Resource constraints as triggers of radical innovation: Longitudinal evidence from the manufacturing sector
Journal
Research Policy
ISSN
0048-7333
ISSN-Digital
1873-7625
Type
journal article
Date Issued
2013-09
Author(s)
Abstract
Despite the significant role of radical innovation as a driver of firm growth and performance, the consequences of resource constraints for radical innovation outcomes remain unknown. Our paper addresses this gap. We combine arguments from entrepreneurship theory and the theory of recombinative innovation to construct an overarching theoretical framework that argues why resource constraints can promote, rather than impede, radical innovation. We then build hypotheses on two specific resource constraints, knowledge and financial, and test these by a lagged-variable random-effects Tobit model with longitudinal
data from an exceptionally large and detailed innovation survey. Controlling for absorptive capacity, firm age, and firm growth, we find full support for the hypothesis that knowledge constraints spur radical innovation and partial support for the hypothesis that financial constraints spur radical innovation. We discuss the theoretical significance of these findings and point to managerial implications and paths for future research.
data from an exceptionally large and detailed innovation survey. Controlling for absorptive capacity, firm age, and firm growth, we find full support for the hypothesis that knowledge constraints spur radical innovation and partial support for the hypothesis that financial constraints spur radical innovation. We discuss the theoretical significance of these findings and point to managerial implications and paths for future research.
Language
English
Keywords
Radical innovation
Resource constraints
Knowledge recombination
entrepreneurship
Panel data
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Business Innovation
Refereed
Yes
Publisher
Elsevier
Publisher place
Amsterdam
Volume
42
Number
8
Start page
1457
End page
1468
Pages
12
Subject(s)
Division(s)
Eprints ID
226137