ORGANISATIONAL CHANGE IN THE INNOVATING FIRM: SIZE, R&D AND SECTOR EFFECTS

Electronic version of an article published as International Journal of Innovation Management, Volume 24, Issue 5, Year 2020, Pages 2050044, https://doi.org/10.1142/S1363919620500449 © copyright World Scientific Publishing CompanyThis study investigates whether organisational innovation has positive impacts on small and medium enterprises, using three waves of the South Korean innovation survey. While correcting for endogeneity, we find that the probability of achieving a process or product innovation conditional on organisational innovation increases in a linear fashion from small to large firms. Moreover, the effects of organisational innovation are more pronounced for process innovation relative to product innovation. We show that R&D performers who implement an organisational innovation have a greater probability of introducing a new product or process. We also show that larger R&D performing firms benefit more from organisational innovation than smaller firms. Finally, we find evidence that high-tech industries benefit more from organisational innovation, in accordance with one of our hypotheses.The authors would like to acknowledge the Science and Technology Policy Institute (STEPI) in Korea for access to the data. Bonwoo Koo also thanks the Korea Foundation Fellowship for financial support. Brian Cozzarin thanks Social Sciences and Humanities Research Council Insight Grant 435-2014-2061 for financial support