Growing Through Innovation Replicability: The Role of Investment in Routine Adaptation

Juliana Hsuan, Moren Lévesque

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

Abstract

We propose a formal model of firm growth through replication that considers the extent of the investment to adapt routines as replication unfolds and the portion of this investment that goes toward innovation in the routines. The use of these two investment constructs brings about four types of growth policies. We use a utility function that considers proxies for both growth and failure potential to uncover the role played in selecting these policies by the economic environment of the targeted market for expansion. Our analysis further reveals the importance of the innovation-relative-to-imitation investment efficiency in adapting the routines to be replicated while selecting a growth policy. The refinement of a replication theory through our
analysis of growth policies result in two testable hypotheses.
Original languageEnglish
Title of host publicationPOMS 2012 : 23rd Annual Conference of the Production and Operations Management Society
EditorsTobias Schoenherr, Sahil Seshadri
Number of pages36
Place of PublicationChicago
PublisherThe University of Chicago Booth School of Business
Publication date2012
ISBN (Print)9780615618586, 0615618588
Publication statusPublished - 2012
EventThe 23rd Annual Conference of the Production and Operations Management Society. POMS 2012 - Chicago, IL, United States
Duration: 20 Apr 201223 Apr 2012
Conference number: 23
http://www.pomsmeetings.org/ConfProceedings/025/

Conference

ConferenceThe 23rd Annual Conference of the Production and Operations Management Society. POMS 2012
Number23
CountryUnited States
CityChicago, IL
Period20/04/201223/04/2012
Internet address

Cite this

Hsuan, J., & Lévesque, M. (2012). Growing Through Innovation Replicability: The Role of Investment in Routine Adaptation. In T. Schoenherr, & S. Seshadri (Eds.), POMS 2012: 23rd Annual Conference of the Production and Operations Management Society Chicago: The University of Chicago Booth School of Business.
Hsuan, Juliana ; Lévesque, Moren. / Growing Through Innovation Replicability : The Role of Investment in Routine Adaptation. POMS 2012: 23rd Annual Conference of the Production and Operations Management Society. editor / Tobias Schoenherr ; Sahil Seshadri. Chicago : The University of Chicago Booth School of Business, 2012.
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Hsuan, J & Lévesque, M 2012, Growing Through Innovation Replicability: The Role of Investment in Routine Adaptation. in T Schoenherr & S Seshadri (eds), POMS 2012: 23rd Annual Conference of the Production and Operations Management Society. The University of Chicago Booth School of Business, Chicago, Chicago, IL, United States, 20/04/2012.

Growing Through Innovation Replicability : The Role of Investment in Routine Adaptation. / Hsuan, Juliana; Lévesque, Moren.

POMS 2012: 23rd Annual Conference of the Production and Operations Management Society. ed. / Tobias Schoenherr; Sahil Seshadri. Chicago : The University of Chicago Booth School of Business, 2012.

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

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AB - We propose a formal model of firm growth through replication that considers the extent of the investment to adapt routines as replication unfolds and the portion of this investment that goes toward innovation in the routines. The use of these two investment constructs brings about four types of growth policies. We use a utility function that considers proxies for both growth and failure potential to uncover the role played in selecting these policies by the economic environment of the targeted market for expansion. Our analysis further reveals the importance of the innovation-relative-to-imitation investment efficiency in adapting the routines to be replicated while selecting a growth policy. The refinement of a replication theory through ouranalysis of growth policies result in two testable hypotheses.

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KW - Replication

KW - Innovation

KW - Routine adaptation

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Hsuan J, Lévesque M. Growing Through Innovation Replicability: The Role of Investment in Routine Adaptation. In Schoenherr T, Seshadri S, editors, POMS 2012: 23rd Annual Conference of the Production and Operations Management Society. Chicago: The University of Chicago Booth School of Business. 2012