Relationships between innovation stimulus, innovation capacity, and innovation performance

TLDR

The study investigates how human and technological factors interact by modeling the relationship between innovation stimulus, innovation capacity, and innovation performance. The authors developed a framework linking innovation stimulus and capacity and tested it with 194 managers of Australian firms. Results reveal that innovation stimulus influences performance only indirectly through innovation capacity, with both stimulus–capacity and capacity–performance links being strong and significant.

Abstract

This paper examines the integration of the human and technological aspects of innovation management by modelling the innovation stimulus – innovation capacity relationship in determining innovation performance. The research framework developed in this study was tested amongst 194 managers of Australian firms. The survey responses indicate that both the relationships between innovation stimulus and innovation capacity and between innovation capacity and innovation performance are significant and strong. However, innovation stimulus does not show any direct effect on innovation performance, suggesting that its effect is mediated through innovation capacity. The overall practical implication that can be drawn from the findings is that to achieve high innovation performance, organizations first need to develop the behavioural and cultural context and practices for innovation (i.e. stimulus), and only within such conducive environments is it possible for organizations to develop innovative capacity in research and development and technology so as to more effectively deliver innovation outcomes and performance.