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http://hdl.handle.net/1942/30207
Title: | Pulling the Plug? Investigating Firm-Level Drivers of Innovation Project Termination | Authors: | VACULIK, Marek LORENZ, Annika ROIJAKKERS, Nadine VANHAVERBEKE, Wim |
Issue Date: | 2019 | Publisher: | IEEE-INST ELECTRICAL ELECTRONICS ENGINEERS INC | Source: | IEEE TRANSACTIONS ON ENGINEERING MANAGEMENT, 66(2), p. 180-192 | Abstract: | Firms need to innovate and develop dynamic capabilities to create a sustainable competitive advantage. Due to this pressure, firms in high-tech industries invest a high percentage of their revenues in innovation. Despite the vast number of innovation success stories, only one in five innovation projects reaches the market. It is important to understand the drivers of project termination as many firms make sizable investments in innovation and these drivers may have a significant impact on their innovation performance. Therefore, the earlier recognition of unfeasible projects would avoid continued investment and release resources that could be invested in more profitable projects. This paper investigates firm-level factors influencing the termination of innovation projects based on a sample of 4385 firms in the Czech Republic and Germany. We find that firm size, research and development activities, organizational agility, and the level of internationalization are positively associated with innovation project termination. Surprisingly, marketing innovation is also positively associated with project termination. Our results contribute to an improved understanding of why some firms are better at identifying unsuccessful projects (earlier) than others. Identifying generalizable factors provides complementary insights into project-level factors of project termination that can have a remarkable impact on the profitability and survival of firms. | Notes: | [Vaculik, Marek] Moravian Univ Coll, Olomouc 77900, Czech Republic. [Vaculik, Marek; Vanhaverbeke, Wim] Hasselt Univ, B-3500 Hasselt, Belgium. [Lorenz, Annika] Univ Utrecht, Copernicus Inst Sustainable Dev, NL-3584 CS Utrecht, Netherlands. [Lorenz, Annika] Tech Univ Berlin, Fac Econ & Management, D-10587 Berlin, Germany. [Roijakkers, Nadine] Open Univ Netherlands, Fac Management Sci & Technol, NL-6401 DL Heerlen, Netherlands. [Vanhaverbeke, Wim] ESADE Business Sch, Dept Operat Innovat & Data Sci, Barcelona 08034, Spain. [Vanhaverbeke, Wim] Natl Univ Singapore, Div Engn & Technol Management, Singapore 117575, Singapore. | Keywords: | Technological innovation;Industries;Investment;Commercialization;Plugs;Research and development;Economics;Dynamic capabilities;innovation process;innovation project termination;organizational agility | Document URI: | http://hdl.handle.net/1942/30207 | ISSN: | 0018-9391 | e-ISSN: | 1558-0040 | DOI: | 10.1109/TEM.2018.2798922 | ISI #: | 000465230100005 | Rights: | 2018 IEEE. Personal use is permitted, but republication/redistribution requires IEEE permission. | Category: | A1 | Type: | Journal Contribution | Validations: | ecoom 2020 |
Appears in Collections: | Research publications |
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File | Description | Size | Format | |
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vaculik2018.pdf Restricted Access | Published version | 199.19 kB | Adobe PDF | View/Open Request a copy |
Drivers of innovation termination_final_SSRN_v2.pdf | Peer-reviewed author version | 441.82 kB | Adobe PDF | View/Open |
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