Dynamic Capabilities and Drivers of Innovation : A Meta-Analytical Review

Innovation is a complex process that requires not only investment, but also effective management of firm resources. Leveraging the dynamic capability perspective, we identify and meta-analyze a wide range of managerial levers which aim to facilitate innovation and are dynamic capabilities and study several contingency factors. Based on 324,118 companies, our study makes several key contributions. First, our study explores the relative effects of a broad set of managerial levers and identifies which are most important for driving innovation. We also provide stronger theoretical explanations for which managerial levers will be most effective for driving innovation. Second, our study contributes to resolving past inconsistent results by operationalizing dynamic capabilities driving innovation as specific managerial levers and testing the moderating role of organizational, industrial, and institutional contingencies. Third, our findings contribute to the international business literature by confirming the moderating effect of regulative and normative institutions on the dynamic capabilities-innovation relationship