Innovation Strategy and Firm Performance

Even though innovation has become essential for firms' long-term success, formulating an innovation strategy is far from common in companies and not yet well defined and understood in research. This dissertation outlines all dimensions of innovation strategy. Moreover, it answers the question, to what extent there is a relation between innovation strategy and firm performance.

The comprehensive empirical research is based on 122 publicly listed manufacturing firms from around the world. It consists of primary research complemented with secondary data and capital market based financials, making the outcome highly reliable. The results of the study show a combination of choices needs to be done right for a firm's innovation strategy to positively impact its performance. The innovation portfolio should include more radically new projects; they are rewarded. Forces of marketers and R&D people need to be joined to ensure new products relevant to customers. All innovation efforts should be focused in a few areas in order to benefit from focus and synergies.

Autorentext
Dr. Nanja Strecker promovierte bei Prof. Dr. Søren Salomo am Institut für Technologie- und Innovationsmanagement der Universität Graz. Sie ist Leiterin der Innovationseinheit bei Alcan Engineered Products in Lausanne/Schweiz.

Zusammenfassung
In practically oriented studies, innovation strategy is consistently iden- fied as a key success factor for innovation performance as well as susta- able, overall firm performance. Empirical research has, in comparison to other aspects of innovation management, not devoted much attention to this topic. In addition to this lack of empirically validated results, there is a deficit of clear definition in terms of what is actually meant by inno- tion strategy. Nanja Strecker's dissertation starts there and concentrates on three central questions: What characterizes innovation strategy of companies? To what extend does a relationship between innovation str- egy and a firm's performance exist and which critical conditions need to be considered for this relationship? Nanja identifies and answers these practically as well as scientifically highly relevant and interesting research questions. The research was conducted in a highly competent manner. Particularly worth emphasizing is the coherent deduction of the conceptual framework as well as the hypotheses, considering prior empirical evidence in a very comprehensive manner. The good conceptual part is even - ceeded by the sophisticated empirical study. Impressively, Nanja proves her methodological competence and diligence when analyzing her data. The presented results are very interesting and, to a large extend, support the formulated hypotheses. Moreover, the present study states meani- ful suggestions for future research in innovation management. For m- agement practice in particular, Nanja's research provides interesting - vice on how to improve firms' innovation management.

Inhalt
Literature Review.- Research Hypotheses.- Empirical Study.- Discussion & Implications.