An empirical test of environmental, organizational, and process factors affecting incremental and radical innovation

Abstract

This study examines the influence of environmental, organizational, process, and managerial characteristics on incremental and radical innovation across three industries (aerospace, electronic components, and telecommunications). Results show that different mixes of environmental and organizational variables were significant predictors of incremental and radical innovation. Factors that favor incremental innovation include environmental dynamism, age and size of the firm (although not in the expected direction), intrafirm structural linkages, and the age of the CEO. Factors that favor radical innovation include environmental dynamism, intrafirm linkages, experimentation, and transitioning or sequencing from one project or product to another.