Combining Technological and Management Innovations: Empirical Evidence of a Premium Effect

This paper determines the performance consequences of the joint adoption of organizational and technological innovations. Using CIS data to analyse 2,837 technological innovators, it is empirically demonstrated that a firm's co-adoption strategy leads to a premium technological performance thanks to the extra synergistic effects, or the generation of complementarities. Firms co-adopting outperform those adopting solely technological innovations. Therefore, the combination of technical and non-technical competencies, and the integration of a socio-technical system, creates exceptional innovation capabilities. The strategic adoption of solely technological innovation is not enough: in order to leverage the performance of technological innovation it should be integrated into the organization.