Session 236

Innovation and Performance

Track I

Date: Monday, October 8, 2012


Time: 16:30 – 17:45

Common Ground

Room: Club E


  • Melissa Schilling, New York University

Title: Complex Links between R&D Choice and Performance


  • Yeolan Lee, University of Alabama in Huntsville

Abstract: Traditional perspectives argue that firms determine boundary decisions in the way to minimize transaction (Williamson, 1979, 1991) or coordination costs (Kogut & Zander, 1992), or to maximize the value of heterogeneous resources through ‘trust’ mechanism (Barney & Hensen, 1994; Gulati, 1995). With these perspectives, however, it is difficult to understand an emerging ambidextrous R&D organizational structure that a considerable number of high-tech firms manage. In this proposal, we build a theoretical framework to better understand links between R&D choice and performance. Based on a sample of new drugs approved during 1990-1999, we found that a R&D choice shapes an optimal set of entry strategies regarding time-to-market and product innovativeness, which significantly determines performance. We conclude that a R&D choice itself does not become a key determinant of performance.

Title: Innovation in the Global Pharmaceutical Industry: Breakthroughs, Knowledge Stocks and Scientific versus Market Success


  • Denise Dunlap, Northeastern University
  • Ram Mudambi, Temple University
  • Tim Swift, St. Joseph's University

Abstract: Firm undertake innovative activities to generate defensible rents. These rents accrue from the market success of final outputs. Typically, R&D personal whose expertise is critical to innovative success are often focused on intermediate outputs or scientific success and furthering social welfare. However, scientific success and market success are distinct outcomes. The literature on innovation and innovative success is relatively unclear about the distinction between market and scientific success. The notion of ‘architectural innovation’ (Henderson and Clark, 1990) captures the idea that market and scientific success may be divorced as large commercial successes often involve relatively small scientific advances (e.g., Apple iPod, iPhone, digital cameras, Plumpy’nut, etc.).Our hypotheses suggest that sourcing external knowledge through particularly mergers or acquisitions versus joint ventures may affect a firm’s ability to increase its breakthrough innovation differently when it comes to market versus scientific success.

Title: Orchestrating Resources with Suppliers: The Nonlinear Effects of Integration, Learning Orientation and Environmental Dynamism on Product Innovation


  • Francesco Chirico, Jönköping University
  • Lucia Naldi, Jönköping University
  • Michael A. Hitt, Texas A&M University and TCU

Abstract: Drawing on resource orchestration logic, we argue that resource integration with suppliers (RIS) is an important bundling mechanism in supply chain to achieve product innovation. However, while moderate levels of RIS provide the potential for product innovation, the increased rigidity and path dependency that accompany high levels of RIS may undermine this potential. Thus, we propose the existence of an inverted U-shaped relationship between RIS and product innovation. Also, we focus on two contingencies –a firm’s learning orientation (internal contingency) and environmental dynamism (external contingency) – which exert positive moderating effects on the RIS / product innovation relationship. Our empirical results confirm that product innovation in supply chain is positively affected by the synchronization of RIS, learning orientation and environmental dynamism.

Title: Strategic Innovation: Innovation Failure, Learning and Competitiveness Revisited


  • George Tovstiga, EDHEC Business School
  • Henning Grossmann, Foundation Technopark Zurich

Abstract: The basic premise underlying this empirical study is that while differentiation may be the sought innovation outcome, learning extracted from intelligent innovation failure can in fact produce returns to the organisation that are of potentially greater competitive significance. While by no means a new premise, there is little empirical evidence in the literature to help explain the linkage between failure and learning. A conceptual model linking innovation effort, outcomes and competitive impact is proposed. Empirical quantitative research data derived from field research conducted with a sampling of start-up firms hosted by a Swiss technology park forms the basis of the analysis. Preliminary statistical analysis (correlation analysis and factor analysis) provides evidence that links learning derived from failed innovation effort to differentiation.

Title: The Antecedents and Outcomes of Environmental Innovation


  • Anna Grobecker, EBS University
  • Julia Hartmann, EBS University
  • Richard Germain, St. Petersburg University

Abstract: Sustainability and the preservation of the natural environment is one of the key challenges for industrial organizations in the coming years. Research still needs to further investigate the conditions under which the integration of environmental thinking into product and process innovation drives performance. The present study investigates relevant antecedents and outcomes of environmental innovation capabilities. We are interested in how a firm’s level of entrepreneurial orientation supports the development of unique and difficult to imitate capabilities in integrating environmental considerations into product development and production processes and how the development of these capabilities drives firm performance.
To assess the hypotheses, empirical data will be collected from 875 manufacturing firms in Russia using the survey method and analyzed using structural equation modelling.

Title: The Joint Effect of Innovation and Environmental Dynamism on Firms’ Performance


  • Ana Pérez-Luño, Pablo de Olavide University
  • Shanthi Gopalakrishnan, New Jersey Institute of Technology

Abstract: Innovations can be internally generated or can be sourced externally and adopted. Innovations also vary in terms of degree of radicalness. A sample of 381 Spanish firms was used to empirically test how organizations, in order to be competitive, need to identify the appropriate type of strategies – in terms of innovation generation versus adoption, and extent of radicalness – that are consistent with the environmental conditions that they operate in. First, we find that in dynamic environments, the more radical and internally generated the innovations, the higher the company’s perceived and objective performance. Second, we find that in stable environments, the less radical and more internally generated the innovations, the higher the company’s objective performance. Implications for theory and practice are discussed.

All Sessions in Track I...

Sun: 08:00 – 09:15
Session 274: Knowledge Foundations: A Conversation with Robert Grant about the Knowledge Based View
Sun: 09:30 – 10:45
Session 273: Big Data, Knowledge and Innovation
Sun: 11:15 – 12:30
Session 275: The Changing Nature of Innovation in Emerging Economies
Sun: 15:15 – 16:30
Session 225: Intellectual Property Rights
Session 229: Structure and Innovation
Mon: 08:00 – 09:15
Session 223: Individuals, Teams and Innovation
Session 242: R&D
Mon: 09:30 – 10:45
Session 140: Knowledge Management & Knowledge Structures: Who knows?
Session 226: Technology
Session 235: Learning
Mon: 13:30 – 14:45
Session 222: Integrating Knowledge about Knowledge Integration
Session 227: Knowledge Transfer and Replication
Mon: 16:30 – 17:45
Session 224: Absorptive Capacity
Session 236: Innovation and Performance
Tue: 08:00 – 09:15
Session 230: Ties, Networks, and Innovation
Session 237: Open Innovation
Tue: 11:00 – 12:15
Session 228: Exploration
Session 231: Alliance and Transfer
Tue: 14:15 – 15:30
Session 234: Incumbent Response to Foreign Entry and to Disruptive Innovation
Session 240: Capabilities
Tue: 15:45 – 17:00
Session 233: Structure and Transfer
Session 243: Entrepreneurs, Ventures, and Innovation
Tue: 17:30 – 18:45
Session 232: Innovation and Transfer
Session 239: Ambidexterity / Exploration and Exploitation
Session 244: Knowledge Management

Strategic Management Society