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Improvisation for innovation: The contingent role of resource and structural factors in explaining innovation capability

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  • Liu, Yang
  • Lv, Diwei
  • Ying, Ying
  • Arndt, Felix
  • Wei, Jiang

Abstract

This paper focuses on resource and structural factors to explore the relationship between organizational improvisation and innovation capability. Although the role of improvisation has attracted increasing academic attention in fast-changing environments, little is known about the conditions under which firms benefit from improvisation. This paper addresses this gap using an organizational learning perspective that explains the role of a firm's organizational structure and organizational resources for improvisation and innovation. A large-scale survey in China finds that firms vary in their levels of (I) centralization and formalization of decision making and (II) resource slack and investment irreversibility and that these factors moderate the relationship between improvisation and innovation capability in distinct ways. Consistent with our theorizing, improvisation enhances innovation capability when firms have a decentralized but formalized structure or pursue the dual goals of maximizing resource slack and minimizing investment irreversibility.

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  • Liu, Yang & Lv, Diwei & Ying, Ying & Arndt, Felix & Wei, Jiang, 2018. "Improvisation for innovation: The contingent role of resource and structural factors in explaining innovation capability," Technovation, Elsevier, vol. 74, pages 32-41.
    • Handle: RePEc:eee:techno:v:74-75:y:2018:i::p:32-41
    DOI: 10.1016/j.technovation.2018.02.010
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    4. Jiang Wei & Ding Wang & Yang Liu, 2018. "Towards an asymmetry-based view of Chinese firms’ technological catch-up," Frontiers of Business Research in China, Springer, vol. 12(1), pages 1-13, December.
    5. Açıkgöz, Atif & Acikgoz, Fulya & Günsel, Ayşe & Latham, Gary P., 2023. "The relationship between imperfect information and performance speed: The mediation of improvisation in new product development teams," Technovation, Elsevier, vol. 121(C).
    6. Lu Chen & Ming Yuan & Han Lin & Yilong Han & Youyou Yu & Caihui Sun, 2023. "Organizational improvisation and corporate green innovation: A dynamic capability perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5686-5701, December.
    7. Ying, Ying & Wang, Shixiang & Liu, Yang, 2022. "Make bricks without straw: Eco-innovation for resource-constrained firms in emerging markets," Technovation, Elsevier, vol. 114(C).
    8. Liu, Yang & Deng, Ping & Wei, Jiang & Ying, Ying & Wu, Bing, 2021. "How to gain from international R&D alliances? A mutual dependence logic," Journal of Business Research, Elsevier, vol. 135(C), pages 800-815.
    9. Li Xiong, 2022. "Improvise to win: the relationship between entrepreneurial improvisation and start-up competitive advantage," Asian Business & Management, Palgrave Macmillan, vol. 21(2), pages 184-204, April.
    10. Liu, Yang & Dong, Jiuyu & Mei, Liang & Shen, Rui, 2023. "Digital innovation and performance of manufacturing firms: An affordance perspective," Technovation, Elsevier, vol. 119(C).
    11. Escrig-Tena, Ana B. & Segarra-Ciprés, Mercedes & García-Juan, Beatriz, 2021. "Incremental and radical product innovation capabilities in a quality management context: Exploring the moderating effects of control mechanisms," International Journal of Production Economics, Elsevier, vol. 232(C).
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