Development and return on execution of product innovation capabilities: The role of organizational structure

Bulent Menguc, Sei Auh

    Research output: Contribution to journalArticle

    68 Citations (Scopus)

    Abstract

    This paper conceptualizes and tests an integrated model that combines the dual-core and ambidextrous models of product innovation. The integrated model distinguishes the development and return on execution of radical and incremental product innovation capabilities. The authors argue that organizational structure plays an important dual role as an (a) antecedent to the development of radical and incremental product innovation capabilities and (b) as a moderator in determining the new product performance returns from executing such capabilities. Using a sample of high-tech firms, the study finds that organizational structure is more consistent in predicting the execution of product innovation capabilities into new product performance than in predicting the development of such capabilities. For example, the effect of radical product innovation capability on new product performance is negative but nonsignificant under a formal structure, while the same effect is positive under an informal structure. Conversely, the effect of incremental product innovation capability on new product performance is positive under a formal structure, while the same effect is negative under an informal structure. The implications for managing different types of product innovation capabilities under formal versus informal structures and their effects on new product performance are discussed.

    Original languageEnglish (US)
    Pages (from-to)820-831
    Number of pages12
    JournalIndustrial Marketing Management
    Volume39
    Issue number5
    DOIs
    StatePublished - Jul 2010

    Fingerprint

    Organizational structure
    Product innovation
    Innovation capability
    New product performance
    Incremental
    Integrated model
    High-tech firms
    Moderator

    Keywords

    • Formal-informal structure
    • Incremental product innovation capability
    • New product performance
    • Radical product innovation capability

    ASJC Scopus subject areas

    • Marketing

    Cite this

    Development and return on execution of product innovation capabilities : The role of organizational structure. / Menguc, Bulent; Auh, Sei.

    In: Industrial Marketing Management, Vol. 39, No. 5, 07.2010, p. 820-831.

    Research output: Contribution to journalArticle

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