DOI QR코드

DOI QR Code

A Study on the Curvilinear Relationship Between Slack and Innovation : Focus on Moderating Effect of Network Diversity

조직의 여유자원과 혁신간의 비선형관계에 관한 연구 : 네트워크 다양성 조절효과

  • Kang, Sora (Department of Digital Business, Hoseo University) ;
  • Han, Su Jin (Division of Business Administration, Hoseo University)
  • Received : 2020.12.01
  • Accepted : 2020.12.18
  • Published : 2020.12.31

Abstract

Based on the resource-based perspective, this study seeks to understand the relationship between the organizational slack and innovation, and to demonstrate that there exists a difference in the influence of the organizational slack according to the type of innovation by dividing the types of innovation into exploratory and exploitative innovations. They also want to understand the role that network diversity plays in the relationship between organizational slack and innovation. For this purpose, hypothesis and research models were presented based on resource-based perspectives and empirical analysis was conducted on 171 companies. The analysis confirmed that the impact of organizational slack on exploitative innovation is linear, not non-linear, as expected. In other words, the more resources available, the more productive the enterprise is, and the more resources available to the organization have a positive impact on the innovation. On the other hand, exploratory innovation represented an inverse U-shaped relationship between organizational slack and nonlinearity as expected. The control effect of network diversity was only seen in the relationship between organizational slack and exploratory innovation. Through this study, it provides implications such as the importance of network diversity, which is a relationship between companies, and the difference in the utilization of organizational slack according to the type of innovation.

Keywords

References

  1. Abernathy, W. J. and Clark, K. B., "Innovation : Mapping the winds of creative destruction", Research Policy, Vol. 14, No. 1, 1985, pp. 3-22. https://doi.org/10.1016/0048-7333(85)90021-6
  2. Balachandran, S. and Hernandez, E., "Networks and innovation : Accounting for structural and institutional sources of recombination in brokerage triads", Organization Science, Vol. 29, No. 1, 2018, pp. 80-99. https://doi.org/10.1287/orsc.2017.1165
  3. Baum, J. A., Calabrese, T., and Silverman, B. S., "Don't go it alone : Alliance network composition and startups' performance in Canadian biotechnology", Strategic Management Journal, Vol. 21, No. 3, 2000, pp. 267-294. https://doi.org/10.1002/(SICI)1097-0266(200003)21:3<267::AID-SMJ89>3.0.CO;2-8
  4. Benner, M. J. and Tushman, M. L., "Exploitation, exploration, and process management : The productivity dilemma revisited", Academy of Management Review, Vol. 28, No. 2, 2003, pp. 238-256. https://doi.org/10.2307/30040711
  5. Bourgeois III, L. J., "On the measurement of organizational slack", Academy of Management Review, Vol. 6, No. 1, 1981, pp. 29-39. https://doi.org/10.5465/AMR.1981.4287985
  6. Brown, S. L. and Eisenhardt, K. M., "Product development : Past research, present findings, and future directions", Academy of Management Review, Vol. 20, No. 2, 1995, pp. 343-378. https://doi.org/10.5465/AMR.1995.9507312922
  7. Burt, R. S., Closure as social capital. Social capital : Theory and research, 2001, pp. 31-55.
  8. Chandy, R. K. and Tellis, G. J., "Organizing for radical product innovation : The overlooked role of willingness to cannibalize", Journal of Marketing Research, Vol. 35, No. 4, 1998, pp. 474-487. https://doi.org/10.2307/3152166
  9. Cheng, J. L. and Kesner, I. F., "Organizational slack and response to environmental shifts : The impact of resource allocation patterns", Journal of Management, Vol. 23, No. 1, 1997, pp. 1-18. https://doi.org/10.1177/014920639702300101
  10. Chin, W. W., The partial least squares approach for structural equation modeling. G. A. Marcoulides, ed. Modern Methods for Business Research, Lawrence Erlbaum Associates, Mahwah, NJ, 1998, pp. 295-336.
  11. Cho, M., Bonn, M. A., Han, S., and Kang, S., "Partnership strength and diversity with suppliers : effects upon independent restaurant product innovation and performance", International Journal of Contemporary Hospitality Management, Vol. 30, No. 3, 2018, pp. 1526-1544. https://doi.org/10.1108/IJCHM-01-2017-0016
  12. Cohen, M. D., March, J. G., and Olsen, J. P., "A garbage can model of organizational choice", Administrative Science Quarterly, Vol. 17, No. 1, 1972, pp. 1-25. https://doi.org/10.2307/2392088
  13. Cyert, R. M. and March, J. G., "A behavioral theory of the firm", Englewood Cliffs, NJ, 1963.
  14. Damanpour, F., "Organizational innovation : A meta-analysis of effects of determinants and moderators", Academy of Management Journal, Vol. 34, No. 3, 1991, pp. 555-590. https://doi.org/10.2307/256406
  15. Dannels, D., "Communication across the curriculum and in the disciplines : Speaking in engineering", Communication Education, Vol. 51, No. 3, 2002, pp. 254-268. https://doi.org/10.1080/03634520216513
  16. Hair, J. F., Anderson, R. E., Tatham, R. L., and Black, W. C., Multivariate Data Analysis, 5th ed. Prentice-Hall, Upper Saddle River, NJ, 1998.
  17. Heil, O. P. and Walters, R. G., "Explaining competitive reactions to new products : An empirical signaling study", Journal of Product Innovation Management : An International Publication of the Product Development and Management Association, Vol. 10, No. 1, 1993, pp. 53-65. https://doi.org/10.1111/1540-5885.1010053
  18. Henderson, R. and Cockburn, I., "Measuring competence? Exploring firm effects in pharmaceutical research", Strategic Management Journal, Vol. 15, No. S1, 1994, pp. 63-84. https://doi.org/10.1002/smj.4250150906
  19. Hennart, J. F., Kim, D. J., and Zeng, M., "The impact of joint venture status on the longevity of Japanese stakes in US manufacturing affiliates", Organization Science, Vol. 9, No. 3, 1998, pp. 382-395. https://doi.org/10.1287/orsc.9.3.382
  20. Hitt, M. A., Bierman, L., Shimizu, K., and Kochhar, R., "Direct and moderating effects of human capital on strategy and performance in professional service firms : A resource-based perspective", Academy of Management Journal, Vol. 44, No. 1, 2001, pp. 13-28.
  21. Im, S. and Workman Jr, J. P., "Market orientation, creativity, and new product performance in high-technology firms", Journal of Marketing, Vol. 68, No. 2, 2004, pp. 114-132. https://doi.org/10.1509/jmkg.68.2.114.27788
  22. Jansen, J. J., Van Den Bosch, F. A., and Volberda, H. W., "Exploratory innovation, exploitative innovation, and performance : Effects of organizational antecedents and environmental moderators", Management Science, Vol. 52, No. 11, 2006, pp. 1661-1674. https://doi.org/10.1287/mnsc.1060.0576
  23. Jensen, M. C., "The modern industrial revolution, exit, and the failure of internal control systems", the Journal of Finance, Vol. 48, No. 3, 1993, pp. 831-880. https://doi.org/10.1111/j.1540-6261.1993.tb04022.x
  24. Jiang, R. J., Tao, Q. T., and Santoro, M. D., "Alliance portfolio diversity and firm performance", Strategic Management Journal, Vol. 31, No. 10, 2010, pp. 1136-1144. https://doi.org/10.1002/smj.869
  25. Katila, R. and Mang, P. Y., Interorganizational Development Activities : the Likelihood and Timing of Contracts, In Academy of Management Proceedings (Vol. 1999, No. 1, pp. B1-B6). Briarcliff Manor, NY 10510 : Academy of Management, 1999.
  26. Katila, R. and Shane, S., "When does lack of resources make new firms innovative?", Academy of Management Journal, Vol. 48, No. 5, 2005, pp. 814-829. https://doi.org/10.5465/AMJ.2005.18803924
  27. Kim, G. I. and Kwun, S. K., "The effects of financial and human resource slack on the innovative activity", Journal of Organization and Management, Vol. 42, No. 4, 2018, pp. 35-77.
  28. Kostopoulos, K. C., Spanos, Y. E., and Prastacos, G. P., The resource-based view of the firm and innovation : identification of critical linkages, In The 2nd European Academy of Management Conference (pp. 1-19), 2002.
  29. Kuusela, P., Keil, T., and Maula, M., "Driven by aspirations, but in what direction? Performance shortfalls, slack resources, and resource-consuming vs. resource-freeing organizational change", Strategic Management Journal, Vol. 38, No. 5, 2017, pp. 1101-1120. https://doi.org/10.1002/smj.2544
  30. Lee, D., Kirkpatrick-Husk, K., and Madhavan, R., "Diversity in alliance portfolios and performance outcomes : A meta-analysis", Journal of Management, Vol. 43, No. 5, 2017, pp. 1472-1497. https://doi.org/10.1177/0149206314556316
  31. Lee, R. P. and Grewal, R., "Strategic responses to new technologies and their impact on firm performance", Journal of Marketing, Vol. 68, No. 4, 2004, pp. 157-171. https://doi.org/10.1509/jmkg.68.4.157.42730
  32. Leonard-Barton, D., "Core capabilities and core rigidities : A paradox in managing new product development", Strategic Management Journal, Vol. 13, No. S1, 1992, pp. 111-125. https://doi.org/10.1002/smj.4250131009
  33. Levinthal, D. and March, J. G., "A model of adaptive organizational search", Journal of Economic Behavior and Organization, Vol. 2, No. 4, 1981, pp. 307-333. https://doi.org/10.1016/0167-2681(81)90012-3
  34. Ma, X., Yao, X., and Xi, Y., "How do interorganizational and interpersonal networks affect a firm's strategic adaptive capability in a transition economy?", Journal of Business Research, Vol. 62, No. 11, 2009, pp. 1087-1095. https://doi.org/10.1016/j.jbusres.2008.09.008
  35. Mansfield, E., "Size of firm, market structure, and innovation", Journal of Political Economy, Vol. 71, No. 6, 1963, pp. 556-576. https://doi.org/10.1086/258815
  36. Meyskens, M. and Carsrud, A. L., "Nascent green-technology ventures : a study assessing the role of partnership diversity in firm success", Small Business Economics, Vol. 40, No. 3, 2013, pp. 739-759. https://doi.org/10.1007/s11187-011-9400-1
  37. Mishina, Y., Pollock, T. G., and Porac, J. F., "Are more resources always better for growth? Resource stickiness in market and product expansion", Strategic Management Journal, Vol. 25, No. 12, 2004, pp. 1179-1197. https://doi.org/10.1002/smj.424
  38. Moorman, C. and Miner, A. S., "Organizational improvisation and organizational memory", Academy of Management Review, Vol. 23, No. 4, 1998, pp. 698-723. https://doi.org/10.5465/AMR.1998.1255634
  39. Nohria, N. and Gulati, R., "Is slack good or bad for innovation?", Academy of Management Journal, Vol. 39, No. 5, 1996, pp. 1245-1264. https://doi.org/10.2307/256998
  40. Penrose, R., The apparent shape of a relativistically moving sphere, In Mathematical Proceedings of the Cambridge Philosophical Society (Vol. 55, No. 1, pp. 137-139). Cambridge University Press, 1959.
  41. Phelps, C. C., "A longitudinal study of the influence of alliance network structure and composition on firm exploratory innovation", Academy of Management Journal, Vol. 53, No. 4, 2010, pp. 890-913. https://doi.org/10.5465/AMJ.2010.52814627
  42. Rosner, M. M., "Economic determinants of organizational innovation", Administrative Science Quarterly, Vol. 12, No. 4, 1968, pp. 614-625. https://doi.org/10.2307/2391536
  43. Sethi, R., Smith, D. C., and Park, C. W., "Cross-functional product development teams, creativity, and the innovativeness of new consumer products", Journal of Marketing Research, Vol. 38, No. 1, 2001, pp. 73-85. https://doi.org/10.1509/jmkr.38.1.73.18833
  44. Sidhu, J. S., Volberda, H. W., and Commandeur, H. R., "Exploring exploration orientation and its determinants : Some empirical evidence", Journal of Management Studies, Vol. 41, No. 6, 2004, pp. 913-932. https://doi.org/10.1111/j.1467-6486.2004.00460.x
  45. Simsek, Z., Veiga, J. F., and Lubatkin, M. H., "The impact of managerial environmental perceptions on corporate entrepreneurship : Towards understanding discretionary slack's pivotal role", Journal of Management Studies, Vol. 44, No. 8, 2007, pp. 1398-1424. https://doi.org/10.1111/j.1467-6486.2007.00714.x
  46. Sorescu, A. B., Chandy, R. K., and Prabhu, J. C., "Sources and financial consequences of radical innovation : Insights from pharmaceuticals", Journal of Marketing, Vol. 67, No. 4, 2003, pp. 82-102. https://doi.org/10.1509/jmkg.67.4.82.18687
  47. Staw, B. M., Sandelands, L. E., and Dutton, J. E., "Threat rigidity effects in organizational behavior : A multilevel analysis", Administrative Science Quarterly, Vol. 26, No. 4, 1981, pp. 501-524. https://doi.org/10.2307/2392337
  48. Tarafdar, M. and Gordon, S. R., "Under-standing the influence of information systems competencies on process innovation : A resource-based view", The Journal of Strategic Information Systems, Vol. 16, No. 4, 2007, pp. 353-392. https://doi.org/10.1016/j.jsis.2007.09.001
  49. Teece, D. J., Rumelt, R., Dosi, G., and Winter, S., "Understanding corporate coherence : Theory and evidence", Journal of Economic Behavior and Organization, Vol. 23, No. 1, 1994, pp. 1-30. https://doi.org/10.1016/0167-2681(94)90094-9
  50. Troilo, G., De Luca, L. M., and Atuahene-Gima, K., "More innovation with less? A strategic contingency view of slack resources, information search, and radical innovation", Journal of Product Innovation Management, Vol. 31, No. 2, 2014, pp. 259-277. https://doi.org/10.1111/jpim.12094
  51. Tyler, B. B. and Caner, T., "New product introductions below aspirations, slack and R&D alliances : A behavioral perspective", Strategic Management Journal, Vol. 37, No. 5, 2016, pp. 896-910. https://doi.org/10.1002/smj.2367
  52. Wind, J. and Mahajan, V., "Issues and opportunities in new product development : An introduction to the special issue", Journal of Marketing Research, Vol. 34, No. 1, 1997, pp. 1-12. https://doi.org/10.2307/3152060
  53. Yasai-Ardekani, M., "Structural adaptations to environments", Academy of Management Review, Vol. 11, No. 1, 1986, pp. 9-21. https://doi.org/10.5465/AMR.1986.4282607
  54. Zhang, G., Tang, C., and Qi, Y., "Alliance Network Diversity and Innovation Ambidexterity : The Differential Roles of Industrial Diversity, Geographical Diversity, and Functional Diversity", Sustainability, Vol. 12, No. 3, 2020, pp. 1041-1057. https://doi.org/10.3390/su12031041