Enhance Innovation Capability Research Articles

Impact of Enterprise Innovation Capability on Mergers and Acquisitions Performance

Corporate mergers and acquisitions are beneficial for enhancing competitiveness, promoting industrial upgrading, and expanding market share. Since the 18th National Congress of the Communist Party of China, the country has attached great importance to innovation and focused on promoting innovation, placing it at the core of strategic deployment. It can be seen that enhancing innovation capability is particularly important for enterprises. Based on this background, analyzing the relationship between corporate innovation capability and merger and acquisition performance has important academic research significance. This article selects the corporate mergers and acquisitions events of listed companies from 2015 to 2019 as the research object, and empirically tests the impact of corporate innovation capability on corporate merger and acquisition performance through regression analysis. The empirical results show that: (1) the innovation capability of enterprises has a positive promoting effect on the performance of corporate mergers and acquisitions; (2) Both manufacturing and non manufacturing enterprises show a significant positive correlation between their innovation capabilities and M&A performance; (3) There is a significant positive correlation between the innovation capability of enterprises that do not involve major asset restructuring and their M&A performance; (4) Geographical regions can affect the relationship between a company's innovation capability and its merger and acquisition performance.

Applying the analytic hierarchy process for investigating key indicators of responsible innovation in the Taiwan software service industry

This study explores the critical factors of responsible innovation in the Taiwan software service industry. Based on a literature review, four main dimensions have been identified as the key factors, namely, financial capital, capabilities, social capital, and reputational assets. A hierarchical structure is constructed using these factors, and the Analytic Hierarchy Process (AHP) method is used to confirm the importance of factor weights. Questionnaires were distributed to various software companies and respondents from 35 companies. Analysis results indicate that reputational assets are highly valued, followed by social capital. The software server industry prioritizes these two indicators for responsible innovation development. Results highlight the importance of responsible innovation, assisting companies in understanding its significance and formulating strategies to enhance innovation capabilities, corporate governance, and alignment with environment and market trends. This study contributes to the evolving field of innovation management and offers valuable references for software service companies.

Exploring complexities of innovation capability in Vietnam’s IT firms: Insights from an integrated MCDM model-based grey theory

This study addresses the complexities of fostering innovative behavior in Vietnam’s IT firms, a critical aspect of maintaining competitive advantage in the rapidly evolving IT sector. Using an integrated Grey theory incorporating Delphi and Decision-Making Trial and Evaluation Laboratory (DEMATEL) methods, we explore the interdependencies among critical factors driving innovation within organizational contexts. The research draws on a comprehensive literature review and insights from 16 Vietnamese experts, identifying 21 critical factors across five dimensions: leadership and vision, culture and environment, learning and development, management and support, and technological resources. Our findings emphasize the paramount importance of visionary leadership and a risk-taking culture in enhancing innovation capability, with technological infrastructure also playing a significant role. Consequently, we recommend that IT companies prioritize visionary leadership and cultivate a culture that embraces risk to bolster innovation ecosystems. Hence, this study contributes significantly to the theoretical discourse on innovation capabilities within IT environments and offers practical recommendations for organizations in emerging markets like Vietnam.

Unlocking Innovation from Within: The Power of Tacit Knowledge and Change Adaptability in Indonesian Internal Organisational Innovation Processes

Abstract Research purpose. The study examines how tacit knowledge sharing affects internal organisational innovation by exploring change adaptability as a mediator. Hence, it tries to fill this gap and further explain the role played by tacit knowledge sharing in the entire knowledge management process. Given the mediating effect of change adaptability, this study aims to provide new insight into effective management and sharing tacit knowledge among organisations to improve their innovation processes. Design / Methodology / Approach. This study adopted a quantitative cross-sectional survey design, with Partial Least Squares Structural Equation Modeling (PLS-SEM) as the main statistical technique. Such a method is best applied in this research, where one confirms hypotheses and the relationship between observed and latent variables. The samples were selected based on judgmental non-probability and purposive sampling approaches. The SEM was used in data analysis. It contributed to understanding the relationship of the variables, such as sharing tacit knowledge, change adaptability, and internal organisational innovation. Findings. The study proved that tacit knowledge sharing is highly significant in internal organisational innovation, mediated by change adaptability. Direct effect: Tacit knowledge sharing directly affects the organisational ability to adapt to change and internal innovativeness, thus underpinning its basis. Change adaptability mediates the effect of tacit knowledge sharing on internal organisational innovation, which influences innovation outcomes. Path coefficient analysis confirms the positive influence of tacit knowledge sharing on adaptability to change and innovation. Indirect Effects: Empirical examination has proved the significant mediating effect of change adaptability in leveraging tacit knowledge for innovation. These results suggest that the strategic value of tacit knowledge and adaptability, which will drive sustainable innovation within organisations and support their integration within strategic frameworks, is fully justified. Originality / Value / Practical implications. This is a new model used for the first time to suggest novel contributions and usefulness in understanding the relationship among sharing of tacit knowledge, change adaptability, and innovation at the internal level of the organisation. Tacit knowledge sharing, combined with change adaptability, is a model for internal organisational innovation. Therefore, it fills an important gap in the existing literature: the quantification of adaptability in mediating the effect of tacit knowledge on innovation. The results of this study will provide empirical validation of these relationships and further contribute to the knowledge in practice, particularly by emphasising the mediating role of change adaptability, which has been relatively underexplored. Practically, tacit knowledge sharing within adaptive organisational environments is thus an important call towards effective adaptation to change. The level of enhancement of these dimensions as core competencies through strategies could make a difference in the success of businesses. The importance of adaptability has to be emphasised by training programs and management practices that would provide the same skills. Other important avenues include those that work towards cultivating supportive organisational cultures that would facilitate tacit knowledge exchange, support employee interaction and informal knowledge exchange, and measures to reward innovation efforts. Investment in human resources practices that encourage learning and adaptability will continue to encourage knowledge sharing and innovation, including improving training programs, offering mentorship opportunities, and developing performance management systems that support and reward behaviours around innovation. This study contributes to the literature with a developed framework and empirical examination of the interrelations between tacit knowledge sharing, change adaptability, and innovation. It provides practical strategies that can be of value to the organisation in enhancing innovation capabilities through knowledge management.

Impact of Knowledge Management Strategies on Innovation Performance in Small and Medium Enterprises (SMEs) in Rwanda

Purpose: The aim of the study was to assess the impact of knowledge management strategies on innovation performance in small and medium enterprises (SMEs) in Rwanda. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The study indicate that effective knowledge management practices within SMEs positively influence innovation performance, leading to enhanced competitiveness and sustainable growth. Implementing knowledge management strategies such as knowledge sharing, creation, and utilization facilitates idea generation, problem-solving, and product/service development. Furthermore, fostering a knowledge-sharing culture among employees promotes collaboration, learning, and creativity, thus fueling innovation within SMEs. Additionally, leveraging technology platforms and tools for knowledge management facilitates seamless information exchange, retrieval, and utilization, further enhancing innovation capabilities. Implications to Theory, Practice and Policy: Resource-based view, social capital theory and dynamic capabilities theory may be used to anchor future studies on assessing the impact of knowledge management strategies on innovation performance in small and medium enterprises (SMEs) in Rwanda. SMEs should prioritize investments in knowledge management initiatives aimed at fostering a culture of innovation, collaboration, and continuous learning within the organization. Policymakers should develop supportive frameworks and incentives to encourage SMEs to invest in knowledge management initiatives.

Corporate governance, technological innovation, and corporate performance: Evidence from China

Corporate governance plays an important role in achieving high-quality economic development and sustainable corporate development. In recent years, as listed companies face increasing challenges in social responsibility issues such as environmental pollution and financial fraud, corporate governance has received widespread attention from academics and practitioners. In particular, technological innovation has attracted much attention to the development of enterprises. This paper also explores the intermediary mechanism of technological innovation based on the output measurement method of technological innovation. This study selected data from companies listed on the A-share main board of the Shanghai and Shenzhen Stock Exchanges in China from 2012 to 2022, aiming to explore the relationship between corporate governance and corporate performance. At the same time, we further analyzed the impact of corporate governance on corporate performance based on the mediating role of technological innovation. The research results show that equity balance degree, board size, and executive incentives all have a positive impact on corporate performance. Technological innovation has a certain mediating effect on independent variables (equity balance degree, board size, and executive incentives) and corporate performance. This study clarifies the controversy about the relationship between corporate governance and corporate performance and deepens the understanding of this relationship. It also provides empirical support for listed companies to pay attention to and improve corporate governance levels and enhance innovation capabilities. By exploring the interplay between governance mechanisms, innovation processes, and performance outcomes, researchers can gain a deeper understanding of how organizations can leverage governance practices to drive innovation-led growth and sustainable success.

Enterprise Internationalization and Enterprise Innovation Performance: The Regulating Effect of Equity Incentive

Against the backdrop of globalization in today's era, Chinese enterprises are experiencing a flourishing trend of internationalization. With the rise of the Chinese economy and the continuous advancement of reform and opening up, an increasing number of Chinese enterprises are actively integrating into the global market, seeking the resources needed for their own development on a global scale, enhancing innovation capabilities, and striving to improve their position and influence in the global value chain. This article takes 647 manufacturing enterprises as the research objects, subdivides the measurement of internationalization into depth and breadth, quantitatively explores the impact of the depth and breadth of enterprise internationalization on innovation performance, and investigates the moderating effect of equity incentives. The results show that: the depth of internationalization significantly promotes innovation performance of enterprises, and equity incentives positively moderate the relationship between them; the breadth of internationalization significantly promotes innovation performance of enterprises, and equity incentives positively moderate the relationship between them.

Challenges and Solutions in the Digital Transformation of "Specialized, Refined, Unique, and New" Small and Medium Enterprises

Against the backdrop of the Digital China initiative, exploring how "Specialized, Refined, Unique, and New" (SRUN) enterprises can effectively undergo digital transformation to enhance innovation capabilities is a crucial and urgent topic. For these enterprises, accelerating digital transformation is key to addressing contemporary challenges, improving efficiency, reducing costs, showcasing unique advantages, and leading the trend of intelligent manufacturing. Throughout the transformation process, these enterprises face multiple dilemmas and challenges: despite a strong willingness to transform, they lack corresponding capabilities; infrastructure is improving, but the technological environment is not yet ideal; willingness to collaborate is increasing, but effective synergy is lacking; policy support is growing, but needs to be more precise. In order to better promote the digital transformation of SRUN enterprises, appropriate strategies must be adopted to address these challenges. This includes enhancing awareness and strengthening talent development, improving infrastructure, optimizing the transformation environment, fostering a favorable digital ecosystem, enhancing collaborative cooperation, and optimizing institutional design to elevate service standards. These measures collectively provide a pathway for SRUN enterprises to drive digital transformation.

Strategic Human Resource Management Practices and Organizational Innovation: Evidence from Small and Medium Enterprises in India

Purpose: The aim of the study was to investigate the strategic human resource management practices and organizational innovation: evidence from small and medium enterprises in India. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: Research on SHRM practices and organizational innovation in Indian SMEs indicates a positive relationship between SHRM adoption and innovation outcomes. Training initiatives are particularly vital, enhancing innovation capabilities by building human capital. Additionally, fostering a supportive organizational culture promotes creativity and experimentation. Aligning HRM strategies with organizational goals and promoting continuous learning further enhances innovation performance. Overall, SHRM practices play a critical role in driving innovation and competitive advantage in Indian SMEs (Agarwal & Yadav, 2018). Unique Contribution to Theory, Practice and Policy: Resource-based view (RBV) theory, social exchange theory & dynamic capabilities theory may be used to anchor future studies on the strategic human resource management practices and organizational innovation: evidence from small and medium enterprises in India. Develop tailored HRM training programs for SMEs in India, focusing on building capabilities related to creativity, problem-solving, and innovation among employees. Advocate for government policies that promote investment in human capital development and innovation capabilities among SMEs.

Analysis of Business Strategy, Market Orientation and Innovation Capability On Competitive Advantage Through PT Abc's Firm Performance

Companies today are increasingly recognizing the importance of adopting business and innovation strategies to stay competitive in an ever-changing marketplace. This study aims to examine the relationship between business strategy, market orientation, innovation capabilities, company performance, and competitive advantage in the context of PT ABC, a construction and public procurement company established in 2018. The research method used is quantitative, with preliminary stages, observation, filling out questionnaires, data collection, data processing, and validity tests. Data is obtained through surveys and analyzed to examine the effect of these variables on the company's competitive advantage. The results showed that business strategy has a positive effect on the company's innovation capabilities and performance. Market orientation also has a positive effect on company performance. However, market orientation does not have a significant effect on innovation capabilities, and innovation capabilities have no effect on competitive advantage. These findings provide important insights for PT ABC and other companies in developing business strategies, strengthening market orientation, and enhancing innovation capabilities to achieve competitive advantage in competitive markets.

The study of supply chain finance on enterprise risk bearing ability

In the context of the continuous development of the digital economy, studying the role of supply chain finance in mitigating supply chain risks and enhancing enterprise risk-bearing capacity is of great significance for promoting sustainable development. This study uses data from 2007 to 2019 as samples to empirically analyze the impact of supply chain finance on enterprise risk-bearing capacity. The research results show that supply chain finance plays a positive role in improving enterprise risk-bearing capacity. Mechanism tests reveal that supply chain finance functions through alleviating financing constraints and enhancing innovation capabilities in influencing enterprise risk-bearing. Further exploratory research finds that the influence of supply chain finance on enterprise risk-bearing is more pronounced in state-owned enterprises, while executive incentives do not show significant differences. These findings highlight the important role of supply chain finance in mitigating supply chain risks and enhancing enterprise risk-bearing capacity, providing valuable insights for sustainable development.

Examining the influence of location-oriented policies on green transition development of resource-based cities: evidence from China.

Assessing the impact of transforming resource-based cities (RBCs) through scientific evaluation is a crucial approach to gauge the efficacy of implementation of national locational policies. Drawing upon panel data encompassing 113 RBCs over the period 2006 to 2020, this study employs the difference-in-differences (DID) model to systematically evaluate the impact of location-oriented policies, represented by the "National Resource-Based Economic Transformation Comprehensive Supporting Reform Pilot Zone" (CRPZ), on the trajectory of green transition development (GTD) within RBCs. The results indicate, firstly, that the CRPZ has facilitated the GTD of RBCs, and a series of robustness tests confirm this conclusion, revealing a stimulating effect that evolves from initial suppression to subsequent promotion. Secondly, CRPZ can drive the GTD of RBCs by optimizing industrial structure and enhancing innovation capability, which shows that different marginal utilities are observed in its impact on the GTD of RBCs. Finally, the effectiveness of the CRPZ in promoting the GTD of RBCs is influenced by the degree of resource dependence, with a more pronounced impact on cities with higher levels of resource dependence. The conclusions of this study provide valuable insights for the ongoing evaluation of location-oriented policies and the promotion of GTD in RBCs.

Student Innovation Performance: Underpinning Theories

This study explores the relationship between extracurricular activities and student innovation performance, drawing on various theoretical frameworks and empirical evidence. Through a comprehensive literature review, the study examines the impact of extracurricular activities on students' development of critical thinking, creativity, communication, and collaboration skills—essential components of innovation. The TRIZ innovation theory and social cognitive career theory provide theoretical underpinnings for understanding how participation in extracurricular activities fosters innovation skills among students. Additionally, the study presents a literature review matrix summarizing key findings from previous research on extracurricular activities and their effects on student development. The findings suggest that participation in extracurricular activities significantly enhances students' capacity for innovation by cultivating higher-order thinking skills and providing opportunities for real-world problem-solving. Moreover, the study discusses the implications of extracurricular engagement for students' future career success and organizational innovation. The study concludes with recommendations for future research, emphasizing the need for comparative studies across diverse student populations, in-depth analyses of specific types of extracurricular activities, and exploration of cultural differences in attitudes toward extracurricular involvement. Overall, this study contributes to a better understanding of how extracurricular activities influence student innovation performance and provides insights for educators and policymakers seeking to enhance innovation capabilities among young professionals

Dynamics of labor and capital in AI vs. non-AI industries: A two-industry model analysis.

There is an imbalance in the development of artificial intelligence between industries. Compared to non-AI enterprise, AI- enterprise will save labor, enhance innovation capabilities, and improve production efficiency. By constructing a two-industry model of AI and non-AI enterprise, this paper finds that with the development of artificial intelligence in the same industry, the AI enterprise will occupy a dominant position, attracting labor and capital from the non-AI enterprise into the AI enterprise. In different industries, the development of artificial intelligence improves the production efficiency of the enterprise. However, due to the price effect, non-AI enterprise benefits more. Labor and capital flow from AI enterprise to non-AI enterprise. In order to promote the improvement of production efficiency in the whole society, the government can tax non-AI enterprise and subsidize them to AI enterprise. Taxation promotes the degree of automation and the improvement of production efficiency, but it has only a short-term effect on the development of AI. At the same time, taxation inhibits the development of non-AI enterprise, and there is a high risk of unemployment. When both industries use artificial intelligence for production, the labor share and the capital share of the two industries will tend to the same value. The convergence of technology measures is conducive to increasing labor income share and reducing income inequality, but it is not conducive to innovation.

Vertical expansion in the making: Planning against deindustrialization by promoting “Industry’s Going Upstairs” in Shenzhen

In recent years, industrial metropolises in China have experienced a surge in proactive planning initiatives aimed at developing high-rise industrial structures, commonly known as “Industry’s Going Upstairs (IGU).” This study argues that the IGU represents a distinct form of urban verticality that is neither motivated by capitalist speculation nor sustainability prompts but rather by local states’ intervention to ensure economic resilience and enhance innovation capabilities. This study presents the case of Shenzhen to demonstrate how the adoption of the IGU initiative is catalyzed by concerns over manufacturing sectors’ out-migration and the effects of volatile US-China relations on the city’s competitiveness. In light of these circumstances, Shenzhen has embraced the ambitious IGU initiative as a practical approach to reverse the trend of deindustrialization while sidestepping the lengthy process of industrial land redevelopment. The paper concludes by emphasizing the need for a comprehensive understanding of political-economic factors that drive urban vertical expansion and their potential consequences.

Research and Analysis on the Development Strategy of Investment Banking Business of Commercial Banks in China

Against the backdrop of the growing financial industry, the development of investment banking has become an inevitable trend for commercial banks, and certain results have been achieved so far. However, in recent years, there are some issues regarding the development of investment banking business operations in commercial banks identified in the study, such as insufficient product innovation and insufficient business risk management capability. This paper analyzes the environment using the "PEST" analysis. Finally, the development direction is summarized by sorting out the development status, problems and reasons, enhancing innovation capabilities and borrowing the power of fintech can all provide good ideas for commercial banks to develop their investment banking business. This paper can provide ideas for other commercial banks facing the problem of developing investment banking business.

Exploring The Relationship Between Entrepreneurial Networking, Entrepreneur Leadership, Innovation capability, and MSMEs Performance

This research aims to determine the role of entrepreneurial networks, entrepreneur leadership, on innovation capabilities and MSME performance. The sampling technique used purposive sampling, obtaining a total of 247 samples of MSME owners in the culinary sector in Bojonegoro City. Research data was analyzed using SEM techniques with AMOS software. The research results show that entrepreneurial networking has a positive effect on the innovation ability and performance of MSMEs. Meanwhile, entrepreneurial leadership has no effect on the innovation ability of MSMEs, but has a positive influence on MSME performance. The implications of this research are that the development of entrepreneurial networks can be a crucial factor in enhancing innovation capabilities and performance for Micro, Small, and Medium Enterprises (MSMEs) owners in the culinary sector in Bojonegoro City. Additionally, entrepreneurial leadership also plays a significant role in improving the performance of MSMEs, even though it does not have a direct influence on innovation capability. Therefore, in the effort to enhance the performance of MSMEs in the culinary sector, MSME owners should consider expanding their entrepreneurial networks and strengthening entrepreneurial leadership.

Enhancing Innovation Capabilities: The Role of Market Orientation and Collaboration in Guangdong's IoT Sector

This study investigates the impact of market orientation and collaboration with supply chain members on product innovation performance in Guangdong IoT companies. Empirical analysis reveals that both dominant and reactive market orientations positively influence collaboration with supply chain members and product innovation performance. The study identifies three dimensions of innovation competency—strategic collaboration, research and development collaboration, and marketing collaboration—and highlights their mediating role in the relationship between market orientation and product innovation performance. Moreover, environmental turbulence moderates the impact of market orientation on product innovation performance, emphasizing the importance of aligning market strategies with external conditions. These findings contribute to theoretical understanding and offer practical insights for Guangdong IoT companies to enhance their innovation capabilities and drive product innovation in dynamic market environments.

Entrepreneurial orientation and SME export performance: Unveiling the mediating roles of innovation capability and international networking accessibility in the brass industry

PURPOSE: This paper answered the research gap on entrepreneurial orientation with a sample of small and medium-sized enterprises’ (SMEs) export performance and the mediating role of innovation capability and international networking accessibility that has not been tested in previous research. This study also tested the effect of entrepreneurial orientation on SMEs’ export performance in the global market. The mediating role of international networking accessibility and innovation capability on SMEs’ export performance also became another focus of this study. METHODOLOGY: This paper implemented a quantitative approach with 282 owners or managers of the SMEs brass industry cluster in Boyolali, Indonesia, who were examined using purposive sampling. FINDINGS: The findings of this study revealed that entrepreneurial orientation did not significantly affect SMEs’ export performance but did significantly affect innovation capability and international networking accessibility. Another empirical test found that innovation capability had significantly affected SMEs’ export performance and the international networking accessibility. International networking accessibility also significantly affected the performance of export SMEs. This study also found an important mediating role of international network accessibility and innovation capability in the relationship between entrepreneurial orientation and SMEs’ export performance. IMPLICATIONS: This study contributes to research investigating the effect of entrepreneurial orientation on performance by conducting in-depth studies on innovation capabilities and international networking accessibility. Many studies have tested the mediating role of innovation capability and international networking accessibility. The practical implication of this study is that it can help managers or owners of SMEs better understand and find optimal solutions through enhancing innovation capability and international networking accessibility, which can be instilled in the characteristics of SME owners or managers to improve performance. ORIGINALITY AND VALUE: The results of this study indicate the mediating role of innovation capability and accessibility of international networking on SMEs’ export performance. Therefore, the main contribution of the study is to determine the mediating role of innovation capability and international network accessibility in the relationship between entrepreneurial orientation and performance by integrating the theoretical perspective of the resource-based view (RBV).

Research on the Mechanism and Implementation Path of Enhancing Innovation Capability in Manufacturing Enterprises Based on Human-Machine Collaboration

In today's rapidly evolving business landscape, manufacturing enterprises face the challenge of enhancing their innovation capabilities to remain competitive. This research aims to investigate the mechanism and implementation path of enhancing innovation capability in manufacturing enterprises through human-machine collaboration. By examining the case of Xingyu Co., Ltd., this study explores the effects of human-machine collaboration on production efficiency, cost reduction, product quality improvement, and employee innovation potential. Additionally, it discusses the need for further research to explore the long-term impact of human-machine collaboration on innovation capability, the differences in innovation capability among enterprises of different scales and industries, and the relationship between human-machine collaboration and innovation capability in conjunction with other factors such as organizational culture and management models. The findings suggest that human-machine collaboration significantly enhances innovation capability in manufacturing enterprises, and future research should focus on optimizing implementation strategies to enhance competitiveness and sustainable development capabilities.