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Responses to externally induced innovation: Their effects on organizational performance

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  • Alfred A. Marcus

Abstract

Innovation may be externally induced; that is, an external threat or challenge such as the accident at the Three Mile Island (TMl) nuclear power plant sets the stage for outside parties such as the Nuclear Regulatory Commission (NRC) to propose that new practices be adopted. Managers then must make choices about how their organizations will respond. This study shows how prior performance can affect organizational responses and how these responses in turn can affect subsequent performance. Vicious cycles are shown to exist in which poorly performing organizations respond with rule‐bound behavior, a response which only perpetuates their poor performance. Better‐performing organizations, on the other hand, retain their autonomy, a response which reinforces their strong performance.

Suggested Citation

  • Alfred A. Marcus, 1988. "Responses to externally induced innovation: Their effects on organizational performance," Strategic Management Journal, Wiley Blackwell, vol. 9(4), pages 387-402, July.
    • Handle: RePEc:bla:stratm:v:9:y:1988:i:4:p:387-402
    DOI: 10.1002/smj.4250090408
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    Cited by:

    1. Ning Nan & Robert Zmud & Emre Yetgin, 2014. "A complex adaptive systems perspective of innovation diffusion: an integrated theory and validated virtual laboratory," Computational and Mathematical Organization Theory, Springer, vol. 20(1), pages 52-88, March.
    2. Aris Tri Haryanto & Tulus Horyono, 2015. "The Influence Of Market Orientation On Innovation Type And Enterprise Performance," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 11(1), pages 68-78, June.
    3. Ron Westrum, 2004. "Increasing the Number of Guards at Nuclear Power Plants," Risk Analysis, John Wiley & Sons, vol. 24(4), pages 959-961, August.
    4. Alam, Ashraful & Du, Anna Min & Rahman, Mahfuzur & Yazdifar, Hassan & Abbasi, Kaleemullah, 2022. "SMEs respond to climate change: Evidence from developing countries," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    5. Gunday, Gurhan & Ulusoy, Gunduz & Kilic, Kemal & Alpkan, Lutfihak, 2011. "Effects of innovation types on firm performance," International Journal of Production Economics, Elsevier, vol. 133(2), pages 662-676, October.
    6. Feng-Hsu Liu & Hung-Tai Tsou & Lu-Jui Chen, 2013. "The impact of OEM supplier initiatives on buyer competence development: The moderating roles of collaborative relationship and competitive environment," Asia Pacific Journal of Management, Springer, vol. 30(4), pages 1285-1303, December.
    7. Bossink, B.A.G., 2002. "The development of co-innovation strategies: stages and interaction patterns in interfirm innovation," Serie Research Memoranda 0020, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    8. Manuel Guisado-González & Len Tiu Wright & Manuel Guisado-Tato, 2017. "Product–process matrix and complementarity approach," The Journal of Technology Transfer, Springer, vol. 42(3), pages 441-459, June.

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