Business Innovation Activities Research Articles

THE RELATIONSHIP BETWEEN INNOVATION ACTIVITIES AND PROFITABILITY OF BIST MANUFACTURING COMPANIES

This study's purpose is to analyze the connection between innovation activites and profitability of companies trading in the manufacturing industry on the Istanbul Stock Exchange. For this purpose, data from independently audited financial and income statements of 45 manufacturing companies with R&D expenditures during 2008-2021 are analyzed using the panel data. According to the examination's findings, there is an important and advantageous connection between business innovation activities and firm profitability. To conclude, the results of research examining the connection between innovation activity and profitability have both micro and macro implications. On a micro level, the solution assists firms in gaining a competitive advantage by ensuring that existing production systems operate effectively and increasing their share. At the macro level, they improve the welfare of society and help promote long-term economic growth and the accumulation of knowledge, especially the effective and cost-effective utilization of national resources.

Financial Stability and Innovation: Interconnection and Development Prospects

The development of the modern sphere of technologies ensures active implementation of various types of innovations in the activities of modern companies. If innovations are rationally planned, they can have a positive impact on the financial stability of business and the economy as a whole. At the same time, Ukrainian innovation activity has a huge unrealised potential, which can be realised under more favourable external conditions and high-quality planning of the specifics of innovation implementation. The purpose of the study is to summarise approaches to determining the relationship between innovation and financial stability of modern business. In order to achieve this goal, it is necessary to solve a number of urgent tasks, in particular: to determine the scale of innovation activity of modern business in the world and in Ukraine; to outline the key tasks that can be solved by innovative tools if they are implemented in business activities; to specify the directions of ensuring financial stability through the introduction of innovations. The research was based on an in-depth review of more than 50 scientific sources, including articles indexed in leading scientometric databases. The study found that the global innovation market is at the stage of active development, while Ukrainian enterprises are not currently realising their full innovation potential due to unfavourable environmental conditions. The study also identifies the tasks that can be solved by innovative tools, provided they are implemented in business activities. It is determined that the application of digital marketing tools and the use of social networks to promote products allow expanding the audience, which can have a positive impact on the development of the financial stability system. Working with data, planning, and processing data using the latest technologies can also have a positive impact on financial stability. A separate link is the optimisation of business processes (financial, production, procurement, etc.) using the latest information management tools (artificial intelligence, big data, cloud technologies), which can improve the information component of financial stability.

Innovation Activity and Social Responsibility of Big Business: The Role of Political Connections

The presented article is devoted to identifying the role of political connec-tions of big business in the process of implementing innovation activity and social responsibility. It is shown that political connections and innovation activity can be both substitutes and complements depending on the institutional environment in which interaction between economic and political actors occurs. Investments in political connections can facilitate innovations that to help firms to overcome non-market barriers. The negative consequences of its using are determined with the lack of motivation, organizational inertia, government control and agency prob-lem. It is noted that political connections reduce the amount of resources allocated to R&D but they increase the effectiveness of the protection of intellectual property rights. This means that political connections bring support and valuable know-ledge about public policy to the firms reducing information asymmetry. It is shown that the flip side of using political connections is social responsibility. It is used by big business to legitimize its activities in the eyes of society. The more a company uses political connections, the more likely it is to provide a higher level of social responsibility reporting. Large Russian companies are actively involved in the im-plementation of social responsibility in the territories where they operate. The key factor ensuring the functioning of large business on domestic markets is social re-sponsibility, while accumulated political connections allow it to enter global mar-kets with the support of the state.

Public-private partnership as a tool to foster business innovation activities in the digital technologies field

The unprecedented sanctions imposed against Russia included restrictions on the supply of high-tech products and services have updated issues of ensuring the technological independence of Russia in the digital technologies field by increasing private sector involvement in innovation processes and relying on our own developments. Cooperation between the public and private sectors within the framework of public-private partnership (PPP) can become an effective tool for achieving this goal. The article analyses United States experience in use of PPPs in the digital technologies field as well as Russian practice of using this mechanism to foster business innovation activities. Analyzing specific PPP mechanisms (models), the author identifies their key features, which determine the possibilities of their application in the development and implementation of government-business cooperation projects in the digital technologies field. It is concluded that, unlike the United States, the leading country in digital development, PPP models are not used enough in Russia, which is explained, among other things, by the presence of administrative and legal barriers as well as problems with goal-setting.

MANAGING CORPORATE INNOVATION IN RESPONSE TO LEGITIMACY PRESSURE: A MULTI-CASE STUDY OF HIGH-TECH FIRMS

Background: A key strategy for achieving environmentally friendly development is green innovation. The majority of studies on the factors that influence business innovation activities have either prioritized internal/external causes. Objective: The empirical significance of the research relies on independently investigating the effects of a firm's profit and legitimacy pressure, as well as its relationship to innovation. Methods: The findings showed that legitimacy pressure by consumers had a considerably positive impact on both industrial item innovation as well as process innovation using datasets of high-tech firms.Results: The findings also showed that the profitability of a firm has a beneficial impact on item innovation, but that it has little to no effect on innovation in green processes. Furthermore, the association between legitimacy stress and the development of products is positively moderated by corporate profitability. Conclusion: The findings demonstrate that both the combination of the two factors—profitability (internal) and legitimacy pressure (external)—as well as their individual effects on firm innovation strategies. This is an integrative viewpoint on how firms might be more creative and responsible.

Toward cultural and creative industry: Chinese eSports through a business ecosystem lens

ABSTRACT The field of electronic sports (eSports) is thriving worldwide but has received limited attention as a cultural and creative industry (CCI). This study is the first to employ three layers (productivity, robustness, and niche creation) of the business ecosystem (BE) to systematically examine the flourishing eSports sector and its development as a CCI-BE. It also maps out the dynamic and emerging stakeholders that have contributed to the eSports ecosystem. We conducted content analysis combined with observations, fifty interviews with elite stakeholders, and analysis of financial and investment data. We found that the development of eSports as a CCI-BE reflects great potential and precarity. First, the business agenda of the media conglomerate Tencent aligns with the ‘cultural confidence’ slogan proposed by the government, thus ensuring the robustness and stability of the eSports ecosystem. Second, municipal governments, local real estate developers, and eSports tournaments are increasingly interconnected and their contemporary business models and innovation activities in the eSports industry have co-evolved. Third, the role of real estate developers remains nascent without the ability to coordinate and co-evolve with the eSports value chain. eSports may provide a novel converging territory for contemporary cultural and creative industries/traits in the Chinese digital society.

Strategic opportunities for the development of digital platforms of industrial companies

Industrial corporations are actively implementing digital technologies, which has an impact on the content of business models. The implementation of the platform approach is the main vector of strategic development of an industrial company. The platform approach changes the processes of industrial business modelling, which have an impact on competitiveness, and forms the leading positions of an industrial company in the market. Digital platforms are becoming the basis for the design of the technological chain, and business processes. The ecosystem nature of digital platforms contributes to the increase of business innovation activity. The functioning of the platforms is aimed at creating new values, implementing the concept of client-centricity, innovative development and the formation of competitive advantages. 36 technological platforms are used in Russia. The technological platform solves ecosystem tasks to ensure the functioning of the information and communication circuit of the digital ecosystem, which determines its strategic orientation.

Which Environmental, Social, or Governance (ESG) Activities are More Informative to Stock Prices?

While prior literature has investigated the impact of ESG activities on investors and other stakeholders, our paper is the first to disaggregate firms' activities into each of the Sustainability Accounting Standards Board (SASB)’s definition of Material Environmental, Social, and Governance activities and determine which of these ESG activities provide the greatest information content of stock prices. We find that material Social activities provide the greatest stock price informativeness and after further disaggregating each of the ESG classifications we find that both Social Capital and Human Capital activities provide informative stock prices, while Business Model and Innovation activities reduce stock price informativeness. Cross-sectionally, this effect is strengthened by higher levels of institutional ownership, further supporting the idea that material Social activities are important to sophisticated investors. Our results are consistent in a battery of sensitivity analyses.

Aspects of Innovation Activity of Enterprises at the Level of the Development Regions of the Republic of Moldova

This article presents the analysis and evaluation of the innovation activity of enterprises in the development regions of the Republic of Moldova. For this purpose, statistical data on business innovation activity were used and the indicators on the frequency of innovation in enterprises and implicitly in SMEs in the development regions of the country were calculated and analyzed. The results highlight the level of innovation of the regions, present an attempt to anticipate possible problems and could be used by decision-makers for creative policy responses, tailored to the needs of entrepreneurs in the regions, would channel attention to the most disadvantaged regions of Moldova from the point of view of the application of innovations in entrepreneurship.

Economic Policy Uncertainty and Family Firm Innovation: Evidence From Listed Companies in China

With the advancement of China’s economic transformation, the impact of economic policy uncertainty on family firms has become increasingly significant. The “familism” of family firms makes them more motivated to maintain family harmony, pursue innovative activities, and the long-term development of enterprises when faced with economic policy uncertainty. In this paper, we employed the data of listed Chinese family firms from 2010 to 2018 to analyze the impact of economic policy uncertainty on family business innovation activities, analyze the inherent characteristics of family firm innovation, and find the path that enables the innovative activities of family firms and provides a valuable experience for the innovation of private enterprises in economic policy uncertainty. We provide evidence that economic policy uncertainty positively relates to family firm innovation. Moreover, the relationship is affected by factors such as directors’ executive background and access to state-owned equity. Further analysis indicates that economic policy uncertainty can promote family firms’ innovation activities by improving their risk-taking, internal capital market circulation, and reducing political connections.

СТРАТЕГІЧНЕ УПРАВЛІННЯ ІННОВАЦІЙНО-ІНВЕСТИЦІЙНИМ РОЗВИТКОМ БІЗНЕСУ В КРИЗОВИХ УМОВАХ ГОСПОДАРЮВАННЯ

The article considers the key points of application of strategic management in the management of innovation and investment development of small businesses in the context of state regulation. The purpose of the article is to develop theoretical provisions at developing of strategic principles of innovation and investment development of small business as a tool for implementing socio-economic policy. The influence of the functioning of small business institute and its innovation and investment activity on the socio-economic development of the has been justified. According to the generalization of leading scientists researchеs, it has been noted that the state support of innovation and investment activities of small businesses is extremely important for the development of regions and local communities. The list of problems of objective and subjective nature of small business development at the present stage has been outlined. It has been substantiated the need to develop a long-term policy of the state based on the strategic supporting of innovation and investment component of small business. It has been noted that the strategic supporting of innovation and investment activity of small business is possible provided the development of an appropriate system of strategic management. The main goals of this system has been outlined. It has been determined that the system of strategic management of small business development involves the implementation of strategic measures at the national, regional and municipal levels, each of which determines the list of economic and administrative instruments that will contribute to the effectiveness of state regulation of small business. The basic requirements for the functioning of the system of strategic management of innovation and investment development of small businesses have been developed. The conformity to these criterias will increase the effectiveness of strategic management. The list of tasks to be implemented in the process of functioning of the strategic management system has been determined. It has been established that the process of strategic management of innovation and investment development will be effective on the monitoring basis. It would establish the program measures for support of small business by public authorities and the formation of an effective feedback system between business and government at all levels.

APPROACHES TO STATE STIMULATION OF INNOVATIVE ACTIVITY OF INDUSTRIAL ENTERPRISES

The Russia’s innovative development is the most important indicator of the competitiveness of the national economy. By implementing an innovation policy, the state stimulates the innovative activity of industrial enterprises. The study analyzes the impact of changes in the regulatory framework in the Russian Federation on the level of innovation development and the country’s position in the world ranking of innovative activity. The article reviews the tendencies of foreign government stimulation of business innovation activity on the example of the USA, India and Sweden and draws a conclusion about the significant role of the state and the need for targeted financing of enterprises’ innovative activities.
 Comparative analysis and diagnostics of innovation policy problems, analysis of the rating of innovation activity, forecasting the costs of technological innovation, determination of criteria for innovative activity of industrial enterprises were used as research methods.
 As a result, the proposed approaches to stimulate the innovative activity of industrial enterprises, taking into account the differentiation of enterprises by the addressee, channels, frequency and method of implementation
 of incentives. The introduction of the proposed approaches will increase the innovative activity of industrial enterprises, which will lead to an increase in the competitiveness of the national economy.

COVID-19 ads on purchase intention of online consumer behavior as business innovation activity: A contribution to the uses and gratification theory

• COVID-19 ads, has elicited new purchase intention of online consumer behavior ( PIC ). • PIC here is based on emergency context, motivations, attitudes, and web attraction. • PIC as a business innovation activity contributes to the Uses and Gratification Theory. COVID-19 ads are gaining people's consciousness rapidly. Many companies are concerned with determining the new purchase intention of online consumer behavior (PIC) for the next normal conditions. This article aims to design a framework based on PIC as a business innovation activity to generate marketing strategies related to Uses and Gratification Theory ( UGT ). Based on Delphi Panel-focus group and Analytic Hierarchy Process ( AHP ), we identified factors, variables, and indicators to the PIC conceptual framework proposal. The survey data was on 400 Mexican online consumers (Mar to Sep, 2020), using Confirmatory Factor Analysis ( CFA ) and Covariance-Based Structural Equation Modeling ( CB-SEM EQS6.2 ) to confirm 4 underlying factors, 8 variables, 27 indicators, and the framework s validity. The fuzzy set Qualitative Comparative Analysis ( fsQCA3.0 ) extracted 3 patterns solutions as business innovation activity with high PIC for marketing strategies related to UGT as the original study's value.

Small business innovation activity: the financial aspect

The solution to the problem of realizing the innovation potential of small companies is based on solving several critical problems: financial support, investment attractiveness, human resources potential. In this article, the author considers the specific features of financing small innovative companies as the most significant factor of innovative growth of the Russian economy.

MODEL FOR OPPORTUNITIES ASSESSMENT TO INCREASE THE ENTERPRISE INNOVATION ACTIVITY

This study shows that the model of assessing the opportunities for innovation activity of enterprises is multivariate and interrelated with such macroeconomic regulators of Ukraine’s development as competitive attractiveness of the country, favorable conditions for doing business in the country and innovation activity of enterprises. The use of a three-dimensional matrix of indicators to assess Ukraine’s competitive attractiveness allowed us to evaluate the significant impact of changes in Ukraine’s Global Innovation Index on the innovation activity of enterprises for the period 2014–2019. Moreover, the greater the value of the indicator of the state’s innovation potential is, the higher the level of innovation activity in the country becomes, which significantly increases the positive image of Ukrainian entrepreneurs at the global level and acts as a “green light” for foreign investors. Given the wide range of parameters that must be taken into account in an integrated assessment of innovation activity of an enterprise, we have used the method of component analysis. The uniqueness of an integrated assessment of innovation activity of an enterprise is carried out in accordance with the concept of value formation of innovations and it is tested on the example of Ferrotrading LLC. The effectiveness of the study consists in the fact that the selected sub-indicators for assessing the innovation activity of the studied enterprise (innovation resources, innovation competencies and innovation abilities) greatly complement the assessment of the opportunities for innovation activity in the proposed model. The conducted study has theoretical and practical significance. It can be used as a basis for further research in this area and can be employed by governments to make management decisions on increasing the innovation activity of business and the state as a whole.

The Linkages Between Investments in Innovation and Business Performance in Serbia

Motivation: Driven by an increasingly competitive marketplace, the savviest businesses invest heavily in corporate innovation as a kind of competitive intelligence that gives a business what it needs to operate with poise and precision. The strategy of investments in innovation by firms can potentially explain the heterogeneity of their income increase based on market success. Such a stimulus for growth has been a motivation for the research question being examined in this paper, namely the link between corporate financing and investment decisions of Serbian firms based on the bank loans as sources of innovation and hence improved enterprise performance. The paper is based on the research of Hottenrott et al. (2014), together with Ferrando & Preuss (2017) and Aerts & Schmidt (2008) concerning the relationship between external finance and business innovation activities. This paper provides information about a bank loan as a financing source that firms use to fund their innovative activities, with the research question whether that has the subsequent impact on the company's performance. The idea of the paper is that investments of enterprises in innovation significantly affect their revenue. Data: Empirical research has been provided by a survey in Serbia in 2017. The sample comprised 152 enterprises, mostly privately owned, of all sizes. Descriptive statistics: Cronbach's Alpha coefficient, regression analysis is used as the research tool and method. The link between business finance and innovation, and furthermore the link between innovation and income of Serbian firms have been investigated. Three groups of factors show that the degree of income and market success of the enterprise increases with the level of investment in innovative activities. These are: sources of financing and financing conditions as independent variables, and company's income revenues, as the dependent variable. Findings: Firms that use bank loans as financial instruments for innovation activities and investments are more likely to develop new products, methods and processes, and successfully increase their revenues and income based on developing this kind of added value. The findings indicate that tangible asset investment of SME’s is positively related to the use of bank finance, to new product development and to enterprise performance improvement. Contribution: Results of the research show that financial investments in business innovation directly contribute to the business sector performance improvement. It also demonstrates the theory of innovative enterprise, the significance of financing, and the impact of banking on the overall development of the economy. The results point to the need for further research in the area of​​ access to finance, as well as the parallel development of non-banking sources of financing.

Talent and knowledge management-developing a culture of employee optimization

Organizations are made up of people: People create value through proven Business Processes, customer service, innovation, sales, and many other significant activities. As an organization strives to meet its business goals, it must ensure that it has a continuous and integrated process for recruiting, selecting, training, developing, supporting, and compensating these valuable Human Assets. While strategic Human Resource remains to be a major focus, organizations are now focused on a new set of strategic issues on improving these processes more efficiently and effectively by means of

Dynamic Innovation Strategy Model in Practice of Innovation Leaders and Followers in CEE Countries—A Prerequisite for Building Innovative Ecosystems

The task of each firm’s strategic management is to identify those sustainable sources of competitive advantage that represent a way to achieve business goals and competitive advantage. Business management should be able to define determinants that fundamentally influence the innovation activity of business. Innovation leaders are influenced by the same set of determinants that allow them to maintain their position in the market. Identifying these determinants is a key source of knowledge for defining or adjusting corporate strategies, enabling sustainable benefits and for efficient building and functioning of countries’ innovation ecosystems based on cross-agents’ interactions leading to sustainable development. The goal of this paper is to identify the combination of innovation determinants in Dynamic Innovation Strategic Model (DISM) driving creation and sustaining innovation leaders’ competitive advantage in selected European countries belonging to the group of moderate innovators. Likewise, authors define a unique set or combinations of factors that will (fundamentally embedded in a company strategy) have a significant impact on the innovative production of the business, which are one of the key elements of innovative ecosystems. With the use of CIS data (from Eurostat) on the innovators and followers of nine EU countries and own regression models, the key determinants of the success of the innovation leaders and followers were found. These determinants are (also in appropriate combination) mainly: in-house R&D activities, co-operation with various partners, and marketing and design. The results clearly show that for innovative leaders, key determinants have a positive impact on produced innovations; for the followers, the same group has a negative influence.

Corporate social responsibility in Vietnam: opportunities and innovation experienced by multinational corporation subsidiaries

PurposeThis study aims to examine corporate social responsibility (CSR) with the opportunity- and innovation-based view of multinational subsidiaries (MNSs) in Vietnam. While CSR has traditionally been investigated in the developed market, this paper demonstrates how MNSs can take advantage of their CSR practises and create business opportunities and innovation activities for themselves and local society in Vietnam.Design/methodology/approachThis is an exploratory qualitative research-based on four MNSs that have practised CSR in Vietnam. Data were collected from 18 individual interviews with managers and business leaders in four case firms.FindingsThis study finds that CSR activities in the studied firms potentially drive new business opportunities and innovation in the form of product, process, idea and management practises. In addition, both opportunities and innovation also benefit MNSs and the local community in Vietnam.Research limitations/implicationsThe paper makes clear that CSR literature varies depending on the different countries or areas where the studies take place and these studies tend to focus on a specific area that was appropriate within a particular socio-economic and political context. Given that the business context in Vietnam is characterised by opportunities and incentives for innovation from the socio-economic of the context of a South East Asian developing market, the research provides an important first step in the integration and consolidation of CSR practises, opportunities and innovation. In light of the findings presented above, the study provides an important contribution to the CSR literature, particularly the CSR practises of multinational corporations (MNCs) in developing countries.Practical implicationsThe study suggests that CSR practitioners in Asian emerging countries should ground themselves in an understanding of the local society and try to gain an understanding of the priorities of local stakeholders. MNCs should develop an appreciation of the context in which CSR is initiated, as addressing such issues often inspires firms to bring in social innovations in the form of products, services and processes and discover or create opportunities based on the emergent social problems through business solutions that overall benefit their business and local stakeholders.Originality/valueThis is one of the first studies to explore the interaction between MNSs undertaking CSR and business opportunities and innovation in the context of a developing country – Vietnam.

РЕЙТИНГУВАННЯ ТРУДОВОГО ПОТЕНЦІАЛУ ЯК ІНТЕРАКТИВНИЙ ІНСТРУМЕНТАРІЙ СТИМУЛЮВАННЯ ІННОВАЦІЙНОЇ ДІЯЛЬНОСТІ

The paper offers insights to foreign and domestic studies on building and utilization of labor potential which has revealed the lack of knowledge of innovative labor potential which in modern realia makes the most valuable strategic asset of company development. The current classification of the structural elements of labor potential has been specified and complemented by adding an innovative component which includes physiological, demographic, psychosocial, intellectual, qualification and value-based components. Evaluation of the nature of the innovative labor potential category has allowed to identify its core elements (intellectual and creative) as well as the stages of its implementation: innovative thinking, innovative activity, innovative efforts. The following factors influencing the company innovative labor potential formation have been identified: globalization, modernization and informatization of manufacturing processes, government policy in the area of education and science, national and regional innovation policy, etc. Regional specifics that underpins the local business innovative labor potential has been revealed affecting sector-specific regional development; the level of regional innovative infrastructure development; the education level of the employed population; the availability of business R&D potential; business innovation activity level. The study has also identified the key trends in building and enhancing the company innovative labor potential which traced a decline in active working age population; an increase in the share of employed population with higher and secondary vocational education, etc. The research findings on the degree of innovative activity development of company labor potential have demonstrated: a high education level of the workforce (53% of the employed have higher education degrees; insufficient level of creative activity and utilization of intellectual potential. The conclusions provide evidence on the lack of an effective framework on managing innovative labor potential and ultimately – low innovative capacity in the manufacturing sector. It is argued that the main reasons for underutilization of employee innovative labor potential are the ineffective methods of labor potential management, the lack of a clear motivation and stimulation strategy (50%) along with the failure to use employee creative potential (29%). The proposed model of building an innovative labor potential ranking which combines the capabilities and benefits of rating and rating management allows for reasoned decision-making in a targeted and sound stimulation and motivation of innovative and inventive activities.