Does Innovation Lead to Firm Growth? Explorative versus Exploitative Innovations

Ding, Ding; Braunerhjelm, Pontus

doi:10.2139/ssrn.2995422

Cited by 7 publications

(5 citation statements)

References 75 publications

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“…Indeed, Lachenmaier and Rottmann (2011) advocate that innovation decisions are frequently built on long-term choices; hence, innovation process is deliberated at least one period before it occurs, leading organizational innovation as predetermined. As observed by Braunerhjelm et al (2016), analyzing the effect of innovation on firm growth on a Swedish panel data set, predetermined variables are likely to be correlated with past error terms; hence they instrumented the innovation variables used with their one period lagged level values, which ceteris paribus are expected to be not correlated with the error term. The validity of the instruments used in the estimations can be checked by means of the Hansen-J test for over identifying restrictions.…”

Section: Econometric Approachmentioning

confidence: 99%

Linking organizational innovation, firm growth and firm size

Corsi

Prencipe

Capriotti

2019

MRJIAM

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Purpose The purpose of this research is to study the effect of organizational innovation, in terms of the introduction of both new business practices and new methods of organizing workplaces, on firm growth, along with the moderating role of the firm size in this relationship. Design/methodology/approach A panel sample of 4,125 Spanish innovative firms taken from the Technological Innovation Panel for the period 2009 to 2014 was analyzed. Two-Step System-Generalized method of moments approach and instrumental variables approach with two-stage least squares have been used. Findings The findings remark the positive effect of organizational innovation on firm growth in case firms introduce both new business practices and new methods of organizing workplaces. Furthermore, the empirical evidences show that the firm size has a role, although partial, in moderating negatively the effect of introducing both new business practices and new methods of organizing workplaces on firm growth. Originality/value The study adds some new theoretical insights and empirical evidences into the literature related to the inertia theory in the perspective of the population ecology, incorporating it with the effect of firm size. Furthermore, the study may represent a further part of the complex literature puzzle that links organizational innovation to firm growth, and the inclusion of the moderating role of the firm size will partially provide a deeper understanding of this link.

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Section: Econometric Approachmentioning

confidence: 99%

Linking organizational innovation, firm growth and firm size

Corsi

Prencipe

Capriotti

2019

MRJIAM

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“…In case of larger and well performed firms, they maintain their growth rate. Braunerhjelm et al (2016) used the time series data of Swedish firm from the period of 2002 to 2012 to create a model and conclude that there is a positive relationship between employment growth and innovation. The firm innovation and employment growth depends upon the size of the firm.…”

Section: Innovation and Firm Growthmentioning

confidence: 99%

Firms Practice and Innovation Management: Case of Fujairah Emirate, United Arab Emirates

Ahmed

Sisodia²

2020

IJEFI

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Innovation management has received a lot of attention in the last few decades, from a vital determinant of the global competitiveness of nations over the coming decade to the primary driver of economic progress and well-being. Many countries over the world have adopted national strategic roadmaps to foster innovation and enhance its economic impact to boost productivity and growth. The United Arab Emirates (UAE) came forward with the launch of the National Innovation Strategy in 2014. Hence, this paper has investigated the strategic importance of innovation management as a need for change and firms practices in one of the UAE Emirates (Fujairah Emirate). In doing so, the paper has sought to understand whether the concept of innovation management is featured in the UAE Company's culture and strategic plans or whether the management of the business firm is highly committed to innovation management and what an essential driver for UAE to engage in innovation management. To investigate this problem, a qualitative case study methodology is used to collect and analyze the data. Results indicate that there is a clear line of innovation management strategies in UAE and business firms in Fujairah Emirates response to concerns by integrating innovation management into business structure and systems.

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“…Innovation is vital to healthy industry competition and a principal driver of organisational growth. Innovative organisations are more productive and grow faster than phlegmatic competitors (Braunerhjelm et al, 2016;Kerr, 2016). The core operations of companies are changing with the emergence of opportunities to optimise products and services, including business intelligence, virtualisation and information and communication technology (ICT); therefore, adjustments to business models are required.…”

Section: Introductionmentioning

confidence: 99%

Managing business model innovation: an innovative approach towards designing a digital ecosystem and multi-sided platform

Hoch

Brad

2020

BPMJ

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PurposeThis study aims to increase understanding regarding the transformation of traditional business models, integrating digital technologies. The significance of digitisation within business models has increased dramatically in recent years. Because of this, new knowledge on how to transform traditional business models into digital business models in a systematic way is needed. Digital technologies, embedded in previously non-digital goods, force companies to rethink their business models.Design/methodology/approachA design science research methodology was chosen for this study. A literature review and semi-structured interviews served as the theoretical foundation to integrate behavioural science into the design science process. From the design science perspective, an artefact is introduced to provide an architectural framework to manage business model innovation in a systematic way. The artefact's application is demonstrated through a case study conducted at a real company and evaluated afterwards by means of structured interviews with experts.FindingsThe authors propose a highly useable and valuable conceptual framework for systematic business model innovation. However, one limitation of the research is that it was conducted among construction professionals in Germany, and so the result might not hold true for other firms or industry branches.Research limitations/implicationsThe research was conducted among construction professionals in Germany, and this acts as a limitation, as the result might not hold true for other firms or industry branches.Originality/valueThe purpose of this study is to provide managers with a framework for business model innovation, helping them systematically integrate digital technologies to create customer-added value. The proposed framework presents an innovative conceptual analysis of systematic business model innovation, which has not been addressed in prior studies.

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Does Innovation Lead to Firm Growth? Explorative versus Exploitative Innovations

Cited by 7 publications

References 75 publications

Linking organizational innovation, firm growth and firm size

Linking organizational innovation, firm growth and firm size

Firms Practice and Innovation Management: Case of Fujairah Emirate, United Arab Emirates

Managing business model innovation: an innovative approach towards designing a digital ecosystem and multi-sided platform

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