The influence of material resources on innovation project outcomes

This study focuses on the relationship between material resources and innovation project performance. The literature predominantly attests material resources to have a wholesale positive effect on innovation. However, empirical studies on this topic yielded contradictory results. We propose that the ambiguity observed in the material resources - innovation project performance relationship results from a lack of detail in the measurement of innovation project outcomes and the operationalization of material resources. To empirically investigate our hypotheses, we use data from 121 innovation projects in the electronics industry. Results support our arguments, revealing both positive and negative relationships, depending on the different measurements of resource constraints (perceived resource adequacy versus comparative resources) and innovation project performance (product quality versus product innovativeness).