Different Types Of Innovation Research Articles

Innovation as a Differentiation Strategy: Its Differential Substitution Effects on Corporate Social Responsibility

The engineering management literature has long acknowledged that innovation is the most significant differentiation strategy for firms to achieve competitiveness and hence firm performance. More recently, corporate social responsibility (CSR) is recognized as another differentiation strategy which also contributes to firm performance. However, the joint performance effects of innovation and CSR have not been sufficiently investigated, particularly on the interplay between different types of innovation and CSR. This study classifies innovation into solitary and collaborative innovation as well as incremental and radical innovation to examine their differential effects. Employing a panel dataset of 2377 Chinese manufacturing firms during the period of 2010–2019, we discover that there exists an inverted U-shaped CSR–performance relationship. More importantly, we reveal that collaborative innovation has a stronger attenuating effect on the inverted U-shaped performance effect of CSR than solitary innovation. Similarly, radical innovation has a stronger attenuating effect than incremental innovation. Our research advances the innovation and CSR literature by providing novel insights regarding how different types of innovation alter the curvilinear performance effect of CSR in an emerging economy.

Are Firms Adopting a Going Vertical or a Going Lateral CSR Approach Equally Innovative? An Empirical Analysis on Medium-Sized Enterprises

This article explores the relationship between corporate social responsibility (CSR) and innovation, focusing on medium-sized enterprises and adopting a stakeholder-based view. Using a platform launched by the Italian government, which provides information about CSR efforts and innovation performances at the firm level, the authors distinguish, by means of a hierarchical cluster analysis, two types of CSR approaches (going lateral and going vertical) that differ in terms of breadth and depth of the stakeholder-oriented actions implemented. A bivariate probit model, estimated to explain the different types of innovations (product and/or process), shows that firms adopting a going lateral approach are more likely to innovate in both products and processes. Results provide a theoretical contribution regarding the CSR-innovation relationship, by adopting a stakeholder theory lens. Most studies delve into the relationship between specific stakeholder-oriented CSR actions and innovation, while we consider them in aggregation. Our research also increases knowledge on CSR in medium-sized companies, which are scarcely investigated.

The Key Impact of Management Modes for Innovation in SMEs

This study assists in obtaining a better knowledge of managerial and organizational factors favoring different types of innovation, highlighting the critical role of creativity, risk-taking, and performance management for operational innovation. Also, this study aims to simultaneously investigate interactions of exploration and exploitation innovation to show how managers and organizations are usually treated in exploration and exploitation innovation. A sample of 755 valid questionnaires from small and mid-size enterprises (SMEs) from diverse firms in the global south were employed and analyzed using the partial least square structural equation model to examine the proposed research model and assumptions. This study shows that creativity, risk-taking, and performance management are positively and significantly affect operational innovation in global south SMEs. From a strategic point of view, our findings demonstrate that SMEs must create innovation in order to maintain their performance. Managers of SMEs would be aware of the influence of various types of innovation on various aspects of business performance, such as marketing, operations, and finance. On a management level, the research findings assist SMEs in achieving high performance levels with their innovation projects. In addition, this research helps readers to develop a better knowledge of how organizations combine operating innovations and exploration.

Boosting innovativeness in organic farming: the role of external relational capital

PurposeFollowing the contextual approach to intellectual capital, this study analyzed the specific types of external relational capital that foster product/service, process and managerial innovativeness in organic farming as key drivers of sustainable food production.Design/methodology/approachSurvey data from 358 organically certified Spanish farmers were analyzed using structural equation modeling based on partial least squares. A total of three models, one for each type of innovativeness, were developed to analyze the impact of external relational capital. These models took into account four specific types of relational capital: vertical relationships, horizontal relationships, relationships with government institutions and relationships with knowledge-intensive institutions.FindingsAlthough relational capital and innovativeness are clearly underdeveloped, knowledge generated through and embedded in external relationships plays a substantial role in promoting innovativeness in organic farming. Moreover, depending on the type of innovation to be developed, the type of external relational capital that is relevant differs.Practical implicationsThis study's findings indicate that organic farmers prioritize process innovation over product/service and managerial innovation. For the latter categories, building relationships with customers, consumers and government institutions is key. Policymakers should encourage farmer-engaging socialization spaces that emphasize family farms and their knowledge contribution.Originality/valuePast studies have examined the overall degree of association between external relational capital and innovation, often overlooking the nuances of contextual factors. In contrast, this research delves into the unique contributions of knowledge sourced from various external relationships, focusing specifically on how these relationships influence different types of innovation within the specific context of organic farming.

Exploring SMEs innovation paths with augmented and virtual reality technologies

PurposeAugmented reality (AR) and virtual reality (VR) are increasingly recognized among technologies potentially driving the digital innovation of small and medium-sized enterprises (SMEs). Nevertheless, the implications of AR/VR adoption in innovation processes have yet to receive much attention to date, with the need to explore the issues facilitating a systematic implementation in the SME context. This study aims to investigate the possible innovation paths of SMEs as a result of AR/VR adoption.Design/methodology/approachThe authors performed a multiple case study research involving six Italian SMEs in manufacturing and service sectors that are investing in AR and/or VR solutions and are digitally innovating thanks to these technologies.FindingsAR/VR solutions lead to different types of innovation in SMEs, i.e. for innovating product or service offerings, business processes or even the business model, when AR/VR extends to the company business logic. SMEs demonstrate being able to leverage internal sources with the essential commitment of top management and low resistance of employees in all kinds of AR/VR-enabled innovations. Conversely, they involve different external innovation sources according to the type of innovation pursued. Organizational issues emerged as more relevant than technological issues.Practical implicationsResults contribute to the literature on digital transformation of SMEs and provide managerial guidance on innovation sources and organizational issues to be considered to effectively deploy AR/VR solutions into specific innovation paths.Originality/valueThis study explores the impact of emergent technologies in the innovation process along with multiple perspectives, degree of complexity, and strategic importance in the SME context.

Reducing the gap between rhetoric and reality: Use of Digital Service Standards for public service innovation through digital transformation in Australia

AbstractNearly a decade ago, the Australian Federal Government introduced a Digital Service Standard (DSS) for new and redesigned government services. This was an opportunity to encourage digital services and disruptive innovations to help the government improve citizens outcomes, and indeed there was a significant uptake in the digital services assessments offered by the program with key government agencies across health, human services, taxation, and education on board. However, by the 2020s the number of publicly visible assessments had significantly reduced. The initial broad adoption and recent reduction in numbers present an opportunity to explore the effectiveness of this government innovation management program that was ahead of its time. This paper reviews the impact of the DSS in fostering public service innovation and presents lessons learnt from the program. To perform this analysis, this research evaluates to what extent the DSS applied common private sector innovation management approaches of Innovation Process Management and Innovation Portfolio Management in the public sector. It also looks at the impact of these programs in encouraging specific types of modern digital innovations. The analysis draws on DSS assessments from 2015 to 2021 and considers how the program demonstrated public sector innovation leadership. This paper proposes a framework to improve the DSS by tailoring its approach for new and existing services, adopting specific standards to encourage incremental and disruptive innovations, and promoting more transparent reporting and funding of innovation management programs. This evaluation found that the DSS exemplifies Innovation Process Management in its use of stages and gates, and Innovation Portfolio Management in its use of targeted assessment criteria across innovation portfolios of various government agencies. The analysis also identified design limitations in the DSS as a whole of government innovation management approach due to its limited uptake in multiple large agencies and lack of specific standards to encourage different types of innovation. The impact of this research is to increase the adoption of the DSS and increase the innovation outcomes delivered by this government program. We conclude by reflecting some of the unique considerations in applying private sector innovation management practices in the public sector.Points for practitioners Innovation management techniques are emerging but remain immature in the public sector. Australia has shown leadership in Government Innovation Process and Portfolio Management. Government must remain committed to innovation management programs and sharing the outputs of these programs. Government Innovation Management Programs should build in flexibility to encourage different types of innovation.

The reassuring effect of firms' technological innovations on workers' job insecurity

PurposeThis work analyses how the adoption of technological innovations correlates with workers' perceived levels of job insecurity, and what factors moderate such relationship.Design/methodology/approachThe study makes use of the 2018 wave of the Participation, Labour, Unemployment Survey (PLUS) from Inapp. The richness of the survey and the representativeness of the underlying sample (including 13,837 employed workers) allow employing various empirical specifications where it is possible to control and moderate for many socio-demographic features of the worker, including her occupation and industry of employment, thereby accounting for various potential confounding factors.FindingsThe results of this ordered logit estimations show that workers' perception of job insecurity is affected by many subjective, firm-related and even macroeconomic factors. This study demonstrates that the adoption of technological innovations by companies is associated with lower levels of job insecurity perceived by their workers. In fact, the adoption of technological innovations by a company is perceived by surviving workers (those who remain in the same firm even after the introduction of such innovations) as a signal of the firm's health and its commitment to preserving the activity. Individual- and occupation-specific moderating factors play a limited role.Originality/valueThis study estimates how perceived job insecurity relates to the technological innovations adopted by the firms in which the interviewees are employed rather than analyzing their general concerns about job insecurity. In addition, this study identifies different types of innovations, such as product and process innovation, automation and other types of innovations.

Firm survival and innovation: direct and indirect effects of knowledge for SMEs

ABSTRACT This paper explores the effects of innovation on firm survival by using data from a representative survey of small and medium manufacturing firms in the province of Salerno, Italy. We innovate upon the literature by (a) comparing the impact of different sources of internal and external knowledge (including universities) on the probability of firm survival; (b) assessing the mediating impact of the human capital of workers and entrepreneurs on learning from these knowledge sources. Finally, we measure the impact of different types of innovation on firm survival. Our evidence upholds the link between innovation and firm survival, particularly for product and organisational innovation. Results regarding the impact of different sources of knowledge highlight the roles of employee training, the human capital of entrepreneurs and workers and the productivity of university departments providing relevant knowledge. Other elements of external knowledge, such as proximity to the University of Salerno or being in the city of Salerno, are significant facilitators of survival only if mediated through high levels of the human capital of entrepreneurs and workers.

The potential of blockchain technology in advancing sustainable energy: a study on the mediating role of specialization in the growth of Chinese hidden champions

Innovation is a crucial factor for hidden champions to gain a competitive edge and foster organizational growth. This study focuses on Chinese-listed hidden champion firms between 2010 and 2019 and examines the impact of innovation heterogeneity on their growth. The study explores the impact of different types of innovation, including overall innovation, product innovation, and process innovation, and their interaction effects on the growth of hidden champions. The study also investigates the mediating role of the degree of specialization, which refers to the extent to which a firm focuses on a particular area of expertise. Furthermore, the potential of blockchain technology in advancing a sustainable energy future is becoming increasingly apparent. By enabling the creation of decentralized energy markets, blockchain can facilitate the integration of renewable energy sources, such as solar and wind power, into the grid. This can help to reduce carbon emissions and promote the transition to a low-carbon economy. The results of the study indicate that innovation, including overall innovation, product innovation, and process innovation, is significant for hidden champions’ growth. Moreover, the study reveals that product innovation and process innovation have complementary effects on the growth of hidden champions. The degree of specialization also plays a mediating role between different types of innovation and hidden champions’ growth. The results of this study provide empirical evidence to improve the growth of hidden champions from the perspective of enterprise innovation. By focusing on different types of innovation and understanding their complementary effects, firms can develop a more comprehensive innovation strategy that can enhance their growth potential. Moreover, the mediating role of degree of specialization highlights the importance of aligning innovation efforts with a firm’s core competencies to achieve sustained growth. This study contributes to the literature on hidden champions by shedding light on their innovation strategies and their impact on firm growth.

Comparing Public Sector Innovation in Cross- Border Cooperation: A Set-Theoretic Approach

This article analyses innovation by developing and empirically applying the concept of public sector innovation in cross-border cooperation. The focus on intra- as well as inter-institutional characteristics provides a conceptual framework for identifying empirical differences and shared characteristics revealing different types of innovation. The proposed typology is operationalised with six dimensions and empirically applied to 24 cases in the two border regions on the island of Ireland and on the Upper Rhine. On an organisational level, four ideal types are developed, i.e. (1) managers of the status quo, (2) relational innovators, (3) organisational innovators, and (4) public sector innovators in cross-border cooperation. The results reveal empirical diversity of public sector innovation in cross-border cooperation and can be regarded as a starting point for the development of a systematic and generalisable description of public sector innovation in cross-border cooperation

Environmental, Social and Economic Sustainability in Mining Companies as a Result of the Interaction between Knowledge Management and Green Innovation—The SEM Approach

The mining industry is one of the greatest polluters of the environment and has direct positive and negative impacts on all three pillars of sustainable development: economy, environment and society. Due to the aforementioned, primarily negative impacts on the environment, it is important to implement sustainability principles in the operations of companies in the mining industry. The implementation of the sustainability principle enables the economically profitable, ecologically clean and socially responsible exploitation and processing of mineral raw materials. This means of doing business requires the introduction of clean or green technologies, which are the product of green innovation. The innovation process is highly dependent on knowledge. Knowledge has a great contribution to creativity and the creation of innovation. Accordingly, knowledge management activities and the ability of a company to use and combine different sources of knowledge are essential for the creation of different types of innovation, including green innovation. The research, including the pilot test, was carried out in the period of May–August 2022, whereby convenience sampling was used to obtain 626 employees in six mining companies in Serbia. The structural equation modeling approach was used to evaluate the causal relationship between knowledge management, green innovation and the sustainable operations of the mining industry. The indirect effects of the dimensions of knowledge management, through the dimensions of green innovation, on the dimensions of sustainable development were examined using the bootstrap procedure. The results of the study confirmed the positive direct and indirect relations between the constructs. The research indicates the importance of including all components of knowledge management and green innovation in achieving all components of business sustainability.

Conditions that make ventures thrive: from individual entrepreneur to innovation impact

Entrepreneurship and innovation create a positive impact on the economy and society. Globally, governments invest resources to support new ventures and facilitate innovation. In this study, we examine this phenomenon by studying the pathway that goes from individual entrepreneur to innovation impact. We measure the effect of entrepreneurial motives on different types of innovations, with a particular focus on its amplification by formal and informal institutional conditions. Specifically, we use multi-level models to analyze annual data of 29 countries for 2006 to 2018. We find that opportunity-driven entrepreneurs are associated with higher levels of radical innovation, breakthrough innovation, and disruptive innovation. Better tax policies and less bureaucracy amplify this positive effect on radical innovation and breakthrough innovation. For necessity-driven entrepreneurs, the regulatory quality amplifies the positive effect on radical innovation and disruptive innovation, while monetary resources dampen this effect. Our findings show that the differences in innovation impact can be explained by differences in entrepreneurial motives and their specific interactions with formal and informal institutional conditions.

Effects of open innovation in startups: Theory and evidence

A robust literature has provided compelling evidence showing how open innovation impacts incumbent firms. However, only a paucity of research has linked open innovation strategies to different types of innovation in startups. This paper fills this gap in the literature by focusing on if, how and why open innovation enhances innovative activity in newly created firms. In particular, the paper examines how the role of both the specific external partner as well as the geographical location of partner matters in how product and process innovation is shaped in startups. The empirical evidence garnered in this paper suggest that not only do startups benefit from open innovation, but also the extent of product innovation and the propensity to innovate new processes in startups are significantly affected by specific external partner and its geographical location. The positive impact of open innovation reflects the heterogeneous effects of knowledge embedded in different partner types and the role that technological, institutional, and competitive arrangements play domestically and internationally in startup innovation. This study provides new light on how and why open innovation benefits not just incumbents but also startups as well.

Landmarks as lighthouses: firms' innovation and modes of exit during the business cycle

We revisit the relationship between innovation and survival, tracking how innovation types (product, process, organizational, and marketing innovation) relate to exit routes (closure, failure, M&A) during different phases of the business cycle (i.e. normal times, the 2007–08 financial crisis and subsequent recovery). In particular, we implemented a new (to the economic field) econometric approach, landmark analysis, to include time-varying covariates in survival models with competing exit routes on our representative sample of Dutch firms (obtained merging monthly register data with biennial innovation surveys, for 2006–2015). Our most straightforward result is that each type of innovation, across the different phases of the business cycle, affects, in a substantially different way, the likelihood to exit the market through different modes of exit. Innovations seems to grant some innovation premium, but no common pattern appears between the evolution of the relationships between different types of innovation and exit routes across the business cycle.

Interactive and synergistic relationships among different types of innovations

The coronavirus (COVID-19) pandemic has not only led to rapid innovation but also shortened the innovation cycle. By comparing the manufacturing and service industries, this study investigated the controversial relationship between product and process innovation from a long-term perspective and examined the synergistic effects of diverse types of innovation on firm performance. Recent five-year Korean Innovation Survey data showed that product and process innovation had interrelationships rather than a one-way sequential relationship. Furthermore, the four different innovation activities have synergistic effects on the firms’ financial performance.

Product and business process innovation, competitive advantage and export performance

PurposeThis paper aims to contribute to the understanding of the relationship between innovation and export performance by examining the effect of different types of innovation on export performance and testing the assumption underlying most studies in the field that competitive advantage mediates this relationship.Design/methodology/approachFrom the literature review, this paper proposes a research model that is estimated using a sample of 200 Spanish exporting manufacturing companies. Data for this study were collected with an ad hoc questionnaire, and the partial least squares structural equation modeling technique was chosen to analyze the data.FindingsThe results show that there is a positive relationship between product and business process innovation and export performance and that competitive advantage mediates this relationship, but only when it is based on costs, not on differentiation.Originality/valueThis paper provides evidence that product and business process innovation are positively related to export performance and that competitive advantage mediates these relationships, but only when the advantage is low cost. Unexpectedly, this paper finds that differentiation is neither related to export performance nor explains the relationship between innovation and export performance.

Decode Innovation Dynamics with a Seven-Stage Model (Part 2)

This paper aims to develop a more comprehensive theoretical framework to help reveal the relationships between different types of innovation and an industry's dynamics. First, it identifies the common denominator of innovation, labeling it as an innovation tripartite. Secondly, it displays the tempo vigor of each element in the innovation tripartite, showing three different life curves. Thirdly, it consolidates the three life curves by employing three binding forces—learning mechanisms, perceived consequences, and aligning requirements. Finally, it ends with obtaining an integrated seven-stage innovation life cycle with possible loops. The chain-loop model possesses accommodativeness, simplicity, precise rhythm, and a built-in interface.

Innovation Integration: Fuyao’s Secret of Success

An innovation integration model is proposed to explain the reason for Fuyao Glass Manufacturing Group’s success in its market competition. Fuyao’s vertical innovation integrations help the firm to solve the problems of both top-down and bottom-up approaches: Fuyao’s horizontal innovation helps the firm to place process innovation at its core, meanwhile list the technological innovation, product innovation and service innovation as objectives as well as the outcome. Fuyao’s integrated innovation model helped the firm to achieve its high efficiency in its manufacturing and market success and avoid failure of the products in its business environment. The coherent relationships between innovation and market demands are the drivers of a firm’s success. This study contributes to the innovation of literature in two ways. First, both top-down and bottom-up approaches have weaknesses. Innovation integration is the only way an innovative firm can use to avoid the weaknesses of top-down or bottom-up approaches while utilizing the advantages of the two processes. Second, different types of innovation do not stand along, instead, they may be able to complement each other.

Decode Innovation Dynamics with a Seven-Stage Model (Part 1)

This paper aims to develop a more comprehensive theoretical framework to help reveal the relationships between different types of innovation and collective innovation dynamics. This research, breaking away from the traditional dichotic analysis, adopts a tripartite as the innovation gateway. Then, it uses a deductive method to demonstrate the existence of seven innovation patterns. Furthermore, it converts the seven patterns into a chronically linked seven-stage innovation chain and possible loops. The chain-loop model possesses accommodativeness, simplicity, precise rhythm, and a built-in interface. It helps develop an integrated understanding of innovation for scholars and formulate an innovation roadmap for practitioners.

Innovation and export: evidence from manufacturing SMEs in a developing economy

PurposeInnovation allows firms to gain or maintain their competitive advantages in both domestic and international markets. However, the findings on the association between innovation and export vary depending on countries, samples, time, variables and methods used for empirical analysis. The purpose of this study is to examine the influence of different types of innovation on export in small- and medium-sized enterprises (SMEs) in a developing economy in the context of global integration.Design/methodology/approachFor empirical analysis, the authors use a sample of manufacturing SMEs in Vietnam in 2013 and 2015. Because the firms do not engage in innovation at random in the research sample, the authors use propensity score matching to account for self-selection bias. The authors also use different matching estimators to ensure robust results.FindingsInnovation activities are found to be positively associated with the probability of engaging in export activities. The effects are mainly contributed by the adoption of new technology or process.Practical implicationsThis research underscores the importance of public interventions and policies designed to promote innovation and export in the SMEs.Originality/valueTo the best of the authors’ knowledge, this research is one of the early attempts to examine the association between different types of innovation and export in SMEs in a developing economy.