Risk, proactivity and uncertainties as determinants of the decision to imitate or to innovate. (17th December 2007) - Perez-Luno, Ana
This paper empirically tests the impact of uncertainties, proactivity and risk taking on the decision to innovate or to imitate and on an objective and a subjective measure of the company's performance. Based on a survey of 399 companies, and using the company's size and age as control variables, our empirical results support the view that proactivity is the most important determinant of the decision of whether to innovate or imitate. Also, we find that the company's performance is not conditioned by the decision of innovating or imitating, but is rather determined by the company's size, proactivity and risk taking.