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Process innovation and performance : the role of divergence
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Mooi, Erik, Rudd, John M. and de Jong, Ad (2020) Process innovation and performance : the role of divergence. European Journal of Marketing, 54 (4). pp. 741-760. doi:10.1108/EJM-02-2018-0110 ISSN 0309-0566.
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Official URL: https://doi.org/10.1108/EJM-02-2018-0110
Abstract
Process innovation is a key determinant of performance. While extant literature paints a clear picture of the drivers of process innovation, the effect of process innovation on performance has received little attention. This paper contributes to theory building in this important area and examines how divergence of process innovation impacts performance. Divergence concerns the extent to which the observed level of process innovation diverges from the expected level of process innovation. Positive (negative) divergence occurs when the observed level of process innovation is higher (lower) than expected. In turn, we consider how divergence acts as a driver of performance. This approach is useful and important for managers and theory development as it provides insight into situations where a firm may have “too little” or “too much” process innovation. We use survey and archival data from 5,594 firms across 15 countries and find negative divergence to reduce performance under high competitive intensity, whereas positive divergence is detrimental under high environmental uncertainty. Thus, divergence advances understanding as, in contrast with previous work, we do not suggest that more innovation is always better. These findings contribute to understanding the process innovation-performance relationship and has important implications for strategic management research and practice alike.
Item Type: | Journal Article | ||||||
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Divisions: | Faculty of Social Sciences > Warwick Business School > Marketing Group Faculty of Social Sciences > Warwick Business School |
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Journal or Publication Title: | European Journal of Marketing | ||||||
Publisher: | Emerald Group Publishing Ltd. | ||||||
ISSN: | 0309-0566 | ||||||
Official Date: | 26 February 2020 | ||||||
Dates: |
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Volume: | 54 | ||||||
Number: | 4 | ||||||
Page Range: | pp. 741-760 | ||||||
DOI: | 10.1108/EJM-02-2018-0110 | ||||||
Status: | Peer Reviewed | ||||||
Publication Status: | Published | ||||||
Access rights to Published version: | Restricted or Subscription Access | ||||||
Copyright Holders: | © 2020, Emerald Publishing Limited | ||||||
Date of first compliant deposit: | 4 October 2019 | ||||||
Date of first compliant Open Access: | 24 March 2020 | ||||||
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