Electronic Networking Technologies, Innovation Misfit and Plant Performance

33 Pages Posted: 18 Feb 2010

See all articles by Robert G. Fichman

Robert G. Fichman

Boston College - Carroll School of Management

Nigel P. Melville

University of Michigan, Stephen M. Ross School of Business; University of Michigan, College of Engineering

Date Written: February 1, 2010

Abstract

Prior work on information technology (IT) adoption and economic impacts typically employs an instrumental logic in which firms lead with innovation when they possess characteristics that make it economically beneficial to do so and lag when they do not. However, firms may deviate from this idealized picture when they possess characteristics of an innovation laggard but exhibit the behavior of an innovation leader (or vice versa), with implications for the returns to IT investment. This study develops a conceptual framework and hypotheses regarding the implications of such deviations, which we call innovation misfits. Using a data set comprising measures of the adoption of electronic networking technologies (ENT) in over 25,000 U.S. manufacturing plants, productivity regression estimation reveals a consistent pattern that the association between IT and productivity is diminished in the presence of innovation misfit. We discuss the implications of innovation misfit for scholarship and management practice, which are numerous.

Suggested Citation

Fichman, Robert G. and Melville, Nigel P., Electronic Networking Technologies, Innovation Misfit and Plant Performance (February 1, 2010). US Census Bureau Center for Economic Studies Paper No. CES-WP- 10-03, Available at SSRN: https://ssrn.com/abstract=1554317 or http://dx.doi.org/10.2139/ssrn.1554317

Robert G. Fichman

Boston College - Carroll School of Management ( email )

140 Commonwealth Avenue
Chestnut Hill, MA 02467
United States

Nigel P. Melville (Contact Author)

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI MI 48109
United States

HOME PAGE: http://www.nigelpmelville.com/

University of Michigan, College of Engineering ( email )

Ann Arbor, MI
United States

HOME PAGE: http://isd.engin.umich.edu/graduate-degree-programs/design-science/

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