Re-innovation: The construct, measurement, and validation

Abstract There has been substantial research in the area of innovation, which is widely regarded as a powerful weapon to create competitive advantage. One important reason of the substantial research in innovation is the presence of valid and reliable measures of key innovation characteristics, such as radical, incremental, or disruptiveness innovation. Re-innovation, an extension of innovation, is renowned for its potential in creating competitive advantage with reduced cost and time implications. Unfortunately, very little research in re-innovation has been conducted, possibly because to date it still lacks a psychometrically valid measure. There is also a lack of research on convergent and discriminant validities of the re-innovation construct, resulting in the impossibility to discriminate re-innovation characteristics from radical or incremental innovation characteristics. The purpose of this paper is to develop a valid and reliable scale for measuring the construct of re-innovation. To test its reliability and discriminant and convergent validities, we used data collected from 294 general managers of SBUs in 89 electronics-related companies in Taiwan and performed a series of analyses. The reliability measures, exploratory factor analyses, confirmatory factor analyses, and convergent and discriminant validity tests strongly support our scale. In addition, nomological validity is demonstrated. Hence, this study distinguishes the re-innovation from radical and incremental innovation constructs. Finally, discussion, limitations, and future research are presented.

[1]  R. MacCallum,et al.  Power analysis and determination of sample size for covariance structure modeling. , 1996 .

[2]  James C. Anderson,et al.  STRUCTURAL EQUATION MODELING IN PRACTICE: A REVIEW AND RECOMMENDED TWO-STEP APPROACH , 1988 .

[3]  Chien-Tzu Tsai,et al.  A stage approach for industrial technology development and implementation - the case of Taiwan's computer industry , 1999 .

[4]  Mark E. Parry,et al.  What separates Japanese new product winners from losers , 1996 .

[5]  Richard P. Bagozzi,et al.  Assessing Construct Validity in Organizational Research , 1991 .

[6]  Gilbert A. Churchill A Paradigm for Developing Better Measures of Marketing Constructs , 1979 .

[7]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[8]  J. Lemmink,et al.  High‐Technology Service Innovation Success: A Decision‐Making Perspective , 2004 .

[9]  J. Paul Peter,et al.  Construct Validity: A Review of Basic Issues and Marketing Practices , 1981 .

[10]  A. Kleinknecht,et al.  Success and Failure of Innovation: A Literature Review , 2003 .

[11]  Zeki Simsek,et al.  A Primer on Internet Organizational Surveys , 2001 .

[12]  R. Bagozzi,et al.  On the evaluation of structural equation models , 1988 .

[13]  Rosanna Garcia,et al.  A critical look at technological innovation typology and innovativeness terminology: a literature review , 2002 .

[14]  Richard DeMartino,et al.  Organizing for Radical Innovation: An Exploratory Study of the Structural Aspects of RI Management Systems in Large Established Firms, Journal of Product , 2006 .

[15]  Karl G. Jöreskog,et al.  LISREL 7: A guide to the program and applications , 1988 .

[16]  Colin C. J. Cheng,et al.  Preconditions for Product Re-innovation in Taiwan: Evidence from High-Technology Firms , 2008 .

[17]  J. Stanton AN EMPIRICAL ASSESSMENT OF DATA COLLECTION USING THE INTERNET , 1998 .

[18]  J. Hair Multivariate data analysis , 1972 .

[19]  V. Govindarajan,et al.  Disruptiveness of innovations: measurement and an assessment of reliability and validity , 2006 .

[20]  The Competitive Advantage of Taiwan , 1994 .

[21]  J. S. Long,et al.  Testing Structural Equation Models , 1993 .

[22]  Mark W. Johnston,et al.  Analysis of role conflict and role ambiguity in a structural equations framework , 1990 .

[23]  Gilbert A. Churchill,et al.  Marketing Research: Methodological Foundations , 1976 .

[24]  R. Cooper,et al.  Success factors in product innovation , 1987 .

[25]  Philip E. T. Lewis,et al.  Research Methods for Business Students , 2006 .

[26]  M. Montoya-Weiss,et al.  Critical development activities for really new versus incremental products , 1998 .

[27]  Wendy K. Smith,et al.  A Structural Approach to Assessing Innovation: Construct Development of Innovation Locus, Type, and Characteristics , 2002, Manag. Sci..

[28]  Paul Gardiner,et al.  The strategic management of re‐innovation , 1989 .

[29]  Jennifer Whyte,et al.  Innovation and users: virtual reality in the construction sector , 2003 .

[30]  T. Mudrak,et al.  Innovation process and innovativeness of facility management organizations , 2005 .

[31]  R. Rothwell,et al.  Re‐innovation and robust designs: Producer and user benefits , 1988 .

[32]  R. Rothwell,et al.  Invention, innovation, re-innovation and the role of the user: A case study of British hovercraft development , 1985 .

[33]  T. R. Madanmohan INCREMENTAL TECHNICAL INNOVATIONS AND THEIR DETERMINANTS , 2005 .