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Preceding operational capabilities as antecedents for productivity and innovation performance

Author

Listed:
  • Minna Saunila

    (LUT University)

  • Juhani Ukko

    (LUT University)

  • Tero Rantala

    (LUT University)

  • Mina Nasiri

    (LUT University)

  • Hannu Rantanen

    (LUT University)

Abstract

This study focuses on the connections among operational capabilities, productivity, and innovation performance. Specifically, the study investigates whether preceding operational capabilities, particularly human, time management, and financing capabilities, affect total productivity, labor productivity, and innovation performance. Using data from 203 Finnish small- and medium-sized enterprises, this study shows that human and time management capabilities affect total productivity, whereas only human capabilities affect labor productivity. Both human and time management capabilities affect innovation performance. Hence, this study makes two main contributions to existing research on operational capabilities. As a first contribution, the study introduces three preceding operational capabilities—human, time management, and financing capabilities—as crucial elements to realize operational resources and practices, on one hand, and to establish operational capabilities, on the other hand. As a second contribution, this research adds to the literature a comprehensive investigation of the links of preceding operational capabilities with productivity (i.e., total productivity and labor productivity) and innovation performance.

Suggested Citation

  • Minna Saunila & Juhani Ukko & Tero Rantala & Mina Nasiri & Hannu Rantanen, 2020. "Preceding operational capabilities as antecedents for productivity and innovation performance," Journal of Business Economics, Springer, vol. 90(4), pages 537-561, May.
    • Handle: RePEc:spr:jbecon:v:90:y:2020:i:4:d:10.1007_s11573-019-00963-0
    DOI: 10.1007/s11573-019-00963-0
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    More about this item

    Keywords

    Productivity; Innovation performance; Operational capabilities; Human capabilities; Time management capabilities; Financing capabilities;
    All these keywords.

    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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