Purposeful decision making or legitimisation: an empirical analysis of different types of innovation metric use
Type
conference paper
Date Issued
2013-05-02
Author(s)
Abstract
In recent years a significant body of literature on performance measurement of new product development (NPD) has emerged, emphasising the increased need of efficiency and effectiveness in NPD processes. However, most of the literature focuses on design and implementation issues of performance measurement systems, but disregarding the managers' role in respect of a purposeful use of innovation metrics and the resulting consequences for the NPD success. To contribute to this field of research, this study focuses on different types of using innovation metrics in the NPD context. Based on existing literature we differentiate between instrumental, conceptual, and symbolic types of using innovation metrics. We use structural equation modelling to evaluate the data of 133 engineering companies. Our findings show that using metrics conceptually, i.e. to stimulate organizational learning, has a positive and significant effect on the financial success of NPD. In contrast, both, the instrumental and the symbolic use of innovation metrics have only a minor relevance according to our results. However, the inclusion of the quality of decision making and project selection as well as efficiency in our research model, gives further insights regarding the high importance of a strong innovation management.
Language
English
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Responsible Corporate Competitiveness (RoCC)
Refereed
Yes
Publisher
EAA European Accounting Association
Publisher place
Brüssel
Event Title
36th Annual Congress European Accounting Association (EAA)
Event Location
Paris
Event Date
06.-08.05.2013
Subject(s)
Eprints ID
223152