Synergistic effects of organizational innovation practices and firm performance

Caroline Mothe (), Thuc Uyen Nguyen-Thi () and Phu Nguyen-Van

No 2011-32, LISER Working Paper Series from Luxembourg Institute of Socio-Economic Research (LISER)

Abstract: Organizational innovation has been shown to be favourable for technological innovation. However, the question of which organizational practices should be combined – and thus of their compatibility – remains unanswered. We here empirically investigate the complementarities between different organizational practices (business practices, knowledge management, workplace organization and external relations). Firm-level data were drawn from the Community Innovation Survey (CIS) carried out in 2008 in Luxembourg. Supermodularity tests provide evidence of the impact of complementary asset management to raise firms’ innovative performance. The organizational practices’ combinations differ according to whether the firm is in the first step of the innovation process (i.e. being innovative) or in a later step (i.e. performing as far as innovation is concerned). When adopting organizational practices, managers should therefore be aware of their effects on technological innovation. These results also have implications for public policies in terms of innovation support.

Keywords: Complementarities; Organizational innovation; Technological innovations; Supermodularity; Innovative performance (search for similar items in EconPapers)
Pages: 32 pages
Date: 2011-05
New Economics Papers: this item is included in nep-cse, nep-ino, nep-knm and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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