Linking customer interaction and innovation: The mediating role of new organizational practices

Organization Science

Volumn 22, Issue 4, 2011, Pages 980-999

  Foss, Nicolai J ^a,b   Laursen, Keld ^a   Pedersen, Torben ^a  

^a Department of International Economics and Management   (Denmark)

^b NORWEGIAN SCHOOL OF ECONOMICS   (Norway)

Author keywords

Innovation; Interaction with customers; New organizational practices

Indexed keywords

EID: 79960854993     PISSN: 10477039     EISSN: 15265455     Source Type: Journal    
DOI: 10.1287/orsc.1100.0584     Document Type: Article

References (116)

1. Abell, P., T. Felin, N. Foss. 2008. Building micro-foundations for the routines, capabilities, and performance links. Managerial Decision Econom. 29(6) 489-502.
2. Allen, T. J. 1977. Managing the Flow of Technology. MIT Press, Cambridge, MA.
3. Allen, T. J., S. I. Cohen. 1969. Information flow in research and development laboratories. Admin. Sci. Quart. 14(1) 12-19.
4. Aoki, M. 1986. Horizontal vs. vertical information structures of the firm. Amer. Econom. Rev. 76(5) 971-983.
5. Baldwin, C. Y., K. B. Clark. 2000. Design Rules: The Power of Modularity, Vol. 1. MIT Press, Cambridge, MA.
6. Banbury, C. M., W. Mitchell. 1995. The effect of introducing important incremental innovation on market share and business survival. Strategic Management J. 16(S1) 161-182.
7. Baum, J. A. C., T. Calabrese, B. S. Silverman. 2000. Don't go it alone: Alliance network composition and startups' performance in Canadian biotechnology. Strategic Management J. 21(3) 267-294.
8. Blundell, R., R. Griffiths, J. V. Reenen. 1999. Market share, market value and innovation in a panel of British manufacturing firms. Rev. Econom. Stud. 66(3) 529-554.
9. Bock, G.-W., R. W. Zmud, Y.-G. Kim, J.-N. Lee. 2005. Behavioral intention formation in knowledge sharing: Examining the roles of extrinsic motivators, social-psychological forces, and organizational climate. MIS Quart. 29(1) 87-11.
10. Bollen, K. A. 1989. Structural Equations with Latent Variables. John Wiley & Sons, New York.
11. Bresnahan, T. F., E. Brynjolfsson, L. M. Hitt. 2002. Information technology, workplace organization, and the demand for skilled labor: Firm-level evidence. Quart. J. Econom. 117(1) 339-376.
12. Brynjolfsson, E. 1994. Information assets, technology and organization. Management Sci. 40(12) 1645-1662.
13. Burnkrant, R. E., T. J. Page Jr. 1982. An examination of the convergent, discriminant, and predictive validity of Fishbein's behavioral intention model. J. Marketing Res. 19(4) 550-561.
14. Burns, T., G. M. Stalker. 1961. The Management of Innovation. Tavistock, London.
15. Burton, R. M., B. Obel. 1998. Strategic Organizational Diagnosis and Design. Kluwer, Dordrecht, The Netherlands.
16. Campbell, D. T., D. W. Fiske. 1959. Convergent and discriminant validation by the multitrait-multimethod matrix. Psych. Bull. 56(2) 81-105.
17. Capelli, P., D. Neumark. 2001. Do "high-performance" work practices improve establishment-level outcomes? Indust. Labor Relations Rev. 54(4) 737-775.
18. Cefis, E., O. Marsili. 2005. A matter of life and death: Innovation and firm survival. Indust. Corporate Change 14(6) 1167-1192.
19. Chesbrough, H. 2003. Open Innovation. Harvard University Press, Cambridge, MA.
20. Child, J., R. G. McGrath. 2001. Organizations unfettered: Organizational form in an information-intensive economy. Acad. Management J. 44(6) 1135-1148.
21. Cohen, W. M., D. A. Levinthal. 1990. Absorptive capacity: A new perspective on learning and innovation. Admin. Sci. Quart. 35(1) 128-152.
22. Colombo, M. G., M. Delmastro. 2002. The determinants of organizational change and structural inertia: Technological and organizational factors. J. Econom. Management Strategy 11(4) 595-635.
23. Czarnitzki, D., K. Kraft. 2004. Innovation indicators and corporate credit ratings: Evidence from German firms. Econom. Lett. 82(3) 377-384.
24. Damanpour, F. 1991. Organizational innovation: A meta-analysis of effects of determinants and moderators. Acad. Management J. 34(3) 555-590.
25. Datta, D. K., J. P. Guthrie, P. M. Wright. 2005. Human resource management and labor productivity: Does industry matter? Acad. Management J. 48(1) 135-145.
26. Deci, E. 1975. Intrinsic Motivation. Plenum Press, New York
27. Desouza, K. C., Y. Awazu, S. Jha, C. Dombrowski, S. Papagari, P. Baloh, J. Y. Kim. 2008. Customer-driven innovation: To be a marketplace leader, let your customers drive. Res.-Tech. Management 51(3) 35-44.
28. Dierickx, I., K. Cool. 1989. Asset stock accumulation and sustainability of competitive advantage. Management Sci. 35(12) 1504-1511.
29. Dougherty, D. 2001. Reimagining the differentiation and integration of work for sustained product innovation. Organ. Sci. 12(5) 612-631.
30. Dougherty, D., C. Hardy. 1996. Sustained product innovation in large, mature organizations: Overcoming innovation-to-organization problems. Acad. Management J. 39(5) 1120-1153.
31. Dyer, J. H., K. Nobeoka. 2000. Creating and managing a highperformance knowledge-sharing network: The Toyota case. Strategic Management J. 21(3) 345-367.
32. Dyer, J. H., H. Singh. 1998. The relational view: Cooperative strategy and sources of inter-organizational competitive advantage. Acad. Management Rev. 23(4) 660-679.
33. Ennen, E., A. Richter. 2010. The whole is more than the sum of its parts: Or is it? A review of the empirical literature on complementarities in organization. J. Management 36(1) 207-233.
34. Fey, C. F., J. Birkinshaw. 2005. External sources of knowledge, governance mode, and R&D performance. J. Management 31(4) 597-621.
35. Fletcher, T. D., L. M. Germano, K. A. Selgrade. 2006. On the use of partial covariances in structural equation modeling. Paper, Twenty-first Annual Conference of the Society for Industrial and Organizational Psychology, Dallas. http://www.umsl.edu/_fletchert/papers/partialcov.pdf.
36. Fornell, C., D. F. Larcker. 1981. Evaluating structural equation models with unobservable variables and measurement error. J. Marketing Res. 18(1) 39-50.
37. Foss, N. J. 2003. Selective intervention and internal hybrids: Interpreting and learning from the rise and decline of the Oticon spaghetti organization. Organ. Sci. 14(3) 331-349.
38. Freeman, C. 1968. Chemical process plant: Innovation and the world market. National Inst. Econom. Rev. 45(August) 29-51.
39. Gagné, M., E. L. Deci. 2005. Self-determination theory and work motivation. J. Organ. Behav. 26(4) 331-362.
40. Galbraith, J. R. 1974. Organization design: An information processing view. Interfaces 4(3) 28-36.
41. Gardiner, J. P., R. Rothwell. 1985. Tough customers: Good designs. Design Stud. 6(1) 7-17.
42. Gassmann, O. 2006. Opening up the innovation process: Towards an agenda. R&D Management 36(3) 223-228.
43. Gerbing, D. W., J. C. Anderson. 1988. An updated paradigm for scale development incorporating unidimensionality and its assessment. J. Marketing Res. 25(2) 186-192.
44. Geroski, P., S. Machin, J. van Reenen. 1993. The profitability of innovating firms. RAND J. Econom. 24(2) 198-211.
45. Grinstein, A. 2008. The effect of market orientation and its components on innovation consequences: A meta-analysis. J. Acad. Marketing Sci. 36(2) 166-173.
46. Guthrie, J. P. 2001. High-involvement work practices, turnover, and productivity: Evidence from New Zealand. Acad. Management J. 44(1) 180-190.
47. Haefliger, S., G. von Krogh, S. Spaeth. 2008. Code reuse in open source software. Management Sci. 54(1) 180-193.
48. Hair, J. F., R. E. Anderson, R. L. Tatham, W. C. Black. 1995. Multivariate Data Analysis with Readings, 4th ed. Prentice-Hall, Englewood Cliffs, NJ.
49. Hall, B. H. 2000. Innovation and market value. R. Barro, G. Mason, M. O'Mahony, eds. Productivity, Innovation and Economic Performance. Cambridge University Press, Cambridge, UK, 177-198.
50. Hamilton, B. H., J. A. Nickerson, H. Owan. 2003. Team incentives and worker heterogeneity: An empirical analysis of the impact of teams on productivity and participation. J. Political Econom. 111(3) 465-497.
51. Han, J. K., N. Kim, R. K. Srivastava. 1998. Market orientation and organizational performance: Is innovation a missing link? J. Marketing 62(4) 30-45.
52. Hansen, M. T. 1999. The search-transfer problem: The role of weak ties in sharing knowledge across organizational subunits. Admin. Sci. Quart. 44(1) 82-111.
53. Hansen, M. T. 2002. Knowledge networks: Explaining effective knowledge sharing in multiunit companies. Organ. Sci. 13(3) 232-248.
54. Henderson, R., K. B. Clark. 1990. Architectural innovation: The reconfiguration of existing product technologies and the failure of established firms. Admin. Sci. Quart. 35(1) 9-30.
55. Henderson, R., I. Cockburn. 1994. Measuring competence? Exploring firm effects in pharmaceutical research. Strategic Management J. 15(S1) 63-84.
56. Henkel, J., E. von Hippel. 2005. Welfare implications of user innovation. J. Tech. Transfer 30(1-2) 73-87.
57. Holmström, B., J. Roberts. 1998. The boundaries of the firm revisited. J. Econom. Perspect. 12(4) 73-94.
58. Hurley, R. F., G. T. M. Hult. 1998. Innovation, market orientation, and organizational learning: An integration and empirical examination. J. Marketing 62(3) 42-54.
59. Huselid, M. A. 1995. The impact of human resource management practices on turnover, productivity, and corporate financial performance. Acad. Management J. 38(3) 635-672.
60. Ichniowski, C., K. Shaw. 1999. The effects of human resource management systems on economic performance: An international comparison of U.S. and Japanese plants. Management Sci. 45(5) 704-721.
61. Ichniowski, C., K. Shaw, G. Prennushi. 1997. The effects of human resource management practices on productivity: A study of steel finishing lines. Amer. Econom. Rev. 87(3) 291-313.
62. Jaccard, J. J., C. K. Wan. 1996. LISREL Approaches to Interaction Effects in Multiple Regression. Sage, Thousand Oaks, CA.
63. Jansen, J. J. P., F. A. J. van den Bosch, H. W. Volberda. 2005. Managing potential and realized absorptive capacity: How do organizational antecedents matter? Acad. Management J. 48(6) 999-1015.
64. Jensen, M. C., W. H. Meckling. 1992. Specific and general knowledge and organizational structure. L. Werin, H. Wijkander, eds. Contract Economics. Blackwell, Oxford, UK, 251-274.
65. Jöreskog, K.-G., D. Sörbom. 1993. LISREL 8: Structural Equation Modelling with the SIMPLIS Command Language. Scientific Software International, Chicago.
66. Kogut, B., U. Zander. 1992. Knowledge of the firm, combinative capabilities, and the replication of technology. Organ. Sci. 3(3) 383-397.
67. Laudon, K. C., J. P. Laudon. 2002. Management Information Systems: Managing the Digital Firm, 7th ed. Prentice Hall, Englewood Cliffs, NJ.
68. Laursen, K., N. Foss. 2003. New human resource management practices, complementarities, and the impact on innovation performance. Cambridge J. Econom. 27(2) 243-263.
69. Laursen, K., A. J. Salter. 2006. Open for innovation: The role of openness in explaining innovative performance among UK manufacturing firms. Strategic Management J. 27(2) 131-150.
70. Lawler, E. E. I., S. A. Mohrman, G. E. Ledford Jr. 1998. Strategies for High Performance Organizations: Employee Involvement, TQM, and Reengineering Programs in Fortune 1000 Corporations. Jossey-Bass, San Francisco.
71. Leonard-Barton, D., D. K. Sinha. 1993. Developer-user interaction and user satisfaction in internal technology transfer. Acad. Management J. 36(5) 1125-1139.
72. Lichtenthaler, U. 2008. Open innovation in practice: An analysis of strategic approaches to technology transactions. IEEE Trans. Engrg. Management 55(1) 148-157.
73. Lilien, G. L., P. D. Morrison, K. Searls, M. Sonnack, E. von Hippel. 2002. Performance assessment of the lead user idea-generation process for new product development. Management Sci. 48(8) 1042-1059.
74. Lindell, M. K., D. J. Whitney. 2001. Accounting for common method variance in cross-sectional research designs. J. Appl. Psych. 86(1) 114-121.
75. Linder, S. B. 1961. An Essay on Trade and Transformation. Almquist and Wiksell, Stockholm.
76. Love, J. H., S. Roper. 2009. Organizing innovation: Complementarities between cross-functional teams. Technovation 29(3) 192-203.
77. Lukas, B. A., O. C. Ferrell. 2000. The effect of market orientation on product innovation. J. Acad. Marketing Sci. 28(2) 239-247.
78. Lynex, A., P. J. Layzell. 1998. Organisational considerations for software reuse. Ann. Software Engrg. 5 105-124.
79. Matusik, S. 2002. Managing public and private firm knowledge within the context of flexible firm boundaries. C. W. Choo, N. Bontis, eds. Strategic Management of Intellectual Capital and Organizational Knowledge. Oxford University Press, Oxford, UK, 605-620.
80. McEvily, S. K., B. Chakravarthy. 2002. The persistence of knowledgebased advantage: An empirical test for product performance and technological knowledge. Strategic Management J. 23(4) 285-305.
81. Mendelson, H. 2000. Organizational architecture and success in the information technology industry. Management Sci. 46(4) 513-529.
82. Mendelson, H., R. R. Pillai. 1999. Information age organizations, dynamics, and performance. J. Econom. Behav. Organ. 38(3) 253-281.
83. Narver, J. C., S. F. Slater. 1990. The effect of a market orientation on business profitability. J. Marketing 54(4) 20-35.
84. Narver, J. C., S. F. Slater, D. L. MacLachlan. 2004. Responsive and proactive market orientation and new-product success. J. Product Innovation Management 21(5) 334-347.
85. Neale, M. R., D. R. Corkindale. 1998. Co-developing products: Involving customers earlier and more deeply. Long Range Planning 31(3) 418-425.
86. Nelson, R. R., S. G. Winter. 1982. An Evolutionary Theory of Economic Change. Harvard University Press, Cambridge, MA.
87. Nickerson, J. A., T. R. Zenger. 2004. A knowledge-based theory of the firm: The problem-solving perspective. Organ. Sci. 15(6) 617-632.
88. Osterloh, M., B. S. Frey. 2000. Motivation, knowledge transfer, and organizational form. Organ. Sci. 11(3) 538-550.
89. Pavitt, K. 1984. Sectoral patterns of technical change: Towards a taxonomy and a theory. Res. Policy 13(6) 343-373.
90. Podsakoff, P. M., S. B. MacKenzie, J.-Y. Lee, N. P. Podsakoff. 2003. Common method biases in behavioral research: A critical review of the literature and recommended remedies. J. Appl. Psych. 88(5) 879-903.
91. Porter, L. W., E. E. Lawler. 1968. Managerial Attitudes and Performance. Dorsey Press, Homewood, IL.
92. Roberts, J. 2007. The Modern Firm: Organizational Design for Performance and Growth. Oxford University Press, Oxford, UK.
93. Rosenberg, N. 1982. Learning by using. Inside the Black Box: Technology and Economics. Cambridge University Press, Cambridge, UK, 120-140.
94. Rosenkopf, L., A. Nerkar. 2001. Beyond local research: Boundaryspanning, exploration, and impact in the optical disk industry. Strategic Management J. 22(4) 287-306.
95. Rothwell, R., C. Freeman, P. Jervis, A. Robertson, J. Townsend. 1974. SAPPHO updated-Project SAPPHO phase II. Res. Policy 3(3) 258-291.
96. Salancik, G. R., J. Pfeffer. 1977. An examination of need-satisfaction models of job attitudes. Admin. Sci. Quart. 22(3) 427-456.
97. Schumpeter, J. A. 1934. The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest and the Business Cycle. Oxford University Press, London. [Originally published in 1912 as Theorie der wirtschaftlichen Entwicklung. Duncker & Humblot, Leipzig, Germany.]
98. Slater, S. F., J. C. Narver. 1994. Does competitive environment moderate market orientation-performance relationship? J. Marketing 58(1) 46-55.
99. Szulanski, G. 1996. Exploring internal stickiness: Impediments to the transfer of best practice. Strategic Management J. 17(Winter special issue) 27-43.
100. Teece, D. J. 1986. Profiting from technological innovation: Implications for integration collaboration, licensing and public policy. Res. Policy 15(6) 285-305.
101. Teece, D. J. 2000. Managing Intellectual Capital: Organizational, Strategic, and Policy Dimensions. Oxford University Press, Oxford, UK.
102. Teece, D. J., G. Pisano, A. Shuen. 1997. Dynamic capabilities and strategic management. Strategic Management J. 18(7) 509-533.
103. Tsai, W. 2001. Knowledge transfer in intra-organizational networks: Effects of network position and absorptive capacity on business unit innovation and performance. Acad. Management J. 44(5) 996-1004.
104. Tsai, W., S. Ghoshal. 1998. Social capital and value creation: The role of intrafirm networks. Acad. Management J. 41(4) 464-476.
105. Tushman, M., D. Nadler. 1978. Information processing as an integrating concept in organizational design. Acad. Management Rev. 3(3) 613-624.
106. Tushman, M. L., R. Katz. 1980. External communication and project performance-An investigation into the role of gatekeepers. Management Sci. 26(11) 1071-1085.
107. Urban, G. L., E. von Hippel. 1988. Lead user analyses for the development of new industrial products. Management Sci. 34(5) 569-582.
108. Volberda, H. W., N. J. Foss, M. A. Lyles. 2010. Absorbing the notion of absorptive capacity: How to realize its potential in the organization field. Organ. Sci. 21(4) 931-951.
109. von Hippel, E. 1976. The dominant role of users in scientific instrument innovation process. Res. Policy 5(3) 212-239.
110. von Hippel, E. 1986. Lead users: A source of novel product concepts. Management Sci. 32(7) 791-805.
111. von Hippel, E. 1988. The Sources of Innovation. Oxford University Press, New York.
112. von Hippel, E. 1994. "Sticky information" and the locus of problem solving: Implications for innovation. Management Sci. 40(4) 429-439.
113. von Hippel, E. 1998. Economics of product development by users: The impact of "sticky" local information. Management Sci. 44(5) 629-644.
114. von Hippel, E. 2005. Democratizing Innovation. MIT Press, Cambridge, MA.
115. Zenger, T. R., W. S. Hesterly. 1997. The disaggregation of corporations: Selective intervention, high-powered incentives and molecular units. Organ. Sci. 8(3) 209-222.
116. Zott, C. 2003. Dynamic capabilities and the emergence of intraindustry differential firm performance: Insights from a simulation study. Strategic Management J. 24(2) 97-125.