Innovation Capability Of Companies Research Articles

Corporate innovation capacity, national innovation setting, and renewable energy use

This study combines both the resource-based view and institutional theory to investigate the relationship between a company's innovation capabilities and its consumption of renewable energy sources within well-established innovation ecosystems. Drawing on a comprehensive dataset of 14,506 observations covering 2007 to 2018, we executed the country-industry-year fixed-effects regression. The analysis reveals that a nation's innovation framework significantly influences the connection between a firm's innovation capabilities and its use of renewable energy. This relationship is moderated by key indicators of the nation's innovation climate, including the quality of scientific research institutions, university–industry collaboration, and government involvement in technology procurement. These findings emphasise the importance of institutional factors in fostering synergy between a company's innovation capacity and its consumption of renewable energy sources. They highlight the potential benefits of collaboration between firms and governments in promoting renewable energy consumption, especially in an era where innovative energy solutions are critical. This evidence underscores the need for a supportive macro-level policy environment alongside corporate initiatives to facilitate the transition to cleaner energy sources.

Analysis of Business Strategy, Market Orientation and Innovation Capability On Competitive Advantage Through PT Abc's Firm Performance

Companies today are increasingly recognizing the importance of adopting business and innovation strategies to stay competitive in an ever-changing marketplace. This study aims to examine the relationship between business strategy, market orientation, innovation capabilities, company performance, and competitive advantage in the context of PT ABC, a construction and public procurement company established in 2018. The research method used is quantitative, with preliminary stages, observation, filling out questionnaires, data collection, data processing, and validity tests. Data is obtained through surveys and analyzed to examine the effect of these variables on the company's competitive advantage. The results showed that business strategy has a positive effect on the company's innovation capabilities and performance. Market orientation also has a positive effect on company performance. However, market orientation does not have a significant effect on innovation capabilities, and innovation capabilities have no effect on competitive advantage. These findings provide important insights for PT ABC and other companies in developing business strategies, strengthening market orientation, and enhancing innovation capabilities to achieve competitive advantage in competitive markets.

Analysis of Supply Chain Integration, Innovation Capability, and Competitiveness of Coffee Processing Industry

Coffee is one of the leading products in the plantation sector in South Sulawesi Province, apart from cocoa and passion fruit. A number of previous studies have found that the sustainability of the coffee processing industry is largely determined by the supply chain system, innovation capabilities and business competitiveness. This study aims to identify and analyse a number of indicators that form the variables of supply chain integration, innovation capability and business competitiveness. Apart from that, to explain and analyse the indicators that provide the greatest contribution in forming these three variables. This study took data through a survey of 106 respondents who were owners/managers of the coffee processing industry. Data were analysed using both descriptive statistical analysis and conformational factor analysis. The results of this study show that an effective supply chain system will be achieved through integration with suppliers. Product innovation is an important element in forming a company's innovation capability. Then this study also confirms the importance of product quality as an important element in shaping the competitiveness of the coffee processing industry in South Sulawesi.

Micro-foundations of digital innovation capability – A mixed method approach to develop and validate a multi-dimensional measurement instrument

Digital innovation refers to the creation or adoption value-adding novelty through the incorporation of digital technology. Digital innovation challenges established product-centric companies whose innovation management capabilities are insufficient to manage the reconfiguration and transformation necessary for digital innovation and technology. Recent research has introduced different concepts of for example, digital readiness, digitalization capabilities, and digital innovation readiness. However, these concepts have two shortcomings for use in practice and empirical research: most concepts are theoretical in nature, with limited empirically validated measures. As such, this study takes a dynamic capability view to synthesize prior literature on the organizational antecedents of digital innovation and develops a framework for the micro-foundations of digital innovation capability. By applying a mixed-method approach, existing concepts are extended through qualitative research and then translated into a multi-dimensional measurement instrument. This multi-item operationalization is then subjected to scale validation using quantitative research methods. The results show that a company's digital innovation capability is founded upon seven micro-foundations – digital focus, digital innovation process, digital mindset, digital innovation network, digital technology capability, data management, and overcoming digital innovation resistance – that facilitate established companies in sensing, seizing, and reconfiguring digital innovation.

Impact of big data technological and personal capabilities on sustainable performance on Jordanian manufacturing companies: the mediating role of innovation

PurposeThe purpose of this paper is to develop a theoretical model that explains the impact of big data analytics capabilities (BDAC) on company's supply chain innovation capabilities and sustainable supply chain performance. BDAC is represented through two dimensions of big data technological capabilities (BDTC) and big data personal capabilities (BDPC). Moreover, the relationships between BDTC and BDPC with sustainable supply chain performance through the mediation effect of supply chain innovation capabilities are examined.Design/methodology/approachThe study used a quantitative research approach. A survey of 400 Jordanian manufacturing companies was carried out to conduct this research. However, the responses of 207 managers were valid to be used in the analysis. In this study, the SmartPLS software was used to perform structural equation modeling using a partial least squares approach (PLS-SEM) and to examine the measurement and structural model's validity and reliability.FindingsAccording to the results of this study, BDPC has a significant positive impact on supply chain innovation capabilities. Furthermore, the findings indicate that supply chain innovation capabilities are the most influential predictor of sustainable supply chain performance and act as a positive significant mediator in the relationship between BDPC and firm sustainable performance. Surprisingly, the study found that BDTC had no significant effect on supply chain innovation capabilities. Besides that, no significant relationship exists between BDTC and firm sustainable performance via the mediation effect of supply chain innovation capabilities.Originality/valueThis study provides an integrated research model that incorporates BDAC, supply chain innovation capabilities, and sustainable supply chain performance in order to analyze supply chain innovation and sustainable supply chain performance. This suggests that the scope of the study is broader in terms of predicting sustainable supply chain performance. As a result, the study intends to fill a gap in the literature by explaining how BDAC affects supply chain innovation capabilities and firms sustainable performance. In addition, the role of supply chain innovation capabilities as a mediator between BDAC and sustainable supply chain performance is investigated.

Firm performance over innovation cycle: evidence from a small European economy

Innovation is seen as a key capability for maintaining competitive advantage, creating value for customers, and capturing a larger share of the market. Yet, empirical evidence on the impact of innovation on firm performance is mixed. This research adds to the current debate on the relationship between innovation and the economic performance of firms. It brings new evidence from a small European economy (i.e., the Slovak Republic). We use a unique data set on 170 firms supported by the European Structural and Cohesion Funds (ESCF). Actual economic data reported in companies’ annual accounts, rather than self-reported information, is used to follow firm performance over a longer term horizon. The most significant finding is that the company’s innovation strategy was a key mediator of capability development and, ultimately, economic performance. The importance of specific innovation strategies varied over the innovation cycle. Simple process and organisational innovations were perceived to be important when assessing the immediate effects of European assistance. Investment in and cooperation on R&D&I became important when assessing firm performance over the longer term. The research expands the current body of literature on innovation capabilities and economic performance. It accentuates the need for a long-term perspective on innovation capabilities. To maintain a competitive advantage, a company's innovation capabilities must be constantly aligned with the changing environment.

Assessment of the effect of IT infrastructure on the relationship between knowledge sharing and technological innovation capability: survey in multinational companies

ABSTRACT This article aims to analyse the contribution of Information Technology (IT) infrastructure responsiveness in the initiative of using knowledge sharing to enhance the technological innovation capability of industrial companies. The research uses a sample of 90 multinational companies, and structural equation modelling to assess the hypotheses. The results show that initiatives to encourage knowledge sharing positively impact the technological innovation capability. Additionally, the research presents empirical evidence that the responsiveness of the IT infrastructure can induce knowledge sharing as a factor in expanding the technological innovation capability. Understanding how knowledge sharing can enhance technological innovation capability can help organisational theorists predict behaviours based on this innovative capability. Additionally, this understanding may expose mechanisms that enhance the effects of this sharing. This research contributes to the insertion of new views on studies involving the effects that IT responsiveness can exert on the technological innovation capability of companies.

Investigating SMEs Performance: Innovation, Leadership, or Investment Driven?

The main objective of this study is to find out how much influence the leadership orientation and innovation strategies affect the level of SMEs investment, which has implications for improving firm performance. This research uses structural equation modeling (SEM) analysis tools to test hypotheses. While the data in this study were processed using AMOS software. However, before testing, a goodness-of-fits model test is used to determine whether the data used is following the SEM model. This study uses a data collection tool in the form of a questionnaire that is calculated for each variable; the study sample is Central Java and DI Yogyakarta SMEs. Empirically all the hypotheses in this study is supported, then this research can be concluded as follows, improving the performance of SMEs can be achieved through the implementation of the company's innovation strategy, the company's ability to invest and the company's foresight in conducting high leadership orientation. The better application of innovation strategy and the strength of SME entrepreneurs in their leadership orientation and their courage in increasing investment to increase the company's innovation capability, it will have implications for improving business performance.

Analysis Of Company Performance Through Financial Aspect And Innovation Capacity At Super Afifah Palu Tofu Factory

This study aims to analyze the performance of the Tofu Super Afifah Palu Company based on the Financial Aspects and Innovation Capability. This study uses primary and secondary data, with data collection techniques through observation, interviews and documentation. The results of this study indicate that the Company's financial liquidity ratio can be ascertained to be very liquid and is included in the very healthy criteria (94.4% in 2018 and 172.22% in 2019 for the current ratio while for the quick ratio it is 66.40% in 2018 and 127.78% in 2019). Furthermore, the results of the solvency ratio analysis also increased from 2018 to 2019. Both in terms of the Debt to Asset Ratio and the Debt Equity Ratio. However, despite experiencing an increase in the Debt Equity Ratio, the company must pay attention and maximize it again so that in the future it can get an assessment or be included in the healthy criteria. Meanwhile, the company's profitability ratios get very healthy criteria, it can be seen from the results of the ratio calculations which show positive performance from year to year. Meanwhile, the results of the analysis of the aspects of the company's innovation capability were carried out quite well, especially the factors of technology use, interaction with outsiders, new product development and production and operation capabilities that impact on company performance. However, the company is expected to maximize the performance of human resources, marketing capabilities, as well as aspects of research and development

Technological Innovation Capabilities of Small and Medium-Sized Enterprises

Purpose: The research objective of the article is to develop a model that indicates significant, from the perspective of introducing technological innovations by Polish small and medium-sized enterprises, internal factors that make up the company's innovation capability and build their competitive position. Design/methodology/approach: The company’s innovation capability can be divided on seven specific sub-capabilities, research and development, manufacturing, organizational, marketing, logistics, human factor and strategy. We also included some contextual factors in the model. Empirical studies were conducted in 2015, using the CAPI method, on the representative sample of 250 small and medium-sized enterprises. The analysis and assessment we based on the results of the ordered logit regression model estimation. Findings: The obtained results indicate the significance of 19 variables from all specific capabilities and contextual factors. Their impact proved to be both positive and negative. Practical Implications: The identified elements of innovation capability of small and medium-sized enterprises may be a recommendation for small and medium-sized enterprises’ managers. Originality/value: Determination of key elements of technological innovation capability of Polish small and medium-sized enterprises. The results can be compared with those obtained for other countries.

Evolutionary stable strategies for business innovation and knowledge transfer

Evolutionary game theory expands into a number of areas that go beyond the biological concept of evolution to include sociology, economics, and business management. Social networks determine definite interactions between individuals in social settings. The common nature of these two broad areas of research generates interest in applying the approaches of evolutionary game theory to social network-based problems. Knowledge transfer that occurs in the process of social interaction improves a company's innovation capability. This paper attempts to explore ways in which networks relate to knowledge transfer on the basis of evolutionary game theory. We offer a simple mathematical model to examine the interaction of knowledge transfer and actor behavior in games of coordination.

THE EFFECT OF EMPLOYEE ENGAGEMENT AND ORGANIZATION CULTURE ON COMPANY INNOVATION CAPABILITY

Innovation Capability is incredibly important for companies to survive and gain competitive advantages. Some researchers examined the influence of corporate culture on Innovation Capability and revealed that the culture of the adhocracy had a positive effect on the company's Innovation Capability (Ahmad, 1998; Barlow 1999). Besides, the ability of innovation was also influenced by how strong employee engagement in the company is (Gichohi, 2014). To see the influence of adhocracy organization culture and employee engagement towards innovation capability in Indonesia, research was conducted with State-Owned Enterprises (SOE) employees as the subjects, as their role in shifting the Indonesian economic sector. The research questionnaires were distributed to 300 SOE’s employees in some sectors with a rate of return of 69.3% or 208. Of the total questionnaires entered, 178 questionnaires were completed and could be processed. With 5% degree of accuracy and 95% significance level, the results of data processing showed that employee engagement has a positive effect on Innovation Capability proved to be significant with t count 6.942 at α = 0.001 while the research hypothesis of adhocracy culture had a positive effect on Innovation Capability was shown to be significant with t count 2.144 and α = 0.032.

Sustainability and Innovation Capabilities in an Innovation Award Winner Company

The stimulus for economic development is innovation. The constantly quest of new ways to deliver value results from the need for competitive advantage. The introduction of social and environmental perspectives in the economic debate has made emerge a new element that turned to influence the strategy of companies, besides generating a new competitive scenario: the sustainable development. It is clear, therefore, the increasing requirement for firms to incorporate environmental issues in their processes. Companies face, so, a new paradigm, where innovating and considering the sustainability of the process is crucial to remain active and competitive in the market. This paper aims to identify the influence of the environmental dimension of sustainability on the innovation capabilities of a company. A case study was conducted with a company that won the Brazilian Innovation Award in 2013, due to a sustainable project. The results show that the environmental dimension is a determining factor for the arrangement of the company's innovation capabilities. It is suggested then an order of importance of the company’s capabilities to achieve innovation through sustainability: (1) management; (2) operations; (3) transaction and (4) development.

ANALYSIS OF THE INNOVATION AND BUSINESS ACTIVITY OF A COMPANY

The paper clarifies the category of innovation potential with innovative and economic activities. The innovation potential is the ability of a system to derive from the research field innovations suitable for the practice. It is determined by the accumulated intellectual products, database, research infrastructure and other resources used to create, implement and offer innovations. The use of company and national innovation potential for the creation of modern technique, technology and organization of production are orienting production and farms to the specifics of the new economy. The innovation activity reports the dynamics and capabilities of the innovation system to power production with ready-to-use innovations. Business activity in the field of innovation characterizes the capabilities and flexibility of the production system with the resources available to perceive and assimilate innovations and offer them as products in the form of goods, services and technologies.The report justifies the selection of an innovation strategy based on an analysis of the company's innovation capabilities. They represent a set of distinct features of the company that facilitate and support its innovation activity. The purpose of such an analysis is to determine which are these key characteristics and to what extent the firm as a whole and its core business units possess them. The report also explores the basic criteria for assessing the company's innovation capability, the structure of the innovation process and the methodology of analysis of its product and process innovations.

When and with whom to cooperate? Investigating effects of cooperation stage and type on innovation capabilities and success

In times of saturated markets and decreasing product life cycles, the continuous development and successful launch of innovations are essential for profit-oriented organizations of any kind. Interorganizational cooperation enables companies to get better access to knowledge and capabilities in order to generate and successfully introduce innovations. While scientific research and management practice have acknowledged the importance of cooperation, little research effort is dedicated to empirically determine the effectiveness of cooperation intensity within different stages of the innovation process (cooperation stage) and with different partners (cooperation type). This article aims to fill these gaps by empirically examining the effects of cooperation intensity with different kinds of partners (horizontal, vertical and institutional cooperation) in different stages of new product development (concept and product development as well as implementation stage) on innovation capabilities and success of individual companies. Drawing upon a sample of 154 high-tech companies from the German B-2-B sector, our results reveal that it is in general beneficial for a company to cooperate. However, cooperation in concept and product development primarily improves a company's innovation capabilities while cooperation in the implementation stage primarily enhances innovation success of a company. With respect to cooperation type, vertical, horizontal as well as institutional cooperation significantly enhance innovation capabilities and success of a company. However, cooperation with institutional partners was found to be the most important contributor throughout all stages.

The impact of standardized innovation management systems on innovation capability and business performance: An empirical study

This paper provides a novel analysis concerning the impact of a Standardized Innovation Management System (SIMS) on company innovation capability, innovation performance, and corporate results that is an unprecedented contribution to innovation management literature. This research is focused on the standard UNE 166002 that is one of the first national certifiable SIMSs that exists globally. It is one of the first SIMSs in the world that has reached a sufficient level of acceptance to enable an empirical study. In order to analyze its impact on companies, a relational model was developed and analyzed using hypotheses concerning with the main dimensions.

Pengaruh Interorganizational Relationships terhadap Kapabilitas Inovasi: Studi Kasus Perusahaan Komponen Otomotif di Indonesia

. Interorganizational relationships (IOR) arising from interaction created by a firm can become a strategy for business development. Proper IOR management can provide benefits in improving firm's innovation performance. Innovation performance which is also associated with innovation outcomes is strongly influenced by firm's innovation capabilities. This paper discusses the influence of IOR towards innovation capabilities which is seen by analyzing the processes that occur in generating innovation outcomes. Through eight case studies in automotive components firms in Indonesia, it appears that the IOR can enhance company's innovation capabilities, especially for conducting technological innovation. The resulting innovations may be regarded as open innovation with the role of external parties in the process of innovation in the company. By IOR, a company may acquire or increase innovation enablers required to generate innovation outcomes. IOR can also shape and strengthen the basic foundation to build an innovative company. It is also found that innovation may become a media to form social control in IOR.

The role of market expansion, environmental turbulence and cost-saving strategies on cooperation on innovation in Russia

This paper studies the cooperation on innovation, its antecedents, and performance implications in Russian innovative firms. The model is developed to analyse the influence of firms' strategic orientations, market and technology turbulence, and environmental considerations on cooperative innovation, and its consequent impact on companies' financial and innovation outcomes. We look for patterns in the behaviour of Russian firms that would describe their attitude to the firm's openness in interaction with external partners, and its relation to the strategic orientations of the firm. The study is empirically based on a sample of 182 Russian firms operating in the most innovative regions of the country. The constructed PLS structural equation model showed both internal reliability and convergent validity. The research finds that the extent to which companies cooperate on innovation is determined by market expansion, as well as a willingness to improve production processes. Technology turbulence significantly facilitates cooperation, while market turbulence impedes it. As a result, cooperation in innovation significantly increases a company's innovation capability, at the same time improving its financial performance and assists to achieve cost saving.

HRM practices for human and social capital development: effects on innovation capabilities

This paper analyzes the effect of systems of human resource management (HRM) practices on a company's innovation capabilities. To date, few studies have analyzed the way a firm may be more innovative by using specific sets of high-performance HRM practices from an intellectual capital-based view of the firm. From an extensive literature review, a model was established and tested through structural equation modelling, using the statistical technique of partial least squares. The study was applied to a sample of technological firms in Spain and the results show that high-profile personal HRM practices positively influence human capital while collaborative HRM practices influence social capital, which, in turn, affect innovation capabilities by means of, respectively, total and partial mediating effects. Managerial and HRM implications of these results are drawn by the authors, highlighting the idea of paying increased attention to managing firms with a focus on strategic intangible assets in order to gain competitive advantages based on innovation.

Determinant of external sourcing for SMEs in Korea: analysing the effect of sub-constructs of entrepreneurial orientation on outside technological partnership from the multi-dimensional perspective

This research examines the effect of each entrepreneurial orientation (EO) sub-constructs on outside technological partnership (OTP) from the multi-rather than single-dimensional perspective. Our examination of 1,358 Korean SMEs reveals that each sub-constructs of EO affect on OTP in difference: EOI (innovativeness) has positive association with OTP, while EOP (pro-activeness) is negatively related to OTP and EOR (risk taking) has no significant relationship with OTP, providing different results from existing studies considering EO sub-constructs as to be positively correlated. In addition, meanwhile EOI significantly affects the upstream-partnership (basic and early technology), EOP has strong negative association with the horizontal-partnership (early commercialisation stage) due to the nature of EOP underlining the concept of 'first mover'. In summary, enterprise-level strategies designed to double a company's innovation capability through the procurement of external resources seem to be implemented according to the degree of each EO sub-constructs in difference: EOI, EOP and EOR.