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When More Is Less: The Moderating Role Of Cross-Functional Integration And Organizational Knowledge Complexity On Product Innovation Performance

Author

Listed:
  • Ana Pérez-Luño

    (Department of Business Organization and Marketing, Universidad Pablo de Olavide)

  • Ana Bojica

    (Department of Business Organization and Marketing, Universidad de Granada)

  • Shanthi Gopalakrishnan

    (School of Management, New Jersey Institute of Technology)

Abstract

Innovation has become the cornerstone for achieving high performance and competitive advantage and is currently one of the principal topics of debate in the management literature. In order to develop innovations, ?rms need to deal with complex knowledge that comes from its different areas or departments through cross-functional integration. Using a unique sample of Spanish wineries, this paper shows that cross-functional integration moderates innovation- firm’s performance relationship, and that this moderation is conditioned by the degree of organizational knowledge complexity. These findings add to the innovation literature, showing that cross-functional integration has a direct positive relationship with firm performance, but a negative moderating effect on the relationship between product innovation and firm performance. However, this negative effect remains consistent only when the degree of knowledge complexity the organization has to manage is low and becomes positive (although not significant) when the degree of organizational knowledge complexity is high.

Suggested Citation

  • Ana Pérez-Luño & Ana Bojica & Shanthi Gopalakrishnan, 2017. "When More Is Less: The Moderating Role Of Cross-Functional Integration And Organizational Knowledge Complexity On Product Innovation Performance," Working Papers 17.01, Universidad Pablo de Olavide, Department of Business Organization and Marketing (former Department of Business Administration).
    • Handle: RePEc:pab:wpboam:17.01
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    References listed on IDEAS

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    Cited by:

    1. Nicolás Depetris-Chauvin & Marta Fernández Olmos & Juan Carlos Hallak & José Santiago Mosquera, 2023. "Quality, Vertical Integration and Adaptability," Working Papers 221, Red Nacional de Investigadores en Economía (RedNIE).

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    Keywords

    Knowledge strategy; structuration; depth; breadth; alliance; biotechnology;
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