Title: The effects of environment, structure, and dynamic capabilities on product innovation strategy

Authors: Y.E. Spanos, G.P. Prastacos

Addresses: Innovation and Knowledge Management Centre, Department of Management Science and Technology, Athens University of Economics and Business, 47A Evelpidon and 33 Lefkados str., Athens 113 62, Greece. ' Innovation and Knowledge Management Centre, Department of Management Science and Technology, Athens University of Economics and Business, 47A Evelpidon and 33 Lefkados str., Athens 113 62, Greece

Abstract: The study compares the descriptive accuracy of some commonly held views on the factors affecting firms| innovative behaviour. In particular, we contrast the relative impact of some of the ||traditional|| factors that the extant literature has postulated as important determinants of product innovation, namely external environment and organisational structure, with that of the firm|s dynamic capabilities, which are emphasised by the resource-based theorising. External environment includes market dynamism and hostility. Structural dimensions are represented using formalisation, centralisation of decision-making, and vertical differentiation. Dynamic capabilities pertain to managerial and organisation processes through which coordination/integration, learning, and transformation take place inside the firm. Based on survey data drawn from a sample of leading Greek firms, results from hierarchical regression analysis seem to pronounce the effect of dynamic capabilities, even though environmental and structural variables also seem to exert a significant influence on product innovation strategy.

Keywords: product innovation strategy; innovation determinants; external environment; organisational structure; dynamic capabilities; resource-based theory; Greece.

DOI: 10.1504/IJEIM.2004.005852

International Journal of Entrepreneurship and Innovation Management, 2004 Vol.4 No.6, pp.620 - 638

Available online: 16 Dec 2004 *

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