Linking Drivers and Outcomes of Innovation in IT Firms: The Role of Partnerships

Abstract

A better understanding of the linkage between the objectives and outcomes of innovation will enable firms to plan better for effective utilization of their resources for generation of innovation. The current study enhances the understanding of relationships between the intent to innovate and eventual outcome as the intent to innovate drives complex processes and resource allocation that leads to a successful innovation. We analyze the World Bank innovation survey data of IT firms in China and find that drivers of innovation significantly impact the configuration elements of the innovation phenomenon within firms and influence how firms execute collaboration with external partners. This is turn impacts the product and process innovation generated by the firm. The findings imply that firms should decide about their choice of partners for innovation and the mode of engagement with the partners based on the drivers for innovation.