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Crafting firm competencies to improve innovative performance

By: LOKSHIN, Boris.
Contributor(s): GILS, Anita Van | BAUER, Eva.
Material type: materialTypeLabelArticlePublisher: Oxford : Elsevier, june2009European Management Journal 27, 3, p. 187-196Abstract: Recent interdisciplinary research suggests that customer and technological competencies have a direct, unconditional effect on firms’ innovative performance. This study extends this stream of literature by considering the effect of organizational competencies. Results from a survey-research executed in the fast moving consumer goods industry suggest that firms that craft organizational competencies – such as improving team cohesiveness and providing slack time to foster creativity – do not directly improve their innovative performance. However, those firms that successfully combine customer, technological and organizational competencies will create more innovations that are new to the market.
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Recent interdisciplinary research suggests that customer and technological competencies have a direct, unconditional effect on firms’ innovative performance. This study extends this stream of literature by considering the effect of organizational competencies. Results from a survey-research executed in the fast moving consumer goods industry suggest that firms that craft organizational competencies – such as improving team cohesiveness and providing slack time to foster creativity – do not directly improve their innovative performance. However, those firms that successfully combine customer, technological and organizational competencies will create more innovations that are new to the market.

Firm competencies; Radical and incremental product innovation; Team cohesiveness

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