Internal Determinants of Product Innovation and Management Innovation: The Effects of Diagnostic Capabillity and Implementation Capability

This paper adopts a behavioral theory of the firm perspective in order to compare the antecedents of two types of innovation: Management innovation refers to the adoption of new management practices or organizational structures, whereas product innovation refers to the introduction of new products or services on the market. The study further distinguishes between two categories of innovation within each type: new to the firm and new to the industry innovations. The findings indicate that there are more differences than similarities between the antecedents of the two types of innovation. However, adopting either type of innovation increases the likelihood of simultaneously adopting the other.