Conceptualizing innovation capabilities: A contingency perspective

Empirical research has confirmed that a positive relationship exists between the implementation of innovation activities and the future performance of organizations. Firms utilize resources and capabilities to develop innovations in the form of new products, services or processes. Some firms prove t...

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Main Authors: Tor Helge Aas, Karl Joachim Breunig
Format: Article
Language:English
Published: Cognitione Foundation for the Dissemination of Knowledge and Science 2017-01-01
Series:Journal of Entrepreneurship, Management and Innovation
Subjects:
Online Access: http://jemi.edu.pl/uploadedFiles/file/all-issues/vol13/issue1/JEMI_Vol13_Issue1_2017_Article1.pdf
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author Tor Helge Aas
Karl Joachim Breunig
author_facet Tor Helge Aas
Karl Joachim Breunig
author_sort Tor Helge Aas
collection DOAJ
description Empirical research has confirmed that a positive relationship exists between the implementation of innovation activities and the future performance of organizations. Firms utilize resources and capabilities to develop innovations in the form of new products, services or processes. Some firms prove to be better at reproducing innovation success than others, and the capacity to do so is referred to as innovation capability. However, the term innovation capability is ambiguously treated in extant literature. There are several different definitions of the concept and the distinction between innovation capabilities and other types of capabilities, such as dynamic capabilities, is neither explicitly stated, nor is the relationship between the concept and other resource- and capability-based concepts within strategy theory established. Although innovation is increasingly identified as crucial for a firm’s sustainable competitiveness in contemporary volatile and complex markets, the strategy-innovation link is underdeveloped in extant research. To overcome this challenge this paper raises the following research question: What type of innovation capabilities are required to innovate successfully? Due to the status of the extant research, we chose a conceptual research design to answer our research question and the paper contributes with a conceptual framework to discuss what innovation capabilities firms need to reproduce innovation success. Based on careful examination of current literature on innovation capability specifically, and the strategy-innovation link in general, we suggest that innovation capability must be viewed along two dimensions – innovation novelty and market characteristics. This framework enables the identification of four different contexts for innovation capabilities in a two-bytwo matrix. We discuss the types of innovation capabilities necessary within the four different contexts. This novel framework contributes to the understanding of the strategy-innovation link as well as clarifies the conceptual understanding of capabilities within the strategy literature and establishes the relationship between these structures and innovation management theory.
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spelling doaj-art-53b827dbedac4875b2bace5597539f052025-02-03T11:07:46ZengCognitione Foundation for the Dissemination of Knowledge and ScienceJournal of Entrepreneurship, Management and Innovation2299-73262017-01-0113172410.7341/20171311Conceptualizing innovation capabilities: A contingency perspectiveTor Helge Aas0Karl Joachim Breunig1 School of Business and Law – University of Agder Gimlemoen Oslo Business School – Oslo and Akershus University College Empirical research has confirmed that a positive relationship exists between the implementation of innovation activities and the future performance of organizations. Firms utilize resources and capabilities to develop innovations in the form of new products, services or processes. Some firms prove to be better at reproducing innovation success than others, and the capacity to do so is referred to as innovation capability. However, the term innovation capability is ambiguously treated in extant literature. There are several different definitions of the concept and the distinction between innovation capabilities and other types of capabilities, such as dynamic capabilities, is neither explicitly stated, nor is the relationship between the concept and other resource- and capability-based concepts within strategy theory established. Although innovation is increasingly identified as crucial for a firm’s sustainable competitiveness in contemporary volatile and complex markets, the strategy-innovation link is underdeveloped in extant research. To overcome this challenge this paper raises the following research question: What type of innovation capabilities are required to innovate successfully? Due to the status of the extant research, we chose a conceptual research design to answer our research question and the paper contributes with a conceptual framework to discuss what innovation capabilities firms need to reproduce innovation success. Based on careful examination of current literature on innovation capability specifically, and the strategy-innovation link in general, we suggest that innovation capability must be viewed along two dimensions – innovation novelty and market characteristics. This framework enables the identification of four different contexts for innovation capabilities in a two-bytwo matrix. We discuss the types of innovation capabilities necessary within the four different contexts. This novel framework contributes to the understanding of the strategy-innovation link as well as clarifies the conceptual understanding of capabilities within the strategy literature and establishes the relationship between these structures and innovation management theory. http://jemi.edu.pl/uploadedFiles/file/all-issues/vol13/issue1/JEMI_Vol13_Issue1_2017_Article1.pdf conceptual frameworkcapabilitiesinnovation noveltymarket characteristicsstrategy-innovation link
spellingShingle Tor Helge Aas
Karl Joachim Breunig
Conceptualizing innovation capabilities: A contingency perspective
Journal of Entrepreneurship, Management and Innovation
conceptual framework
capabilities
innovation novelty
market characteristics
strategy-innovation link
title Conceptualizing innovation capabilities: A contingency perspective
title_full Conceptualizing innovation capabilities: A contingency perspective
title_fullStr Conceptualizing innovation capabilities: A contingency perspective
title_full_unstemmed Conceptualizing innovation capabilities: A contingency perspective
title_short Conceptualizing innovation capabilities: A contingency perspective
title_sort conceptualizing innovation capabilities a contingency perspective
topic conceptual framework
capabilities
innovation novelty
market characteristics
strategy-innovation link
url http://jemi.edu.pl/uploadedFiles/file/all-issues/vol13/issue1/JEMI_Vol13_Issue1_2017_Article1.pdf
work_keys_str_mv AT torhelgeaas conceptualizinginnovationcapabilitiesacontingencyperspective
AT karljoachimbreunig conceptualizinginnovationcapabilitiesacontingencyperspective