This paper analyzes two modes of innovation that differ in their scope of newness - innovation generation and adoption. Building a theoretical model based on the Entrepreneurial Orientation literature and utilizing a unique sample of innovating firms, we find that 54% adopt innovations of other firms, 7% generate innovations internally whereas 39% combine the two. We also find that proactivity and risk taking influence the number of innovations generated and the extent to which firms favor generation over adoption and that environmental dynamism moderates one of these relationships. These findings add to the innovation and Entrepreneurial Orientation literatures.
- Environmental dynamism
- Generation and adoption of innovation
- Risk taking
ASJC Scopus subject areas
- Business and International Management
- Management of Technology and Innovation