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The purpose of this study is to investigate the performance effects of pure innovation strategies (creative and imitative) versus the combination of the two innovation strategies (combination innovation strategy) and to determine whether implementing the combination innovation strategy produces an incremental performance benefit over the pure innovation strategies.

We used archival data from the Korea Innovation Survey (KIS) completed by a large sample of South Korea manufacturing firms and some financial data provided by the South Korea Science and Technology Policy Institute (STEPI). We used hierarchical multiple regression analysis to analyze the data from 486 firms.

The findings indicated that firms implementing any of the three innovation strategies of creative innovation, imitative innovation and combination innovation outperforms noninnovators. Results also show that while firms implementing the combination innovation strategy perform better than those implementing imitative innovation strategies, they do not significantly differ in performance from firms implementing the creative innovation strategy. Moreover, we find no performance difference between creative innovation and imitative innovation strategies.

The study highlights the importance of combination innovation strategies for manufacturing firms that rely on imitative innovation strategies to gain competitive advantage in the market. However, it demonstrates that firms that are successful in using creative innovation strategies must use their resources in exploiting that advantage.

Although extant studies have demonstrated the importance of both creative innovation and imitative innovation strategies in enhancing performance, it is not clear whether implementing both strategies at the same time has incremental value for firms. This study focusses on empirically examining the performance implications of creative innovation and imitative innovation strategies, and whether the pursuit of a combination innovation strategy (simultaneous pursuit of both innovation strategies) provides any incremental benefit is unique.

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

How firms perform with new product launches significantly depends on the strategic approach adopted. Both innovation and imitation offer specific benefits but have risks attached too. By adopting a combination innovation strategy, it is possible for organizations to exploit the advantages of each approach and also minimize any negative impact from these risks.

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.