How Formalization Hinders Different Firm Innovativeness Types: Opening the Black Box with Evidence from a Service Industry

The purpose of this paper is to analyze the effects of organizational formalization on the behavioral, market, product, and process types of firm innovativeness as well as the interplay between these different innovativeness types. Based on data collected through a survey of the financial services industry in Turkey, the analyses show that formalization directly hinders both behavioral and market innovativeness. Moreover, as behavioral...