34(3), 555-90.
D'AVENI, R. A. (1994). Hypercompetition: Managing the Dynamics of Strategic Maneuvering, New York, The Free Press.
DELERY, J. E., Doty, D. H. (1996). Modes of Theorizing in Strategic Human Resource Management: Tests of Univer-salistic, Contingency, and Configurational Performance Predictions. The Academy of Management Journal 39 (4), 802-835.
DIEDRICHS, E., Engel, K., Wagner, K. (2006). European Innovation Management Landscape: IMP3ROVE: Asses-ment of current practices on Innovation Management Consulting Approaches and self-assesment tools in Europe to define the requirements for future best practices. European Comission, Directorate General Enterprise and Industry, Augsburg
DONALDSON, G., Lorsch, J. W. (1983). Decision-making at the top: The shaping of strategic direction. Basic Books, New York.
DOYLE, J.K. (2006). Introduction to Survey Methodology and Design. Handbook for IQP Advisors and Students. D W Woods, ed.: Worcester Polytechnic Institute.
DRUCKER, F. (1954). The Practice of Management. Harper & Bros., New York.
EUNNI, R.V., Post, J.E., Berger, P.D. (2005). Adapt or adapt: Lessons for strategy from the US telecoms industry. Journal of General Management 31(1), 83-105.
FLOYD, S. W., Lane, P. J. (2000). Strategizing throughout the Organization: Managing Role Conflict in Strategic Renewal. The Academy of Management Review25 (1), 154-177.
GOFFIN, K., Pfeiffer, R. (1999). Innovation Management in UK and German Manufacturing Companies. Anglo-German Foundation for the Study of Industrial Society, London.
GRANT, R.M. (2005). Contemporary strategy analysis, 5th Ed., Wiley, Oxford.
GUAN, J., Yam, R., Tang, E., Lau, A. (2009). Innovation strategy and performance during economic transition: Evidences in Beijing, China. Research Policy 38 (5), 802-812.
HAGEDOORN, J. (1993). Understanding the rationale of strategic technology partnering: Interorganizational modes of cooperation and sectoral differences. Strategic Management Journal 14, 371-385.
HAMEL, G., Prahalad, C.K. (1994). Competing for the future. Harvard Business Review 72(4), 122-128.
HANNAN, M.T., Freeman, J.H. (1984). Structural inertia and organization change. American Sociological Review 49, 149-164.
HELFAT, C.E., Peteraf, M.A. (2003). The Dynamic resource-based view: Capability lifecycle. Strategic Management Journal 24(10), 997-1010.
HENARD, D.H., Szymanski, D.M. (2001). Why some new products are more successful than others. Journal of Marketing Research 38(3), 362-375.
HIPPEL, E.V. (1986). Lead user: A source of novel product concepts. Management Science 32(7), 791-805.
HIPPEL, E.V. (1988). The Sources of Innovation. Oxford University Press, Oxford.
HIPPEL, E.V. (2005). Democratizing Innovation. The MIT Press, Cambridge, Mass.
HUERGO, E. (2006). The role of technological management as a source of innovation: Evidence from Spanish manufacturing firms. Research Policy 35(9), 1377-1388.
HUFF, A.S. (1990). Mapping Strategic Thought. John Wiley & Sons, New York.
HULT, G.T.M, Hurley, R., Kingth. G. (2004). Innovative ness: Its antecedents and impact in business performance. Industrial Marketing Management 33, 429-438.
KANTER, R. M. (1983). The change masters: Innovation for productivity in the American corporation. Simon and Schuster, New York.
KIM, B. and Oh, H. (2002). An effective R&D performance measurement system: survey of Korean R&D researchers. International Journal of Management Science 30, 19-31.
KLINE, S.J. (1985). Innovation is not a linear process. Research Management (July-August), 36-45.
LAURIE, D.L., Doz, Y.L., Sheer, C.P. (2006). Creating new growth platforms. Harvard Business Review (May), 80-90.
LEONARD-BARTON, D. (1992). Core capabilities and core rigidities: A paradox in managing new product development. Strategic Management Journal 13 (S1), 111-125.
LEE, S., Park, G., Yoon, B., Park, J. (2010). Open innovation in SMEsAn intermediated network model. Research Policy 39 (2), 290-300.
MARQUIS, D. (1969). The Anatomy of Succesful Innovations. Innovation Magazine 1(7), 28-37.
MILES, R., Snow, C.C. (1978). Organization strategy, structure and process. McGraw Hill, New York.
MILTENBURG, J. (1995). Manufacturing Strategy, How to Formulate and Implement a Winning Plan. Productivity Press, Oregon.
OAKEY, R., Rothwell, R., Cooper. C. (1988). Management of Innovation in High Technology Small Firms. Pinter, London.
OBSERVATORI de Prospectiva Industrial (2005). Map of Local Industrial Production Systems in Catalonia. Gene-ralitat de Catalunya, Barcelona.
OBSERVATORI de Prospectiva Industrial (2006). Informe Anual sobre la Industria a Catalunya. Generalitat de Catalunya. Generalitat de Catalunya, Barcelona.
PARKER, R. C. (1982). The management of innovation. Wiley, Chichester, UK.
PAUWELS, K., Silva-Risso, J., Srinivasan, S., Hanssens, D. M. (2004). New Products, Sales Promotions, and Firm Value: The Case of the Automobile Industry. Journal of Marketing 68, 142-156.
PENROSE, E. (1959). The Theory of the Growth of the Firm. John Wiley & Sons, New York.
PORTER, M.E. (1980). Competitive Strategy. The Free Press, New York.
PORTER, M.E. (1985). Competitive Advantage. The Free Press, New York.
PORTER, M.E. (1986a). Competition in Global Industries. Harvard Business School Press, Boston, Mass.
PORTER, M.E. (1986b). Changing patterns of international competition. California Management Review 28 (2), 9-40.
PORTER, M.E. (1990). The competitive advantage of nations. Harvard Business Review 68, 73-93.
PORTER, M.E. (1991). Towards a dynamic theory of strategy. Strategic Management Journal 12, 95-117.
PRAHALAD, C. K., Hamel, G. (1990). The core competence and corporation. Harvard Business Review 3, 71-91.
ROSEGGER, G. (1980). The Economics of Production and Innovation. Pergamon Press, Oxford.
RUMELT, R.P. (1974). Strategy, Structure and Economic Performance. Harvard University Press, Cambridge, Mass.
SCHMIEDEBERG, C. (2009). Complementarities of innovation activities: An empirical analysis of the German manufacturing sector. Research Policy 37(9), 1492-1503.
SCHMOOKLER, J. (1966). Invention and Economic Growth. Harvard University Press, Cambridge, Mass.
SCHUMPETER, J. (1934). The Theory of Economic Development. Cambridge University Press, Cambridge, England.
SELZNIK, P. (1957). Leadership in Administration. Harper & Bros., New York.
SLOAN, A.P. (1963). My Years with General Motors. Do-ubleday, Garden City, New York.
SORESCU, A.B., Chandy, R.K., PrabhuJ.C. (2003). Sources and finantial consequences of radical innovation: Insights from pharmaceuticals. Journal of Marketing 67, 82-102.
TALKE, K. (2007). Corporate mindset of innovating firms: Influences on new product performance. Journal of Engineering and Technology Management 24(1-2), 76-91.
TAYLOR, F W. (1911). The Principles of Scientific Manage -ment. Harper & Row, New York.
TEECE, D.J., Pisano, G., Shuen, A. (1992). Dynamic capabilities and strategic management. Working paper. University of California, Berkeley.
TERRÉ, E. (1999). Guia per Gestionar la Innovació. CI-DEM, Barcelona.
THOMSON, J.D. (1967). Organizations in Action: Social Science Bases of Administrative Theory. McGraw-Hill, New York.
TIDD, J. (2001). Innovation management in context: Environment, organization, and performance. International Journal of Management Review 3, 169-183.
TIDD, J. (2006). A Review of Innovation Models. Discussion paper. Imperial College, Tanaka Business School.
TIDD, J., Bessant, J., Pavitt, K. (2005). Managing Innovation: Integrating Technological, Market and Organizational Change (3rd ed.). John Wiley & Sons, New York.
TOMAS, M., Hurley, R., Knight, G. (2004). Innovative-ness: Its antecedents and impact on business performance. Industrial Marketing Management 33, 429-438.
VAN DEN VEEN, A.H. (1986). Central problems in management of innovation. Management Science 32(5), 590-607.
VAN DE VEEN, A.H., Poole, M.S. (1990). Longitudinal field research methods for studying processes of organizational change. Organization Science 1, 213-219.
VAN DE VEEN, A.H., Poole, M.S. (1995). Managerial and organizational cognition: Notes from a trip down memory lane. Organizational Science 6, 280-321.
VAN DE VEEN, A.H. (2000). Research on the Management of Innovation. Oxford University Press, New York.
VERHAEGHE, A., Kfir, R. (2002). Managing innovation in a knowledge intensive organisation. R&D Management 32, 409-417.
WIRTZ, B., Mathieu, A., Schilke, O. (2007). Strategy in high velocity environments. Long Range Planning 40, 295-313.
YAM, R.C.M., Guan, J.C., Pun, K.F., Tang, E.P.Y. (2004). An audit of technological innovation capabilities in Chinese firms: Some empirical findings in Beijing, China. Research Policy 33(8), 1123-1140.
YOUNDT, M., Snell, S., Dean, J., Lepak, D. (1996). Human resource management, manufacturing strategy, and firm performance. Academy of Management Journal 39, 836-866.
How to Cite
Copyright (c) 2011 Journal of Technology Management & Innovation
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.