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Competence and Organization: Two Drivers of Innovation

Author

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  • J. P. Francois
  • F. Favre
  • S. Negassi

Abstract

This paper demonstrates the effects of organizational factors and computerization changes on innovation. Indeed, the innovation capacity depends more on a company's organization than on its size. The econometric results show that, when the organizational structure is integrated into a Schumpeter's model with flexibility, reactivity, risk-taking, internal communication and the establishing of a strategy, the significance of the company size decreases by half. Our work underlines the importance of the level of self-sufficiency and the recognition of a researcher's status. In addition, it demonstrates that the mass of knowledge needed is constantly increasing because of constant technological progress, making it indispensable for a company to open up towards the outside world, more particularly through cooperation. Recourse to R&D cooperation provides access to information and to new abilities that can improve the technological capabilities of a firm. It underlines that the condition needed to be able to benefit from the competence of a partner is to have, first of all, agreement to share a stock of complementary and common knowledge, a condition that will boost the performance of partner companies. Connection to the Internet has a greater effect upon innovation capacities than does the simple networking of microcomputers, and can lead to reorganizing work within companies, with the possibility of more intense information sharing. The company would subsequently organize task sharing internally, and as regards the outside world, not on hierarchical bases, but on those of shared interest in a given goal. The greater speed in information transmission would permit an increase in the speed of change in the environment and thereby, a shortening of the deadlines for defining and marketing innovations.

Suggested Citation

  • J. P. Francois & F. Favre & S. Negassi, 2002. "Competence and Organization: Two Drivers of Innovation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(3), pages 249-270.
  • Handle: RePEc:taf:ecinnt:v:11:y:2002:i:3:p:249-270
    DOI: 10.1080/10438590210906
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    References listed on IDEAS

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    1. Kamien, Morton I & Schwartz, Nancy L, 1975. "Market Structure and Innovation: A Survey," Journal of Economic Literature, American Economic Association, vol. 13(1), pages 1-37, March.
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    Cited by:

    1. Borra Marcos, Cristina & García Sánchez, Antonio & Espasandín Bustelo, Francisco, 2005. "Empresa, comportamiento innovador y Universidad: el caso de la Economía Social en Andalucía/Enterprise, innovating behaviour and University: the case of Andalusian Social Economy," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 23, pages 583-606, Diciembre.
    2. Jeffrey Yi-Lin Forrest & Zaiwu Gong, 2019. "Factors and Steps for Successful Transition from a State of Making to One of Innovating," Sustainability, MDPI, vol. 11(15), pages 1-12, August.
    3. Kay H. Hofmann & Gregory Theyel & Craig H. Wood, 2012. "Identifying Firm Capabilities as Drivers of Environmental Management and Sustainability Practices – Evidence from Small and Medium‐Sized Manufacturers," Business Strategy and the Environment, Wiley Blackwell, vol. 21(8), pages 530-545, December.
    4. Yu-Shan Chen, 2008. "The Driver of Green Innovation and Green Image – Green Core Competence," Journal of Business Ethics, Springer, vol. 81(3), pages 531-543, September.
    5. Rossi, Federica, 2002. "An introductory overview of innovation studies," MPRA Paper 9106, University Library of Munich, Germany, revised Jun 2008.
    6. Moaniba, Igam M. & Su, Hsin-Ning & Lee, Pei-Chun, 2019. "On the drivers of innovation: Does the co-evolution of technological diversification and international collaboration matter?," Technological Forecasting and Social Change, Elsevier, vol. 148(C).
    7. Mohd Nizam Ab Rahman & Mahmood Doroodian & Yusniza Kamarulzaman & Norhamidi Muhamad, 2015. "Designing and Validating a Model for Measuring Sustainability of Overall Innovation Capability of Small and Medium-Sized Enterprises," Sustainability, MDPI, vol. 7(1), pages 1-26, January.
    8. Schmiedeberg, Claudia, 2008. "Complementarities of innovation activities: An empirical analysis of the German manufacturing sector," Research Policy, Elsevier, vol. 37(9), pages 1492-1503, October.
    9. Santos, David Ferreira Lopes & Basso, Leonardo Fernando Cruz & Kimura, Herbert, 2018. "The trajectory of the ability to innovate and the financial performance of the Brazilian industry," Technological Forecasting and Social Change, Elsevier, vol. 127(C), pages 258-270.
    10. Huergo, Elena, 2006. "The role of technological management as a source of innovation: Evidence from Spanish manufacturing firms," Research Policy, Elsevier, vol. 35(9), pages 1377-1388, November.

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    Keywords

    Innovation; Organization;

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