Unpacking the relationship between an innovation strategy and firm performance: The role of task conflict and political activity |
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Authors: | Dirk De Clercq Bulent Menguc |
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Institution: | a Brock University Faculty of Business St. Catharines, Ontario, Canada L2S 3A1 b Yonsei University Yonsei School of Business 134 Shinchon-dong, Seodaemun-gu Seoul, 120-749, South Korea |
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Abstract: | This article adds to extant literature by examining the contingent effect of two cross-functional processes on the relationship between the use of an innovation strategy and firm performance, namely, task conflict and political activity. The authors examine the effects of these processes with a sample of 260 firms. The positive relationship between the use of an innovation strategy and firm performance is stronger for higher levels of cross-functional task conflict and lower levels of cross-functional political activity. Furthermore, the authors find support for a configurational hypothesis: the innovation strategy-firm performance relationship is strongest for the high task conflict/low political activity configuration and weakest for the low task conflict/high political activity configuration. The results unveil two important cross-functional mechanisms influencing the extent to which the benefits of an innovation strategy can be reaped. |
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Keywords: | Innovation strategy Task conflict Political activity Strategy implementation |
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