On the joint effect of technological and management innovations on performance: increasing or diminishing returns?

Most studies on innovation are aimed at covering technological innovation, neglecting other modes of innovation based on non-technological drivers. The latter, referred to as <italic>management innovation</italic>, consists of the implementation of new management practices, processes or organisational tasks. This work advances knowledge on the topic by exploring the joint effect of simultaneously introducing technological and management innovations on performance. Based on an analysis of 12,563 Spanish firms drawn from CIS data, our findings suggest that firms frequently pursue the simultaneous or joint introduction of both technological and management innovations and that integration impacts positively on a firm’s performance, evidencing an inverted U-shape that suggest positive but diminishing returns. A theoretical framework using the capability-based view embraces the emerging conversation on management innovation issues and its relationship with the well-researched technological one. [ABSTRACT FROM AUTHOR]