Abstract
This research explores the impact of the firm’s characteristics of size and age on organizational innovation. The study is based on data gathered from a sample of industrial companies from central region of Russia, and reveals that there is a relation between the size and age of a firm and its organizational innovation activity. To make the research more specific, the organizational innovation is broken down into a few organizational innovation subtypes that are analysed independently. Each organizational innovation subtype of a firm demonstrates a different level of dependence on its characteristics. The conclusion was made that each subtype of organizational innovation must be analysed based on the specified context being considered.
Highlights
A significant part of a firm’s overall strategy is innovation management
These are: a system that enables the employees to gain access to non-codified external knowledge (NSEC); new practices of improving learning and knowledge sharing within the firm (PLKS); new management systems for general production or supply operations (MSPS); new methods that reduce costs of suppliers (MRCS)
It should be noticed that unlike the largest part of the literature on innovation, our study focuses on organizational innovation
Summary
A significant part of a firm’s overall strategy is innovation management. The innovation activity in a firm aims to increase the productivity of each business function of the firm (Nandakumar et al, 2011; Forsman, 2009; Wang and Ahmed, 2004; Dukeov, 2008). A successful firm must always consider the business environment as a dynamic and continuously changing system (Bergman et al, 2006). To adapt the firm to a changing environment often requires introducing innovations. These could be new products, processes, management systems or elements of corporate culture (Damanpour, 1992). Different kinds of innovations within a firm are often closely interrelated. The introduction of technological innovation, which encompasses product and process innovation, is complementary to the adoption of non-technological innovation, which encompasses marketing and organizational innovation (ORI) (Koren and Palcic, 2015)
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