Browse > Article
http://dx.doi.org/10.7545/ajip.2015.4.3.328

Performance Effect of the Fits between Industrial Environment, Innovation Capacity and Innovation: Focusing on Innovation-Intensive Korean Firms  

Lee, Seung-Hyun (Korean Women’s Development Institute)
Park, Young-Il (Ewha Woman’s University)
Kwon, Youngkwan (Korea Fair Trade Mediation Agency, Department of Science and Technology Policy, Hanyang University)
Publication Information
Asian Journal of Innovation and Policy / v.4, no.3, 2015 , pp. 328-359 More about this Journal
Abstract
To explain the performance gap between firms in the same industry, this study focuses on innovation. It provides a new framework using the dynamic-capability view based on empirical analysis of domestic businesses. The findings of this study are as follows: First, when the uncertainty and competition intensity in the business environment and the level of innovation have “fit”, it means that when the former goes up, so does the latter. In this regard, when the innovation capability of a firm is high, being “fit” means that the level of innovation is also high. When there was fitting innovation on industrial environment and innovation capacity, companies were able to achieve relatively high performance. Also, it was confirmed that instead of innovation for innovation capacity, innovation for industrial environment led to relatively higher performances of firms.
Keywords
Innovation; industrial environment; innovation capacity; fit;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Booz, Allen and Hamilton (1982) New Product Management for the 1980's, Booz, Allen and Hamilton Inc.
2 Lawson, B. and Samson, D. (2001) Developing innovation capability in organizations: a dynamic capabilities approach, International Journal of Innovation Management, 5(3), 377-00.   DOI
3 Andrews, K.R. (1971) The Concept of Corporate Strategy, Homewood, IL: Irwin
4 Afuah, A. (2000) How much do-your co-opetitiors' capabilities mater in the face of technological change? Strategic Management Journal, 21(3), 387-404.   DOI
5 Van, A.H. and Drazin, R. (1985) The Concept of Fit in Contingency Theory, Research in Organizational Behavior, New York: JAI press.
6 Dess, G.G. and Beard, D.W. (1984) Dimensions of organizational task environments, Administrative Science Quarterly, 29(1), 52-73.   DOI
7 Day, G.S. and Wensley, R. (1988) Assessing advantage: a framework for diagnosing competitive superiority, Journal of Marketing, 52, 1-20.
8 D'Aveni, R.A. (2000) Strategic supremacy through disruption and dominance, Sloan Management Review, 40(3), 127-135.
9 Daniel, I.P. and Pervaiz, K.A. (2006) Relationships between innovation stimulus, innovation capacity and innovation performance, R&D Management, 36(5), 499-529.   DOI
10 Dalton, D.R., Todor, W.D., Spendolini, M.J., Fielding, G.J. and Poter, L.W. (1980) Organization structure and performance: a critical review, Academy of Management Review, 5, 49-64.
11 Wren, D.A. (1987) The Evolution of Management Thought, 3rd, Wiley & Sons.
12 Clark, K.B. and Fujimoto, T. (1991) Measuring the performance of emerging business: a validation study, Journal of Business Venturing, 7(1), 223-236.
13 Child, J. (1972) Organizational structure, environment and performance: the role of strategic choice, Sociology, 6, 2-22.
14 Chandler, A. (1962) Strategy and Structure, Cambridge, Mass: MIT Press.
15 Cash, J.I. and Konsynski, B.R. (1985) IS redraws competitive boundaries, Harvard Business Review, 63(2), 134-142.
16 Burns, T. and Stalker, M.G. (1961) The Management of Innovation, London: Tavistock.
17 Burgelman, R.A., Christensen, C.M. and Wheelwright, S.C. (2004) Strategic Management of Technology and Innovation, Irwin: McGraw-Hill.
18 Bowen, H.K., Clark, K.B., Wheelwright, S.C. and Hollowway, C.A. (1994) The Perceptual Enterprise Machine, UK: Oxford University Press.
19 Henderson, R.M. and Cockburn, I. (1994) Measuring competence: exploring firm effects in pharmaceutical research, Strategic Management journal, Winter Special Issue, 63-84.
20 Henderson, R.M. and Clark, K.B. (1990) Architectural innovation: the reconfiguration of existing product technologies and the failure of established firms, Administrative Science Quarterly, 35, 9-30.   DOI
21 Hambrick, D.C. (1983) Some test of the effectiveness and functional attributes of miles and snow's strategic types, Academy of Management Journal, 26, 5-26.   DOI
22 Gupta, A.K. and Govindarajan, V. (1984) Business unit strategy, managerial characteristics at strategy implementation, Academy of Management Journal, 27, 25-41.   DOI
23 Grant, R.M. (1991) The resource based theory of competitive advantage: implications for strategy, California Management Review, 22, 114-135.
24 Govindarajan, V. and Fisher, J. (1990) Strategy, control systems and resource sharing: effects on business unit performance, Academy of Management Journal, 33, 259-285.   DOI
25 Govindarajan, V. and Gupta, A.K. (1984) Linking control systems to business unit strategy: impact on performance, Accounting, Organizations and Society, 10 (1), 51-66.   DOI
26 Freeman, C. and Soete, L. (1999) The Economics of Industrial Innovation (3rd edition), London: Pinter.
27 Eisenhardt, K.M. and Brown, S.L. (1999) Patching: restitching business portfolios in dynamic markets, Harvard Business Review, 77(3), 72-82.
28 Duncan, R.B. (1972) Characteristic of organizational environments and environmental uncertainty, Administrative Science Quarterly, 17(3), 313-327.   DOI
29 Love, J. and Roper, S. (1999) The determinants of innovation: R&D, technology transfer and networking effects, Review of Industrial Organization, 15, 43-64.   DOI
30 Dodgson, M. and Rothwell, R. (1994) The Handbook of Industrial Innovation, Cheltenham, Edward Elgar.
31 Li, F., Lundholm, R. and Minnis, M. (2012) A measure of competition based on 10-k filings, Journal of Accounting Research.
32 Leontiades, M. (1982) Choosing the right manager to fit the strategy, Journal of Business Strategy, 3(2), 58-69.   DOI
33 Leonard-Barton, D. (1992) Core capabilities and core rigidities: a paradox in managing new product development, Strategic Management Journal, Summer Special Issue, 13, 111-125.   DOI
34 Lawrence, P.R. and Lorsch, J.W. (1967) Organization and Environment, Boston, Harvard Business School Press.
35 Franko, L. (1989) Global corporate competition: who's winning, who's losing, and the R&D factor as one reason why, Strategic Management Journal, 10.
36 Kim, L.S. (1997) Imitation to Innovation: The Dynamics of Korea's Technological Learning, Boston, MA: Harvard Business School Press.
37 Kale, P. (1999) Building an Alliance Capability: A Knowledge-based Approach, Dissertation, University of Pennsylvania.
38 Jauch, L.R., Osborn, R.N. and Glueck, W.F. (1980) Short-term financial success in large business organization: the environment-strategy connection, Strategic Management Journal, 1(1), 49-63.   DOI
39 Iansiti, M. and Clark, K.B. (1994) Integration and dynamic capability: evidence from product development in automobiles and mainframe computers, Industrial and Corporate Change, 3(3), 557-605.   DOI
40 Hofer, C. and Schendel, D.E. (1978) Strategy Formulation: Analysis Concepts, MN: West Publishing Co.
41 Renko, M., Carsrud, A. and Brannback, M. (2009) The Effect of a market orientation, entrepreneurial orientation and technological capacity on innovativeness: a study of young biotechnology ventures in the United States and in Scandinavia, Journal of Small Business Management, 47(3), 331-369.   DOI
42 Raubitschek, R. (1988) Hitting the jackpot: product proliferation by multi product firms under uncertainty, International Journal of Industrial Organization, 6, 469-488.   DOI
43 Porter, M.E. (1980) Competitive Strategy: Techniques for Analyzing Industries and Competitors, New York: Free Press.
44 Osborn, R.N. and Hunt, J.G. (1974) Environment and organizational effectiveness, Administration Science Quarterly, 19(2), 231-246.   DOI
45 OECD (2005) Oslo manual (3rd ed.).
46 Nelson, R.R. (1991) Why do firms differ and how does it matter? Strategic Management Journal, Winter Special Issue, 12, 61-74.   DOI
47 Myers, S. and Marquis, D.G. (1969) Successful Industrial Innovation, Washington DC: NSF.
48 Miller, D. (1991) State in the Saddle: CEO tenure and match between organization and environment, Management Science, 37, 34-52.   DOI
49 Miller, D. (1988) Relating Poter's business strategies to environment and structure analysis and performance implication, Academy of Management Journal, 13(2), 280-308.
50 Miller, D. and Friesen, P.H. (1983) Strategy making and environment: the third link, Strategic Management Journal, 4, 221-23.   DOI
51 Shortell, S.M. and Edward, Z. (1990) Innovations in health care delivery: new insights into organization theory, Health Care Organizations and the Development of Strategic Management Perspective, 141-180.
52 Mentzer, J.T., DeWitt, W.J., Keebler, J.S., Min, S., Nix, N.W., Smith, C.D., Zaakria, Z. et al. (2001) Defining supply chain management, Journal of Business Logistics, 22(2), 1-6.   DOI
53 Venkatraman, N. and Prescott, R. (1990) Environment-strategy coalignment: an empirical test of its performance implication, Strategic Management Journal, 11, 1-24.   DOI
54 Schumpeter, J.A. (1934) The Theory of Economic Development, Cambridge, MA: Harvard University Press.
55 Tushman M.L. and Anderson P.W. (1986) Technological discontinuities and organizational environments, Administrative Science Quarterly, 31, 439-465.   DOI
56 Tidd, J.J. and Bessant, J. (2009) Managing Innovation: Integrating Technological, Market and Organizational Change (4th Edition), Hoboken, John Wiley and Sons Inc.
57 Thompson, V.A. (1965) Bureaucracy and innovation, Administrative Science Quarterly, Special Issue, June, 1-20.
58 Teece, D. and Shuen, A. (1997) Dynamic capabilities and strategic management, Strategic Management Journal, 18(7), 509-533.   DOI
59 Stalk, G., Evans, P. and Shulman, L. (1992) Competing on capabilities: the new rules of corporate strategy, Harvard Business Review, March-April, 57-69.
60 Song, X.M. and Parry, M.E. (1997) The determinants of the Japanese new product success, Journal of Marketing Research, 34(1), 64-76.   DOI
61 Yuijin Song and Sin T.Y. (1998) Effect of innovation strategy and environmental or institutional factors on technology innovation behavior of business, Policy Material, 9, 1-22.
62 Snow, C.C. and Hrebiniak, L.G. (1980) Strategy, distinctive competence and organizational performance, Administrative Science Quarterly, 25, 317-336.   DOI
63 Scott, W.R. (1981) Organizations: Rational, Natural, and Open Systems, Englewood Cliffs NJ: Prentice Hall Inc.
64 Zahra, S.A. and Nielsen, A.P. (2002) Sources of capabilities, integration and technology commercialization, Strategic Management Journal, 23(5), 377-398.   DOI
65 Yoon, E.S. and Lilien, G.L. (1985) New industrial product performance: the effect of market characteristics and strategy, Journal of Product Innovation Management, 2(3), 134-144.   DOI
66 Yasai, A.M. (1986) Structural adaptations to environments, Academy of Management Review, 11(1), 9-21.   DOI
67 Yap, C.M. and Souder, W.E. (1994) Factors influencing new product success and failure in small entrepreneurial high-technology electronics firms, Journal of Product Innovation Management, 11(5), 418-432.   DOI
68 Yam, R.C.M., Guan, J.C., Pun, K.F. and Tang, E.P.Y. (2004) An audit of technological innovation capabilities in Chinese firms: some empirical findings in Beijing, Research Policy, 33, 1123-1140.   DOI
69 Wolfe, R.A (1994) Organizational innovation: review, critique, and suggested research directions, Journal of Management Studies, 31(3), 405-431.   DOI
70 Scott, W.R. (1987) The adolescence of institutional theory, Administrative Science Quarterly, 32, 493-511.   DOI
71 Zollo, M. (1998) Knowledge Codification, Process Routinization and the Creation of Organizational Capabilities: Post-acquisition Management in the U.S. Banking Industry, University of Pennsylvania: Dissertation.
72 Venkatraman, N. and John, C.C. (1984) Exploring the concept of 'fit' in strategic management, Academy of Management Review, 9, 513-525.
73 Venkatraman, N. (1989) The concept of fit in strategy research: towards a verbal and statistical correspondence, Academy of Management Review, 14(3), 423-444.   DOI
74 Zott, C. (2003) Dynamic capabilities and the emergence of intra-industry differential firm performance: insights from a simulation study, Strategic Management Journal, 24, 97-125.   DOI
75 Zajac, E.J., Kraatz, M.S. and Bresser, R.K.F. (2000) Modeling the dynamics of strategic fit: a normative approach to strategic change, Strategic Management Journal, 21(4), 429-453.   DOI