Antecedents and Consequences of Firms' Process Innovation Capability: A Literature Review and a Conceptual Framework

• Published in: IEEE transactions on engineering management Vol. 59; no. 4; pp. 519 - 529
• Main Authors: Frishammar, J., Kurkkio, M., Abrahamsson, L., Lichtenthaler, U.
• Format: Journal Article
• Language: English
• Published: New York IEEE 01-11-2012; The Institute of Electrical and Electronics Engineers, Inc. (IEEE)
• Subjects: Accounting and Control; Capabilities; Core competencies; Engineering management; Entrepreneurship and Innovation; Entreprenörskap och innovation; Fragmentation; Gain; Industrial Work Environment; Industriell produktionsmiljö; Innovation management; Innovations; Knowledge management; literature review; Literature reviews; Management; Manufacturing; Process controls; process development; process innovation; Process planning; process technologies; Product development; Production; production technologies; Redovisning och styrning; Studies; Technological innovation
• ISSN: 0018-9391; 1558-0040; 1558-0040
• DOI: 10.1109/TEM.2012.2187660

Process innovation can allow both efficiency and effectiveness gains and is a key source of long-term competitive advantage in manufacturing firms. However, the literature on managing process innovation is broad and fragmented, and it has not yet been systematically reviewed in the scholarly literature. Drawing on a capability-based perspective, the aim of this paper is to provide a systematic review of the process innovation literature. We synthesize our findings into a conceptual framework displaying the antecedents and consequences of firms' process innovation capability. First, a parsimonious review of the process innovation literature is conducted. Second, a conceptual framework of firms' process innovation capability is developed to synthesize the literature and to advance knowledge about managing process innovation. A principal distinction between a firm's potential and realized process innovation capability is drawn, and it is argued that high-quality realization mechanisms are critical for achieving desired process innovation outcomes. Finally, implications for theory, management practice, and recommendations for future research are provided.