Enhance Innovation Capability Research Articles

Mechanism Analysis and Path Study of Digital Transformation on Corporate Governance: Evidence from Chinese Listed Companies

Corporate digital transformation, primarily driven by data and leveraging digital technologies and mathematical algorithms such as Internet+, big data, cloud computing, artificial intelligence, and blockchain, is a crucial enabler of sustainable development. This transformation integrates various aspects of corporate production and operations, enhancing the level of digital operations and ultimately contributing to high-quality and sustainable development. This paper, based on data from listed companies in China’s A-shares from 2007 to 2021, theoretically articulates the intrinsic mechanism between corporate digital transformation and corporate governance level, with a focus on sustainability. It empirically finds that a higher degree of digital transformation correlates with an improved level of corporate governance, fostering sustainable practices. Further investigation reveals that digital transformation elevates corporate governance by enhancing innovation capabilities, reducing information asymmetry, and promoting sustainable strategies. This paper provides policy insights for promoting corporate digital transformation as a means to achieve sustainability goals and optimizing management’s corporate governance level for long-term sustainable success.

Unplanned managerial work: crucial support for knowledge creation in manufacturing SMEs

Knowledge capability and innovation performance are essential drivers of organizational success, with managerial work playing a crucial role in fostering these factors. This paper examines planned and unplanned managerial work from a knowledge creation perspective, analyzing 21 short interviews and 21 days of shadowing seven leaders, alongside interactive analyses with management teams in four manufacturing SMEs. A four-step analysis of 2125 activities revealed four categories of managerial work, with unplanned activities accounting for 52% of work time, highlighting the complexity and ad-hoc nature of managerial work. Internally initiated unplanned managerial work was crucial for tacit knowledge conversion. If policymakers want to support lifelong learning initiatives and strengthen innovation capabilities in manufacturing SMEs, they need to encourage the unplanned aspect of managerial work, as it is crucial for knowledge creation, fostering the evolutionary aspect of organizational learning and enhancing innovation capabilities.

How knowledge-based HRM practices affects aspects of innovation capability through knowledge management: the moderating role of innovative culture

Purpose Given the important of knowledge resource and human capital for improving innovation competence, the purpose of this study is to examine the influence of knowledge-based HRM practices on product and process innovation of firms via the mediating role of knowledge management capability and moderating role of innovative culture. Design/methodology/approach The paper used structural equation modeling and empirical data collected from 271 participants in 156 manufacturing and service firms to examine the level of how knowledge-based HRM practices and knowledge management affect product and process innovation under the moderating role of innovative culture. Findings The research findings confirm the mediating roles of knowledge management between knowledge-based HRM practices and two specific types of innovation namely product and process innovation. It also firstly reveals the positive moderating role of innovative culture in enhancing the effects of knowledge management on product innovation. The results underline the necessity of building an innovative climate and knowledge-based HRM practices to stimulate knowledge management for improving innovation capability of firms in the developing and emerging markets. Research limitations/implications The paper helps bring deeper insights to leaders and practitioners about the new knowledge-based approach that enhances innovation competence for organizations. Originality/value The paper significantly contributed to theoretical and practical initiatives on theory of HRM practices and knowledge management by showing different moderating and mediating mechanism thereby firms can follow to enhance innovation capability of firms in developing and emerging markets.

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.

Going out by doing good: The effect of mandatory CSR disclosure on outward FDI of Chinese firms

AbstractThis study examines the effect of mandatory corporate social responsibility (CSR) disclosure on outward foreign direct investment (OFDI) of Chinese listed firms. We address potential endogeneity concerns by employing propensity score matching (PSM) and difference‐in‐differences (DID) methods. Our analysis reveals that firms subject to mandatory CSR disclosure exhibit a significantly higher propensity to engage in OFDI and undertake a greater number of OFDI projects. This positive effect is particularly pronounced for specific sub‐samples of firms: highly polluting, non‐state owned, relatively large and those targeting developed economies for investment. Further investigation into the underlying mechanisms suggests that disclosing CSR information facilitates OFDI primarily by enhancing innovation capabilities, alleviating financial constraints and mitigating the liability of foreignness.

Tacit knowledge management process, product innovation and organizational performance: exploring the role of affective trust and task efficiency

PurposeNowadays, it is hard to retain a knowledge monopoly since tacit knowledge has become essential for innovation and organizational effectiveness (ORP). This study analyzed the role of product innovation as a mediator in the relationship between the tacit knowledge management process (TKMP) and organizational performance. In addition, two moderating variables were examined: (1) Affective trust (AFT) between the tacit knowledge management process and product innovation relationship and (2) Task efficiency in product innovation and organizational performance (ORP) relationship.Design/methodology/approachAround 344 questionnaires were collected from various Chinese regions between February and April 2023 to conduct this study. The regression, mediation and moderation analyses on lower and higher-order data were evaluated using the SmartPLS approach.FindingsThe results validate that product innovation mediates the connection between managing tacit knowledge and the organization’s performance. Affective trust also plays a positive moderating role between tacit knowledge and product innovation. These results provide valuable theoretical and practical insights, substantiating various direct, indirect, mediate, and moderated effects hypotheses.Research limitations/implicationsThe scope of the study was restricted to manufacturing companies; however, further research may broaden the model’s scope to include other industries. Furthermore, future research should continue to explore the role of task efficiency in the innovation process and identify strategies for enhancing task efficiency in organizations.Practical implicationsThe study establishes the significance of effectively managing tacit knowledge for fostering product innovation. Company managers and leaders can promote employee trust, enhancing innovation capabilities and overall organizational effectiveness.Originality/valueThis study, involving dual moderation, explores the connections between processes of managing tacit knowledge, product innovation and organizational performance. It addresses research gaps, enriching the understanding of managing tacit knowledge, leading to organizational innovation and performance improvements. The study also highlights how affective trust is vital in strengthening the connection between TKMP and product innovation.

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.