Pilar Vargas

Sources of Information as Determinants of Product and Process Innovation.

In this paper we use a panel of manufacturing firms in Spain to examine the extent to which they use internal and external sources of information (customers, suppliers, competitors, consultants and universities) to generate product and process innovation. Our results show that, although internal sources are influential, external sources of information are key to achieve innovation performance. These results are in line with the open innovation literature because they show that firms that are opening up their innovation process and that use different information sources have a greater capacity to generate innovations. We also find that the importance of external sources of information varies depending on the type of innovation (product or process) considered. To generate process innovation, firms mainly rely on suppliers while, to generate product innovation, the main contribution is from customers. The potential simultaneity between product and process innovation is also taken into consideration. We find that the generation of both types of innovation is not independent.

Firm Boundaries, Information Processing Capacity, and Performance in Manufacturing Firms

Abstract We analyze the alignment between information processing needs and capacities. First, we explore the relationship between firms’ vertical and horizontal boundaries and information technology (IT) capabilities. The literature postulates that less internalization leads firms to invest more in information technology. However, we argue that the use of taper integration and diversification increases the demand for IT-based resources such as IT infrastructure and IT human resources. Second, we propose that the fit between information processing needs and capacity has a positive effect on performance. Our hypotheses are tested on a panel of Spanish manufacturing firms, and the results provide general support for our arguments. One advantage of the data is that they include not only large firms but also small and medium-size manufacturers. From a theoretical perspective, the study contributes to the literature by providing novel insights on how decisions on the vertical dimension condition investments in IT capabilities. It also adds new evidence on the diversification–IT capabilities relationship and studies the consequences of alignment of corporate strategies and IT capabilities on firm performance. From a managerial perspective, our study suggests that changes in the vertical and horizontal limits should be followed by changes in IT capabilities to improve performance.

Does Information Technology Improve Open Innovation Performance? An Examination of Manufacturers in Spain

Our objective in this paper is to explore the impact of information technology (IT) on the performance of open innovation models. We study the effect of IT on the production of patents and product innovations. Our analysis of a large panel of Spanish manufacturing firms confirms that the effect of the proportion of external research and development (R&D) investments on the production of patents and new products has an inverted U-shape. The results also reveal that investments in IT positively moderate the consequences of open innovation on innovation performance by reducing identification, assimilation, and utilization costs. Our results provide evidence of the viability and benefit of a new strategic alternative to innovation that is different than the traditional process of vertically integrated R&D. The online appendix is available at https://doi.org/10.1287/isre.2017.0705.

Exploration, exploitation and innovation performance: disentangling the evolution of industry

Abstract The evolution of industry has recently attracted the attention of scholars studying the relationships between exploration and exploitation strategies and innovation performance. Surprisingly, although extant research has already acknowledged its multidimensional character, it has only been analyzed in an aggregate fashion. In this paper, we distinguish two components of the evolution of industry, the pace of market evolution and the pace of technology evolution, and we elaborate on their different impacts in the context of exploration and exploitation strategies. More precisely, we argue that while a rapid pace of technology evolution has opposite impacts on the relationships between exploration (positive), exploitation (negative) and innovation performance, a rapid pace of market evolution positively affects both exploration and exploitation. Our findings provide substantial support for our prediction using a large panel of Spanish innovating firms for the period 2008–2012.