Enhance Innovation Capability Research Articles

Using social media to leverage and develop dynamic capabilities for innovation

Social media are essentially changing the way firms communicate, create and collaborate in and for innovation. In this special issue introductory article, we take stock of the robust multi-faceted nature of research and practice at the intersection of social media (SM) and innovation. We introduce the nine papers included in this special issue and highlight the rich variety of their contribution with reference to our organising framework. Diagnosing from a strategic perspective, we position SM strategy in and for innovation as an overlapping interaction between dynamic capabilities (sensing, seizing, reconfiguration) and the level of stakeholder engagement (macro, meso, micro). We explain how each interaction holds distinctive synergy in an open and collaborative innovation process. This organising framework shows how the malleable nature of SM creates opportunities for firms to engage widely distributed knowledge sources, enhance innovation capabilities and empower internal human resources towards an open and collaborative culture. Yet, we warn that all is not as rosy as it seems and a purposeful and coherent strategy that delivers distinctive ‘co-ownership’ experiences is quintessential ingredient to realise profits from SM use in innovation.

Resources, state ownership and innovation capability: Evidence from Chinese automakers

Promoting innovation has been a major task for both business practitioners and governments in emerging markets. Based on the resource‐based view, this study examines the contributing factors of firms' innovation capability and the contingent role of state ownership. Utilizing data on 102 Chinese automobile firms, we found that financial resources, R&D human capital, innovation leadership, collaborative culture, and government support positively relate to firms' innovation capability. Moreover, the firm's ownership type serves as a boundary condition for the resource–capability relationship. The significance of different resources in developing innovation capability vary for firms with different ownership types. In particular, government support and R&D human capital have stronger effects in promoting non‐state‐owned enterprises' innovation capability. From a practical standpoint, developing innovation capability should consider the critical role of ownership. Specifically, while state‐owned enterprises can capitalize on organizational and financial resources to enhance innovation capability, it is also important for them to transform bureaucratized systems into more market‐orientated ones and facilitate the effective utilization of R&D human capital and government support.

How knowledge sharing connects interpersonal trust and innovation capability

PurposeKnowledge sharing (KS) and innovation are generally believed as the antecedents of key outcomes that help firms to attain and sustain competitive advantage in long term. The purpose of this paper is to analyze the mechanism of how interpersonal trust and leader support affect KS and improve firm’s innovation capabilities.Design/methodology/approachThis is a research paper which is built using empirical data collected from 68 manufacturing and service firms in China.FindingsFirst, the findings show that leader supports moderate the correlation between interpersonal trust and KS. Second, KS serves as mediator in the relationship between interpersonal trust and firm’s innovation capabilities.Research limitations/implicationsKS plays a crucial role in stimulating innovation capabilities for both manufacturing and service firms. Future research should explore the effects of the motivational factors (such as positive psychological state, perceived benefits and costs) on KS and firm’s innovation capabilities.Practical implicationsThe paper provides the evidence for the positive effects of interpersonal trust on KS, which in turn is significantly associated with product innovation and process innovation. It highlights the important role of leader supports in promoting the degree of sharing knowledge among individuals to enhance innovation capabilities for firms.Originality/valueThis study puts the theory of innovation forward based on exploring the key factors that have potential and positive impacts on two specific types of innovation capability, namely, product innovation and process innovation, for both manufacturing and service firms.

Taxonomy of innovation capability framework with future directions

Different frameworks on innovation capability have evolved especially during the last five years and it is developed under several determining factors of various organisations. However, the divergence of the research outcome makes the innovation capabilities quite complicated to well understand its utilisation in practice. This study presents a taxonomy of available literature and knowledge in relation to innovation capability to realise how innovation capability is approached and estimated by various authors, its conceptualisation and to provide a path for future research in this field of study. Based on a systematic review of studies on framework of innovation capability published between 2000 and 2014, a framework which brings together various variables enhancing innovation capability of any organisation is proposed and discussed. Results highlight several ways which would help practitioners, academicians and policy makers to further enhance innovation capability and the researchers to channel their efforts in studying the phenomenon more meaningfully.

Can collaborative relationship stimulate innovation capability and improve performance in the hospitality industry

An external source becomes one of important factors for sustaining long-term competitions. However, little is known about whether collaborative relationships enhance innovation capability and consequently firm performance in hospitality contexts. The purpose of this paper is to examine complex relationships of collaboration, innovations and performance in the hospitality industry. Based on a survey of 84 hotels in Bangkok, Thailand, the statistical analysis is first analysed using OLS regression method, and then utilising two-stage least-square method for robustness of the results. The findings indicate that collaboration has a positive impact on both internal and service innovation capabilities. However, only internal innovation capability has a direct positive sign on hotel performance. Interestingly, service innovation does not directly influence performance, but collaboration mediates the effect of service innovation capability on hotel performance.

Examining Leadership and Knowledge Sharing Role on Small and Medium Enterprises Innovation Capabilities

The inovation capability of a firm depends on knowledge resources. Knowledge sharing is an important part in knowledge management to optimize firm knowledge resources. However, knowledge sharing can not be automatically achieved. Leadership factor is an important factor to encourage knowledge sharing.The purpose of this study was to examine the role of transformational and transactional leadership of the owners of SMEs to encourage knowledge sharing activity which in turn this activity can enhance innovation capability. The survey was conducted in the SME production sector in North Sulawesi Province, Indonesia. The research involved 176 samples. Data were analyzed with Structural Equation Model based on PLS-SEM variant.The result showed that only transformational leadership had a positive effect to encourage knowledge sharing. Further, the result showed that knowledge donating had the positive effect to enhance innovation capability. Surprisingly, the result showed that knowledge collecting had a negative effect to innovation capability.

The Effects of Boundary-Spanning Search, Network Ties, and Absorptive Capacity for Innovation: A Moderated Mediation Examination

Innovation is a key driver for organizations to survive and thrive in increasingly hyper-competitive markets. This study investigates the effects of boundary-spanning search on innovation capability. Specifically, it examines the mediating and moderating effects of network ties and absorptive capacity on boundary-spanning search and innovation in Chinese companies. We constructed a theoretical model of an organization’s boundary-spanning search and innovation capability and distributed a survey questionnaire to a sample of specific industries with upstream and downstream relations in Sichuan Province in China for their responses. Results from the study reveal that boundary-spanning search has a positive and significant impact on innovation capability as well as a positive moderating effect on absorptive capacity and innovation capability. This paper shows that enterprises need to continuously focus on exploring networking opportunities in direct and indirect ways to get access to effective flow and diffusion of resources, which in turn can enhance innovation capability.

The Role of Design Practices and Tools for Technological and Managerial Innovation in Startup Firms

Innovation is a critical factor through which organizations achieve and sustain competitive advantage in rapidly changing environments. This is true of both technological innovation – i.e. the development of new products and/or services – but also managerial innovation – as in, for example, the development of new business models. Design practices and tools as means to enhance innovation capabilities have become increasingly popular in recent years. However, little empirical research has shown whether and how they are used in the development of technological and managerial innovations. To address this gap we assessed the role design plays in the innovation development process focusing on startup entrepreneurial firms. We chose this context as design practices and tools are more likely to be at play in such organizations, as they have the flexibility “to do things differently” – thus face fewer obstacles in adopting such different approach to innovation – and have more to benefit in using them, as innovation is central to their existence. We conducted an inductive study of how startup entrepreneurs in Northern Italy incorporate design practices and tools in the development of innovative products and services and of business models. While results seem to point to a substantial role some design practices and tools play in product development, evidence of the use of design practices and tools in business model development is much sparser, indicating vast potential for further development when it comes to the use of design for innovation.

Developing technologies or learning institutions? Exploring the role of hackathons for developing innovation capability in emerging economies: the case of Taiwan

ABSTRACTThe paper deals with issues concerning latecomers’ industrial catch-up. Using the recent development of hackathons as an example, this study explores how actors in an emerging economy manage to enhance innovation capability through certain events. Based on qualitative studies on the innovation activities and outcomes within major hackathons in Taiwan, this paper argues that, thanks to the unique environment and settings of hackathons, industrial actors in Taiwan are able to not only obtain resources and stimulus to facilitate their production of and investments in innovation, but also to improve local institutions for innovation. In addition to demonstrating the nature of these latecomers’ enhanced innovation capability, we also explain key mechanisms contributing to hackathons’ specific innovation dynamisms.

Transformational Leadership Facilitates Innovation Capability: The Mediating Roles of Interpersonal Trust

Innovation capability is widely accepted as an important means to attain sustain competitive advantage for firms before the rapidly changing of business environment and increasingly competitive pressure. The main goal of this study is to explore an effective way to successfully improving innovation capability for firms based on examining the relationship between transformational leadership style, interpersonal trust, and innovation capability of Vietnamese firms. The authors apply Structural Equations Modeling (SEM) to test the impacts of transformational leadership, interpersonal trust on innovation capability by using data collected from 195 participants in Vietnamese firms. The result revealed that transformational leadership and interpersonal trust significantly affect innovation capability. In addition, interpersonal trust mediates the relationship between transformational leadership and innovation capability. The findings highlights the need of practicing transformational leadership to foster employee trust and finally to enhance innovation capability for firms. The findings of this study contribute to filling the theoretical gaps which call for research on antecedent factors of innovation capability.

Poprawa zdolności innowacyjnej poprzez orientację na organizacyjne uczenie się: wiek jako potencjalny moderator

Poprawa zdolności innowacyjnej poprzez orientację na organizacyjne uczenie się: wiek jako potencjalny moderator

Optimal Designs to Develop and Support an Experimental Strategy on Innovation of Thermoforming Production Process

The experimental strategy developed thanks to the DOE methodology enhance innovation capability in the field of thermoforming production processes for active packaging. It is composed of three phases: i) material characterization, ii) production in pilot line, and iii) performance of final product. It allows selection of material, and correlation between control factors in production and performances of final product. Use of optimal designs allows reduction of number of tests, and in the meantime a full exploration of factorial space.

Towards enhancing innovation capability of teams: a conceptual perspective

PurposeThis conceptual paper aims to explain the unidirectional cross-level impact of five “organizational-level” factors on “team-level” innovation capability through two “team-level” mediating factors. This multivariate model consists of five organizational-level factors (higher-level) factors – leadership, culture, structure, networks and knowledge – and team-level (lower-level) factors – “innovation capability”, “team-level focus” and “team-level intensity” towards innovation. Understanding the top-down influence of higher-level factors on lower-level ones gives this study a cross-level and unidirectional nature.Design/methodology/approachA keyword-based approach was used to select “relevant” articles from major journals to collect evidences and develop a conceptual model. All factors in the conceptual model were chosen from the organizational- and the team-level literature. Theoretical background for each of the chosen “factors” has been presented under relevant headings.FindingsFirst is the conceptualization of team-level mediators – intensity and focus – towards innovation. Second is the conceptualization of innovation capability as a team-level factor, characterized by two sub-dimensions: customer orientation and manifestation.Research limitations/implicationsThis conceptual paper does not contain any empirical data analysis. The authors have not considered individual-level factors like individual excellence, personalities, etc., which may impact team-level innovation. They are specifically looking at the top-down “unidirectional” cross-level impact of “higher-level” (organizational-level) factors on “lower-level” (team-level) factor, not the other way around.Practical implicationsInnovation-driven organizations can use this model to build long-term “innovation capabilities” by developing the right kind of “intensity” and “focus” of their R&D teams towards innovation. R&D teams can be encouraged to work closely with their “target” customers and manifest their innovation capabilities (to them) to ensure market success.Social implicationsTop management can design organizational-level policies to improve their leadership, culture, structure, networks and knowledge to encourage better innovation. Future researchers who wish to study the “cross-level” influence of organizational-level factors on team-level innovation capability may find this paper useful.Originality/valueThis study’s original contributions include: first, the conceptualization of a multivariate “cross-level” model to understand team-level innovation capability. Second is proposing the mediating role of “team-level” factors like focus and intensity while building innovation capability. Third is conceptualizing innovation capability as a team-level construct, with sub-dimensions: customer orientation and manifestation.

Chain reactions of a collaborative buyer–supplier relationship: the mediating role of relationship quality on innovation performance

This paper explores a collaborative buyer–supplier relationship (BSR) at multiple echelons of a supply chain by considering contractual fairness and power imbalance at the final stage as enablers and relationship quality as a mediating factor. A research model investigates the effects of contractual fairness, power sources, and relationship quality in terms of normative and instrumental relationship quality on chain reactions of a collaborative BSR and supplier innovation performance. The research results based on the data from 209 first-tier supplying firms in South Korea find that collaborative BSR with the buyer facilitates collaborative BSR with the supplier. Contractual fairness and referent power source enhance collaborative BSR by increasing the supplier’s normative relationship quality to the buyer. Diffusion of collaborative BSR along the supply chain leads to higher innovation performance of the supplier. The findings of this study provide useful insights about how to enhance innovation capabilities through building a collaborative BSR and relationship quality along the entire supply chain.

The effects of supply chain fairness and the buyer’s power sources on the innovation performance of the supplier: a mediating role of social capital accumulation

PurposeThis study aims to examine the effects of contractual fairness and power sources on the relationship between the buyer and supplier on the innovation performance of the supplier. The mediating role of social capital accumulation between fairness, power and innovation performance was empirically explored.Design/methodology/approachHypotheses were developed to investigate the relationships between supply chain fairness, power sources, social capital and innovation performance. Using structural equation modeling, the hypotheses were tested on data of 209 responses collected from supplying firms in South Korea.FindingsThis study finds that supply chain contractual fairness and referent power use contribute to the innovation performance of the supplier through social capital accumulation between the buyer and supplier. Coercive power, in contrast, impedes the performance improvement of the supplier.Originality/valueThis study provides supply chain practitioners, academics and policy-makers with guidance on how to facilitate and enhance innovation capabilities and performance across the supply chain. By applying social capital theory, this study also provides theoretical underpinning of the literature on supply chain fairness, power and innovation.

When and with whom to cooperate? Investigating effects of cooperation stage and type on innovation capabilities and success

In times of saturated markets and decreasing product life cycles, the continuous development and successful launch of innovations are essential for profit-oriented organizations of any kind. Interorganizational cooperation enables companies to get better access to knowledge and capabilities in order to generate and successfully introduce innovations. While scientific research and management practice have acknowledged the importance of cooperation, little research effort is dedicated to empirically determine the effectiveness of cooperation intensity within different stages of the innovation process (cooperation stage) and with different partners (cooperation type). This article aims to fill these gaps by empirically examining the effects of cooperation intensity with different kinds of partners (horizontal, vertical and institutional cooperation) in different stages of new product development (concept and product development as well as implementation stage) on innovation capabilities and success of individual companies. Drawing upon a sample of 154 high-tech companies from the German B-2-B sector, our results reveal that it is in general beneficial for a company to cooperate. However, cooperation in concept and product development primarily improves a company's innovation capabilities while cooperation in the implementation stage primarily enhances innovation success of a company. With respect to cooperation type, vertical, horizontal as well as institutional cooperation significantly enhance innovation capabilities and success of a company. However, cooperation with institutional partners was found to be the most important contributor throughout all stages.

Enhancing Innovation and Technological Capabilities in the Management of E-Waste: Case Study of South African Government Sector

e-Waste is one of the fastest growing waste streams globally. In the South African context e-Waste is receiving considerable attention from the Department of Environmental Affairs (DEA) who view it as being one of the fastest growing and most complex waste streams. There is recognition that e-Waste provides both threats and opportunities. In terms of the latter, e-Waste if well-managed can address the triple challenges of job creation, poverty and inequality as well as promote environmental sustainability that aligns to the South African government’s mandate to protect the rights of all its citizens to an environment that is not harmful to health and well-being. The article presents and discusses primary data collected from a survey-based and case study research (including key informant interviews) with representatives from various government departments and agencies. The findings reveal that there are substantial variations within the government sector in terms of who is responsible for e-Waste, the amount of e-Waste generated, policies and procedures that are in place, and how e-Waste is managed. The results show that government departments and agencies have stockpiles of e-Waste and there is substantial storing/hoarding of e-Waste throughout the country. Furthermore, current practices of managing e-Waste are unsustainable and undesirable. Based on the findings and literature review undertaken which includes an overview of the e-Waste challenge and trends globally and in South Africa specifically, a model for the management of e-Waste in the government sector that drives broader economic revitalisation and sustainability imperatives is proposed that embraces a regional approach.

The mediating effect of knowledge-sharing behaviour on total quality management and organisational innovation capability

Ever since innovation was recognised as a key contributor to securing competitive advantage in the higher education arena, many factors have been introduced to enhance innovation capability. The purpose of this study is to examine the relationship between total quality management (TQM) and organisational innovation capability (OIC), as well as investigate the role of knowledge-sharing behaviour (KSB) in mediating this relationship. A survey was conducted on 367 academic staff and support staff from private universities in Thailand. The analytical results suggest that TQM is positively linked to OIC and KSB, in which the KSB plays a partial mediating role between TQM and OIC. The findings should benefit university administrators to improve innovation capability in addition to implementing TQM to develop appropriate strategies for maintaining a knowledge-sharing environment, leading to the kind of tacit knowledge that can successfully raise the innovation capability of private universities.

Connectivity in the Technology Transfer Process among Local ASEAN Firms

This study focuses on the role of human factors in the innovation processes of firms in four member states of the Association of Southeast Asian Nations (ASEAN), i.e., Indonesia, Thailand, the Philippines, and Vietnam. Firms are required first to obtain new information related to innovation and then to integrate it with their indigenous resources. The innovation process thus consists of the absorptive process, through which outside information is employed to enhance innovation capability, and the transforming process, through which innovation capability creates innovation. This study identifies essential factors that promote these capabilities. In the absorptive process, two types of personnel are examined, i.e., employees who have experience working with multinational companies (MNCs) and those indigenous to the firm. As for the transforming capability, organizational learning processes, including quality control (QC) and cross-functional teams, are examined. Mail surveys were conducted from 2013 to 2014, and the total number of samples was 665. Based on the data, structural equation modeling (SEM) is employed. The analysis demonstrates that MNCs have the largest impact as external linkages. The most important mediators for locals to connect with MNCs are top management and factory managers who have experience working with MNCs, whereas indigenous employees, such as local engineers, managers, and line leaders, are identified for connectivity with locals. The direct and indirect effects of external linkages on innovation are also estimated. In the transforming process, cross-functional teams have a larger impact on innovation than QC.

IMPROVING INNOVATION CAPABILITIES BY COOPERATION: EXAMINING EFFECTS OF CORE NETWORK MANAGEMENT FUNCTIONS AND RELATIONAL MECHANISMS IN THE INDUSTRIAL GOODS SECTOR

For companies, cooperation represents a way to innovate more effectively. Within this respect, past literature stresses the importance of core network management functions and relational mechanisms for the effectiveness of interorganisational cooperation. However, it is still unclear whether and how core network management functions and relational mechanisms improve a firm’s innovation capability from interorganisational cooperation. Based on data of 154 industrial companies, the results from structural equation modelling provide evidence that core network management functions significantly enhance innovation capability improvement of individual firms by interorganisational cooperation. Furthermore, both formal and informal relational mechanisms partially mediate the impact of core network management functions on innovation capability improvement. With regard to informal relational mechanisms, companies should foster trust, guarantee equal power distribution and ascribe high importance to their cooperation. With regard to formal relational mechanisms, companies should provide organisational support to their cooperation, continuously share knowledge with their partners and also meet and communicate on regular basis.