| dc.description.abstract | This thesis investigates how a firm’s innovation activities affect performance outcomes during
recessions. The thesis uses a heteroskedasticity-robust multiple regression model to analyse a
large sample of Norwegian firms with innovation data from 2006-2010 and performance data
from 2008-2012. Innovation activities both prior to and during the recession and its
performance effects were investigated, and provided very surprising results. Contrary to the
positive innovation-performance link suggested by existing literature, the results show that
innovators consistently underperform non-innovators on profitability measures. The more a
firm innovates prior to or during the recession, the greater the underperformance compared to
non-innovators. Type of innovation was also found to affect firm performance, though largely
exhibiting the same negative performance link. This thesis also includes an attempt to explain
this negative innovation-performance link using existing innovation and business cycle theory.
In conclusion, this thesis provides an important limitation to the seeming societal and
academic perception that innovation is always positive, and provides fertile ground for future
research in the fields of strategy, business cycles, and innovation. | nb_NO |
