Conceptualizing organizational innovation: The case of the Brazilian software industry

This paper presents and tests a conceptual model that explains the innovation practices and innovation outcomes in Brazilian software firms. In terms of internal and external innovation capabilities, the ability to manage the relationship between people and their organizational contexts plays an important role in organizational innovation. Based on these results, we propose that the disparities between software firms in building organizational innovation can be attributed, in part, to differences in their internal capabilities. The paper aims at encouraging and supporting managers to develop internal capabilities as a means of effectively leveraging the internally and externally distributed knowledge essential to innovation development.