INNOVATIVENESS IN THE FACE OF DECLINE: PERFORMANCE IMPLICATIONS

Eric Hansen ()
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Eric Hansen: Oregon State University, College of Forestry, 108 Richardson Hall, Corvallis, OR 97331, USA

International Journal of Innovation Management (ijim), 2014, vol. 18, issue 05, 1-20

Abstract: The recent global recession has focused efforts towards better understanding of both firm response and the outcome of that response to recession, or decline. Past research suggests that firms either respond by being conservative, reducing costs, etc., or, they proactively try to innovate out of the decline. This work examines the various responses to decline with respect to firm innovativeness. Using data from US manufacturing firms, it is shown that innovativeness has important performance implications even in dire economic times. However, increasing innovativeness levels during decline is not shown to be superior to maintaining innovativeness. Findings provide limited evidence that decreasing innovativeness is not a desirable downturn strategy. Potential, practical, and theoretical implications of the findings are presented.

Keywords: Organisational decline; innovativeness; firm performance (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (5)

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DOI: 10.1142/S136391961450039X

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