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The Fateful Triangle Complementarities between product, process and organizational innovation in the UK and France

Author

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  • Gérard Ballot

    (ERMES - Equipe de recherche sur les marches, l'emploi et la simulation - UP2 - Université Panthéon-Assas - CNRS - Centre National de la Recherche Scientifique, TEPP - Travail, Emploi et Politiques Publiques - UPEM - Université Paris-Est Marne-la-Vallée - CNRS - Centre National de la Recherche Scientifique)

  • Fathi Fakhfakh

    (ERMES - Equipe de recherche sur les marches, l'emploi et la simulation - UP2 - Université Panthéon-Assas - CNRS - Centre National de la Recherche Scientifique)

  • Fabrice Galia

    (BSB - Burgundy School of Business (BSB) - Ecole Supérieure de Commerce de Dijon Bourgogne (ESC))

  • Ammon Salter

    (Imperial College London)

Abstract
This paper explores the triangle of relationships among product, process and organizational innovation, examining the complementarities and substitutes between these forms of innovation. Drawing from a large pooled sample of French and UK manufacturing firms, it investigates if firms can find a beneficial interplay between forms of innovation. A first analysis through a trivariate probit and a multinomial logit shows that the determinants of the different forms of innovation are not identical and the correlation of residuals in the trivariate probit displays national differences for the complementarities in use. The results of the tests of the complementarities in performance show that the efficient strategies of innovation combinations are not the same for all the firms. They depend on the national context as well as on the firm size and the firm capabilities, and give credit to the contingency hypothesis rather than to the naïve view of a unique best strategy. The main combinations are the "technological strategy" (product-process innovations) and the "structure oriented strategy" (organization-product), and in no case the combination of the three strategies at the same time, which is presumably too costly or difficult.

Suggested Citation

  • Gérard Ballot & Fathi Fakhfakh & Fabrice Galia & Ammon Salter, 2011. "The Fateful Triangle Complementarities between product, process and organizational innovation in the UK and France," Working Papers halshs-00812141, HAL.
    • Handle: RePEc:hal:wpaper:halshs-00812141
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00812141
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    References listed on IDEAS

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    Cited by:

    1. Ballot, Gérard & Fakhfakh, Fathi & Galia, Fabrice & Salter, Ammon, 2015. "The fateful triangle: Complementarities in performance between product, process and organizational innovation in France and the UK," Research Policy, Elsevier, vol. 44(1), pages 217-232.
    2. Lin, Chia-Ling & Lin, Hui-Lin & Lin, Eric S., 2016. "Is There A Complementary Relationship Between Product And Process Innovation On Productivity In Taiwanese Manufacturing Firms?," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 57(2), pages 139-173, December.
    3. Pierre Mohnen & Bronwyn Hall, 2013. "Innovation and Productivity: An Update," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 3(1), pages 47-65, June.
    4. Seri, Paolo & Zanfei, Antonello, 2013. "The co-evolution of ICT, skills and organization in public administrations: Evidence from new European country-level data," Structural Change and Economic Dynamics, Elsevier, vol. 27(C), pages 160-176.
    5. Antonioli, Davide & Mancinelli, Susanna & Mazzanti, Massimiliano, 2013. "Is environmental innovation embedded within high-performance organisational changes? The role of human resource management and complementarity in green business strategies," Research Policy, Elsevier, vol. 42(4), pages 975-988.
    6. Waqar Wadho & Azam Chaudhry, 2019. "Identifying and Understanding High Growth Firms in the Pakistani Textile and Apparel Sectors," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 24(2), pages 73-92, July-Dec.
    7. Berulava, George & Gogokhia, Teimuraz, 2016. "Studying Complementarities between Modes of Innovation Strategies in Transition Economies," MPRA Paper 71277, University Library of Munich, Germany.
    8. Wadho, Waqar & Chaudhry, Azam, 2018. "Innovation and firm performance in developing countries: The case of Pakistani textile and apparel manufacturers," Research Policy, Elsevier, vol. 47(7), pages 1283-1294.

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