Abstract
Despite the importance of constant product improvement to becoming a sustainable organization, the relationship between different types of innovation and new product development has received little attention. This article contributes to prior research by proposing a necessary condition for successful product development, which increases organizational sustainability. While it has been widely argued that technological innovation is an important factor for new product development, we contribute by illustrating the importance of process and administrative innovation, which changes an organization’s way of doing business. By analyzing survey responses from 2127 Korean firms, we empirically demonstrate that process and administrative innovation increase the likelihood of achieving new product development goals. Our findings also show that innovation-supporting human resource practices such as talent development programs and work autonomy increase the effectiveness of process and administrative innovations. Overall, we suggest that organizations are able to achieve a sustainable presence in the product market when they constantly innovate the way they run themselves. Additionally, in order to manage such innovation, organizations should nurture a creative environment by devising effective, innovation-supporting human resource practices.
Highlights
Over the past twenty years, the topic of organizational sustainability has received considerable attention from management researchers as it focuses on an organization’s long-term success instead of short-term financial performance [1]
Our empirical findings reveal that organizational innovation increased the likelihood of achieving new product development goals
Existing literature has been mainly focused on the effect of technological innovation or product development specific process innovation on product development (e.g., [7,8,9,10])
Summary
Over the past twenty years, the topic of organizational sustainability has received considerable attention from management researchers as it focuses on an organization’s long-term success instead of short-term financial performance [1]. A more efficiently managed process can support the emergence of new products as this environment is better suited to the creation and production of advanced goods Administrative innovation such as improvements in information management and work efficiency is likely to support employees by providing a more efficient management system. Our empirical findings suggest that both process and administrative innovation enhance the likelihood of new product development This relationship is strengthened in the presence of HR practices related to talent management and work autonomy. Our findings suggest that the sustainable competitiveness of firms in the market is dependent upon the innovation of status quo internal systems, that is, business structures and processes Such innovation can shape a supportive environment for the sustainable development of new products. The third section will present results, and in the final section, the main conclusions are presented, and implications are suggested
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