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 env ironmental uncertainty directly predict expensive, radical but not low -cost, incremental innovation. Specialization predicts both. Decentral ization of logistics process innovation adoption decision-making predi cts low-cost, incremental innovation but not expensive, radical innova tion, whereas decentralization of manufacturing operations does not pr edict logistics process innovation. Finally, although integration does not predict low-cost, incremental innovation, it inversely predicts h igh-cost, radical innovation.