| This dissertation empirically validates a typology of innovations by examining the differential effects of organizational structure and environmental perceptions on the types of innovations adopted in an organization. Four types of innovations are depicted in the typology--incremental, product, process, and radical innovations. Incremental innovations are minor changes in product/service offerings and or technological processes. Product innovations include new products or services offered to the consumer. Process innovations entail new elements in the physical production, service operations, or technologies of an industry. Radical innovations require both major product and process advancements. Organizational structure was captured via five research constructs--centralization, formalization, complexity, size, and integration. Managerial perceptions of the environment were tapped by three research constructs--dynamism, hostility, and complexity.; A developmental (typology) survey administered to managers in the retail banking industry revealed the four representative innovations for the typology--incremental innovation (outsourcing), product innovation (investment and mutual fund services), process innovation (optical imaging), and radical innovation (personal computer banking). An operational (national) survey mailed to retail banks randomly selected from the Polk Financial Directory (1994) provided evidence as to extensiveness of adoption of the four types of innovations, organizational structure, and environmental perceptions.; The results indicate that less formalized and smaller organizations were more likely to adopt incremental innovations. In contrast, lower levels of centralization, higher complexity, integration, and environmental complexity, and larger size were associated with product innovation adopters. Process innovations were more likely to be adopted by organizations with lower levels of centralization but higher levels of formalization. Lower levels of centralization, higher levels of integration and environmental complexity, and larger size were associated with the adoption of radical innovations.; In addition, product oriented organizations were more likely to adopt product innovations, while process oriented organizations were more likely to adopt process innovations. No conclusive evidence was found linking environmental dynamism or hostility and adoption of the innovation typology. However, the results warrant a more diverse and comprehensive approach to the study of innovation adoption. The prescribed diverse theoretical perspective acknowledges influences that the type of innovation may have on the adoption process. |
