Innovation and technology creation effects on organizational performance

Abstract

The purpose of this study is to analyze the relationships among innovation, technology creation, quality management, information management capability and organizational performance. This study contributes to the research on the effect that diversification has on organizational performance under conditions of uncertainty. Firms benefit from either low levels of diversification due to efficiencies in processing innovation knowledge, or from high levels of diversification due to access to broad information management capabilities that facilitate the solving of complex problems and the ability to direct a firm along different trajectories. The use of comparative methods in this research includes multiple regression analysis (MRA) and fuzzy-set qualitative comparative analysis (fsQCA). These analyses demonstrate that an fsQCA can successfully identify conditions that are adequate for successful organizational performance outcomes. The results indicate that an fsQCA outperforms an MRA and successfully models both types of data with causal complexities. The model looks across industries and across various types of firms; at the same time, the differences among industries and firms are also investigated. This study's findings provide useful insights into how firms' members should reinforce their collaborative behaviors and activities to enhance their competitive advantages.