The contradictory roles of ambiguity for innovation in an industry: how beneficial are standardisation and classification?

Mooweon Rhee, Jin Suk Park, Taeyoung Yoo

Research output: Contribution to journalArticle

Abstract

Studies on the influence of ambiguity on innovation show inconsistent understandings: it could be beneficial owing to flexibility, while it might be detrimental owing to distraction of information. Faced with the contradictory understandings, this study examines whether technological standardisation and industry classification could increase innovations of an industry. Using ISO9001 and the SIC codes in Korea from 1998 to 2010, the empirical tests illustrate inverted U-shaped relationships between industry-level innovation and standardisation/classification. Therefore, it is suggested that a moderate degree of standardisation and classification provides a positive infrastructure for innovation by providing the necessary guidelines for a firm's behaviour as well as maintaining its flexibility.

Original languageEnglish
Pages (from-to)1114-1128
Number of pages15
JournalTechnology Analysis and Strategic Management
Volume27
Issue number9
DOIs
Publication statusPublished - 2015 Oct 21

All Science Journal Classification (ASJC) codes

  • Strategy and Management
  • Management Science and Operations Research

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