Resource title

Internal Antecedents of Management Innovation - The effect of diagnostic capability and implementation capability

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Resource description

Management innovation is the introduction of new management practices that significantly alter the waythe work of management is performed. Building on behavioral theory of the firm, this paper explores theeffect of firms’ diagnostic capability and implementation capability on the likelihood of adopting new‐to‐thefirmand new‐to‐the‐industry management innovations. The paper finds that formalized activities directed atdeveloping and implementing management innovations as well as CEO novelty increases the likelihood ofinnovating in both categories. Also, top management team (TMT) diversity increases the likelihood ofadopting new‐to‐the‐industry innovations. The paper does not find a direct effect of performance decline onthe likelihood of implementing management innovation, but two variables, TMT diversity and previousexperience, positively moderate the relationship between performance decline and new‐to‐the‐industrymanagement innovation.

Resource author

Mie Harder

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Resource publish date

Resource language

eng

Resource content type

application/pdf

Resource resource URL

http://hdl.handle.net/10398/8247

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