Determinants Of Product Innovation Research Articles

Determinants of Product Innovation

Determinants of Product Innovation

Emergence of Product and Service Innovations of Different Level of Novelty in Knowledge Intensive SMEs: The Role of Open Innovation Patterns

Purpose: The aim of the contribution is to evaluate the importance of domestic and foreign collaborative ties between knowledge-intensive SMEs and knowledge sources for the creation of product and service innovations which we differentiate according to the spatial level of novelty. Methodology/Approach: In order to test the validity of the hypotheses which were justified in the context of previous research we adopt an econometric approach and specifically, due to the nature of the dependent variable, the logistic regression. Findings: The results support the hypotheses that the determinants of innovation in SMEs vary in case of innovations with different level of novelty. Open innovation practices are crucial rather for SMEs delivering innovations of products and services novel on national and international markets. Research Limitation/Implication: The research does not reflect the frequency of innovative products and services at the enterprise level as well as the impact of new products and services on turnover. Originality/Value of paper: In particular, the study brings new insights into the determinants of product innovation of a lower degree of novelty applied in local and regional markets which can be an important source of development for low-density economies.

Managing the knowledge for innovation in Eastern European firms: open or closed innovation?

PurposeThis study investigates the impact of cooperation with external partners on the intensity of product innovation as well as its commercial success. The focus is on firms located in the Eastern European countries that are seldom a subject of empirical innovation studies. The theoretical framework takes into account that moderate and modest innovator countries, which comprise the sample, have distinct innovation ecosystems relative to advanced economies.Design/methodology/approachThe study uses data from the Business Environment and Enterprise Performance Survey (BEEPS) that was conducted in 2013–2014 and covering the period of the past three years. Product innovation is measured through its intensity (a number of product innovation) and through its commercial success (innovative sales). A set of hypotheses are tested using a negative binomial estimator (for the number of product innovation) and a tobit estimator (for innovative sales) estimated in Stata statistical software.FindingsEmpirical findings show that vertical cooperation has a positive effect on the intensity of innovation activities. In contrast, the authors find no evidence that horizontal cooperation or cooperation with science partners (universities and research centres) increase innovation intensity or its commercial success. Besides vertical cooperation, for a commercial success, it is equally beneficial for firms to use their own innovative ideas. These results taken together suggest that closed innovation and cooperation with customers and suppliers are critical determinants of product innovation in Eastern European firms.Originality/valueThe study contributes to expanding the research on knowledge management and open innovation in less advanced economies.

The double-edged role of firm environmental behaviour in the creation of product innovation in Central and Eastern European countries

Prior research has primarily focused on how firm environmental behaviour affects firm performance and eco-innovation, whereas the mechanisms involved in this relationship were treated as a black box. This study steps back to focus on the reverse relationship between firms' environmental behaviour and ‘general’ product innovations in Central and Eastern European countries, which generally face low levels of consciousness about environmental issues. Specifically, we focus on the Czech Republic, Estonia, Latvia, Lithuania, Poland, and Slovakia. The results show that firms' environmental behaviour acts in two ways and brings significant differences between the considered countries. Surprisingly, the monitoring of energy consumption helps increase firms' chance to create more product innovation in lagging countries, such as Slovakia and Poland, than in leading innovation countries, such as the Czech Republic, Lithuania, and Latvia. Moreover, adopting measures of water management proved to be a significant determinant of product innovation despite the fact that it is not often used. The presented article contributes to the current state of knowledge in the areas of (i) determinants of (eco-) innovation; (ii) ongoing discussion about the Porter hypothesis; and (iii) catching-up literature dealing with (eco-) innovation in Central and Eastern European countries. In the final section, practical contributions in the form of implications are presented.

Determinants of product innovation in food and agribusiness small and medium enterprises: evidence from enterprise survey data of India

This paper analyzes the nature and determinants of product innovation for food and agribusiness firms in India. The study is based on the World Bank’s Enterprise Survey and the India Innovation Follow-up Survey from 2014. These surveys included 294 Indian food and agribusiness firms operating in different regions of the country. Simple statistical tools, such as chi-square test and logistic regression, are used for analyzing the raw data. It is evident from the analysis that there is a significant difference in the adoption of product innovations across enterprise sizes. Product innovation is more prominent in large enterprises than small and medium scale enterprises (SMEs). Results of regression analysis indicate that product innovation in SMEs is more likely to be influenced by a variety of internal, collaborative, and external factors. The findings of the study suggest that SMEs should diversify their product innovations to include new inputs, improved product features, and enhanced technologies to strengthen their place in the market. This research is valuable because there is limited evidence on the nature and determinants of product innovation in food and agribusiness SMEs of emerging economies like India.

“IMPACT OF PRODUCT INNOVATION ON THE FINANCIAL PERFORMANCE OF THE SELECTED ORGANIZATIONS: A STUDY IN INDIAN CONTEXT”

The purpose of this research is to analyze the determinants of product innovation and its impact on the financial performance of the organizations. Specifically, the study examines the impact of intelligence generation, intelligence dissemination, product-process innovation, marketing support of the product, quality, Dependability/ Delivery, Technology selection, Flexibility on the financial performance of the automobile companies. The models of product innovation provided the theoretical framework for the research. The model of product-process innovation provides the basis for further research. The first concept explains the link between organizations surroundings and its innovation targets (Utterback JM 1974, 1975) (Miller & Friesen, 1982)(Milling, 1996) whereas the second concept explains the connection between firm’s performance level i.e. innovative performance, financial performance, organizational performance and marketing performance and its innovation types i.e. product innovation, process innovation, organizational innovation and marketing innovation (Abernathy & Townseed, 1975) (Abernathy & Utterback, June/July 1978) (Gunday, et al., 2011). From these concepts evolved this study i.e. to evaluate the impact of product innovation on the financial performance of the organizations.

Determinants of Product Innovation and Innovation Cooperation in German Transport Equipment Manufacturing Industry

Determinants of Product Innovation and Innovation Cooperation in German Transport Equipment Manufacturing Industry

Determinants of Product Innovation and Innovation Cooperation in German Transport Equipment Manufacturing Industry

Determinants of Product Innovation and Innovation Cooperation in German Transport Equipment Manufacturing Industry

AN EXPLORATORY RESEARCH IN PRODUCT INNOVATION IN AUTOMOBILE SECTOR

The purpose of this research is to analyze the determinants of product innovation. This study focused on the statistical technique using the factor analysis on constructing the new factors that lead to product innovation in Automobile Sector. The researcher used quota sampling dividing into the Delhi/ NCR amongst four automobile companies i.e. the four of them are market leaders as per their market share and in each of these areas purposive sampling is used for the purpose of survey. It is a sampling techniques in which the sample is obtained by selecting convenient population units. For the purpose of the study, primary data was collected with the help of a well-drafted Questionnaire given to Top and middle executives in the automobile organizations (N=423). Cronbach Alpha was used to evaluate the internal consistency of the scale items. The methodologies used were descriptive statistics, factor analysis and non-parametric technique using the Kruskal-Wallis test. The results showed seven new factors were successfully constructed using factor analysis and assigned as the factors affecting the learning styles; which are 1) Intelligence Generation, 2) Intelligence Dissemination 3) Quality 4) Flexibility, 5) Dependability/ Delivery,6) Marketing support of the product 7) Technology Selection

Une étude exploratoire des facteurs déterminants de l’innovation produit des petites et moyennes entreprises (PME) exportatrices françaises : le rôle-clé de la capacité d’absorption

L’objectif de notre recherche est d’identifier les déterminants de l’innovation produit au sein des PME exportatrices françaises. L’originalité principale de notre article réside dans la mobilisation de deux cadres théoriques : la capacité d’absorption et les profils institutionnels, combinés afin d’étudier les déterminants de l’innovation produits au sein des PME exportatrices. Les principaux résultats indiquent le rôle-clé des dimensions de la capacité d’absorption des PME pour le développement des innovations. L’acquisition et l’assimilation de la connaissance reposeraient sur la connaissance commerciale, technologique et institutionnelle pour mieux répondre aux changements de l’environnement et aux besoins des clients. Le partage de la connaissance à travers la communication interne et la collaboration entre les équipes contribuent à une meilleure transformation et exploitation de la connaissance pour le développement de nouveaux produits. L’approche par profils institutionnels offre une grille d’analyse pertinente pour notre étude car l’accompagnement public contribue au développement des activités innovantes et internationales des PME françaises. Codes JEL : O32, L25, L23

Innovation and firm performance in developing countries: The case of Pakistani textile and apparel manufacturers

Using unique innovation survey data collected from a homogenous sample of firms in Pakistan, this paper presents an analysis of the firm level determinants of product innovation and its impact on firm performance. We employ a multi-stage structural model linking the decision of a firm to innovate, its innovation investment, product innovation, and firm performance using primary data from the textile and wearing apparel sector, which is the largest export sector of Pakistan. We find that product innovation leads to increased labor productivity as well as higher labor productivity growth. A 10 percent increase in innovative sales per worker is associated with a greater than 10 percent increase in labor productivity and labor productivity growth. On the determinants of innovation, we find that vertical knowledge flows from foreign clients and suppliers are important determinants of a firm's decision to innovate. Larger firms are more likely to engage in innovation, however, there is no significant evidence that they invest more in innovation. Exporting is positively associated with innovation performance and firms exporting to Europe and America are more likely to engage in innovation. There is mixed evidence on the impact of competition: foreign competition adversely affects a firm’s decision to innovate, whereas, local competition increases investment in innovation. Subsidies seem to have a crowding out effect since firms receiving national subsides invest less in innovation. Furthermore, firms that have higher investment in innovation, that are more productive, and that introduce organizational innovations have higher innovative sales per worker.

Empirically Testing Factors Increasing Manufacturing Product Innovation Success

Purpose: Important determinants of new product development success fall into five main areas encompassing strategic leadership, competitive intelligence, management of technology, specific characteristics of the company's innovation process, and the company's absorptive capacity to use available knowledge to produce and commercialize new products. Unfortunately the existing knowledge on each of these five areas is not being shared by researchers in the other areas, thus the models are focused on the particular research area. This study tests these constructs as a set of determinants of product innovation success.Design/methodology/approach: A field test using a mailed questionnaire to collect a relatively large sample of manufacturing companies has been used to test the proposed model. To eliminate possible multicollinearity among the independent variables, a multivariate regression analysis was used.Findings: The results provide clear evidence about the importance of competitive intelligence, strategic leadership, competitive intelligence, management of technology, specific characteristics of the company's innovation process, and company absorptive capacity with company success in new product development.Research limitation/implications: Despite the relatively broad scope of the proposed model, other factors may also be important and should be included in future studies.Practical implications: The items used for measuring the main constructs provide further and more specific insights into how managers should go about developing these areas within their organizations.Originality/value: While the study is grounded in the literature of what until now have been five separate areas of knowledge, it proposed a unique integrated model for these areas important to new product development.

The Study on the Performance and Determinants of Product Innovation in Machinery Industry

The Study on the Performance and Determinants of Product Innovation in Machinery Industry

Product innovation in China’s food processing industries

Using the innovation production function approach, this paper focuses on the determinants of product innovation in China’s food processing industries. Empirical analysis based on firm level data over the period 2005–07 shows that R&D intensity has a positive and statistically significant impact on product innovation in China’s feed processing industry. Large firms in China’s cereals milling, feed processing, and meat products & by-products processing industries are more likely to be involved in product innovation. Export intensity affects product innovation in cereal milling and feed processing industries. Foreign-invested feed processing firms are more likely to be involved in product innovation.

Understanding major dimensions and determinants that help in diffusion & adoption of product innovation: using AHP approach

In this global world, diffusion & adoption of new product innovation have become intricate and involves multifaceted process, as consumers demand a broad range of choices. So, this has generated enthusiasm among researchers and business practitioners while studying and implementing diffusion & adoption of product innovation.Even though diffusion & adoption is known as one of the most important processes of an innovation management, but the literature available in this area is highly fragmented. Therefore, in this paper, we attempt to develop a framework for diffusion & adoption, which helps in learning and understanding its dimensions and determinants from different perspectives. In this study, AHP has been used to analyse the relative importance and provide a ranking to the dimensions and determinants of product innovation. The findings of this study can help the management, product developers and market professionals in strategic planning and in setting their priorities when there is resource constraint. This study also helps in deciding and prioritising the dimensions and determinants that should be fuse during product development phase.

Absorptive capacity and product innovation: new evidence from Nigeria

ABSTRACTThis paper assesses the influence of absorptive capacity (AC) on firms’ product innovation by relying on pooled cross-sectional data from innovation surveys among Nigerian manufacturing and service firms. The study employs variables such as educational qualification, technology acquisition, intramural R&D and collaboration as proxies for measuring AC. Using the ordinal logit model, our result shows that higher educational qualification is the determinant of product innovation among manufacturing firms while collaboration with knowledge institutions, the determinant among service firms. In addition, the impact of R&D investments on product innovation becomes significant among manufacturing firms when moderated with age. We can thus infer that high-level skilled workers and external collaboration increase the likelihood of introducing new-to-market product innovations among manufacturing and service firms respectively by enhancing the AC of firms. Similarly, R&D investment can only have impact on the ability to introduce new-to-market product innovations as firms mature with age. Since the factors of AC driving the two sectors differ, there is therefore no one-cap-fit-all solution. Hence, there is the need for sector-specific policies that will enhance firms’ competences and capabilities and drive national competitiveness. These include state interventions through government policy instruments in areas such as education, training, intellectual property and funding among others. Careful consideration should however be made in introducing these interventions in order to avoid government failure.

Strategy-making for innovation management and the development of corporate universities

Innovation is now seen as a question of corporate survival and international competitiveness. While most innovation fails, companies that don’t innovate in the long term die. The importance of crafting a sound and coherent innovation strategy appears crucial in many industries, even more in turbulent environments where clear guidelines help managers allocate RD it is the quest to overcome resource constraints through a creative and unending pursuit of better resource leverage with the corporation conceived as a portfolio of competencies as well as a portfolio of businesses, and innovation projects. Incumbents that focus their network strategy on exploiting complementary assets through alliances generally outperform incumbents that focus on exploring the new technology. The technological strategies of corporate firms have several similarities to the investment strategy of venture capitalists. They are looking for complementarities between investments to nurture specialized knowledge and extract greater value with synergies. Appendix 2 proposes a new integrative model by making the connections between the strategy-making process and the R&D strategic resource allocation management process. Top managers should try to control the initial cost structure of new growth business, because it influence greatly the critical resource allocation decisions in that business, and also recognize emergent strategies through process such as discovery-driven planning and select the right mix of emergent versus deliberate strategies for each businesses in the organization. The determinants of product innovation in firms are mainly explained by the strategy being pursued and managers should be careful to not drift toward excessive conservatism or excessive entrepreneurship over innovation management. Some experts argue that strategic management, when continuously practised may develop in a firm core capability may have more enduring effects on the firm’s long-term performance than one-time strategies. Flexible strategic planning for innovation management appears more efficient, particularly in turbulent environments. A bottom-up approach of technology strategy-making favorizes the crafting of emergent strategies. One tool, communities of practice has an important influence on strategy-making for innovation management due to empowerment. A corporate university can become another influent knowledge management strategic tool, only if enough resources are devoted to its development and managers adopt a long-term perspective.

How do new entrepreneurs innovate?

This paper builds upon Pellegrino et al. (Struct Chang Econ Dyn 23:329–340, 2012) further analysing the determinants of product innovation in Italian young innovative companies (YICs) by looking at in-house and external RD however, YICs turn out to be less in-house R&D-based and, unlike their mature counterparts, more dependent on external sources of knowledge. While this outcome corroborates and further reinforce what found—using a different methodology—in Pellegrino et al. (Struct Chang Econ Dyn 23:329–340, 2012), in this study, other entrepreneurial attitudes such as the ability to cooperate with other firms in producing innovation or the capacity to develop significant organizational changes are also investigated. The results of the econometric estimations show that these attitudes turn out to be key innovative strategies in the incumbent firms but, in some specific cases (such as for the ability to cooperate), appear to be far less important in the YICs. These results are somehow worrying, since they show that Italian innovative entrepreneurs are mostly driven by routinized rather than creative strategies.

About the determinants of the degree of novelty in small businesses’ product innovations

This paper explores the nature and determinants of product innovation in small businesses from a survey of more than 1,500 small firms in Spain. Two levels of factors affecting innovation are considered: (1) The personal characteristics of the entrepreneurs -their age, motivations, educational background and degree of interpersonal trust. (2) The characteristics of the organizations’ management—cooperation, risk taking, proactivity and specific innovation and growth policies. The paper shows that the factors explaining the firms’ decisions to introduce small incremental innovations -and the strength of these influences- are different, to a large extent, from those favoring substantial product innovations.

Product innovation and R&D policy: the case of the transformation industries in developed and developing

This study analyzes some of the determinants of product innovation in the case of entrepreneurs from the transformation industries, using a model estimated via the Partial Least Square method, to establish whether these determinants change according to whether they are found in developed or developing countries. Such factors include human capital, technology, the degree of market competition, expectations or economic performance. The research also analyzes the effects these factors have on product innovation and some of the determining factors for innovation in the internationalization of entrepreneurial businesses from the transformation industries.