Development Of Innovation Capabilities Research Articles

Adapting innovation capabilities in emerging economies: the role of learning and cultural and institutional distance in MNC subsidiaries in Korea

Purpose The rise of emerging economies in the innovation landscape has often been attributed to the positive spillovers of innovation capabilities from multinational corporations (MNCs). However, it is less certain that their innovative capabilities imported from the home country function effectively in the host country from the outset. This study examines the performance of the innovation capabilities of MNC subsidiaries in emerging economies over time by considering the gradual process of their learning about host countries.Design/methodology/approach We employed stochastic frontier analysis to measure innovation capabilities, our focal construct. For regression analysis, we applied the Mundlak estimator, a variant of the fixed-effects panel estimator, to a sample comprising subsidiaries of MNCs from technologically advanced nations operating in Korea between 2006 and 2016.Findings Our results indicate that the innovation capabilities of MNC subsidiaries initially underperform those of local firms but improve over time, eventually surpassing the capabilities of their local counterparts. Furthermore, our findings reveal that institutional distance amplifies the underperformance of the innovation capabilities of MNC subsidiaries.Originality/value This study contributes to the literature by extending both theoretical development and empirical measurement of innovation capabilities in cross-national settings. Additionally, it deepens our understanding of whether and how MNC subsidiaries adapt their innovation capabilities to the local market environment.

Entrepreneurial Orientation and Transformational Leadership for the Development of Innovation Capabilities

Purpose: This paper aims to analyse the impact of entrepreneurial orientation (EO) through the relationship of transformational leadership (TL) for the development of dynamic capabilities (DC) for organisational innovation. Methodology/Approach: Under a qualitative method, and a single case study strategy, data were obtained from interviews with 15 senior managers and leaders of innovation activities; the document review and data triangulation method was used to analyse causality relations proposed in the theoretical framework. Findings: The empirical results confirm that the EO and TL have a positive relationship with the development of innovation capabilities. Findings indicate that risk-taking, proactiveness, assimilation, and exploitation of internal and external knowledge remain the main difficulties in improving innovation capabilities and adaptability in the technological environment. Research Limitation/implication: The present paper gathered data from a specific organisation in the field of EO. The research allowed us to better understand the incidence of EO, TL, and DC  regarding the relationship between variables, and it should be considered a potential source for enhancing innovation management capabilities. Originality/Value of paper: This work is the first that integrates the concepts of EO with other related disciplines into a single case strategy, within a specific entrepreneurship and innovation ecosystem context in a large automotive industry.

Responding to the UN sustainability goals in transdisciplinary partnership through network action learning

AbstractThe global water crisis, an enormous concern according to the World Economic Forum, poses a significant challenge to long-term sustainability, exacerbated by the high energy demand associated with water supply and treatment. As the renewable energy sector grows, the need for green technologies to support the water-energy nexus becomes evident. However, mere technological advancements are insufficient to address complex water-related challenges. This paper presents a transdisciplinary collaborative effort involving engineers, geographers, management researchers, and environmentalists working with practitioners in a cross-border network. The study explores through action learning research how, in a transdisciplinary partnership, network action learning influences the exploration and implementation of novel green technology and the development of innovation capabilities. The research is structured around three themes: green technology platforms, policy support and guidance, and dissemination and collaboration. It identifies the factors impacting technology exploration and application and how concurrently green innovation capabilities are developed. The study emphasizes the significance of transdisciplinary collaboration and offers valuable insights into addressing UN Sustainability Goals related to clean water, sustainable industry, and partnerships. It contributes to innovation capability theory and provides practical guidance to researchers, practitioners, and policymakers, emphasizing the need for holistic approaches to address the water-energy crisis and achieve sustainable development.

Productivity of innovation: the effect of innovativeness on start-up survival

AbstractThis paper provides arguments supporting the association between different measures of innovativeness (i.e., innovation capacity and effectiveness) and the survival of start-ups. Analysing a sample of 9171 innovative Italian start-ups, using Accelerated Failure Time models, we find two main results. First, patents and software licenses seem to strongly predict survival. Second, different measures of innovativeness complement each other: when Research and Development (R&D) expenditures pair with the ownership of patents/software and a skilled workforce, the overall effect on start-up survival gets stronger. It follows that innovativeness, in terms of high skills able to optimize R&D spending, is crucial for the survival of start-ups. Our findings should support policy-making for innovative capability development and “productivity of innovation”, and contribute to improving start-ups’ credit access and reduce their financial constraints.

Renewable energy in Morocco: Assessing resource curse risks

Renewable energy development and export creates an opportunity for low- and middle-income countries to foster green economic growth while supporting global decarbonisation. However, without careful assessment of risks, a renewable energy boom could create a resource curse which paradoxically slows growth and development. Here, the likelihood of a resource curse driven by renewable energy development in Morocco is evaluated. Specifically, 14 potential negative impacts of the resource curse (i.e. “symptoms”) relevant to renewable energy are studied. Through surveys with 21 Moroccan energy experts, the highest-risk (i.e. most likely and highest-impact) symptoms are found to be: (1) increased economic dependence on other countries and international organisations, (2) increased dependence on other countries for technology and expertise, and (3) damage to local flora, fauna, and landscape. The risks associated with these symptoms, while serious, are preventable via policy strengthening or intervention. Through 10 follow-up semi-structured interviews and subsequent complex systems analysis, the following policy interventions are identified to mitigate resource curse risks: careful negotiation of robust co-funding arrangements to safeguard Moroccan autonomy; the development of local renewable energy innovation capability, including technology manufacturing and test-bedding; and continuation and enhancement of environmental protection mandates.

Towards innovation capability in retail services: managing the tensions of exploration and exploitation

ABSTRACT Retailing is said to be at a critical period where much higher demands are being placed on retail actors to develop their capability for explorative innovation for lasting competitive advantage. Developing innovation capabilities is a challenging pursuit, however, and is a topic that is under-researched in the retail context. This paper thus investigates tensions that emerge when retail firms pursue explorative innovation in an organisational context characterised by exploitation-oriented activity, and how these are managed through various organisational mechanisms. The findings from our multiple case study reveal how developing innovation capability in incumbent retail firms gives rise to complex tensions related to strategic intent, organisational culture and structure. These are perceived as organisational paradoxes and managed as such due to the need to balance these opposing poles, emphasising the need for balance instead of making an explicit choice. Retail incumbents establish differentiating mechanisms for innovation, complemented by various integrative mechanisms. The study shows that in order to enable explorative, radical innovation in retail firms, innovation work needs to be differentiated from that of ongoing operations, provided that integration is facilitated at operational and strategic levels. By focusing on incumbent retail firms using exploration-exploitation paradox as a theoretical lens, the study contributes with new perspectives on building innovation capability in this context. The paper gives evidence to how developing innovation capabilities lies in the management of these complex tensions as paradoxes using the combination of differentiation and integration mechanisms.

The role of supply chain management in improving performance of Jordanian small and medium enterprises

Supply chain management practices are always helpful for multinational enterprises in increasing their growth. However, there has always remained an open debate about which practices are helpful for small and medium enterprises (SMEs). Therefore, this study has examined the influence of supply chain management practices on the performance of SMEs. Moreover, it has examined how the moderation of supply chain ecocentricity and innovation capabilities strengthens or weakens the relationship between supply chain management practices and SMEs’ performance. The quantitative study involved 352 SME managers as they can provide the relevant information and possess complete knowledge of management practices. The data were gathered via a questionnaire, and the responses were analyzed using IBM SPSS 28 and IBM AMOS. The results show that SMEs’ performance is linked to supply chain management practices (β = 0.544; P < .001), and this linkage is further strengthened by supply chain ecocentricity (R2 change = 0. 082***, F-Statistics = 47.18) and innovation capabilities (R2 change = 0.061***, F-Statistics = 39.74). SMEs can enhance their performance by efficiently incorporating supply chain management practices and developing innovation capabilities and supply chain ecocentricity. AcknowledgmentsThis study is funded by Al Hussein Bin Talal University, Ma’an, Jordan, No. 125/2023.

Measurement of Model Business Environment, Entrepreneurial Orientation, and Innovation Capability: Confirmatory Factor Analysis Approach

Micro, Small and Medium Enterprises (MSMEs) play a crucial role in the Indonesian economy and are regarded to have the potential to reduce poverty by creating employment opportunities. Malang City predominantly relies on micro, small, and medium-scale economic activities, particularly Batik MSMEs, which are crucial in supporting the tourism sector. The term commonly used to refer to Malang Batik is "Malangan" Batik. This research aims to conduct a confirmatory factor analysis to examine the measuring model of the business environment, entrepreneurial orientation, and innovation capacity. A total of 100 batik micro, small, and medium enterprises (MSMEs) in Malang City were selected as the sample for this research. The data analysis was conducted using confirmatory factor analysis (CFA) methodologies. According to the results of the confirmatory factor analysis, it was determined that the customer indicator had the most significant impact on shaping business environment variables. Risk-taking is regarded as the primary factor that significantly influences the formation of the entrepreneurial orientation characteristic. Marketing innovation is the most reliable sign of developing innovation capabilities. Malang City's Batik MSME companies are actively engaging in collaboration with suppliers, demonstrating a proactive approach in seeking market prospects and promoting new goods in untapped areas. Additionally, there is a need to enhance technological innovation.

Crafting Enviropreneurial Marketing Through Green Innovation: A Natural Resource-Based View

Being green is widely recognized as a proactive strategy to create economic value hand in hand with environmental sustainability in a new competitive landscape. Taking environment as commitment, righteousness, and opportunity, enviropreneurial marketing (EM) gives rise to environment-specific values and behaviors and is paving a way to achieve differential advantages over competitors by fulfilling responsibilities. Building on the tenets of the natural-resource-based view, we offer a deeper understanding of the framework by which EM could promote firm performance through green innovation. Empirical evidence, based on a survey from manufacturing firms in China, supports the developed theoretical framework with a moderated mediation analysis. Specifically, the adoption of EM is more likely to bring about better green innovation, in turn, improves firm performance. Moreover, it is observed that the closure mechanism acts as a negative moderator. When it is high, the development of green innovation capabilities is seriously constrained. These findings highlight that EM is jointly driven by executives and employees within the firm, rather than by external pressures.

Digital capabilities and innovation capabilities in Vietnamese SMEs

The objective of the study is to clarify the influence of digital capabilities on innovation capability, considering the direct and indirect impacts of digital leadership and digital culture in small and medium enterprises (SMEs) in Vietnam. The study used a mixed research method including qualitative with in-depth interviews and quantitative with Partial Least Squares Structural Equation Model (PLS-SEM) to analyze 271 responses. Research results show that digital capabilities have a positive impact on SMEs’ innovation capability. Digital leadership and digital culture also, directly and indirectly, affect firms’ digital capabilities and innovation capabilities. From there, the study confirms the theoretical contributions as well as proposes suggestions for SMEs to develop digital capabilities, and as a result, to develop innovation capabilities.

A Theoretical Model of Antecedents and Consequences of Artificial Intelligence Innovation Capability Development: A Dynamic Capability Perspective

A Theoretical Model of Antecedents and Consequences of Artificial Intelligence Innovation Capability Development: A Dynamic Capability Perspective

Capabilities for circular economy innovation: Factors leading to product/service innovations in the construction and manufacturing industries

As companies in the manufacturing and construction industries strive to meet the EU circular economy (CE) targets, they need to develop new capabilities to implement CE activities that can positively influence their product/service innovations. However, companies in both industries, and beyond, still struggle to develop internal capabilities to innovate products and services that would help them in implementing CE principles and move towards the CE. The objective of this research is to analyze the types of innovation capabilities that are needed to enable CE implementation and achieve product/service innovations in two different industrial sectors. Prior research has focused on innovating and implementing circular business models and elaborated less on the innovation capability types. We collected survey data in December 2021–January 2022 that consists of responses from companies operating in Germany (n = 177), including employees in manufacturing (n = 87) and construction companies (n = 90). The results from the partial least squares structural equation modeling (PLS-SEM) based on measurement models from the literature indicate that employees in both sectors overall perceive higher levels of CE implementation capability as important for the company's product/service innovations. Furthermore, the results reveal differences in the way CE innovation capability and IT resource orchestration capability influence CE implementation and product/service innovations in the two sectors. Our study offers theoretical implications on how dynamic capabilities are associated with CE innovations and how they influence companies' product/service innovations based on empirical evidence from two industrial sectors. Those capabilities that are crucial for circular product/service innovations need to be associated with CE implementation capabilities. The results further advise practitioners in the development of CE innovation and CE implementation capabilities and how they are linked to IT resource orchestration capability and provide evidence on their relevance to creating product/service innovations.

Analysis on the Application of Flipped Classroom in Chinese Junior High School

The study explores the impact of inverted classroom learning on collaboration, innovation, and task orientation. By implementing the inverted classroom learning method, the researchers reversed the two steps of classroom learning and homework in the traditional learning mode. The research subjects were 35 undergraduate students from the Faculty of Education, who taught a course on educational innovation. The results show that the inverted classroom learning approach has a positive impact on collaboration. Students' willingness to cooperate and engagement showed a significant increase in inverted classroom learning, where students were more willing to communicate and cooperate with each other than traditional classroom learning. In addition, inverted classroom learning promotes the development of innovative capabilities. Students are more open and creative in inverted classroom learning and come up with innovative solutions.

Does strategic agility and innovation capability have an impact on firm performance? A study on the Indonesian motorcycle industry

Agility and innovation are two of the most important capabilities that organizations have to deal with in disruptive environments. This research aims to examine the effect of strategic agility and innovation capability on firm performance in the Indonesian motorcycle industry. The research was conducted on 208 companies comprising both OEM (original equipment manufacturer) and tier 1 component suppliers in the supply chain of the Indonesian motorcycle industry. The validity was tested using the content, construct and convergent validity tests, the construct reliability was tested using the one-shot measure reliability test, and the hypothesis testing was carried out using structural equation modeling. The results show that innovation capability has a significant direct effect on strategic agility and firm performance, but in contrast to previous research findings, strategic agility does not have a significant direct effect on firm performance. In addition, strategic agility does not mediate the relationship between innovation capability and firm performance. These findings provide practical guidelines for the motorcycle industry in Indonesia to focus on developing innovation capabilities, particularly process innovation, which is related to the industry's ability to manufacture products at a lower cost and become a pioneer of the latest technology in its field. In the current conditions, companies are advised to focus more on other types of agility, such as operational or supply chain agility rather than strategic agility.

Social entrepreneurship in medical education: Model to establish SinnoLABs (social innovation labs) for health sciences universities.

Social entrepreneurship is a cross-cutting competency. It draws on knowledge from various disciplines and personal experiences. Health, social sciences and humanities are usually technically sound but lack specific business knowledge and skills. Entrepreneurial education makes it possible to establish training environments where students join as 'novices', develop skills and undergo experiences that help them build capable profiles and prepare for their professional careers in today's economy. It is important to note that the development of skills for social entrepreneurship is increasingly demanded in all disciplinary fields. Interest from the academic, business and civil society in social innovation and social entrepreneurship is growing rapidly since social value creation and social innovation are considered vital to the social entrepreneurship phenomenon. The innovation process aims to fill the gap between working life and educational framework so that students can develop innovation capabilities they will need during their careers. Taking cognizance of the importance of social innovation and entrepreneurship, the Government of India formulated a policy for Biomedical Innovation and Entrepreneurship in 2022. Our University established a first of its kind Social Innovation Lab (SinnoLAB) under a Collaborative European Union Project. Our University is one of the collaborating partners and the only health sciences university to set up a SinnoLAB in India. We discuss in this article how a SinnoLaB can be set up, its functions, need for such labs in medical institutes, its role in medical education and its beneficiaries and propose that other health sciences institutes can also take up social innovation and entrepreneurship considering the benefits to all stakeholders.

Analysis of spatial patterns of technological innovation capability based on patent data in Jiangsu province, China

Innovation is the main driver of regional economic development. Exploring the spatial patterns of regional innovation can elucidate the regional differences in innovation development. Nearly all the researches on spatial patterns of innovation take the administrative divisions of provinces, cities and counties as spatial units, and portray the spatial patterns of regional innovation from the macroscopic overall, but lack the spatial patterns within the regions. This paper employed patents of Jiangsu province, China in 2019 as a sample, divided the spatial units based on geographic coordinates of patent data, calculated the technological innovation capability index of within the spatial units, overcoming the drawbacks of the research method that fails to reveal the internal pattern of cities by using provinces, cities and counties as the research scale, and analysed the spatial patterns of technological innovation capability in Jiangsu province by using spatial autocorrelation analysis and standard deviation ellipse. The results show that: (1) In terms of distribution, the spatial pattern of technological innovation capability in Jiangsu province is obviously “one core and one belt” in southern Jiangsu, with Nanjing as the core and Suzhou, Wuxi and Changzhou as a southeast-northwest belt of high innovation capacity, while multi-point scattered in northern Jiangsu. (2) From the perspective of aggregation mode, each city has the largest number of H-H agglomeration units, relatively presenting a zonal distribution in the Suzhou-Wuxi-Changzhou area and Nanjing, and less distribution in other places. (3) Industrially speaking, the development of technological innovation capability of the secondary industry in many cities is better and centralized, while secondary and tertiary industries move hand in hand around the city centre in Nanjing, and the tertiary industry dominates comparably in Suzhou and Wuxi.

Strategy Development of Innovation Capability of Coffee SME Using Resource-based View Approach: Knowledge Sharing Perspective

The challenges of globalization in the SME sector are getting tougher. SMEs are required to innovate in order to be able to face the challenges of globalization. The purpose of this study is to identify the internal resources of Coffee SME to create innovation capabilities and to determine the effect of knowledge sharing on the innovation capabilities of Coffee SMEs in Garut Regency. This study uses the Mix Method. Qualitative method with Resource-Base View (RBV) approach based on knowledge sharing perspective. The quantitative method is implemented through distributing questionnaires. Data collected using a questionnaire were analyzed using a structural equation model - partial least squares (SEM-PLS). The unit of analysis is seven Coffee SMEs in Garut Regency which has the same character resemblance. The results of the qualitative research show that IKM Coffee in Garut Regency is at the level of competitive advantage. Competitive advantage in question can be seen in several aspects. First, Coffee SME is able to create innovation capabilities in coffee processing from post-harvest to ready-to-drink coffee, limited to various flavors and aromas, that are tacit knowledge. Second, Coffee SME is able to innovate on brands, solar dryer domes, video content as a marketing tool, and coffee processing SOPs that are explicit knowledge. However, Garut coffee SMEs have not been able to achieve a level of sustainable competitive advantage where tacit knowledge and explicit knowledge can be well organized. While the results of quantitative research show that knowledge sharing has a positive effect on innovation capability.

Research on the Influence of FDI on the Ability of Independent Innovation of Henan Province

Since the 1990s, Foreign Direct Investment (FDI) has played a more and more important role in the economic development of Henan Province. Especially in recent years, FDI has always played an important role in the technological progress and economic transformation of Henan Province. This article uses a combination of theoretical and empirical methods. The first step analyzed the relevant domestic and foreign research situation, at the same time demonstrated the article's empirical analysis ideas and analysis methods, and analyzed the current situation of the current FDI introduction in Henan Province, using the entropy method to quantify the status of independent innovation capability in Henan Province. In the empirical study, we selected data from Henan Province for 10 years, selected the comprehensive evaluation value of independent innovation capability of Henan Province as the dependent variable, FDI and foreign trade dependence degree as two main independent variables to conduct linear regression analysis and examine them through cointegration test. The causal relationship between. The research results show that: FDI has a positive effect on the development of independent innovation capability in Henan Province. The article finally proposes corresponding policy recommendations based on the previous theoretical and empirical research.

Capability building for digital transformation through design thinking

Design Thinking has been used to tackle complex problems and guide innovation across several industries. Most studies have relied on recounting experiences of the application of design thinking at the project level rather than the organizational level. The relationships among design thinking, digital transformation, and dynamic capabilities have received attention in recent times. We conduct a longitudinal analysis for a hospital's innovation department that has been implementing design thinking as a comprehensive organizational approach for digital transformation and innovation for six years. We analyze design thinking adoption, its relation to other innovation initiatives, and its contribution in developing dynamic capabilities for digital transformation. The data collection comprises interviews, document analysis, and participant observations. We show that design thinking supports the development of digital transformation and innovation capabilities. Additionally, we elaborate on how design thinking has positively contributed to capability development for digital transformation and analyze how this process has evolved over time. We contribute to the limited literature on the impacts of the adoption of design thinking at an organizational level by establishing its foundation in theories of dynamic capabilities and digital transformation. For practitioners, this study elucidates how to lead an incumbent down the path of digital disruption.

A Perspective Taking Supported AR Learning Platform with a User Study on Learning Three-View Drawing

Perspective taking has various effects on students’ learning, including the development of innovative capabilities, improved communication efficiency in distance education, and enhanced learning performances in practical tasks. Current collaboration systems often provide only a single third-person or first-person perspective and require the placement of markers on physical objects to achieve perspective alignment. These limitations restrict users’ observation and participation in the collaboration process, resulting in a less-than-ideal experience. To address this issue, a perspective taking supported augmented reality collaboration learning platform centered around a general technology course is proposed in this article. Users have the ability to view each other’s perspectives and utilize various collaboration cues, including sketches, voice, models, gestures, and gaze. In addition, a comparative study was conducted for the first time, comparing the effects of different perspective collaborations on students’ learning performance, internal motivation, collaboration experience, and intention to continue using the system. The study revealed significant improvements in learning performance when using the proposed system. Students also reported higher levels of intrinsic motivation, better collaborative experiences, and a greater willingness to continue using the proposed system. User interviews further confirmed the preference for and enjoyment of the proposed system.