Innovation Management Practices, Strategic Adaptation, and Business Results: Evidence from the Electronics Industry

Alba Sánchez; Alejandro Lago; Xavier Ferràs; Jaume Ribera

doi:10.4067/S0718-27242011000200002

Authors

Alba Sánchez
Alejandro Lago
Xavier Ferràs
Jaume Ribera

DOI:

https://doi.org/10.4067/S0718-27242011000200002

Keywords:

Innovation management, Strategic adaptation, Business results, Technology management, Product management

Abstract

This research contributes to the understanding of how different practices of innovation management are related to mid- and long-term growth and profitability. Governments and regional development agencies invest relevant budgets to foster innovation in small and medium enterprises (SMEs) and improve their innovation management practices to make them more competitive. Nevertheless, it is not clear what impact these practices have on a company's performance over a long period of time. We propose a model to audit and classify innovation practices and empirically test the impact of innovation practices on the firms’ long–term financial performance, using a broad sample of companies in the electronics sector. Our empirical results show that, within a regional context, companies that are similar in terms of size, position in the value chain, and ownership structure follow similar innovative practices. Furthermore, the use of a systematic approach for innovation leads to revenue growth but does not necessarily increase profit or productivity.

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