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Simultaneous versus sequential complementarity in the adoption of technological and organizational innovations : the case of innovations in the design sphere

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Battisti, Giuliana, Colombo, M. G. and Rabbiosi, L. (2015) Simultaneous versus sequential complementarity in the adoption of technological and organizational innovations : the case of innovations in the design sphere. Industrial and Corporate Change, 24 (2). pp. 345-382. doi:10.1093/icc/dtv003

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Official URL: http://dx.doi.org/10.1093/icc/dtv003

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Abstract

It is generally suggested that technological and organizational innovations, being complementary, need to be adopted simultaneously. Nevertheless, sequential rather than simultaneous adoption of these two types of innovation may be optimal. In this paper, we analyze the pattern of mutual causation of technological and organizational innovations and contribute to the understanding of their interdependencies. By the means of a test of necessary and sufficient conditions for the presence of sequential versus simultaneous complementarity, we explore the adoption of two allegedly complementary innovations in the sphere of design, namely, computer-aided design/manufacture equipment (CAD) and inter-organizational design teams with customers and suppliers (JOD). The evidence is drowned upon a longitudinal sample of Italian manufacturing plants observed over 27 years (1970–1996). We find that simultaneous adoption of the two innovations under consideration is unlikely while the likelihood of JOD adoption increases having adopted CAD. The results highlight the driving role of technological innovations, and notably of the decline in the price of IT equipment, upon the diffusion of complementary organizational innovations.

Item Type: Journal Article
Divisions: Faculty of Social Sciences > Warwick Business School > Strategy & International Business
Faculty of Social Sciences > Warwick Business School
Journal or Publication Title: Industrial and Corporate Change
Publisher: Oxford University Press
ISSN: 0960-6491
Official Date: 2015
Dates:
DateEvent
2015Published
5 March 2015Available
Volume: 24
Number: 2
Page Range: pp. 345-382
DOI: 10.1093/icc/dtv003
Status: Peer Reviewed
Publication Status: Published
Access rights to Published version: Restricted or Subscription Access

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