The Impact of Dynamic Capabilities through Continuous Improvement on Innovation: the Role of Business Process Orientation

Although there is much emphasis on the importance of continuous improvement as a dynamic capability and business process orientation, little attention has been paid to their interactions and joint effects on a firm's innovation performance. In this paper, we empirically explore the interaction effect of continuous improvement as a dynamic capability and business process orientation on time-to-market speed. By employing a unique and hand-collected dataset of Austrianmanufacturing companies, it is shown that firms increase their innovation performance when they implement both-a process-oriented organizational design and continuous improvement methodologies. Copyright (C) 2013 John Wiley & Sons, Ltd.