Unraveling the links between dimensions of innovation and organizational performance

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125 Scopus citations


Economists typically define innovation as a process or practice that is new to an industry; hence they emphasize a firm's speed of innovation relative to other firms in the industry. Organizational theorists, on the other hand, usually focus on the number of products or processes that are new to the firm; hence, they emphasize innovation magnitude. This study builds a bridge between these two approaches by exploring the link between two dimensions of innovation - speed and magnitude - and two measures of a firm's performance - objective financial reports and executive ratings of perceived effectiveness. We propose that each dimension of innovation will be associated with a different measure of firm performance. Using data from the commercial banking industry, we find interesting results that partially support our predictions based on the theory that different dimensions are indeed linked to different measures of performance. Implications for future research and practice are discussed.

Original languageEnglish (US)
Pages (from-to)137-153
Number of pages17
JournalJournal of High Technology Management Research
Issue number1
StatePublished - 2000

All Science Journal Classification (ASJC) codes

  • Computer Science Applications
  • Strategy and Management
  • Information Systems and Management
  • Marketing
  • Management of Technology and Innovation


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