Key drivers for enhancing innovation performance of innovation networks

Abstract

This research article provides empirical insights on the key drivers for successful internal and external innovation network management. The hypotheses are tested empirically using survey data collected from stock-listed companies in Germany, Switzerland and Austria. The data include the complete responses from 141 R&D managers for the period from 2004 to 2008. Our results show that cross-functional teamwork in R&D projects has been increasingly implemented as part of the internal network strategy. Interestingly, we found no significant effect of intensive cross-functional employee cooperation on the firms' innovation performance. According to our result, key driver for internal innovation network management is a fault-tolerant innovation culture, as it is positively related to product innovation performance. Regarding external innovation network management, the use of Web 2.0 and social networking technologies is a key driver for high product innovation performance. In addition, the results reveal the endurance of external innovation networks as a key driver for the existence of radical innovations. Innovation networks that are older than five years have a substantial positive influence on product innovation performance and on the existence of radical innovations.