Innovation in conservative and entrepreneurial firms: Two models of strategic momentum

Abstract

Two very different models of product innovation are postulated and tested. The conservative model assumes that innovation is performed reluctantly, mainly in response to serious challenges. It therefore predicts that innovation will correlate positively with environmental, information processing, structural and decision making variables that represent, or help to recognize and cope with these challenges. In contrast, the entrepreneurial model supposes that innovation is always aggressively pursued and will be very high unless decision makers are warned to slow down. Thus negative correlations are predicted between innovation and the variables that can provide such warning. Correlational and curvilinear regression analyses revealed that each model was supported by conservative and entrepreneurial sub‐samples, respectively, in a diverse sample of 52 Canadian firms.

The Effect of Pro-Entrepreneurship Architecture on Organisational Outcomes

“…For the first phase of the study, EO was measured along the sub-dimensions of innovation, proactiveness, and risk taking (Covin, Slevin 1989;Covin et al 2006;Lumpkin, Dess 2001;Khandwalla 1977;Kreiser et al 2002;Miller, Friesen 1983). Based on the nine items constituting EO's three dimensions, the internal consistency of the sampling instrument, was assessed.…”

“…Prior theory and research (Covin, Slevin 1989;Khandwalla 1977;Lee, Peterson 2000;Lumpkin, Dess 1996;Miller, Friesen 1983, 1984 indicates that an EO is a key ingredient for organizational success, and has been previously linked to increased performance (Zahra, Covin 1995;Wiklund, Shepherd 2003). Research provides theoretical support for the EO construct, in both the fields of entrepreneurship and strategic management .…”

5.2.2 The Culture of Innovation Styles: Are our Corporate Cultures Tuned for Innovation?

“…Miller and Friesen's data sample were 52 businesses ranging in size of sales from less than two million to over one billion United States dollars. These firms employed an average of 2,270 employees and are from industries including "retailing, furniture manufacturing, broadcasting, pulp and paper, food, plastics, electronics, chemicals, meatpacking, publishing, construction, and transportation" (Miller 1982). Their similarities are their geographical proximity to Montreal and that they represent the personal interests of MBA students (Miller 1982).…”

“…These firms employed an average of 2,270 employees and are from industries including "retailing, furniture manufacturing, broadcasting, pulp and paper, food, plastics, electronics, chemicals, meatpacking, publishing, construction, and transportation" (Miller 1982). Their similarities are their geographical proximity to Montreal and that they represent the personal interests of MBA students (Miller 1982). Miller and Friesen claim sufficient dispersion in size and type of firm and overall sample balance (no firm type or size dominates) to produce generalizable results (Miller 1982).…”

Choice and Change of Measures in Performance Measurement Models

“…Again, this supports the classification of the company strategy as more conservative. Conservative companies tend to use control systems that signal the need for innovation by highlighting substantial drops in market share and declining profitability (Miller & Freisen, 1982).…”