Relationships between innovation stimulus, innovation capacity, and innovation performance
Article first published online: 2 NOV 2006
Volume 36, Issue 5, pages 499–515, November 2006
How to Cite
Prajogo, D. I. and Ahmed, P. K. (2006), Relationships between innovation stimulus, innovation capacity, and innovation performance. R&D Management, 36: 499–515. doi: 10.1111/j.1467-9310.2006.00450.x
- Issue published online: 2 NOV 2006
- Article first published online: 2 NOV 2006
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.