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Simultaneous versus sequential complementarity in the adoption of technological and organizational innovations: the case of innovations in the design sphere

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  • Giuliana Battisti
  • Massimo G. Colombo
  • Larissa Rabbiosi

Abstract

It is generally suggested that technological and organizational innovations, being complementary, need to be adopted simultaneously. Nevertheless, sequential rather than simultaneous adoption of these two types of innovation may be optimal. In this paper, we analyze the pattern of mutual causation of technological and organizational innovations and contribute to the understanding of their interdependencies. By the means of a test of necessary and sufficient conditions for the presence of sequential versus simultaneous complementarity, we explore the adoption of two allegedly complementary innovations in the sphere of design, namely, computer-aided design/manufacture equipment (CAD) and inter-organizational design teams with customers and suppliers (JOD). The evidence is drowned upon a longitudinal sample of Italian manufacturing plants observed over 27 years (1970–1996). We find that simultaneous adoption of the two innovations under consideration is unlikely while the likelihood of JOD adoption increases having adopted CAD. The results highlight the driving role of technological innovations, and notably of the decline in the price of IT equipment, upon the diffusion of complementary organizational innovations.

Suggested Citation

  • Giuliana Battisti & Massimo G. Colombo & Larissa Rabbiosi, 2015. "Simultaneous versus sequential complementarity in the adoption of technological and organizational innovations: the case of innovations in the design sphere," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 24(2), pages 345-382.
    • Handle: RePEc:oup:indcch:v:24:y:2015:i:2:p:345-382.
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    File URL: http://hdl.handle.net/10.1093/icc/dtv003
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    Cited by:

    1. Christophe Favoreu & Christophe Maurel & David Carassus & Pierre Marin, 2019. "Influence and Complementarity of Follow-on Managerial Innovations within a Public Organization," Public Organization Review, Springer, vol. 19(3), pages 345-365, September.
    2. Priit Vahter & Maaja Vadi, 2022. "The Relationship Of Technological And Organizational Innovation With Firm Performance: Opening The Black Box Of Dynamic Complementarities," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 138, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    3. Ully Y. Nafizah & Stephen Roper & Kevin Mole, 2024. "Estimating the innovation benefits of first-mover and second-mover strategies when micro-businesses adopt artificial intelligence and machine learning," Small Business Economics, Springer, vol. 62(1), pages 411-434, January.
    4. Mohamed Ali Ben Halima & Nathalie Greenan & Joseph Lanfranchi, 2021. "Organisational changes and long-term sickness absence and injury leave: a difference in difference approach," TEPP Working Paper 2021-05, TEPP.
    5. Ben Halima, Mohamed Ali & Greenan, Nathalie & Lanfranchi, Joseph, 2023. "Getting sick for profit? The impact of cumulative ICT and management changes on long term sickness absence," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 659-688.
    6. Strong, Derek Ryan, 2017. "The Early Diffusion of Smart Meters in the US Electric Power Industry," Thesis Commons 7zprk, Center for Open Science.
    7. Paulin Gohoungodji & Nabil Amara, 2023. "Art of innovating in the arts: definitions, determinants, and mode of innovation in creative industries, a systematic review," Review of Managerial Science, Springer, vol. 17(8), pages 2685-2725, November.
    8. Vahter, Priit & Vadi, Maaja, 2024. "The relationship of technological and organizational innovation with firm performance: Opening the black box of dynamic complementarities," Technological Forecasting and Social Change, Elsevier, vol. 206(C).
    9. Laubengaier, Désirée A. & Cagliano, Raffaella & Canterino, Filomena, 2022. "It Takes Two to Tango: Analyzing the Relationship between Technological and Administrative Process Innovations in Industry 4.0," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    10. Abhay Nath Mishra & Youyou Tao & Mark Keil & Jeong-ha (Cath) Oh, 2022. "Functional IT Complementarity and Hospital Performance in the United States: A Longitudinal Investigation," Information Systems Research, INFORMS, vol. 33(1), pages 55-75, March.
    11. Douglas Cumming & Jochen Christian Werth & Yelin Zhang, 2019. "Governance in entrepreneurial ecosystems: venture capitalists vs. technology parks," Small Business Economics, Springer, vol. 52(2), pages 455-484, February.
    12. Christophe Favoreu & Christophe Maurel & David Carassus & Pierre Marin, 2018. "Influence and Complementarity of Follow-on Managerial Innovations within a Public Organization," Post-Print hal-02152932, HAL.

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