Template-type: ReDIF-Paper 1.0 Author-Name: Lokshin, Boris Author-Email: lokshin@merit.unu.edu Author-Workplace-Name: UNU-MERIT and Maastricht University Author-Name: Gils, Anita van Author-Email: A.vanGils@os.unimaas.nl Author-Workplace-Name: Maastricht University Author-Name: Bauer, Eva Author-Email: eva.bauer@bbdo-consulting.com Author-Workplace-Name: BBDO Consulting Title: Crafting Firm Competencies to Improve Innovative Performance. Abstract: Recent interdisciplinary research suggests that customer and technological competencies have a direct, unconditional effect on firms' innovative performance. This study extends this stream of literature by considering the effect of organizational competencies. Results from a survey-research executed in the fast moving consumer goods industry suggest that firms that craft organizational competencies - such as improving team cohesiveness and providing slack time to foster creativity - do not directly improve their innovative performance. However, those firms that successfully combine customer, technological and organizational competencies will create more innovations that are new to the market. Classification-JEL: O31, O32, L68, M11, M12 Keywords: Innovation, Research and Development, Consumer Goods, Product Innovation, Production Management, Personnel Management, Capability Building Series: UNU-MERIT Working Papers Creation-Date: 2008 Number: 009 File-URL: http://www.merit.unu.edu/publications/wppdf/2008/wp2008-009.pdf File-Format: application/pdf File-Size: 275 Kb Handle: RePEc:unm:unumer:2008009