NOT-INVENTED-HERE SYNDROME AND INNOVATION PERFORMANCE: THE CONFOUNDING EFFECT OF INNOVATION CAPABILITIES AS ORGANISATIONAL ROUTINES IN SERVICE FIRMS

Jose Arias-Pérez (), Geovanny Perdomo-Charry () and Carlos Castaño-Ríos ()
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Jose Arias-Pérez: Department of Administrative Sciences, Universidad de Antioquia, P.O. Box 1226, Colombia
Geovanny Perdomo-Charry: School of Management, CEIPA, P.O. Box 055450, Medellín, Colombia
Carlos Castaño-Ríos: CARLOS CASTAÑO-RÍOS, Department of Accounting Sciences, Universidad de Antioquia, P.O. Box 1226, Medellín
Authors registered in the RePEc Author Service: Carlos Eduardo Castaño Rios ()

International Journal of Innovation Management (ijim), 2017, vol. 21, issue 01, 1-20

Abstract: Currently, it is commonly accepted that the not-invented-here syndrome (NIHS) refers to internal resistance against external knowledge, and that it has devastating consequences on innovation performance (IP). Nevertheless, studies on organisational practices that neutralise NIHS are incipient. Moreover, it is accepted that innovation capabilities (ICs) are perhaps the organisational routines with the highest positive influence on IP. In this study, based on the organisational routine framework and agency theory, we propose a model in which ICs (i.e., client-focused, marketing-focused, and technology-focused ICs) have a confounding effect on an NIHS–IP relation. Structural equation modelling (SEM) was used to test the proposed model with survey data from a sample of 161 service firms. We find that (1) NIHS influences IP negatively, and (2) ICs weaken NIHS–IP relation, practically turning it null. Finally, this paper provides insights for researchers and managers regarding a possible overestimation of the negative effects of NIHS on the literature.

Keywords: Not-invented-here syndrome; innovation performance; innovation capabilities; confounding effect; service innovation; emerging economies (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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DOI: 10.1142/S1363919617500360

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