JOURNAL BROWSE
Search
Advanced SearchSearch Tips
Performance Effect of the Fits between Industrial Environment, Innovation Capacity and Innovation: Focusing on Innovation-Intensive Korean Firms
facebook(new window)  Pirnt(new window) E-mail(new window) Excel Download
 Title & Authors
Performance Effect of the Fits between Industrial Environment, Innovation Capacity and Innovation: Focusing on Innovation-Intensive Korean Firms
Lee, Seung-Hyun; Park, Young-Il; Kwon, Youngkwan;
  PDF(new window)
 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;
 Language
English
 Cited by
1.
Organizational structure and innovation: analysis from the strategic co-alignment, Academia Revista Latinoamericana de Administración, 2016, 29, 4, 388  crossref(new windwow)
 References
1.
Van, A.H. and Drazin, R. (1985) The Concept of Fit in Contingency Theory, Research in Organizational Behavior, New York: JAI press.

2.
Afuah, A. (2000) How much do-your co-opetitiors' capabilities mater in the face of technological change? Strategic Management Journal, 21(3), 387-404.

3.
Andrews, K.R. (1971) The Concept of Corporate Strategy, Homewood, IL: Irwin

4.
Lawson, B. and Samson, D. (2001) Developing innovation capability in organizations: a dynamic capabilities approach, International Journal of Innovation Management, 5(3), 377-00. crossref(new window)

5.
Booz, Allen and Hamilton (1982) New Product Management for the 1980's, Booz, Allen and Hamilton Inc.

6.
Bowen, H.K., Clark, K.B., Wheelwright, S.C. and Hollowway, C.A. (1994) The Perceptual Enterprise Machine, UK: Oxford University Press.

7.
Burgelman, R.A., Christensen, C.M. and Wheelwright, S.C. (2004) Strategic Management of Technology and Innovation, Irwin: McGraw-Hill.

8.
Burns, T. and Stalker, M.G. (1961) The Management of Innovation, London: Tavistock.

9.
Cash, J.I. and Konsynski, B.R. (1985) IS redraws competitive boundaries, Harvard Business Review, 63(2), 134-142.

10.
Chandler, A. (1962) Strategy and Structure, Cambridge, Mass: MIT Press.

11.
Child, J. (1972) Organizational structure, environment and performance: the role of strategic choice, Sociology, 6, 2-22.

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.
Wren, D.A. (1987) The Evolution of Management Thought, 3rd, Wiley & Sons.

14.
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.

15.
Daniel, I.P. and Pervaiz, K.A. (2006) Relationships between innovation stimulus, innovation capacity and innovation performance, R&D Management, 36(5), 499-529. crossref(new window)

16.
D'Aveni, R.A. (2000) Strategic supremacy through disruption and dominance, Sloan Management Review, 40(3), 127-135.

17.
Day, G.S. and Wensley, R. (1988) Assessing advantage: a framework for diagnosing competitive superiority, Journal of Marketing, 52, 1-20.

18.
Dess, G.G. and Beard, D.W. (1984) Dimensions of organizational task environments, Administrative Science Quarterly, 29(1), 52-73. crossref(new window)

19.
Dodgson, M. and Rothwell, R. (1994) The Handbook of Industrial Innovation, Cheltenham, Edward Elgar.

20.
Duncan, R.B. (1972) Characteristic of organizational environments and environmental uncertainty, Administrative Science Quarterly, 17(3), 313-327. crossref(new window)

21.
Eisenhardt, K.M. and Brown, S.L. (1999) Patching: restitching business portfolios in dynamic markets, Harvard Business Review, 77(3), 72-82.

22.
Freeman, C. and Soete, L. (1999) The Economics of Industrial Innovation (3rd edition), London: Pinter.

23.
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.

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. crossref(new window)

25.
Grant, R.M. (1991) The resource based theory of competitive advantage: implications for strategy, California Management Review, 22, 114-135.

26.
Gupta, A.K. and Govindarajan, V. (1984) Business unit strategy, managerial characteristics at strategy implementation, Academy of Management Journal, 27, 25-41. crossref(new window)

27.
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. crossref(new window)

28.
Henderson, R.M. and Cockburn, I. (1994) Measuring competence: exploring firm effects in pharmaceutical research, Strategic Management journal, Winter Special Issue, 63-84.

29.
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. crossref(new window)

30.
Hofer, C. and Schendel, D.E. (1978) Strategy Formulation: Analysis Concepts, MN: West Publishing Co.

31.
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. crossref(new window)

32.
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. crossref(new window)

33.
Kale, P. (1999) Building an Alliance Capability: A Knowledge-based Approach, Dissertation, University of Pennsylvania.

34.
Kim, L.S. (1997) Imitation to Innovation: The Dynamics of Korea's Technological Learning, Boston, MA: 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.
Lawrence, P.R. and Lorsch, J.W. (1967) Organization and Environment, Boston, Harvard Business School Press.

37.
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. crossref(new window)

38.
Leontiades, M. (1982) Choosing the right manager to fit the strategy, Journal of Business Strategy, 3(2), 58-69. crossref(new window)

39.
Li, F., Lundholm, R. and Minnis, M. (2012) A measure of competition based on 10-k filings, Journal of Accounting Research.

40.
Love, J. and Roper, S. (1999) The determinants of innovation: R&D, technology transfer and networking effects, Review of Industrial Organization, 15, 43-64. crossref(new window)

41.
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.

42.
Miller, D. and Friesen, P.H. (1983) Strategy making and environment: the third link, Strategic Management Journal, 4, 221-23. crossref(new window)

43.
Miller, D. (1988) Relating Poter's business strategies to environment and structure analysis and performance implication, Academy of Management Journal, 13(2), 280-308.

44.
Miller, D. (1991) State in the Saddle: CEO tenure and match between organization and environment, Management Science, 37, 34-52. crossref(new window)

45.
Myers, S. and Marquis, D.G. (1969) Successful Industrial Innovation, Washington DC: NSF.

46.
Nelson, R.R. (1991) Why do firms differ and how does it matter? Strategic Management Journal, Winter Special Issue, 12, 61-74. crossref(new window)

47.
OECD (2005) Oslo manual (3rd ed.).

48.
Osborn, R.N. and Hunt, J.G. (1974) Environment and organizational effectiveness, Administration Science Quarterly, 19(2), 231-246. crossref(new window)

49.
Porter, M.E. (1980) Competitive Strategy: Techniques for Analyzing Industries and Competitors, New York: Free Press.

50.
Raubitschek, R. (1988) Hitting the jackpot: product proliferation by multi product firms under uncertainty, International Journal of Industrial Organization, 6, 469-488. crossref(new window)

51.
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. crossref(new window)

52.
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.

53.
Schumpeter, J.A. (1934) The Theory of Economic Development, Cambridge, MA: Harvard University Press.

54.
Scott, W.R. (1981) Organizations: Rational, Natural, and Open Systems, Englewood Cliffs NJ: Prentice Hall Inc.

55.
Snow, C.C. and Hrebiniak, L.G. (1980) Strategy, distinctive competence and organizational performance, Administrative Science Quarterly, 25, 317-336. crossref(new window)

56.
Song, X.M. and Parry, M.E. (1997) The determinants of the Japanese new product success, Journal of Marketing Research, 34(1), 64-76. crossref(new window)

57.
Stalk, G., Evans, P. and Shulman, L. (1992) Competing on capabilities: the new rules of corporate strategy, Harvard Business Review, March-April, 57-69.

58.
Teece, D. and Shuen, A. (1997) Dynamic capabilities and strategic management, Strategic Management Journal, 18(7), 509-533. crossref(new window)

59.
Thompson, V.A. (1965) Bureaucracy and innovation, Administrative Science Quarterly, Special Issue, June, 1-20.

60.
Tidd, J.J. and Bessant, J. (2009) Managing Innovation: Integrating Technological, Market and Organizational Change (4th Edition), Hoboken, John Wiley and Sons Inc.

61.
Tushman M.L. and Anderson P.W. (1986) Technological discontinuities and organizational environments, Administrative Science Quarterly, 31, 439-465. crossref(new window)

62.
Venkatraman, N. and Prescott, R. (1990) Environment-strategy coalignment: an empirical test of its performance implication, Strategic Management Journal, 11, 1-24. crossref(new window)

63.
Venkatraman, N. (1989) The concept of fit in strategy research: towards a verbal and statistical correspondence, Academy of Management Review, 14(3), 423-444.

64.
Venkatraman, N. and John, C.C. (1984) Exploring the concept of 'fit' in strategic management, Academy of Management Review, 9, 513-525.

65.
Scott, W.R. (1987) The adolescence of institutional theory, Administrative Science Quarterly, 32, 493-511. crossref(new window)

66.
Wolfe, R.A (1994) Organizational innovation: review, critique, and suggested research directions, Journal of Management Studies, 31(3), 405-431. crossref(new window)

67.
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. crossref(new window)

68.
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. crossref(new window)

69.
Yasai, A.M. (1986) Structural adaptations to environments, Academy of Management Review, 11(1), 9-21.

70.
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. crossref(new window)

71.
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.

72.
Zahra, S.A. and Nielsen, A.P. (2002) Sources of capabilities, integration and technology commercialization, Strategic Management Journal, 23(5), 377-398. crossref(new window)

73.
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. crossref(new window)

74.
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.

75.
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. crossref(new window)