Product and Process Flexibility in an Innovative Environment

摘要: This article studies several attributes of a firm's long-run decisions about organizational structure, that affect the short-run innovative activity. We focus on flexibility, which lowers future costs implementing innovations, and research capabilities, improve opportunities for innovation. consider two dimentsions innovation: demand-enhancing (product) cost-reducing (process). These types innovation are complementary in terms increasing net revenue short run. The complementarities between decision variables then lead to its product process flexibility capabilities.