Abstract

Prior research has suggested that outcomes from firm’s innovativeness might be both positive and negative (Simpson, Siguaw, & Enz, 2006). The benefits from being innovative are widely discussed and documented in the literature (e.g., Claycomb & Miller, 1999; Hult, Snow, & Kandemir, 2003; Luo, Sivakumar, & Liu, 2005). However, departing from established routines and products implies substantial resource commitments (Miller & Friesen, 1982) and these can be futile taking into account high failure rates of new products (Pombriant, 2006). In the current study, we compare short and long-term effects of innovativeness on firm performance. Specifically, we argue that firm’s learning orientation (LO) expressed in its propensity to question long-held assumptions about organizational norms (Baker & Sinkula, 1999b; Senge, 1990) plays an important role in this relationship and can potentially offset the negative effect from innovativeness.

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