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Impact of organizational innovation on product and process innovation

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  • Brian Paul Cozzarin

Abstract

The purpose of this paper was to test the effect of organizational innovation on product and process innovation (while controlling for endogeneity). Our hypothesis was that organizational innovation should have a significant and positive impact on technical (product or process) innovation. We control for endogeneity by using a Poisson estimator that accommodates a binary endogenous regressor. We test 10 potential instruments using a battery of test criteria and settle on five. All results are presented using the five instruments to avoid expectation bias. In general we find that organizational innovation does impact technical innovation positively. With the 2009 data we find that the mean of the average treatment effect for product innovation is roughly 1.7 times that of process innovation. For the 2009–2012 data we find that the impact on product innovation is roughly 1.5 times that of process innovation. For the 2012 data, we had anomalous results for process innovation, such that organizational innovation reduced the number of process innovations by 2.3 per year. In terms of Canadian government policy, the results lend support to the view that technical innovation is not the only innovation that matters. The right policy mix may encourage firms to experiment with and adopt more organizational innovations to enhance technical innovation.

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  • Brian Paul Cozzarin, 2017. "Impact of organizational innovation on product and process innovation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 26(5), pages 405-417, July.
    • Handle: RePEc:taf:ecinnt:v:26:y:2017:i:5:p:405-417
    DOI: 10.1080/10438599.2016.1204779
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    4. 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.
    5. Zahid Sarwar & Jingmei Gao & Adnan Khan, 2024. "Nexus of digital platforms, innovation capability, and strategic alignment to enhance innovation performance in the Asia Pacific region: a dynamic capability perspective," Asia Pacific Journal of Management, Springer, vol. 41(2), pages 867-901, June.
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    8. 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.
    9. Dimakopoulou, A.G. & Gkypali, A. & Tsekouras, K., 2024. "Technological and non-technological innovation synergies under the lens of absorptive capacity efficiency," Journal of Business Research, Elsevier, vol. 176(C).
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    12. Jennifer González-Blanco & Jose Luis Coca-Pérez & Manuel Guisado-González, 2018. "The Contribution of Technological and Non-Technological Innovation to Environmental Performance. An Analysis with a Complementary Approach," Sustainability, MDPI, vol. 10(11), pages 1-26, November.
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