Management Innovation in an Emerging Economy: An Analysis of Its Moderating Effect on the Technological Innovation–Performance Relationship

Abstract

Management innovation is related to new organizational structures and administrative systems that generate the possibility of creating value for the company. Using as theoretical framework the dynamic capabilities theory, this article examines the relationship between management innovation, technological innovation, and performance, testing the moderating effect of management innovation. Methodologically, the work uses data from the Survey of Development and Technological Innovation 2015–2016 of the Colombian manufacturing industrial sector. For the analysis, six ordinary least squares and robust regression models are estimated. The results suggest that in Colombia, companies do not achieve better results by introducing technological and management innovations simultaneously, since management innovation negatively moderates the relationship between technological innovation and performance. However, management and technological innovations positively influence firm's performance when they are introduced into companies separately. Theoretically, the work advances the literature on the dynamics capabilities perspective, using it to analyze management innovation, technological innovation, and performance in emerging economies. Empirically, useful information is provided for the design of strategies for practitioners seeking to improve the performance of companies with the introduction of management innovations, technological innovations, and new administrative practices. There is a need to develop a far greater understanding of how the invention and implementation of new administrative practices, organizational structures, or management techniques affect in tandem technological innovation capabilities and firm's performance.