Linking Drivers and Outcomes of Innovation in IT Firms: The Role of Partnerships
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Linking Drivers and Outcomes of Innovation in IT Firms: The Role of Partnerships Ashish Kumar Jha 1 & Indranil Bose 2
# Springer Science+Business Media, LLC, part of Springer Nature 2020
Abstract A better understanding of the linkage between the objectives and outcomes of innovation will enable firms to plan better for effective utilization of their resources for generation of innovation. The current study enhances the understanding of relationships between the intent to innovate and eventual outcome as the intent to innovate drives complex processes and resource allocation that leads to a successful innovation. We analyze the World Bank innovation survey data of IT firms in China and find that drivers of innovation significantly impact the configuration elements of the innovation phenomenon within firms and influence how firms execute collaboration with external partners. This is turn impacts the product and process innovation generated by the firm. The findings imply that firms should decide about their choice of partners for innovation and the mode of engagement with the partners based on the drivers for innovation. Keywords Innovation configuration . Innovation drivers . Process innovation . Product innovation . Technological innovation
1 Introduction All innovation efforts and activities are directed to meet some pre-specified objectives in firms. Carson et al. have stated that innovation can be best understood as a means to achieve an objective that cannot be achieved with the usual processes and procedures of the firm (Carson et al. 2004). From this viewpoint, it is easy to understand that the objectives that a firm wants to achieve will have a profound impact on all actions it takes in its pursuit of the goal. Hence, it is not surprising that firms in different geographies are investing a lot in innovation in pursuit of their efforts. For instance, Shen et al. (2020) have reported that investments of Chinese firms in research and development (R&D) have matched or exceeded those by firms based in the US or Europe. In 2014, the total investment in R&D by Chinese firms overtook the same by 28 member
* Indranil Bose [email protected] Ashish Kumar Jha [email protected] 1
Trinity College Dublin, The University of Dublin, Dublin 2, Ireland
2
Indian Institute of Management Calcutta, Diamond Harbour Road, Joka, Kolkata 700104, India
countries of EU (Shen et al. 2020). While investment in R&D is an important consideration for the success of innovation this is by no means the only factor for the same. An exercise as complex as innovation requires various other ingredients in order to achieve success. Strategyn, an innovation consulting firm, has found that the success rate for objective-driven innovation is 86% (Hengsberger 2018; Ulwick 2009). This is primarily because the organizational support, which is essential for the success of the innovation effort, is decided according to the objectives laid out by the firm. In extant research, authors have referred to these as ‘drivers’ (Lokuge et al. 2019), ‘antecedents’
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