Innovation Capability Dimensions Research Articles

Exploring the Association Between Knowledge Management and Innovation Capability in R&D Centers

Businesses striving to survive in today's highly competitive market conditions are continuously trying to utilize innovation related strategies to sustain their position and competitiveness. Knowledge management, on the other hand, has been shown to have a significant influence on the innovation capability of the organization. Thus, the aim of this study is to examine the relationship between knowledge management practices and innovation capability in research and development (R&D) centers operating in Istanbul and Kocaeli / Turkiye through an empirical study. The data used in the study was collected from the managers of R&D centers using a web-based questionnaire, as well as face-to-face meetings. A complete census method was used as the sampling technique, and 220 R&D center managers in the region were contacted. Among the managers contacted, only 182 managers provided data and were included in the study. Multiple hierarchical regression analysis was used to analyze the data obtained. As a result of the analyses, it is found that the knowledge acquisition dimension has a significant positive relationship with the learning capability, production capability, marketing capability and strategic planning capability. In addition, the results revealed that storing and sharing knowledge have significant and positive relationship with production capability, and transforming knowledge has a significant and positive relationship with both marketing and organizational capability. In particular, it is concluded that knowledge acquisition and sharing are important in terms of learning, production, marketing and strategic planning dimensions of innovation capability specifically in R&D centers.

Influences of collaborative culture and knowledge management on product and process innovation: the moderating role of information technology utilization

PurposeThe purpose of this study is to investigate the influence of collaborative culture on product and process innovation via mediating role of knowledge management and moderating role of information technology utilization.Design/methodology/approachThis paper used structural equation modeling to examine the level of how collaborative culture and knowledge management practices (KMC) affect two types of innovation capabilities, namely, product innovation and process innovation, using data collected from 313 participants in 128 manufacturing and service firms.FindingsThe research findings highlight positive mediating role of KMC between collaborative culture and two specific forms of innovation. In addition, the paper first confirms the moderating role of information technology utilization in the relationships between KMC and process innovation capability. The results underline the necessity of building a collaborative culture to enhance KMC for promoting innovation capabilities in an organization.Research limitations/implicationsFuture research should explore the influence of potential benefits and values of collaborative culture on other strategic or behavioral factor to produce better innovation competence for firms.Practical implicationsThis paper offers CEOs/leaders a deeper understanding of the effects of key antecedents, mechanisms and processes to promote product and process innovation in their firms.Originality/valueThis paper is unique in the attempts to provide a prospective solution for firms to pursue and improve innovation by its meaningful insights on the mediating role of KMC and moderating effect of information technology utilization in the relationship between collaborative culture and specific dimensions of innovation capability.

Assessing innovation capabilities of manufacturing companies by combination of unsupervised and supervised machine learning approaches

This study suggests the use of unsupervised and supervised machine learning algorithms to categorize companies according to their innovation capabilities. Companies are categorized into three groups: good, satisfactory, and unsatisfactory, in order to create a thorough and reliable assessment procedure. In this study, unsupervised and supervised machine learning methods are used to solve an innovation capability evaluation problem. Data is provided via a survey which is performed in manufacturing industry in Turkiye Firstly, dimensions of innovation capability were determined Principal Component Analysis (PCA). Then data labels were determined by k-means clustering algorithm which is an unsupervised learning technique. A model is first trained using data provided via questionnaire survey, and it is then tested using fresh, unused data. The model is trained using classification algorithms including KNN, GaussianNB, RandomForest, Gradient Boosting, AdaBoost, DesisionTree, XGBOOST and LightGBMC, MLPC, and SVMC and its performance is evaluated against test data. Each classification techniques are evaluated using the performance metrics. With the highest accuracy rate of 93% and lowest MAE, MSE and RMSE values, The LightGBMC and SVMC methods were found the most efficient supervised learning method for innovation capability evaluation.

The role of entrepreneurial marketing & innovation capability in the performance of SMEs during covid-19 pandemic: Evidence of MSMEs in West Java

The Corona Virus, or COVID-19, has become one of the world’s issues, not only affecting health but also the Indonesian economy. One of the sectors that has been impacted was micro, small, and medium enterprises (MSMEs), whose performance has decreased. Entrepreneurial marketing and innovation capability have proven to increase the performance of MSMEs. However, it was still questioned whether entrepreneurial marketing and innovation capability would increase performance during COVID-19 pandemic. We collected data through an online survey to 290 MSMEs in West Java. Statistical analysis using SmartPLS reveal that entrepreneurial marketing (opportunity-driven, proactiveness, customer intensity, risk taking, resource leveraging, and value creation) and innovation capability (product innovation, serve innovation, process innovation, and business model innovation) have a significant effect on the performance of MSMEs (profitability, productivity, domestic market share, profit margin, competitiveness of the MSMEs, ability to maintain profit margin, and rate owners satisfaction with innovation level). Innovation capability has a greater influence, with a value of 0.465, compared to entrepreneurial marketing, with a value of 0.156, on the performance of MSMEs. Serve Innovation and Process Innovation have a significant impact on the dimensions of innovation capability that contribute to MSMEs’ performance. Several practical and theoretical implications for entrepreneurs designing marketing strategies are discussed based on the findings.

EXPLORING FIRM INNOVATION CAPABILITY AS THE ‘BLACK BOX’ BETWEEN HUMAN CAPITAL AND PERFORMANCE IN RUSSIAN SMES

This study examines the mediating role of firm innovation capabilities as a strategic choice for Russian small and medium-sized enterprises (SMEs), which translates their managerial and worker human capital stocks into enhanced firm performance. The results of a survey conducted on 366 CEOs and business founders indicate innovation capabilities are the intermediate variable between firm human capital and SME performance. Further parallel mediation regression analysis demonstrates that human capital is positively and significantly related to all innovation capability dimensions (client-, marketing- and technology-focused); however, the mediation effect is significant only in the case of client-focused innovation capability–SMEs’ ability to provide clients with services that offer unique benefits, solve clients’ problems in innovative ways and seek out novel ways to tackle problems. These findings suggest that SMEs operating in turbulent transition economy environments can be more innovative and achieve the best performance using intangible, highly valuable and rare talent resources.

The Relationship between Organizational Learning, Technological Innovation, and Organizational Innovation Capability – A Case Study of High-tech Enterprises in the Guangdong Hong Kong Macao Bay Area

This quantitative research objective is to focus on the core advantages of high-tech enterprises’ organizational innovation capability, takes organizational learning and technological innovation as the driving factors, and focuses on the two dimensions of organizational innovation capability: organizational technological innovation and organizational management innovation, and takes organizational innovation capability as the dependent variable, the independent variables are organizational learning (commitment to learning , shared vision, shared knowledge) and technological innovation (technological innovation input, technological innovation intermediate output), and the intermediary variables are cross-boundary behaviors (ambassador activity, task coordinator activity, scout activity). The reliability and validity of the developed organizational innovation ability improvement scale were verified. According to the proposed assumptions, design and improve the measurement scale of organizational innovation capability improvement and related variables, and use correlation analysis, regression analysis, and structural equation as the main methods of data validation to detect and measure the measurement scale of each concept and test the research assumptions involved in the research model. Secondly, this study mainly studies the relationship between organizational learning, technological innovation, and organizational innovation capability of high-tech enterprises. The hypopaper of the relationship between organizational learning, technological innovation, cross-boundary behavior, and organizational innovation capability of high-tech enterprises is put forward. Build a scientific model of the influence mechanism of “organizational learning technological innovation – cross-boundary behavior – organizational innovation capability”, and empirically test and measure the theoretical model and hypopaper by constructing an equation model and theoretical research methods. The results of this study prove that organizational learning and technological innovation have a positive impact on organizational innovation capability, while cross-boundary behavior plays a mediating role in organizational learning and technological innovation on organizational innovation capability.

ARE WE CAPABLE ENOUGH TO INNOVATE?: A CASE STUDY OF HS TECH SDN. BHD

Innovation is at the heart of company activity, based on the continuous technological development of products and services. However, a few only consistently measure their innovation capabilities to ensure sustainability in competitiveness. Through a single case study, an innovation fitness assessment was used to evaluate the innovation capabilities, and interviews has been conducted to determine how they further manage their innovation. The themes that emerged were quality assurance, culture and climate, structures and systems, organizational intelligence, harnessing the competence base, and research and development. In general, all scores of the innovation assessment are over average, except for processes. Areas of improvement should be more focused on the innovation process. It is recommended for companies that are engaged in the innovation management process, and the importance of conducting their innovation fitness. Focusing on these 6 dimensions of innovation capability will increase their competitiveness.

Degree of Standardization and Innovation Capability Dimensions as Driving Forces for Innovation Performance

Purpose: In 2019, the International Organization for Standardization (ISO) published the first international Management Standard (MS) for innovation management, the ISO 56002:2019, following previous successful MS as ISO 9001 and ISO 14001. Within this framework, this paper discusses the relationship between the implementation of MS and the Innovation capabilities (IC) and Innovation Performance (IP) the company. In other words, the article analyses whether the greater degree of standardization (DS) in firms, combined with some IC dimensions, positively influence the IP of firms. Methodology/Approach: As the number of ISO 56002 implementations is still not very high and it is not certifiable yet, a survey has been carried out considering the spanish certifiable homologue standard UNE 166002 combined with other ISO standards such as ISO 9001, ISO 14001, ISO-TS 16949, OHSAS 18001 and/or others. The suvey has been responded by 73 certified companies; and a further fuzzy set Qualitative Analysis (fsQCA) has been performed. Findings: The paper confirms that at least three main dimensions of IC influence positively the IP, namely: strategy, market, and structure and network. It is also confirmed that the DS is clearly a positive contributor to a higher IP. Research Limitation/Implication: The data are gathered in only one specific country, although it is one of the few that had national certifiable standards specifically developed for innovation management. Originality/Value of paper: The main value of the article is to be one of the first ones to analyse, in any way, the impact of the degree of standardization (including or not the innovation MS as for instance the ISO 56002 or the UNE 166002) on the IC and IP of the company.

Managerial and Worker Human Capital, Firm Innovation Capability, and Performance of Russian SMEs

This study aims to examine the mediating role of firm innovation capabilities as a strategic choice for Russian small and medium-sized enterprises (SMEs), which translates their entrepreneurial talent stocks into enhanced firm performance. The results of a survey conducted on 366 CEOs and business founders indicate that innovation capabilities are the intermediate variable between firm human capital and SME performance. Further parallel mediation regression analysis demonstrates that human capital is positively and significantly related to all innovation capability dimensions (client-, marketing-, and technology-focused); however, the mediation effect is significant only in the case of client-focused innovation capability – SMEs’ ability to provide clients with services that offer unique benefits, solve clients’ problems in innovative ways, and seek out novel ways to tackle problems. These findings suggest that SMEs operating in turbulent transition economy environments can be more innovative and achieve the best performance using intangible, highly valuable and rare talent resources.

Impact of Energy Enterprise Exports on Technological Innovation: PSM Analysis Based on Chinese Industrial Enterprise Database

Export is an important way to promote the innovation and growth of energy enterprises by learning new knowledge and technology. To explore the impact mechanism of energy enterprises’ export behaviour on technological innovation, this article uses the micro data of 8,548 energy enterprises in the Chinese Industrial Enterprise Database from 2004 to 2007 for propensity score matching analysis, from the two dimensions of technological innovation willingness and technological innovation capability. The empirical results show that (a) the export behaviour of energy enterprises has a significant promotion effect on the technological innovation willingness and capability of energy enterprises; export behaviour has a continuous promotion effect on the technological innovation willingness of energy enterprises, and this promotion effect has gradually increased. There is a time lag in the promotion effect of export behaviour on the technological innovation capability of energy enterprises, and this promotion effect is gradually increasing. (b) Compared with non-state-owned energy enterprises, export behaviours have a more immediate effect on the technological innovation willingness of state-owned energy enterprises; compared with small and medium-sized energy enterprises, export behaviours have a more positive impact on the technological innovation willingness and capabilities of large energy enterprises.

Fostering product and process innovation through transformational leadership and knowledge management capability: the moderating role of innovation culture

PurposeDue to the vital role of innovation for firms to respond effectively to the rapid changes of business environment, the purpose of this study is to explore the influence of transformational leadership (TL) on innovation capability of firms via mediating role of knowledge management capability (KMC). It attempts to deepen insight on the moderating mechanism of innovation culture (IC) in enhancing the effects of KMC on two specific aspects of innovation capability namely product and process innovation.Design/methodology/approachThe paper utilized structural equation modeling (SEM) and cross-sectional design to test hypotheses in the proposed research model using data collected from 339 participants in 75 manufacturing and service firms in China.FindingsThe findings indicate that TL directly or indirectly affect firm's innovation via mediating role of KMC. The findings highlight that influences of KMC on aspects of innovation capability are different and depended on the degree of innovative climate in an organization.Research limitations/implicationsFuture research should examine the mediating mechanisms of knowledge acquisition, knowledge sharing and knowledge application to provide deeper insight on specific roles of knowledge management's constituents in linking TL and innovation capability.Originality/valueThis study contributes to bridging research gaps in the literature and advancing the insights of how TL directly and indirectly fosters product and process innovation via mediating roles of KMC. By investigating moderating role of IC, this study has provided the valuable initiatives and integration view of a new mechanism to foster specific dimensions of innovation capability of firms in developing and emerging market.

What Shapes Innovation Capability in Micro-Enterprises? New-to-the-Market Product and Process Perspective

Innovation is an essential driver of companies’ growth and is important in securing and sustaining their competitive advantage and in the implementation of their entire strategies. In this process, a special role is played by companies’ capabilities, especially those related to innovation capability (IC). Despite many years of research into identifying the factors that influence IC, there are still many research gaps. One such concerns the IC of micro-enterprises. Only a few studies indicate certain factors that may affect micro-enterprise ICs. Thus, this article aims to analyse the determinants of micro-enterprises’ ICs from the perspective of implementing new-to-the-market product and process innovations. The theoretical framework adopted distinguishes between three groups of factors affecting micro-enterprise IC: personal, organizational and external environmental characteristics. The data examined come from an empirical study of a randomly selected representative sample of 1105 Polish micro-enterprises. To analyse these data, a logistic regression model was used. The results indicate that seven factors are common and significant determinants that explain the new-to-the-market product and process dimensions of micro-enterprise IC. Among them, the following have the greatest influence: engagement in initiatives for solving social problems, intensive cooperation with research centers, experience/skills and financial support.

Innovation Capacity Index Assessment of Natural Rubber Latex Based Industry: Comparative Study of Indonesia and Malaysia and Its Implications on the Development of The Industry

The purpose of this study is to compare the natural rubber latex-based industry innovation capacities of two natural rubber producing countries namely Malaysia and Indonesia, and its implications for the improvement of the industry. Using purposive sampling method with the natural rubber industry experts from both countries as the respondents. This study was conducted through several stages, including: 1) determining attributes for each innovation capability dimensions: organization, process, service, product and marketing. These attributes are based on literature review and validated by experts, 2) distribution of questionnaires to experts in Indonesia and Malaysia, 3) Analysis of the innovation capacity index using multidimensional scaling. The Indonesia innovation capacity index is 60.22, while it is 78.80 for Malaysia. This shows that overall, in terms of its ability to innovate the industry in Indonesia is still lagging behind Malaysia. In addition, all attributes for each capability: organizational, processes, services, product/product development and marketing innovation capability, Indonesia is also still lagging behind Malaysia. It only compares the two natural rubber producing countries, namely Indonesia and Malaysia. The implication for Indonesia is the need of government's political commitment, legal direction for innovation, legal certainty, strong institutions, institutional restructuring to facilitate coordination, improvement the quality of human resources and ease of financial access. The research contributes in finding 25 attributes of innovation capabilities. Further, this study also maps the comparative capabilities of Malaysian and Indonesian innovations for each latex-based natural rubber industry innovation capability dimension, and the steps to improve the innovation progress, specifically for Indonesia in order to catch up. Keywords: Innovation capacity, capacity index, Latex based industry, Multi-dimensional scaling and rubber latex DOI: 10.7176/EJBM/12-11-05 Publication date: April 30 th 2020

Organization and product design pairings: A review of product innovation capabilities, conceptualization, and future directions

AbstractProduct innovation capabilities significantly shape and determine the success of architectural pairings between organization design and product designs, and act as a source of sustainable competitive advantage. This article draws on the resource‐based view of firms and market orientation theory to present a complementary view of the influence of product innovation capabilities on organization and product design pairings. Three complementary factors; market orientation, organizational form, and managerial strategic decisions, act as essential determinants for emergence of architectural pairings, by accounting for pairing selection processes, customer benefits, cost reduction and product development, and consequently superior organizational performance. We identify scope for future research to evaluate measures and validity of product innovation capability dimensions, and the extent of influence of the identified factors on architectural pairings.

Determining the dimensions of the innovation ability in logistics sector by using plithogenic-critic method: An application in Sakarya Province

Today's changing and developing level of competition and power, continuous learning, knowledge and technology management, transformation in the production process, market-oriented-based innovation and knowledge as communication applications, companies are routed to make more resources and research about the ability of innovation. The innovation factor has enabled new processes, products, ideas to adapt successfully for the production and market structure, and correspondingly implementation of them. In this point of view, innovation ability is the integration of new information resulting in product and process innovation by activating the power that a company provides to its employees. This ability has referred to the information between internal knowledge and external market demands. Accordingly, the factors affecting the innovation capability dimensions have a vital importance for companies. The fact that there exist limited number of studies on the weighting of the factors affecting the dimensions of innovation ability in the comprehensive literature review, is another factor increasing the importance of the subject. In this study, the innovation ability dimensions have been weighted in corporate logistics companies in Sakarya. Plithogenic set based CRITIC method, which is one of the multi criteria decision making techniques, has been used. The most important factor in the study was determined to be ability of accessing information resources.

Organizational Innovation Factors, Capabilities and Organizational Performance in Automotive Industry

The purpose of this study is to investigate the effects of external and internal innovation factors on organizational performance directly and through innovation capability in Iranian auto parts industries. This research used the quantitative research method and used the survey technique to gather data from 275 Iranian auto part manufacturing companies. The collected data was analysed using the structural equation modelling (SEM) based on Partial Least Squares (PLS) technique. The empirical results showed that the inclusion of organisational innovative capability has a profound effect on organisational performance of the selected Iranian auto parts companies. The findings have several theoretical and practical implications. The use of the resource-based theory for the Iranian manufacturing context is relevant and can be enhanced with different dimensions of innovation capability. In practical sense, Iranian auto part manufacturing organization should engage more in enhancing their innovation capability which will in turn magnify the role and effect of external and internal organizational factors.

An audit of innovation drivers: some empirical findings in Greek agri-food firms

PurposeThe purpose of this paper is to develop a conceptual model and examine the relevance of a set of five dynamic drivers to building and sustaining the innovation capability of agri-food firms.Design/methodology/approachThe empirical data were acquired through a recent study of 436 Greek agri-food firms. Regression analysis was employed to examine the correlation between innovation drivers and each of the four innovation capability dimensions, namely, product innovation, process innovation, organizational innovation and marketing innovation.FindingsThe findings verify that quality orientation and process management are the two most important innovation drivers. However, the impact of learning orientation, collaborations and environmental dynamism on a firm’s agri-food innovation capability is yet to be investigated.Research limitations/implicationsThis study has not investigated how firms’ characteristics form the drivers and barriers to innovation at the company. Moreover, a second limitation is related to the kind of innovation that drivers boost. This research does not separate between radical and incremental innovation.Practical implicationsIn order to maintain their sustainable development and enhance their whole innovation capability, agri-food firms should closely relate their innovation capability dimensions to the formulation of a strategy and harmonization of innovation and innovation drivers’ activities.Originality/valueThe main contribution of this paper is that it develops an appropriate research framework (a proposed structural model) for examining the links among the five innovation drivers with each of the four innovation capability dimensions.

Innovation capability in medical sciences universities: A qualitative study of Iran.

BACKGROUND:Innovation is a competitive advantage, with its preservation and continuity dependent on the organizational innovation capability. This study was conducted with the aim of determining the innovation capability dimensions and components in medical sciences universities of Iran.METHODS:The present study is a qualitative study with content analysis approach, undertaken in 2016–2017. The data processing included 10 deep interviews with the experts of the health innovation domain in top management of the three types of the medicine sciences universities of Iran with >5 years of experience. Targeted data sampling was performed using snowball method and continued until the saturation of the data. Data analysis was performed using conventional content analysis method using Maxqda 12 software.RESULTS:Data analysis resulted in the extraction of 28 categories and 8 main themes including communications and interactions, innovation climate, university setting, policy factors (policy-making, rules and regulations), organizational culture, organizational resources, management and leadership, and organizational learning in two university internal and external dimensions.CONCLUSION:To accelerate innovation in medical sciences universities, recognizing the potential of innovation capability is essential.

How collaborative innovation networks affect new product performance: Product innovation capability, process innovation capability, and absorptive capacity

The current literature has investigated the direct relationship between collaborative innovation networks and new product performance, but the results are inconsistent. This research aims to explore the role of product and process innovation capabilities as two distinct mechanisms through which collaborative innovation networks improve new product performance. The study also examines the contingent effects of absorptive capacity on the relationship between collaborative innovation networks and the two innovation capability dimensions (i.e. product and process innovation). Survey data from 258 respondents from the Iranian high and medium technology manufacturing industries indicates the need for caution when developing collaborative innovation networks. We found that the effects of collaborative innovation networks on either product or process innovation capability are significant only in the presence of absorptive capacity. This finding suggests that the level of collaboration with different partners can enhance firms' innovation capabilities only if the focal firm's managers have developed the capacity to scan and acquire external knowledge. Our analyses further indicate that in the presence of absorptive capacity, only collaboration with research organizations and competitors have a positive effect on product innovation capability. In the case of process innovation capability, collaboration with research organizations and suppliers are the most important factors.

Knowledge Creation Process and Sustainable Competitive Advantage: the Role of Technological Innovation Capabilities

This study examines the relationship between the knowledge creation process and technological innovation capabilities, and analyzes their effect on a firm’s sustainable competitive advantage using a knowledge-based view theoretical framework. We conduct structural equation modeling analyses using survey data from 315 Chinese industrial firms to test the direct and indirect effects of the knowledge creation process on sustainable competitive advantage. Technological innovation capabilities—operationalized to reflect the dimensions of process innovation capability and product innovation capability—are used as the mediating variable for explaining the relationship between the knowledge creation process and sustainable competitive advantage. The results indicate that the knowledge creation process does not have a significant direct effect on sustainable competitive advantage. Rather, the knowledge creation process can only influence the sustainable competitive advantage through the mediating effect of technological innovation capabilities completely. Consequently, the knowledge creation process favors the development of technological innovation capabilities for processes and products, because processes and products can lead to a sustainable competitive advantage.