Abstract
This paper examines whether firms consider adopting cross-functional teams as a device of transforming external information to innovation or upgrading. While addressing the difference between firms with cross-functional teams and
without teams, we examine the effects of complementarities between internal and external resources on product innovation and product-level creative destruction, using survey data on enterprises' self-reported customers and
suppliers of manufacturing in Indonesia, the Philippines, Thailand, and Vietnam. The firms with cross-functional teams are more likely to have higher impacts of exchanging engineers on product innovation and destruction. We use the
interaction terms between teams and exchanging engineers as an instrumental variable for acquiring information on the past failure experience of other firms, explaining the higher level of product innovation and replacement. Product
innovation and replacement need a wider sharing of outside knowledge within a firm.
without teams, we examine the effects of complementarities between internal and external resources on product innovation and product-level creative destruction, using survey data on enterprises' self-reported customers and
suppliers of manufacturing in Indonesia, the Philippines, Thailand, and Vietnam. The firms with cross-functional teams are more likely to have higher impacts of exchanging engineers on product innovation and destruction. We use the
interaction terms between teams and exchanging engineers as an instrumental variable for acquiring information on the past failure experience of other firms, explaining the higher level of product innovation and replacement. Product
innovation and replacement need a wider sharing of outside knowledge within a firm.
| Original language | English |
|---|---|
| Publication date | 2012 |
| Number of pages | 31 |
| Publication status | Published - 2012 |
| Event | The DRUID Society Conference 2012 on Innovation and Competitiveness: Dynamics of Organizations, Industries, Systems and Regions - Copenhagen Business School, Frederiksberg, Denmark Duration: 19 Jun 2012 → 21 Jun 2012 http://www.druid.dk/DRUID2012 |
Conference
| Conference | The DRUID Society Conference 2012 on Innovation and Competitiveness |
|---|---|
| Location | Copenhagen Business School |
| Country/Territory | Denmark |
| City | Frederiksberg |
| Period | 19/06/2012 → 21/06/2012 |
| Internet address |