Organizational Size and Innovation

Abstract

This paper offers a meta-analytic review of the relationship between organiza tional size and innovation. Using 36 correlations derived from 20 published studies, the review finds a positive relationship between size and innovation. In addition, an examination of the effects of several moderating factors indicates that: (1) size is more positively related to innovation in manufacturing and profit- making organizations than in service and non-profit-making organizations; (2) the association between size and innovation is stronger when a non-personnel or a log transformation measure of size is used, than when a personnel or a raw measure of size is used; (3) types of innovation do not have a considerable moderating effect on the relationship between size and innovation; and (4) size is more strongly related to the implementation than to the initiation of innovations in organizations. The implications of the findings for theory development and future research are discussed.