When New Product Development Is Not Enough For Sustained Performance  : An Empirical Validation Of “The Continuous Innovation Stool”

Hyland and Boer (2006) introduce the “continuous innovation stool”, describing continuous innovation in terms of operational, innovation and strategic capabilities. They hypothesize that the better a firm aligns, coordinates and/or integrates the functions responsible for these areas, the higher and more sustainable the firm will perform. The purpose of this paper is to test the stool model, using data obtained from the Chief Operating Officers and the Chief Technology Officers from 189 firms in eight countries. The analyses show that firms that excel at innovation management, are also more likely to be good at managing operations and strategic choices. Also, and more important, the higher the firm’s capabilities on these three domains, the better their business performance, which is a first confirmation of the “continuous innovation stool”.