Embracing Product Innovativeness in Technology Firms: The Impact of Management Model Principles

A company’s management model reflects its managers’ choices, decisions, systems, procedures, people, and organizational structure (D'Amato, 2015). Companies nowadays are often faced with transforming their management models to cope with discontinuous change in the current hyper-competitive business landscape. Under turbulent conditions, organizations develop skills, structures, and principles that enable them to build an innovative organizational climate and thus achieve competitiveness (Cooper & Kleinschmidt, 2000). Our focus in this paper is to reveal the impact of management models on product innovativeness. We will do this by trying to discover how specific principles in a company’s management model affect product innovativeness. The study targets technology-oriented firms strongly relying upon innovativeness to stay competitive. As far as we know, although certain principles in company management models have been central to recent discussion in literature, their impact on innovativeness has not been empirically studied from a management model perspective. This study offers a discussion of management models and their principles that addresses this gap, and attempts to extend the relevant theoretical debate by examining impact on product innovativeness. From a practical perspective, we suggest a guideline for tech-oriented companies to raise their awareness by highlighting various principles that foster product innovativeness.