Effect Of Innovation Capability Research Articles

Effects of Innovation Capability and Environmental Dynamism on the Relationship between Entrepreneurial Leadership and Innovation Performance in the SMEs Service Industry

Effects of Innovation Capability and Environmental Dynamism on the Relationship between Entrepreneurial Leadership and Innovation Performance in the SMEs Service Industry

Pengaruh Kapabilitas Dinamis Dan Kapabilitas Inovasi Terhadap Keunggulan Kompetitif

This study aims to determine: (1) The effect of dynamic capabilities on competitive advantage case studi UMKM Kabupaten Kolaka. (2) The effect of innovation capability on competitive advantage case studi UMKM Kabupaten Kolaka.(3)the influence of dynamic capabilities on innovation capabilities as a mediating (intervening) variable in case studies UMKM Kabupaten Kolaka. this research is an explanatory research model with a Quantitative approach. Data collection in this study used literature study and questionnaire distribution. The population of this study were all UMKM of Kolaka Regency. While the sample of this study were 55 respondents using purposive sampling technique.. Testing research instruments employed validity and reliability tests by using SPSS 25.0. The data analysis technique used in this study is Structural Equation Modeling (SEM) based on Partial Least Square (PLS) wich measurement model test (outer model) and structural model testing (inner model) with Smart PLS 4.0. Based on the results of the study, it is known that there is a positive and significant influence between the dynamic capabilities variable on competitive advantage Behavior, this is indicated by the P-Value of 0.005. And the innovation capability variable also has a positive and significant effect on competitive advantage, this is indicated by the P-Value of 0.000. And the dynamic capabilities on innovation capability as mediating (intervene) variable also has a positive and significant effect

Effect of innovation capabilities on export performance: evidence from manufacturing SMEs in Tanzania

PurposeThis paper examines the relationship between product innovation (PRODIN), process innovation (PROCIN) and export performance (EXPF) of manufacturing small-and medium-sized enterprises (SMEs). Moreover, the paper investigates the moderating effect of marketing innovation (MAKIN) in the relationship between PRODIN, PROCIN and the SMEs' EXPF.Design/methodology/approachA cross-sectional survey design was used and data were collected through structured questionnaires from 250 manufacturing exporting SMEs in Tanzania. CFA was used to test the measurement model. The hypotheses were empirically tested using PROCESS macro test.FindingsThe findings suggest that PRODIN is a significant determinant of EXPF. However, PROCIN was found to have a significant negative effect on EXPF. Additionally, MAKIN was found to be a significant moderator of the relationship between PRODIN, PROCIN and EXPF.Research limitations/implicationsThis study covered only manufacturing SMEs. Future studies can include large firms because they may behave differently on innovations due to the resources advantage they have. Also, because only a single country context was used, the findings of this study should be interpreted with caution.Practical implicationsManagers of exporting SMEs should develop and cultivate PRODIN and MAKIN to nurture EXPF of their firms.Originality/valueThe findings of this study extend the application of resource-based view theory in exporting context by unpacking the process through which resources result in successful performance. Also, this study contributes to the debate about the innovation–EXPF relationship by establishing a moderating effect of MAKING in the relationship between PRODIN, PROCIN and EXPF.

Effects of innovation capability on radical and incremental innovations and business performance relationships

Effects of innovation capability on radical and incremental innovations and business performance relationships

Value Creation through Frugal Innovation, Innovation Capability and Knowledge Sharing in a Circular Economy

This study aims to examine the direct effect of innovation capability on value creation. The mediating role of frugal innovation and the moderating role of knowledge sharing are also explored between innovation capability and value creation link. This exploratory study uses quantitative and cross-sectional data collected through questionnaires. Structural equation modelling (SEM) was used to examine the hypothesis. Findings show a significant positive impact of innovation capability on value creation. Results proved that frugal innovation mediates the relations between innovation capability and value creation. Knowledge sharing strengthens the association between innovation capability and value creation in their association. Our research provides a framework for the sustainable advancement of SMEs in a circular economy and recommends that they increase the value creation of the products/services through frugal innovation based on the innovation capabilities. Moreover, knowledge-sharing practices speed up the interplay between innovation capability and value creation in the circular economy.

The Impact of Customer Relationship Management on Business Performance : The Mediating Effect of Innovation Capability

The motivation of this research is to assess the relationship existing between Customer Relationship Management (CRM) and Business Performance (BP) alongside the mediating effect of Innovation Capability (IC) as a crucial study in the telecommunication sector in Ghana. The proposed model was blueprinted based on relationship marketing theory, innovation theory, resource-based view theory and related literature of CRM as an independent variable, Business Performance as an independent variable and Innovation Capability as a mediating variable. Data was collected from 579 various departmental heads, branch managers and the permanent staff of six mobile communication companies in Ghana turned out to be analysed by the use of multiple linear regression analysis and Structural Equation Model (SEM). The analysis of the study was enacted by using STATA and AMOS statistical software package to excerpt the results. The results indicated a statistically positive and significant relationship among CRM, innovation capability and business performance. Also, it was found that innovation capability has a significantly positive and partially mediating effect on CRM constructs and business performance.

The Role of Information Technology in the Effect of Innovation Capability on Logistics Service Quality

Purpose –In the current intense competitive environment, companies continuously need to increase their performance and adapt their activities to the developing and changing environment in order to survive. The concepts of quality, technology and innovation are among the most prominent issues in this competitive environment. At this point, information technologies integrated into the business, innovation activities and logistics services that develop along with these activities are important issues that have been recently emphasized. Accordingly, this study aims to reveal the role of information technology use in supply chain innovation and logistics service quality.Design/Methodology/Approach-More than 326 questionnaires were distributed to Turkey's leading logistics companies and companies with logistics departments. The companies operating in logistics sector and the employees working in the logistics departments of companies operating in the production and service sector constitute the sample of the study. 144 valid questionnaires were reached. 80% of the respondents are mid-level and 20% are senior managers. The data obtained by the survey method were analyzed using the structural equation model.Findings –According to the results, it has been determined that information technologies have a mediator effect between innovation capability in the supply chain and logistics service quality.Discussion–Findings obtained at the end of the research are consistent with the other studies in the literature. This research has important managerial implications. The results of this research have revealed the role of information technologies in the efficient use of innovation capacity for companies operating in logistics sector. Information technologies play a key role in the relationship between innovation and logistics service quality.

Innovation Capabilities and the Performance of Start-Ups in Korea: The Role of Government Support Policies

What kind of capacity is needed to improve the performance of start-ups? How effective are government support policies in improving start-up performance? Start-ups are critical firm group for ensuring the prospective and sustainable growth of an economy, and thus many countries’ governments have established support policies and they are likely to engage more widely in forward-looking political support activities to ensure further growth and expansion. In this paper, the effect of innovation capabilities and government support policies on start-up performance is examined. We used an unbalanced panel data analysis with a random effect generalized least squares. We investigated the effect of government support policies on 4368 Korean start-ups. The findings indicated that technology and knowledge capabilities had positive effects on the sales performance of start-ups, and government financial support positively affected the relationship between knowledge capability and firm performance. However, when government financial support increased, marketing capability was negatively associated with firm performance. These results demonstrate the significant role of government financial support, including its crowding in but also its crowding out effect. Practical implications: To be more effective, governments should employ innovation-driven entrepreneurship policy approaches to support start-ups. To improve their performance, start-ups need to increase their technology and knowledge capabilities. This study extends recent efforts to understand more fully the effect of government support policies on start-ups differing in their technology, knowledge, and marketing capabilities.

The effect of innovation capability on business performance: The role of social capital and entrepreneurial leadership on SMEs in Indonesia

The presence of small and medium-sized enterprises (SMEs) in Indonesia will contribute to the movement of the Indonesian economy, so its growth is an essential part that must be considered by the government. The goal of this study was to explore the role of innovative capabilities in improving the performance of Indonesian SMEs. A variable approach to social capital, entrepreneurial leadership, innovation ability and SME efficiency was used in this research. The research included a sample of 352 small and medium-sized enterprises in Pekanbaru, Indonesia, consisting of 19 medium-sized enterprises and 333 small enterprises out of a total population of 2887 small and medium-sized enterprises (the sampling methodology used was chance sampling and simple random sampling methods). The findings show that social capital does not explicitly have a substantial impact on the business performance of SMEs in Pekanbaru, but if it is mediated by creative capacities, social capital indirectly plays a role in improving the performance of SMEs. Entrepreneurial leadership has a big influence on SMEs.

Innovation network characteristics and equipment manufacturing industry upgrading: based on the mediating effect of innovation ability

In order to strengthen the guiding and supporting role of the innovation-driven development strategy, and to promote the structural optimization and efficiency improvement of the equipment manufacturing industry, this paper analyzes the structure, function and characteristics of the regional equipment manufacturing industry innovation network, and proposes a conceptual model and theoretical hypothesis that the innovation network based on the mediating effect of innovation capability affects the upgrade effect of the regional equipment manufacturing industry. Through a questionnaire survey of 219 enterprises in my country’s equipment manufacturing industry and structural equation model verification, it measures the action path and industrial upgrading law of innovation network influencing regional equipment manufacturing industry upgrading.

Key drivers of innovation capability in hotels: implications on performance

Innovation capability is critical for the modernization and competitiveness of the hotel industry. This work analyzes the role of hotels' innovative culture, market orientation, and internal marketing as forerunners of innovation capability in hotels, as well as the effect of innovation capability on hotels' performance. The proposed conceptual model is evaluated through structural equation modeling using a sample of 256 Spanish hotels. The results reveal that innovative culture by itself is not a key driver of the hotels' innovation capability. However, internal marketing and market orientation mediate the innovative culture-innovation capability relationship. Innovation capability proves to enhance hotels' market results directly and indirectly through customer equity. Our findings offer hotel managers useful guidance to understand how innovation capability is built within the firm by combining the right organizational culture and practices. Additionally, our study reinforces the financial and non-financial benefits of innovation capability in hotels.

Multinational investments across Europe: a\xa0multilevel analysis

This research focuses on the investigation of the location determinants of multinational corporations’ investments in EU countries. Investment projects are addressed by making a distinction between greenfield investments and M&A projects. Besides traditional factors (such as market characteristics) the effect of innovation capabilities and the institutional environment are incorporated in the analysis. The use of a multilevel model makes it possible to empirically assess the effect of national and regional characteristics on the location decision of multinationals. The results suggest that greenfield investments and M&A are similar in their location determinants, although the former have a stronger correlation with highly educated populations. Urbanisation, associated with land cost, as well as national (rather than regional) markets are insignificant. Finally, we find no evidence for the importance of political stability within Europe.

The Effect of Innovation Capability on Business Performance: A Focus on IT and Business Service Companies

With the introduction of a wide variety of new technologies during the fourth industrial revolution, companies in Korea have attempted to enhance their innovation activities, which include investment in new technology adoption, technical and non-technical innovation factors, and Research & Development (R&D) activity, to ensure the development and growth of their business performance and sustainability. In particular, IT and business services, two important industries in Korea, have been impacted by the development of new technology and have sought to adopt new technologies as soon as possible to survive in a rapidly changing business environment. The aim of our study is to empirically explore the effect of innovation activities on the performance of Korean IT and business service companies. To achieve this aim, we examine the innovation activities and business performance of 160 companies (80 large companies and 80 small- and medium-sized enterprises (SMEs)) in the IT and business service industries in Korea from 2009 to 2017. This study empirically analyzes panel data using fixed effect and random effect models with Hausman tests. According to our results, an improvement in product innovation has a positive impact on business performance (i.e., revenue and labor productivity) in both large companies and SMEs, as does R&D investment, research resources, and company age. However, an improvement in process innovation only has a positive impact on the business performance of large companies, and R&D cooperation only has a positive impact on the business performance of SMEs. As a result, both large companies and SMEs should concentrate on technological innovations to improve their sustainability and thus ensure their success in the long term.

Enhancing radical innovation: the interplays of open innovation activities, firm capabilities, and environmental dynamism

ABSTRACTThis study investigates two types of firm capabilities (network and innovation) that could enhance the effects of open innovation activities (inbound and outbound) on radical innovation with the consideration of environmental dynamism. Based on a cross-industry survey of 201 Asian firms, we find that the effectiveness of firm capabilities and open innovation activities is contingent on the level of environmental dynamism. Specifically, when the level of environmental dynamism increases, inbound activities, network capabilities, and innovation capabilities are able to enhance radical innovation. In addition, the level of environmental dynamism moderates the effect of network capabilities on both inbound and outbound activities in creating radical innovation, but not so with the effect of innovation capabilities. Overall, this study contributes to the open innovation literature by shedding light on important complementarities between inbound/outbound activities and specific types of firm-enabled capabilities (network and innovation) under conditions of environmental dynamism.

Innovation Capability and Customer Relationship Management in Building Competent Young Entrepreneurs

Objective - The study aims to learn effect ofInnovation Capability and Customer Relationship Management on young entrepreneur's competency. Methodology/Technique - Questionnaire used for the data collection in this study. The sampling method is probability sampling with simple random sampling technique. The population is all the Marketing students' year 2012, and the calculated sampling is 100 respondents Findings - From the analysis and explanation using SEM, it is found that Innovation Capability and CRM have a big influence towards young entrepreneurs. Those variables also stimulate them to sharpen their business intuition. Novelty - The study proves importance of Innovation Capability and CRM on development of entrepreneurs. Type of Paper: Empirical Keywords: Innovation Capability; CRM;Young Entrepreneurs; Structural Equation Modelling; SEM. JEL Classification: L26, O32.

Assessing the Factors Influencing Service Innovation Capabilities and Performance

Innovation has been recognized as a central source of business growth and a key determinant of competitive advantage for many organizations. This paper seeks to address two main objectives. The first objective is to examine the direct effect of organizational structure (i.e. centralization and formalization), transformational leadership, organizational learning and customer orientation on innovation capabilities. The second objective is to examine the effect of innovation capability and organizational performance. Findings show that customer orientation, organizational learning, and transformation leadership had significant positive effects on innovation capability. The results further show that innovation capability had a significant impact on organizational performance.

Research on the Relationship of Innovation Capability and Operating Performance Based on Moderation of Openness

In current research on open innovation, the impact of innovative openness on the effect of innovation capability on corporate operating performance has been ignored. This paper uses hierarchical linear regression model with financial data of 137 listed enterprises in Chinese Stock Exchanges to study the moderate effect of openness on relationship of innovation capability and operating performance. The result shows that the internal innovation capability and absorption capability can significantly affect the operating performance, but the effect of technology acquisition and diffusion capability is remarkable only under the moderation of openness. Meanwhile, innovative openness negatively impacts the effect of internal innovation capability on the operating performance, and positively impacts the effect of absorptive ability. Finally, this paper provides some suggestions for helping enterprise’s implementation of open innovation strategy based on their own capabilities.

The role of TQM in strategic product innovation: an empirical assessment

Purpose– The purpose of this paper is to study the effect of total quality management (TQM) resources on strategic product innovation. It addresses the apparent tension between quality management and innovation management and seeks empirical support for the proposition that quality management resources can be used to support strategic innovation. Based on resource-based view, it defines key resources that firms develop during implementation of TQM systems: TQM culture, product design capability, and process improvement capability – and assesses the role of these resources in the success of product innovation.Design/methodology/approach– A survey of 112 manufacturing firms was conducted and the resulting data were analyzed using partial least squares (PLS) to determine how TQM constructs affect strategic product innovation.Findings– The main finding suggests that only product design capability contributes to strategic product innovation. TQM culture has a direct influence on process improvement and product design capabilities but not on product innovation. The effect of innovation capability and innovation orientation on product innovation was only supported for innovation capability. The effect of innovation orientation is mediated by the development of innovation capability.Research limitations/implications– The paper focusses on the level of maturity of capability development without taking into consideration the time since adoption. Also, the measure of product innovation is based on the degree of product newness but does not dichotomize in terms of radical vs incremental. Several arguments supporting a negative relationship between TQM and innovation often refer to radical or breakthrough innovation. It would be interesting to test the model while distinguishing between radical and incremental innovation. The use of cross-sectional data is a methodological limitation.Practical implications– The results suggest that managers can leverage their quality management systems to support product innovation. In particular, the ability to design quality into products leads to higher levels of strategic production innovation. The successful deployment of TQM capabilities requires an integrative and well-structured approach, involving top leadership engagement of employees and customer orientation. While TQM culture is critical to the development of quality management capabilities, it does not directly affect the innovativeness of a firm.Originality/value– The paper explores the relationship between quality management systems and strategic product innovation. Further work is needed to test whether TQM effect on strategic innovation is different for radical and incremental products, and for other innovation outcomes such as process and service innovation.

Knowledge Sharing Process, Innovation Capability and Innovation Performance: An Empirical Study

The knowledge sharing and innovation have been subject to many studies in the literature. The knowledge sharing and innovation are two important and interrelated subjects that need to be further explored to understand their dynamics and implications. Knowledge sharing has implication for innovation capability and innovation performance of the firms. Innovation capability also affects innovation performance of the firms.This study focuses on the knowledge sharing process and its impact on innovation capability and innovation performance of the firms. The research model along with hypotheses are developed from the literature and tested based on the data collected through a survey on companies in Kahramanmaras. The obtained data from the questionnaires are analyzed through Smart PLS 2.0 program. The results from the study partially confirm hypothesized the influence of knowledge sharing process on innovation capability of the firms. The effect of innovation capability on innovation performance constitutes another finding of this study. However, the hypothesized the influence of knowledge sharing process on innovation performance was not realized. Theoretical and practical implications of the study were discussed in the conclusion part of the study.

Assessing the moderating effect of innovation capability on the relationship between logistics service capability and firm performance for ocean freight forwarders

This study examines the moderating effect of innovation capability on the relationship between logistics service capability and firm performance for ocean freight forwarders. Four critical logistics service capabilities were identified based on factor analysis: logistics service reliability capability, logistics value-added service capability, flexibility capability, and logistics information service capability. Multiple regression analysis was subsequently employed to examine the main effects of innovation capability and logistics service capability on firm performance in terms of customer service and financial performance. Results showed that innovation capability, logistics service reliability capability, and flexibility capability had significant positive effects on firm performance. Finally, multiple moderated regression was utilised to examine the moderating effect of innovation capability on the relationship between logistics service capability and firm performance. The results indicated that innovation capability positively moderates the effect of logistics service reliability capability on financial performance as well as the effect of flexibility capability on financial performance.