Session 256

Innovation and the Strategy-Performance Relationship

Track I

Date: Monday, October 5, 2015


Time: 08:00 – 09:15


Room: Governor's Square 9

Session Chair:

  • Giacomo Cattaneo, Aarhus University

Title: Cycles of Organizational Renewal: The Interplay of Strategy and Innovation at Bang & Olufsen


  • Giacomo Cattaneo, Aarhus University
  • Lars Frederiksen, Aarhus University
  • Fredrik Hacklin, ETH Zurich
  • Boris Battistini, ETH Zurich

Abstract: Bang & Olufsen, a Danish high-end producer of consumer electronics, has experienced both failure and success in the process of strategic renewal, challenged by blurring industry boundaries and the rise of the digital technology paradigm. A study of the last decade shows how the company tried to renew itself by improving its new product development process from three angles: strategy, innovation and organizational design. Using ethnographic and grounded theory methods with a micro-foundational perspective we illustrate how the dynamics in the process of renewal are explained through day-to-day actions, and how such actions can be accrued into a longitudinal perspective where the key drivers of change cycle between strategy and innovation.

Title: Innovation and Imitation: New Product Portfolio and Firm Performance in Spain


  • Ching T. Liao, IESE Business School

Abstract: This research proposal clarifies the relationship between new product portfolio and firm performance using empirical research. In order not to assume investment portfolio directly translating into new product portfolio, I examine the influence of new product sales on firm performance. I classify new products into two types —innovation and imitation. When the new product portfolio of a company is a combination of innovation and imitation, the proportion of innovative and imitative new products influences firm performance. For a technologically advanced firm, introducing more innovative products contributes positively to market share. On the other hand, when a firm is lagged behind the technology frontier, its new product portfolio is suggested to focus more on imitative new products.

Title: R&D-Efficiency: A Way of Explaining the Family Business Innovation Puzzle?


  • Jonas Steeger, Hamburg Institute of International Economics
  • Thorsten Teichert, University of Hamburg

Abstract: Research finds family firms to invest less in R&D. Since the R&D intensity is considered a key variable to predict innovative success and long-term survival, these findings stand in clear contrast to the dynastical success family firms tend to aim for. One tempting explanation to resolve this conflict might be innovation efficiency. Firms with high family ownership may use R&D investment more efficiently. This article aims at answering two research questions: Are family firms more efficient in utilizing innovation input expenditures? Second, if the idea is prevailing, does it hold true both for product and process innovation? Given a dataset of about 6.000 midsized companies in Germany, we find family firms indeed to be more efficient in both cases.

Title: The Mediating Effect of Innovation on the Relationship between Corporate Reputation and Performance in US MNCs


  • Marcelo Alvarado-Vargas, University of Toledo
  • William Newburry, Florida International University

Abstract: Lately, corporate reputation has received scholarly attention in business strategy management. There is a general consensus that higher corporate reputation is positively related to firm performance. However, the link is not straightforward; hence, it calls for researchers to investigate the relationship closely. Here, innovation is suggested as a mediating variable. Innovation is a critical factor for firm success and survival. Highly reputed firms are in a more advantageous position to attract critical resources for innovation such as human and financial capital. Firm degree of internationalization is modeled as an interaction effect. Hypotheses are tested on 211 U.S. firms with a longitudinal panel data from 2006 to 2012 by using linear dynamic panel data estimation methodology. Results confirm the hypotheses proposed in the study.

All Sessions in Track I...

Sun: 08:00 – 09:15
Session 276: K&I Sunday Panel: Big Data & Analytics in Strategy
Sun: 09:45 – 11:00
Session 277: K&I Foundations Session: A Conversation with Dan Levinthal
Sun: 11:15 – 12:30
Session 278: K&I Sunday Panel: Knowledge and Innovation in models of Business Models
Sun: 16:15 – 17:30
Session 104: Resource Allocation and Innovation
Session 261: Knowledge Creation and Sharing in Virtual Communities
Sun: 17:45 – 00:00
Session 317: Knowledge and Innovation Business Meeting
Mon: 08:00 – 09:15
Session 62: Multi-level perspectives on capability development
Session 105: Sourcing Strategies for Knowledge
Session 256: Innovation and the Strategy-Performance Relationship
Mon: 11:15 – 12:30
Session 203: Post Acquisition Learning
Session 204: Acquiring human capital: Process and outcomes
Mon: 13:45 – 15:00
Session 107: Evolving Industries, Evolving Products
Session 205: Knowledge Recombination and Interdependencies
Mon: 16:45 – 18:00
Session 100: Innovation Management in Networks, Ecosystems, and Innovation Hubs
Session 200: Strategic Leadership, Learning, and Exploration
Tue: 08:00 – 09:15
Session 136: Innovating and Learning in Collaborative Alliances
Session 255: Processes for Innovation and Ideation
Tue: 11:00 – 12:15
Session 101: Strategic Patenting
Session 137: Entrepreneurial Experience and Cognition: Implications for Venture Performance
Tue: 14:15 – 15:30
Session 198: Emerging Market Strategies
Session 206: Knowledge Replication, Transfer and Absorption
Tue: 15:45 – 17:00
Session 17: Human Capital and Entrepreneurship
Session 108: Open Innovation: Antecedents and Performance Effects
Session 262: Pioneering Knowledge
Tue: 17:30 – 18:45
Session 60: Blurring the Boundaries of Strategy Work
Session 202: Team Dynamics and Creativity
Session 271: Spinouts

Strategic Management Society