The development of market efficient technological innovation: A 'holistic' study from multiple perspectives

The primary objectives of this dissertation correspond to the three lenses through which technological innovation development is examined: (1) the scholarly stream of research on innovation, (2) internal and (3) external product development. The focus of this dissertation is on the contribution of both internal and external new product innovation development to firm performance and market value. The three studies in this research provide innovation researchers with a theory-driven meta-analysis of the innovation literature; offer to practitioners an exhaustive list of factors important both for the internal and external development of technological innovation; and finally, advance the methodological stature with which determinants of innovation success are examined.; Study #1. To serve as a theoretical foundation for the subsequent studies in the thesis, the first lens scrutinizes 'new product innovation' by conducting a meta-analysis on marketing, management and engineering studies that have examined empirically the relationships of innovation with its antecedents and outcomes. This first study provides researchers with objective empirical generalizations, as well as investigates sources of inconsistencies in the literature. Substantive or methodological notions that vary across studies are tested to determine whether they moderate the relationships identified (i.e., moderate the effect sizes).; Study #2. In the new product literature, resources, capabilities and strategic orientations have been directly linked to positional advantages and performance outcomes. However, the implementation of these orientations and process activities has generally been neglected in new product development models. The key to innovation success is acknowledged to be the match between what is needed and what can be developed internally. In light of the findings from the meta-analysis, the second lens focuses on internal development of technological innovation at the project level and provides an operationalization of this match. Due to the complexity of the proposed model, hypotheses are explored through partial least squares analysis (PLS). This analysis also provides practitioners with a comprehensive list of internal, environmental and supply-chain related factors important for successful development.; Study #3. The third lens concerns external innovation: through technology outsourcing, firms develop capabilities and flexibilities they lack or have lost due to technological discontinuities and globalization. Despite its importance, little attention has been paid to empirically validating risks and benefits of strategic outsourcing relationships in the context of modular systems and global technology intensive markets. Event study analysis of abnormal stock returns was used to examine the value of external innovation development through technology outsourcing.; Contributions. This dissertation constitutes a comprehensive study on the outcomes of technological innovation, providing implications from three lenses: the extant research, internal and external development. The three studies employ three types of data (i.e., the literature, primary and secondary data) and use multiple methodologies (i.e., meta-analysis, PLS and event study). Thus, this research offers cumulative insights from the innovation literature, empirically investigate models of the 'values' of both internal and external innovation, and uses diverse analysis techniques in a comprehensive investigation of the determinants of new product innovation success.