Continuous improvement behaviors and impacts on innovation

Abstract

PurposeThis paper investigates whether adopting continuous improvement (CI) behaviors is related to better radical and incremental product and process innovation performance and identifies whether CI behaviors positively affect respondent perceptions on CI contributions to innovation performance.Design/methodology/approachData were collected from 139 firms in Brazil, and cluster analysis was used to identify groups with different CI adoption levels. The nonparametric Wilcoxon–Mann–Whitney test was used to verify differences in innovation performance at companies via manager perceptions on CI and innovation.FindingsData show that more CI behavior implementation was associated with better product and process innovation performance. Furthermore, companies with more mature CI behavior levels innovate more, which may reinforce CI investments.Practical implicationsOrganizational managers focused on innovation should dedicate time to evaluating and developing CI behaviors, and maturing CI philosophies to improve performance. This study can contribute to the literature by offering insights for developing public policies, especially for emerging economies, or for companies seeking to become more competitive, since CI can foster and promote a culture of long-term innovation.Originality/valueDespite the fact that a relationship between CI and operational performance has already been established, there is still a lack of research that identifies the impacts of CI behavior on innovation. Focusing on CI behavior is important because it can be fostered by various programs and improvement initiatives, highlighting paths for managerial practices and academia. This study was conducted for an emerging economy.