This research demonstrates that the threat of shareholder intervention negatively affects firm manager innovation incentive. The underlying mechanism is that innovation may cause stock price to reflect less accurate information about a firm’s fundamental value, which makes firm managers vulnerable to shareholder intervention. Firm managers under the threat of shareholder intervention will be bi...

There appears to be an ambivalent dimension in innovation strategies: timing. When is an innovation ready for the market or when is the market ready for the innovation? This paper empirically investigates the determinants of a firm’s decision to become a first mover or a follower in innovation strategies. Much of theoretical and empirical work has focused on whether first mover strategies pay o...

Cross-functional teams play a potentially important part in the innovation process enabling knowledge sharing, the development of trust and overcoming spatial and organizational barriers. Using a supermodularity approach, we focus on potential complementarities which may arise when cross-functional teams are used in different elements of the innovation process in UK and German manufacturing pla...

Generational product innovation (GPI) is an important but understudied element of innovation strategy. In the limited discussion to date, organizational strategy scholars have emphasized internally-driven strategies of generational product innovation. While internally-driven strategies may predominate when businesses face diffuse competition for their product lines, the literature largely overl...

We model a duopoly in which ex-ante identical firms must decide where to direct their innovation efforts. The firms face market uncertainty about consumers’ preferences for innovation on two product attributes, and technology uncertainty about the success of their R&D investments. Firms can conduct costly market research before setting R&D strategy. We find that the value of market information ...

We analyze an economy where firms undertake both innovation and adoption of technologies from the world technology frontier. The selection of high-skill managers and firms is more important for innovation than for adoption. As the economy approaches the frontier, selection becomes more important. Countries at early stages of development pursue an investment-based strategy, which relies on exist...

In this paper we argue that the business model underlying the new economy is based on the following interrelated and self-reinforcing forces: 1. The development of a new strategy of opportunity, which focuses on the use of creative innovation to open up new market spaces, rather than using exploitive innovation to prolong the life of