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Organizational wisdom practices and firm product innovation

Author

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  • Ali E. Akgün

    (Gebze Technical University)

  • Halit Keskin

    (Yildiz Technical University)

  • Sumeyye Y. Kırçovalı

    (Gebze Technical University)

Abstract

The manner in which organizational wisdom-related variables or practices (e.g., reasoning, intuition, virtue, prudence, and aesthetics) are related to firm product innovativeness, and financial performance is rarely addressed empirically in the management literature. By studying 202 Turkish firms and employing both structural equation modeling analysis and fuzzy set qualitative comparative analysis, this study demonstrates that (a) aesthetic practice is a core antecedent of firm product innovativeness, (b) intuitive practice has an inverted U-shaped relationship with firm product innovativeness, and (c) different combinations of organizational wisdom practices are indeed related to firm product innovativeness. This study also shows the mediating role of product innovativeness partially based on the relationship between wisdom practices and firm financial performance. In addition, this study demonstrates that environmental uncertainty is positively associated with virtuous and prudent practices.

Suggested Citation

  • Ali E. Akgün & Halit Keskin & Sumeyye Y. Kırçovalı, 2019. "Organizational wisdom practices and firm product innovation," Review of Managerial Science, Springer, vol. 13(1), pages 57-91, February.
    • Handle: RePEc:spr:rvmgts:v:13:y:2019:i:1:d:10.1007_s11846-017-0243-2
    DOI: 10.1007/s11846-017-0243-2
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    2. Peschl, Markus F. & Kerschbaum, Clemens, 2023. "The Power of Aesthetic Alignment in Future-Oriented Organisations: The Case of Patagonia," Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference (2023), Hybrid Conference, Dubrovnik, Croatia, in: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Hybrid Conference, Dubrovnik, Croatia, 4-6 September, 2023, pages 387-399, IRENET - Society for Advancing Innovation and Research in Economy, Zagreb.
    3. Chun-Liang Chen, 2021. "Cultural product innovation strategies adopted by the performing arts industry," Review of Managerial Science, Springer, vol. 15(5), pages 1139-1171, July.
    4. Astadi Pangarso, 2020. "A New Theoretical Framework of Organizational Effectiveness from Knowledge and Ambidexterity Perspectives," GATR Journals jmmr257, Global Academy of Training and Research (GATR) Enterprise.
    5. 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.

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