IDEAS home Printed from https://ideas.repec.org/a/taf/ecinnt/v26y2017i4p385-403.html
   My bibliography  Save this article

Does organizational innovation moderate technical innovation directly or indirectly?

Author

Listed:
  • Brian Paul Cozzarin
  • Weonseek Kim
  • Bonwoo Koo

Abstract

We find a divergence in the literature regarding the treatment of how organizational innovation affects innovation and performance. One point of view suggests that organizational innovation impacts performance only, while the other suggests that it impacts technical innovation and firm performance. We use the framework of Crepon-Duguet-Mairesse (CDM) to control for endogeneity; we also use two different measures for organizational innovation. Our contributions to the literature are: the CDM framework in this context is novel; prior research either did not/could not control for endogeneity whereas the CDM framework mitigates this. To discriminate between the direct and indirect approach, we implemented AIC and BIC tests. We find that for the innovation equations in all cases and regardless of which organizational innovation variable is used the direct model is preferable. In contrast, for the productivity equations, we find that in all cases the indirect model is preferable. Thus we do not have a definitive statistical test for which model is superior. Yet, it is our contention that organizational innovation is a new routine within the firm that should impact technical innovation. Furthermore, organizational design theories deduce that organizational innovation should impact technical innovation-implying that the direct model is indeed preferable.

Suggested Citation

  • Brian Paul Cozzarin & Weonseek Kim & Bonwoo Koo, 2017. "Does organizational innovation moderate technical innovation directly or indirectly?," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 26(4), pages 385-403, May.
    • Handle: RePEc:taf:ecinnt:v:26:y:2017:i:4:p:385-403
    DOI: 10.1080/10438599.2016.1203084
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10438599.2016.1203084
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10438599.2016.1203084?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ballot, Gérard & Fakhfakh, Fathi & Galia, Fabrice & Salter, Ammon, 2015. "The fateful triangle: Complementarities in performance between product, process and organizational innovation in France and the UK," Research Policy, Elsevier, vol. 44(1), pages 217-232.
    2. Koson Sapprasert & Tommy Høyvarde Clausen, 2012. "Organizational innovation and its effects," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 21(5), pages 1283-1305, October.
    3. Caroline Mothe & Uyen T. Nguyen-Thi & Phu Nguyen-Van, 2015. "Assessing complementarity in organizational innovations for technological innovation: the role of knowledge management practices," Applied Economics, Taylor & Francis Journals, vol. 47(29), pages 3040-3058, June.
    4. Camisón, César & Villar-López, Ana, 2014. "Organizational innovation as an enabler of technological innovation capabilities and firm performance," Journal of Business Research, Elsevier, vol. 67(1), pages 2891-2902.
    5. Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation And Productivity: An Econometric Analysis At The Firm Level," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(2), pages 115-158.
    6. Boris Lokshin & René Belderbos & Martin Carree, 2008. "The Productivity Effects of Internal and External R&D: Evidence from a Dynamic Panel Data Model," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 70(3), pages 399-413, June.
    7. Evangelista, Rinaldo & Vezzani, Antonio, 2010. "The economic impact of technological and organizational innovations. A firm-level analysis," Research Policy, Elsevier, vol. 39(10), pages 1253-1263, December.
    8. Bronwyn H. Hall & Francesca Lotti & Jacques Mairesse, 2013. "Evidence on the impact of R&D and ICT investments on innovation and productivity in Italian firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 22(3), pages 300-328, April.
    9. Naciba Haned & Caroline Mothe & Thuc Uyen Nguyen-Thi, 2014. "Firm persistence in technological innovation: the relevance of organizational innovation," Post-Print halshs-01496526, HAL.
    10. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie Mathématique et Applications 98.15, Université Panthéon-Sorbonne (Paris 1).
    11. Naciba Haned & Caroline Mothe & Thuc Uyen Nguyen-Thi, 2014. "Firm persistence in technological innovation: the relevance of organizational innovation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 23(5-6), pages 490-516, September.
    12. Jose-Luis Hervas-Oliver & Francisca Sempere-Ripoll & Carles Boronat-Moll, 2014. "Process innovation strategy in SMEs, organizational innovation and performance: a misleading debate?," Small Business Economics, Springer, vol. 43(4), pages 873-886, December.
    13. Stuart Macdonald & Dimitris Assimakopoulos & Pat Anderson, 2007. "Education and Training for Innovation in SMEs : A Tale of Exploitation," Post-Print hal-02313391, HAL.
    14. Orietta Marsili & Ammon Salter, 2005. "'Inequality' of innovation: skewed distributions and the returns to innovation in Dutch manufacturing," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(1-2), pages 83-102.
    15. Freeman, Chris, 1994. "The Economics of Technical Change," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 18(5), pages 463-514, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tanja Todorovic & Nenad Medic & Milan Delic & Nikola Zivlak & Danijela Gracanin, 2022. "Performance Implications of Organizational and Technological Innovation: An Integrative Perspective," Sustainability, MDPI, vol. 14(5), pages 1-14, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tanja Todorovic & Nenad Medic & Milan Delic & Nikola Zivlak & Danijela Gracanin, 2022. "Performance Implications of Organizational and Technological Innovation: An Integrative Perspective," Sustainability, MDPI, vol. 14(5), pages 1-14, February.
    2. 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.
    3. repec:ipg:wpaper:2014-488 is not listed on IDEAS
    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. Caroline Mothe & Uyen T. Nguyen-Thi & Phu Nguyen-Van, 2015. "Complementarities in organizational innovation practices: evidence from French industrial firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 24(6), pages 569-595, September.
    6. 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.
    7. Ballot, Gérard & Fakhfakh, Fathi & Galia, Fabrice & Salter, Ammon, 2015. "The fateful triangle: Complementarities in performance between product, process and organizational innovation in France and the UK," Research Policy, Elsevier, vol. 44(1), pages 217-232.
    8. Rachel Bocquet & Christian Le Bas & Caroline Mothe & Nicolas Poussing, 2017. "CSR, Innovation, and Firm Performance in Sluggish Growth Contexts: A Firm-Level Empirical Analysis," Journal of Business Ethics, Springer, vol. 146(1), pages 241-254, November.
    9. Dung Nguyen‐Van & Chia‐Hua Chang, 2021. "Internationalization and product innovation in ASEAN: The moderating role of organizational innovation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(2), pages 437-462, March.
    10. Wang, Fang & Chen, Kaihua, 2020. "Do product imitation and innovation require different patterns of organizational innovation? Evidence from Chinese firms," Journal of Business Research, Elsevier, vol. 106(C), pages 60-74.
    11. Ramadani, Veland & Hisrich, Robert D. & Abazi-Alili, Hyrije & Dana, Léo-Paul & Panthi, Laxman & Abazi-Bexheti, Lejla, 2019. "Product innovation and firm performance in transition economies: A multi-stage estimation approach," Technological Forecasting and Social Change, Elsevier, vol. 140(C), pages 271-280.
    12. Caroline Mothe & Uyen T. Nguyen-Thi & Phu Nguyen-Van, 2015. "Assessing complementarity in organizational innovations for technological innovation: the role of knowledge management practices," Applied Economics, Taylor & Francis Journals, vol. 47(29), pages 3040-3058, June.
    13. Mercedes Teruel & Agustí Segarra, 2011. "Productivity and R&D sources in manufacturing and service firms in Catalonia: a regional approach," ERSA conference papers ersa11p1860, European Regional Science Association.
    14. Carlos Martin-Rios & Eva Parga-Dans & Susana Pasamar, 2019. "Innovation strategies and complementarity between innovation activities: the case of commercial archaeological firms," Service Business, Springer;Pan-Pacific Business Association, vol. 13(4), pages 695-713, December.
    15. Anzola-Román, Paula & Bayona-Sáez, Cristina & García-Marco, Teresa, 2018. "Organizational innovation, internal R&D and externally sourced innovation practices: Effects on technological innovation outcomes," Journal of Business Research, Elsevier, vol. 91(C), pages 233-247.
    16. Caroline Mothe & Thu Nguyen Nguyen Thi & Phu Nguyen-Van, 2015. "Complementarities in organizational innovation practices: evidence from French industrial firms Complementarities in organizational innovation practices: evidence from French industrial firms," Post-Print hal-01293802, HAL.
    17. Sverre J. Herstad & Tore Sandven, 2020. "A closer look at the relationship between innovation and employment growth at the firm level," Journal of Evolutionary Economics, Springer, vol. 30(2), pages 375-399, April.
    18. Caroline Mothe & Uyen T. Nguyen-Thi & Phu Nguyen-Van, 2014. "Are organizational innovation practices complements or substitutes for technological innovation performance?," Working Papers of BETA 2014-12, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    19. Nestor Duch-Brown & Andrea de Panizza & Ibrahim Kholilul Rohman, 2016. "Innovation and productivity in a S&T intensive sector: the case of Information industries in Spain," JRC Research Reports JRC101847, Joint Research Centre.
    20. Andrés Barge-Gil & Alberto López, 2015. "R versus D: estimating the differentiated effect of research and development on innovation results," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 24(1), pages 93-129.
    21. Emanuele Giovannetti & Claudio Piga, 2023. "The multifaceted nature of cooperation for innovation, ICT and innovative outcomes: evidence from UK Microdata," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(3), pages 639-666, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:ecinnt:v:26:y:2017:i:4:p:385-403. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/GEIN20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.