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The research performs a complete analysis of the differences between services and products based on factors associated with the innovation process. The research analyses the factors/dimensions and their repercussions that determine firms' capacity to adapt to their environment and observes how the critical dimensions of the innovation process influence the gap generated by the difference in the firm's current level of innovation and the level developed by the competition. The results show that the client's participation in the process of innovation is greater in service firms that possess a larger innovation gap and are more proactive. The opposite is the case for formalization and decentralization, which occur in lower levels in this kind of firm. Further, decentralization and formalization are lower in service than in manufacturing firms. [ABSTRACT FROM AUTHOR]

Technology is crucial for organizations in the knowledge society, but little empirical research has been conducted on technology absorptive capacity and technology proactivity. Based on existing theoretical studies, this article formulates a global model to analyse how technology absorptive capacity and technology proactivity influence organizational learning and organizational innovation, and how these dynamics capabilities affect organizational performance. The model also shows how organizational learning affects organizational innovation. The hypotheses are tested using data from 246 Spanish technological firms. The paper discusses the findings and provides several implications for future research. The findings are important for management practice, especially for firms where technology is the main strategic element. [ABSTRACT FROM AUTHOR]