The role of context and structure in radical and incremental logistics innovation adoption

An analysis of manufacturers was undertaken to examine the adoption of logistics process innovation. A typology of innovation was created on innovation cost and radicalness. The results reveal that size and environmental uncertainty directly predict expensive, radical but not low-cost, incremental innovation. Specialization predicts both. Decentralization of logistics process innovation adoption decision-making predicts low-cost, incremental innovation but not expensive, radical innovation, whereas decentralization of manufacturing operations does not predict logistics process innovation. Finally, although integration does not predict low-cost, incremental innovation, it inversely predicts high-cost, radical innovation.