Disentangling the effects of organizational controls on innovation

The strategy and innovation literatures argue that organizational competitiveness is contingent upon firms simultaneously pursuing both process and product innovations. A firm’s control system plays a fundamental role in this regard by managing, motivating, and coordinating employees’ behaviors for the development of its innovative capabilities. Research suggests that in order to develop successful innovation, management must use controls that align employees’ interests with those of the organization while simultaneously allowing employee autonomy to encourage creativity. These disparate functions lead to the control–autonomy dilemma. We argue that managers can address this dilemma by recognizing that the effect of controls on innovation outcomes depends, in part, on the controls’ enabling features and the type of commitment they inspire. Our findings show that employee development, which is the focus of input controls, has a direct effect on process innovation-related behaviors while specified goals, the emphasis of output controls, have a direct effect on product innovation-related behaviors. It is only through employees’ perceptions of managerial support that input controls increase product innovation-related behaviors and output controls increase process innovation-related behaviors.     

战略导向、组织学习对产品创新的影响研究

本文对战略导向影响产品创新的路径进行了研究,发现不同战略导向对学习活动有不同的选择倾向,而不同类型的学习活动也会对产品创新产生不同的影响。本研究不仅弥补了应用性学习与探索性学习研究的不足,也有助于企业引导和利用组织学习来提高产品创新水平,为管理实践提供理论参考。     

Adaptive culture and product/service innovation outcomes

Organizational culture has been used and defined extensively as a relatively stable, enduring set of values, beliefs, assumptions, and symbols shared in the organization. Based on this conception, researchers have studied the relationship between different types of cultures and innovation outcomes. In contrast to this static perspective, the dynamic systems perspective views culture as not necessarily determined by internalized and shared values. Rather, as cultures are constantly receiving environmental pressures that require continuous adaptation, they have an inherent attribute of change, which has been called adaptive culture. We focus on adaptive culture as an antecedent of product/service innovation outcomes, since innovations require a progressive upgrading of shared values, assumptions, and beliefs. Based on the thinking and acting schema, we propose two determinants of adaptive culture that help us to understand how culture can evolve to facilitate product/service innovation outcomes. We propose that structural flexibility and reflexive learning positively affect product/service innovation outcomes by creating an adaptive culture. A 190-company sample is used to analyze the theoretical model variables’ relationship to a culture that can change its values to improve product/service innovation outcomes. The results support the theoretical model, and lead to some implications for the management of culture.     

Breadth of external knowledge sourcing and product innovation: The moderating role of strategic human resource practices

Prior research has argued that external knowledge sourcing can be supported by effective strategic human resource (HR) practices. However, whether and how the adoption of new organizational mechanisms in group settings influences the relationship between external search strategies and innovation performance represents an unanswered question. Therefore, the present paper aims to explore the relationship between the breadth of external knowledge sourcing (i.e., external search breadth) and product innovation by unveiling the moderating effects of strategic HR practices, as represented by the implementation of heterogeneous work groups and brainstorming sessions. On the basis of data from the Italian Innovation Survey, our results reveal that external search breadth is curvilinearly (inverted U) related to product innovation, and its negative effects occur later in the presence of heterogeneous work groups and brainstorming sessions.     

Overcoming pandemic challenges through product innovation: The role of digital technologies and servitization

The fast-changing scenario related to the COVID-19 pandemic calls for firms to rapidly redefine and innovate their strategies to sustain their businesses, with research emphasizing the key roles of digital technologies and servitization. We aim to enrich the theoretical debate on this matter by assessing how small and medium-sized enterprises (SMEs) achieve product innovation under time constraints by leveraging two specific technology groups (information and communication technologies [ICT] and Industry 4.0 data-processing technologies) and servitization. The research is based on a mixed-method approach consisting of an original survey completed by 257 Italian SMEs (grounded on a previous qualitative study about such SMEs' behaviors during the first Italian lockdown), followed by in-depth interviews with the owners and/or managers of the eight SMEs that participated in the survey. The results show a positive relationship between the increased use of digital technologies (ICT and Industry 4.0 data-processing technologies) during the pandemic with servitization and, in turn, with product innovation. Specifically, the increased use of ICT during the pandemic had a direct positive effect on product innovation, while Industry 4.0 data-processing technologies affected product innovation only through the full mediation of servitization. The qualitative study allowed us to highlight how the different kinds of digital technologies supported SMEs’ innovation (servitization and product innovation) during the pandemic. The theoretical and practical contributions of this study are discussed.     

创新互动框架下组织领地氛围对利用性技术创新的影响:一个被调节的中介模型

利用性技术创新是企业把已有的知识、技术和市场转化为商业价值的手段,能够塑造企业的竞争优势。本研究基于创新的互动观点和领地性理论探讨了组织领地氛围对企业利用性技术创新的影响,并识别出其发挥作用的中介机制和边界条件,由此构建出包括组织氛围(领地氛围)、组织结构(控制导向的HRM系统)和各部门主体(跨部门协调)在内的整合模型。本文以146家企业的2113名成员为样本,收集了多源数据,结果发现组织的领地氛围作为约束组织成员行为的"软"的要素会降低跨部门协调进而不利于利用性技术创新的实现。进一步,控制导向的HRM系统作为组织的结构性要素,是约束组织成员行为的"硬"的要素,能够通过调节跨部门协调与利用性技术创新之间的关系来缓冲领地氛围对利用性技术创新的消极的间接效应。研究结果对领地性理论、技术创新和HRM系统研究具有重要的理论意义。     

政府市场规制、产品消费选择和企业绿色技术创新

本文通过构建由地方政府、企业和消费者组成的绿色技术创新系统演化博弈模型,分析了不同现实情形下系统的均衡策略演化过程,并借助系统动力学实验方法进一步研究了相关因素对系统均衡的影响。研究发现:(1)在绿色技术创新演化博弈系统所有可能的均衡策略中,只存在三个稳定的均衡策略,即地方政府、企业和消费者的策略分别为(市场规制,不绿色技术创新,购买传统产品)、(市场规制,绿色技术创新,购买传统产品)、(市场规制,绿色技术创新,购买绿色产品)。(2)企业绿色技术创新品牌收益和消费者绿色产品消费的经济收益是影响博弈演化系统最终向不同稳定均衡策略演进的主要因素。(3)在第一种均衡状态下,产品的基础价值、绿色偏好收益、绿色消费意识和产品价格等是影响消费者购买绿色产品的主要因素;在第二种均衡状态下,政策收益、规制成本及产品市场需求量是影响政府采取市场规制策略的主要因素;在第三种均衡状态下,绿色技术创新补贴系数、市场规制强度和企业绿色技术创新品牌收益是影响企业采取绿色技术创新策略的主要因素,且各影响因素对博弈主体策略选择的方向和边际的影响均存在较大差异。上述结论将为进一步完善绿色发展理论提供参考,也为构建市场导向的绿色技术创新体系提供借鉴。     

Organizational innovativeness: Exploring the relationship between organizational determinants of innovation, types of innovations, and measures of organizational performance

This research study examines the relationships between innovativeness of firms, their organizational characteristics, and organizational performance. Previous studies that have examined these relationships have yielded conflicting results. A fundamental assumption of this research is that these conflicting results may be due to a narrow definition of the construct of innovativeness. This research demonstrates that by using a multidimensional measure of innovativeness, the reasons for the conflicting findings of past research becomes evident. The results of this study show that substantive relationships do exist between organizational factors, organizational innovativeness, and organizational performance. These relationships, however, are complex, and can only be detected if innovativeness is measured as a multidimensional construct. Each of the organizational factors examined in this study showed significantly different effects on each dimension of two types of organizational innovativeness — technical and administrative innovativeness. Further, the results show that innovativeness does improve organizational performance. However, each dimension of the two types of innovativeness affects different aspects of organizational performance.     

Open innovation and organizational features: An experimental investigation

This paper reports experimental results on open innovation in which free-riding, efficiency and spillover depend on the ability to affect the number of innovation contributors, and the modularity of the innovation task. This paper provides a tractable laboratory setting that relaxes the restrictive assumption of the theoretical literature that costs of development are independent across individuals. We have induced more distributed problem solving and spillover of knowledge when the process is more non-modular. When efficiency is measured as the percentage of profits made over maximum profits, small groups were more efficient than large groups in the non-modular production environment and efficiency was higher in the modular production environment irrespective of group size. Significantly, there was a higher percentage of spillover in the non-modular production environment, especially for large groups.     

When to Mass Customize: The Impact of Environmental Uncertainty*

Previous research on mass customization (MC) has focused on what it is and how it is implemented. In this study we examine when MC is an appropriate strategy for firms to follow by scrutinizing the effects of three environmental uncertainty variables (demand uncertainty, competitive intensity, and supply chain complexity) on the MC–performance relationship. Specifically, we distinguish the direct effect of environmental uncertainty on MC ability and the moderation effect of environmental uncertainty on MC ability's impact on customer satisfaction. We examine six competing hypotheses using data collected from 266 manufacturing plants. Our results show that competitive intensity has a direct positive impact on MC ability. However, demand uncertainty moderates the relationship between MC ability and customer satisfaction, and the direct and positive relationship between MC ability and customer satisfaction holds only when customer demand is highly uncertain. Supply chain complexity neither has a direct relationship with MC, nor moderates the MC–performance relationship. Implications of these research findings are discussed and future research directions are identified.     

The risk implications of diversification: Integrating the effects of product and geographic diversification

The risk implications of product diversification have received considerable attention from scholars. However, our understanding of the effects of geographic diversification on risk is more limited. Relying on resource-based theory to frame our arguments, we argue that despite some similarities, the two types of diversification have differing effects on firm risk. We first establish the risk reducing effects for product diversification. We then integrate the unique aspects of geographic diversification that serve as a boundary condition to the RBV perspective, arguing for the risk increasing effects of geographic diversification. Finally, since many firms pursue both forms of diversification simultaneously, we explore the joint effects of both product and geographic diversification. We test our hypotheses in a longitudinal model on a sample of S&P 500 firms. Our findings suggest that total product diversification, as well as related diversification reduce risk, while total geographic diversification increases risk. Furthermore, our data provide evidence of a complex combination of joint effects of these two forms of diversification. These findings offer a more complete understanding of the risk effects of corporate diversification.     

Environmental practices and firm performance in emerging markets: the mediating role of product quality

Environmental practices have not received as much research attention in emerging market contexts as traditional topics like quality. However, the importance of environmental practices for a firm’s production strategy has been increasing at an unprecedented level across the globe. Our research objective is, therefore, to investigate the interplay between environmental practices and quality in the pursuit of firm performance. Relying on 492 responses from Turkish manufacturers to test our hypotheses, we show that environmental practices directly improve the quality of products over and above the effect of quality management practices in emerging markets. Product quality, in turn, is important for increasing firm performance, acting as a mediator for the positive effects of environmental practices on performance. Thus, we reveal that product quality functions as an instrumental conduit between environmental practices and firm performance in emerging markets like Turkey where stakeholder pressures are weak, and regulations are often not properly enforced.     

小世界创新网络动态演化及其效应研究

低度、中度和高度开放的创新网络在创新集群创立和解体的动态演化过程中,其表现出的小世界性对创新绩效的效应有着较大差异． 创新绩效同创新网络小世界性间往往呈现倒U形关系,但该关系只在特定开放度下的创新网络演化到特定阶段才会显现: 低度开放的网络的小世界性同创新绩效的倒U 形关系在创新集群建立阶段显著,而在创新集群解体阶段不显著; 高度开放的网络则恰好相反; 在网络演化的其他阶段,小世界性对创新绩效并未构成显著影响． 这很可能是由于在创新绩效显著变化的阶段,创新个体的能动性较强,更倾向于接受新知识: 在低度开放的网络中,创新绩效显著上升的阶段主要集中于新的创新集群建立的阶段,而在高度开放的网络则主要集中于原有创新集群解体的阶段． 对中国专利合作发明数据的回归分析结果为该研究结论提供了实证依据． 因此,应当保持一个适度集聚的创新网络,以保证其不会传播过多冗余信息; 应在创新网络演化的不同阶段采用不同的开放策略,以充分利用高度和低度开放的创新网络演化到不同阶段所发挥的优势,同时,应当主动按照新兴技术下的新形势适当调整创新网络结构关系．     

Network influence and organizational performance: The effects of tie strength and structural equivalence

We combine theory and empirical evidence to develop and test three related claims about how ties strength and structural equivalence affect interorganizational performance similarity. First, network partners attain similar levels of performance because direct network ties facilitate information and resource sharing, and the diffusion of organizational practices. Organizations occupying similar network positions attain similar levels of performance because they face similar competitive constraints. Second, because mechanisms underlying performance similarity implied by direct network ties and similarity in network positions are different, strength of network ties and network position affect different dimensions of organizational performance. Third, we expect that tie strength will affect aspects of performance that are more likely to be influenced by processes activated by the direct contact between network partners. We expect structural equivalence to affect more strongly those aspects of organizational performance that are more directly influenced by competition. An analysis of interorganizational networks and organizational performance within a regional community of hospitals provides evidence in support of these claims. Models estimated on a sample of 8190 interorganizational dyads suggest that the effects of tie strength and structural equivalence on organizational performance are highly differentiated and contingent on specific aspects of performance. We show that these conclusions are robust with respect to a wide variety of other factors that may be responsible for performance similarity including competitive interdependence, structural homophily, and resource complementarity.     

The asymmetric effects of exploitation and exploration on radical and incremental innovation performance: An uneven affair

Scholars have argued that the exploitation–exploration interaction provides a source of competitive advantage beyond that provided by each individually. However, we know little about the mutual effects of exploitation and exploration on either incremental or radical innovation performance. To address this gap, we examine data from 171 manufacturing firms. We find incremental innovation performance is highest when exploitation interacts with an intermediary level of exploration. Radical innovation performance, however, is solely driven by exploration. A coupling with exploitation is not effective. We contribute to the extant literature, first, by disentangling the interaction effects of exploitation and exploration on radical and incremental innovation performance, respectively. Second, we extend extant literature that agrees that maintaining an appropriate balance of exploitation and exploration is critical for innovation performance and that has conceptualized this balance as symmetrical presence and magnitude of exploitation and exploration. In particular, we provide evidence in support of an asymmetric relationship.     

The effects of the interactive use of management control systems on process and organizational innovation

This study examines how the interactive use of management control systems (iMCS) affects process and organizational innovation. Firstly, it is postulated that iMCS directly influences the development of process and organizational innovations. Secondly, we argue in favor of a moderating role of iMCS in the relationship between innovation and financial performance. Most studies of MCS and innovation have focused on new product development. However, process and organizational innovations follow innovation patterns that clearly differ from product innovation. The research model is empirically examined using data collected from a survey of 230 firms. Results from a structural model tested applying Partial Least Squares regression, controlling for size, family ownership, R&D, and product innovation, reveal that iMCS fosters process and organizational innovation. Results also suggest that iMCS could play a moderator role in the relationship between process innovation and financial performance. These findings highlight the role of iMCS in process and organizational innovation, expanding previous literature on Simons’ Levers of Control and innovation. The results are also discussed with regard to their managerial implications.     

Corporate investments and environmental regulation: The role of regulatory uncertainty,regulation-induced uncertainty,and investment history

The relation between uncertainty related to environmental regulation and corporate investments has received considerable attention in the academic literature. Previous quantitative studies, however, have not distinguished between different types of perceived regulation-related uncertainty and do not consider the potential influence of prior investments on firms' investment decisions. Therefore, this paper analyzes how decision makers' perception of two types of uncertainties – regulatory and regulation-induced uncertainty – affects corporate investments in measures to reduce environmental impact. We analyze survey data from a sample of more than 250 companies participating in the EU Emissions Trading System. The data set includes firms from different industries and countries, and covers the first two periods of the trading scheme. Regression results reveal that regulation-induced uncertainty is positively related to a firm's decision to invest, while we find no statistically significant relation to regulatory uncertainty. Moreover, we find that investment history is positively associated with investments in a specific year, but does not moderate the uncertainty–investment relation.