Two very different models of product innovation are postulated and tested. The conservative model assumes that ininovation is performed reluctantly-, mainly in responise to serious challenges. It therefore predicts that innovation will co rrelate positively with environmental, injformation processing, structlural and decision nmaking variables that represent, or help to recognize antd cope with these challenges. In conitrast, the entrepreneurial modlel supposes that innovation is alwavys aggressively plursued and will be very high unless decision makers are warned to slow down. Thus negative correlations are predicted between innovation and the variables that cant provide such warning. Correlationial and curvilinear regression analyses revealed that each mi1odel wvas suppor ted by conservative and entrepreneurial sub-samples, respectively, in a diverse sanmple of 52 Canadian firms.


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