Leveraging Resources for Innovation: The Role of Synchronization

Journal of Product Innovation Management 2021

38 Pages Posted: 10 Dec 2021

See all articles by Christina Matz Carnes

Christina Matz Carnes

Texas A&M University

Michael A. Hitt

Texas A&M University - Department of Management; Texas Christian University

David Sirmon

University of Washington

Francesco Chirico

Jonkoping University - Jonkoping International Business School (JIBS); Macquarie University, Macquarie Business School

Dong Wook Huh

Frostburg State University - Department of Management

Date Written: October 12, 2021

Abstract

Leveraging resources to develop innovation is central to exploiting market opportunities yet doing so is complex and fraught with challenges. This study explores some of this complexity by theoretically detailing and empirically examining the critical role that synchronization plays in the process of leveraging resources to create innovation. Specifically, we integrate resource orchestration with the behavioral theory of the firm to investigate the joint effect of synchronization and leveraging strategies on innovation under different performance conditions. Using policy capturing methodology resulting in 3,600 observations from 120 managers, we find empirical evidence that synchronization can enhance innovation outcomes of all leveraging strategies. Yet, this positive synergistic effect occurs in high performing firms that use the resource advantage and market opportunity leveraging strategies and in low performing firms that use the entrepreneurial leveraging strategy. Our theory and results offer important contributions to the innovation and resource orchestration literatures. First, our study offers a contextually rich examination of innovation, suggesting that it is not only resources, but also managerial actions and a firm’s relative performance that drive innovation outcomes. Specifically, this study adds to our knowledge of the relationship between resources and innovation strategies by investigating the impact of synchronization – a key contingency in understanding the effects of resources on innovation. Second, we examine boundary conditions of synchronization’s influence by integrating behavioral logic in the context of relative firm performance. Mixed evidence exists on the synergistic effect of valuable capabilities, with some studies showing increased gains and others finding evidence of a neutral relationship. This study begins to disentangle these findings by suggesting that resource leveraging strategies and synchronization together enhance innovation when the strategy aligns with the firm’s relative performance aspirations, answering calls for the development of a more nuanced understanding of the pursuit of innovation.

Suggested Citation

Carnes, Christina Matz and Hitt, Michael A. and Sirmon, David and Chirico, Francesco and Chirico, Francesco and Huh, Dong Wook, Leveraging Resources for Innovation: The Role of Synchronization (October 12, 2021). Journal of Product Innovation Management 2021, Available at SSRN: https://ssrn.com/abstract=3940749

Christina Matz Carnes

Texas A&M University ( email )

Langford Building A
798 Ross St.
College Station, TX 77843-3137
United States

Michael A. Hitt

Texas A&M University - Department of Management ( email )

430 Wehner
College Station, TX 77843-4218
United States
979-458-3393 (Phone)

Texas Christian University ( email )

Fort Worth, TX 76129
United States

David Sirmon

University of Washington ( email )

Seattle, WA 98195
United States

Francesco Chirico (Contact Author)

Jonkoping University - Jonkoping International Business School (JIBS) ( email )

Jönköping, 55111
Sweden

Macquarie University, Macquarie Business School ( email )

New South Wales 2109
Australia

Dong Wook Huh

Frostburg State University - Department of Management ( email )

Frostburg, MD 21532
United States

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