Stéphane Lhuillery

Abstract: 

Scholars and managers acknowledge the fact that resource scarcity and slack both foster innovation, but rarely in combination. Integrating both dimensions, we contend that the relationship between resources and innovation is an M-Shaped curve. Using a survey specifically designed to collect data on medical organization professionals, we propose a bivariate probit model to estimate the relationship between scarcity and slack resources on innovations made by users on and around CT scanners. We identify an S-shaped relationship that is the main part, at the right, of the expected M-shaped curve. This result suggests the co-existence of two efficient ways for users to search for innovation: scarcity-based and slack-based. Our result holds for technology user innovation (CT hardware and software) but not for other user innovations around CT imaging devices.