Decoupling Novelty from R&D: The Importance of Marketing Innovation for Performance

Christoph Grimpe, Rabikar Chatterjee, Mukesh Bhargava

    Research output: Contribution to conferencePaperResearchpeer-review

    Abstract

    Conventional wisdom ties successful innovation primarily to technological R&D. In this paper, we introduce the concept of marketing innovation in which novelty originates separately from the innovative design, packaging, pricing, promotion, and/or distribution of technologically unchanged products and services. We argue that marketing innovation may significantly increase a firm’s innovation performance. Further, we posit that investments in marketing and technological innovation are substitutes because of resource constraints and a compounding of risks. We propose that the substitutive relationship is especially pronounced in small firms and high-tech industries. Based on the analysis of a dataset of 866 firms from a diverse set of industries in Germany, we find empirical support for our hypotheses, suggesting that novelty can in fact be decoupled from R&D
    Original languageEnglish
    Publication date2014
    Number of pages40
    Publication statusPublished - 2014
    EventThe Academy of Management Annual Meeting 2014: The Power of Words - Philadelphia, United States
    Duration: 1 Aug 20145 Aug 2014
    Conference number: 74
    http://aom.org/annualmeeting/

    Conference

    ConferenceThe Academy of Management Annual Meeting 2014
    Number74
    CountryUnited States
    CityPhiladelphia
    Period01/08/201405/08/2014
    Internet address

    Bibliographical note

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    Cite this

    Grimpe, C., Chatterjee, R., & Bhargava, M. (2014). Decoupling Novelty from R&D: The Importance of Marketing Innovation for Performance . Paper presented at The Academy of Management Annual Meeting 2014, Philadelphia, United States.