A.A. (Agnieszka) Genc MSc

Since the 1990s, groundbreaking technologies like the Internet, cell phones, and self-driving cars have transformed society, with shifts in demographics, urbanization, and the COVID-19 pandemic intensifying market volatility. In this changing landscape, established organizations are pressured to be agile, responsive, and innovative. This dissertation consists of three studies investigating the non-technological drivers of firm innovation and the impact of ownership on innovative strategies. The first study reveals that dynamic capabilities facilitate management innovations, leading to enhanced exploratory and exploitative product innovations, and thereby improving firm performance. It highlights the crucial role of management innovation in sustaining competitive advantage. The second study indicates that incumbents that strategically innovate their business models can drive significant industry transformations, suggesting the importance of reevaluating core strategies and value propositions for maintaining a competitive edge. It also notes the importance of considering stakeholder expectations in disruptive innovation efforts. The third study examines data from 5,645 companies spanning from 2007 to 2019 and discovers that the type of ownership influences research and development (R&D) and patent investments after underperformance. Specifically, it finds that passive index funds tend to be more conservative in their investments, while active investors are likely to enhance innovation efforts, in alignment with the Behavioral Theory of the Firm's predictions. This research underscores the significance of ownership in innovation decisions, providing insights into fostering innovation within firms.