Enhance Innovation Performance Research Articles

The Impact of Knowledge Management Capabilities on Innovation Performance from Dynamic Capabilities Perspective: Moderating the Role of Environmental Dynamism

As an important path to enhance the innovation performance of enterprises, knowledge management has received much attention in recent years. However, most of the existing literature on knowledge management and innovation performance is based on a static perspective, and ignores the influence of dynamic changes in the environment. This study intends to explore the relationship between dynamic knowledge management capability and innovation performance as well as examine the moderating effect of environmental dynamism. The questionnaire survey approach is used in this study and the data is collected from 253 sample enterprises in China. To estimate the proposed relationships in the theoretical model, this study adopts hierarchical Multiple Regression (MR) and Moderated Multiple Regression (MMR) methods. The results show that all dimensions of dynamic knowledge management capability have different degrees of positive influence on innovation performance. Moreover, it was also confirmed that there are different moderating effects of environmental dynamism on the relationship between the dimensions of knowledge management capability and innovation performance. This study can contribute to enriching the theoretical research of dynamic knowledge management capability and innovation performance, and offer scientific guidance for decision making to efficiently enhance the enterprise’s knowledge management level and innovation performance. Moreover, the findings can also provide valuable insights for enterprises to make use of KM capabilities to enhance innovation performance in practice.

Social capital and innovation performance of digital firms: Serial mediation effect of cross-border knowledge search and absorptive capacity

This study aims to explore the relationship between social capital and the innovation performance of digital firms. In addition, we examine the mediation effect of cross-border knowledge search on this relationship and investigate the serial mediation effect of cross-border knowledge search and absorptive capacity between social capital and innovation performance. Using data collected from 217 Chinese digital companies, we tested the proposed hypotheses by constructing structural equation models through SPSS 22.0 and AMOS 24.0. Based on the results of theoretical deductions and empirical tests, some conclusions can be drawn. First, for digital firms, social capital remains significantly and positively associated with innovation performance during the COVID-19 pandemic. Meanwhile, digital firms with higher social capital are likely to generate higher innovation performance even if they experience a more severe impact of the COVID-19 pandemic. Second, cross-border knowledge search effectively mediates the relationship between social structural capital, social relational capital, and innovation performance, whereas this mediation effect is not significant between social cognitive capital and innovation performance. Finally, the serial mediation effect of cross-border knowledge search and absorptive capacity on the relationship between social capital and innovation performance is confirmed. Some managerial implications are summarized based on our findings. On the one hand, digital firms should still actively build social capital to enhance innovation performance during the pandemic. On the other hand, social capital can help digital firms implement cross-border knowledge search and develop absorptive capacity. Thus, digital firms can effectively utilize heterogeneous knowledge to enhance their innovation performance.

Role of Strategic Flexibility in Enhancing Innovation Performance From a Futuristic Perspective

When organizations attempt to produce on-demand products and consider customers' expectations, the organization's environment changes. In this regard, the organizations have a robust understanding of the possible changes, whether internal or external, and consider a wide range of policies. The organization must identify all significant changes occurring inside and outside the organizational structure. Therefore, strategic flexibility is related to the organization's capacity to identify the external changes or the changes that have quickly happened in the external environment. This study attempts to identify whether changes from the external environment genuinely enhance organizational innovation. The findings of this study indicated that such kinds of dramatic changes strengthen organizations as it assists in knowing strategic competitors. The study asserts that innovation of various forms occurs in different ways, but as a general topic, the activity of innovation is mainly related to outgrown to the other business or the suspected firms which might have been going through the same kinds of economic condition. The study found that organizations use flexible production policies to maintain their competitive advantage in the competitive labour market. The study highlights that flexibility is the most essential tool for organizations to survive, especially when competing businesses in the same industry with the same size.

Purchasing orchestration practices – Introducing a purchasing-innovation framework

This research investigates the purchasing role in enhancing an organization's innovation performance. Taking a purchasing perspective, this research introduces a new purchasing-innovation framework and specific purchasing orchestration (PO) practices related to the acquisition, integration, re-configuration, and commercialization of critical resources to enhance innovation performance. A theory elaboration methodology is applied to broaden the scope of resource orchestration theory (ROT) and introduce PO practices as an essential enabler of innovation. Qualitative interviews with managers from different industries enrich the theory elaboration process. This research contributes to theory by developing the concept of PO and enhancing the theoretical understanding of its meaning. Based on theory and empirical data, this research elucidates the PO practices of resource structuring, bundling, and leveraging support. The purchasing innovation framework explains how open-mindedness and technological uncertainty influence purchasing orchestration practices and innovation performance. Purchasing managers benefit from this research by learning to identify and address potential PO capability gaps and take a holistic perspective on resource management, looking both upstream and downstream in the supply chain.

What factors hamper innovation amongst SMEs in Kenya?

ABSTRACT While much of the evidence about innovation amongst SMEs in many developing countries have sought to examine the factors that enhance the propensity of a firm to innovate, far less effort has gone into assessing the factors that hamper it. This paper follows the latter literature to provide an explanation of firm innovation failure amongst SMEs in Kenya by focusing exclusively on external obstacles. By relying on the World Bank Enterprise Surveys and defining innovation as involving product and process innovation, we showed that factors such as political instability and infrastructure, measured as access to electricity, can be critical to firm innovation. We also found that the effects could be context-specific, as the results differ based on various firm characteristics, including firm type, sector, age and size. Our findings provide important policy implications about firm innovation in Kenya as well as the understanding that providing a more conducive business environment is not only critical to enhancing various firm activities but also enhancing innovation performance.

Unpacking absorptive capacity: when some of its dimensions are more relevant than others

To be effective in enhancing innovation performance, absorbing external knowledge enables firms to identify new technologies and apply the acquired technological knowledge appropriately and successfully in the creation of new solutions to customer needs. The notion of absorptive capacity (ACAP) with its multidimensional nature considers these aspects. Contributing to a thorough understanding of ACAP, this paper provides important insights into the underlying processes and dimensions of ACAP and their dependence on the nature of the environment in which firms operate. This study also investigates proactive MO as an important antecedent of the underlying processes of ACAP. Overall, the findings suggest enhanced innovation performance results from a proactive orientation towards markets that motivates and guides the absorption of technological knowledge that is valuable for developing effective customer solutions. Notably, the level of environmental turbulence changes the relevance of some ACAP dimensions for enhancing innovation performance.

Nexus among intellectual capital, interorganizational learning, industrial Internet of things technology and innovation performance: a resource-based perspective

PurposeThe authors observe the influence of intellectual capital (IC) on innovation performance with the mediating role of interorganizational learning (IOL) in the Pakistani automotive industry. Besides, industrial Internet of things (IoT) technology is used as moderating variables between IOL and innovation performance.Design/methodology/approachStructural equation modeling (SEM) presents scholars with extra flexibility and enhanced research conclusions. SEM is described as a statistical methodology and the best tool used for hypothesis testing. The authors used partial least squares SEM for testing hypotheses. The simple random sampling technique followed to collect data from respondents, and 492 questionnaires were used for analysis.FindingsThe outcomes reveal that IC enhances innovation performance and IOL. Moreover, IOL increases innovation performance. IOL significantly mediates between IC and innovation performance. Industrial IoT technology improves innovation performance. Finally, industrial IoT technology strengthens the positive association between IOL and innovation performance.Practical implicationsThis study concentrates on the issue of how managers use IOL and industrial IoT technology to take higher advantage of IC that increases innovation performance.Originality/valueThis is the initial study that builds a theoretical framework to integrate IC, IOL, industrial IoT technology and innovation performance. Although prior researchers observe the association between IC and innovation performance, less concentration was paid to understand the role of interorganizational leadership and industrial IoT technology in leveraging organizational IC.

Towards identifying knowledge bases in KIBS through their service development process

PurposeThe purpose of this paper is to explore knowledge-intensive business services (KIBS), to understand how they implement their service development (SD) processes and how these processes are related to their knowledge bases (KB) as not enough studies have focussed on the understanding of KIBS heterogeneity, by analysing the nature and essence of these firms’ activities.Design/methodology/approachThe work adopts the case study approach involving 12 KIBS firms with different KB according to Bjorn Asheim and colleagues’ “synthetic, analytical, symbolic model”, which identifies synthetic, analytical and symbolic primary KB.FindingsThe research results showed how the SD processes are systemised in KIBS companies depending on the KB. The proposed empirical method for defining KB confirmed the assumed existence of a new type or subtype of KB for legal companies “Compliance/Interpretive”.Research limitations/implicationsFurther research, based on a larger number of companies, is needed to confirm or complement the results of this research, as well as to find more methods to define and evaluate KB on an empirical basis.Practical implicationsThe correct classification of the applied KB can help a company to create effective processes for developing innovative services, while understanding of knowledge dynamic in general – to organise a working process that corresponds to employees’ needs and is more adaptable to the changes in society.Originality/valueThe study proposed a new empirical method for defining and evaluating KB in KIBS companies based on their SD processes. This study makes a significant contribution to research by identifying knowledge-integration practices needed to enhance innovation performance.

Startup accelerators as an open environment: The impact on startups’ innovative performance

Accelerator programs are emerging in recent years as a new model of startup assistance. However, despite the rapid proliferation of such programs, academic literature on the topic is surprisingly scarce. In particular, previous literature has neglected to investigate how the open environment provided by startup accelerators can enhance the innovation performance of accelerated startups despite Open Innovation practices are commonly adopted in acceleration programs. To address this gap, we investigate how startups participating in accelerator programs can enhance innovation performance through sources of external knowledge provided by startup accelerators. In doing so, we draw data from 113 startups accelerated by Italian accelerators since 2013. Our results reveal that different sources of external knowledge provided by accelerators are beneficial for different innovation outcomes contributing to the literature on accelerators. Moreover, our findings contribute to the literature on startups and open innovation highlighting that different external sources of knowledge increase innovation performance of startups.

THE MODERATING ROLE OF ORGANIZATIONAL LEARNING CAPABILITIES ON THE RELATIONSHIP BETWEEN TQM PRACTICESAND INNOVATION PERFORMANCE

Total quality management (TQM) has gained importanceglobally, in order to gain a competitive advantage. Implementation of quality management is a problem faced by many sectors. The aim of the current study is to develop a model that can be implemented in any sector in order to improve the quality management practices as well as enhancing innovation performance in order to gain a competitive advantage. The conceptual model developed in the current study is supported by the previous studies. The current study asserts that TQM practices (top management support, customer focus, continuous improvement, employee involvement)as one set of practicesaffect the innovation performance, and this relationship is moderated by organizational learning capabilities. By researching databases such as JSTOR, Emerald, Tylor and Francis etc., the study was able to offer literature support. The keywords such as organizational learning, innovation, total quality management, organizational learning as a moderator etc were used to find the literature. The current study also provides the recommendations and limitations as well as the conclusion.

Knowledge Management and Innovation Performance a Mediated-Moderation Model

This study aims at explaining innovation performance of organizations as a combination of resources and capabilities. This study starts with asking the question how the relationship between firm-specific knowledge and innovation performance can be explained. To answer this question, insights from the resource-based view (RBV) and the dynamic capabilities approach (DCA) are combined. This leads to a set of hypotheses. The first hypothesis states that knowledge-specificity and innovation performance are positively related. The second hypothesis states that organizational learning practices mediate the relationship between knowledge-specificity and innovation performance. Then, two contrasting hypotheses are formulated stating that the relationship between knowledge-specificity and organizational learning practices of organizations is strengthened or weakened by the level of autonomy. Together these hypotheses lead to a mediated-moderation model of knowledge-specificity and innovation performance. The model is tested using a mediated-moderation analysis on a sample of 673 private organizations in the Netherlands. The analyses show that there is a positive relationship between knowledge-specificity and innovation performance and that this relationship is mediated by the extent to which organizations apply learning practices. Hypotheses 1 and 2 are thus supported. Furthermore, the level of autonomy weakens the relationship between knowledge-specificity and organizational learning practices. This study’s main contribution lies in combining theoretical insights from the RBV and the DCA, applying them to the field of knowledge management, and testing them empirically. The analyses lead to two insights for organizations interested in increasing their innovation performance. First, investing in learning capabilities enhances innovation performance. Second, organizations based on general knowledge can grant work autonomy to employees to enhance their ability to learn.

Reinforcing the Innovation Performance of SMEs Through Innovation Culture and Government Support

Innovation has become an approach to create value to customer in order to remain competitive in the market. However, previous research on innovation performance particularly among Bumiputera SMEs has received little intention. Hence, Bumiputera SMEs need to inculcate the innovation culture in order to generate innovation performance. An interview was conducted with a sample of ten Bumiputera entrepreneurs in Malaysia which probing into their outlook on the innovation culture towards innovation performance. The results showed that innovation culture in Bumiputera SMEs is important and government support plays an important role to strengthen the relationship between innovation culture and innovation performance. Therefore, this study provides useful pointers to entrepreneurs and policy makers on the importance of innovative culture and enhancing innovation performance in Bumiputera SMEs.

Influence of Paternalistic Leadership Style on Innovation Performance Based on the Research Perspective of the Mediating Effect of the Constructive Deviance of Employees.

Innovation is the primary driving force behind the development of China as a modern economic power. This study examines the impact of paternalistic leadership on innovation, proposing a theoretical model using the three dimensions of paternalistic leadership (i.e., benevolence, morality, and authoritarianism) as independent variables, constructive deviance as a mediating variable, and innovation performance as the dependent variable. Empirical results showed that benevolent and moral leadership has a positive impact on innovation performance while authoritarian leadership has a negative impact. Constructive deviance by employees has a positive impact on innovation performance. Benevolent and moral leadership has a positive impact on the constructive deviance of employees, while authoritarian leadership has a negative impact on constructive deviance. In addition, benevolent and moral leadership has a positive impact on innovation performance through the constructive deviance of employees, while the impact of authoritarian leadership is negative. In practice, leaders should recognize that constructive deviance is a double-edged sword and guide employees to engage in reasonable constructive deviant behavior, thereby creating sound organizational environments to foster innovation, eliminate barriers, and benefit from the positive impact of the constructive deviance of employees to enhance innovation performance.

Cooperation for innovation: more is not necessarily merrier

PurposeEmbracing a large set of innovation objectives and collaborating with diverse partners have been promoted as a means to improve innovation performance. However, empirical evidence on the relationships between breadth of objectives, breadth of cooperation and innovation performance is limited, particularly in the context of emerging economies. A larger number of objectives and cooperation partners inevitably increases the complexity in organizational alignment, and cooperation eventually leads to diminishing returns. This study adds to the debate on the costs and benefits of cooperation for innovation. Understanding the optimal levels of the breadth of objectives and cooperation supports managerial decision-making and productivity in the practice of cooperation for innovation.Design/methodology/approachOperationalizing breadth of innovation objectives and cooperation via the Turkish Community Innovation Survey data, self-reports reflecting 5,863 firm-level responses between 2006 and 2008 are analysed using tobit and probit models. The maximum likelihood estimator is used to find the optimal levels for breadth of objectives and cooperation.FindingsFirms with greater breadth of innovation objectives experience higher innovation performance; those with greater breadth of cooperation also experience higher innovation performance, but our results indicate the existence of optimal levels of breadth for both innovation objectives and cooperation.Research limitations/implicationsThe authors extend the logic that there is no safety in numbers in cooperation for innovation. If the aim is to enhance innovation performance, managers and policymakers need to pay attention to the number of innovation objectives and the amount of cooperation pursued by firms. However, innovation success may be closely associated with a firm's dynamic capabilities and ability to mobilize its resources. Drawing on organizational learning theories, future research could explore why a lower than maximum level of cooperation may be more conducive to reaching levels of enhanced innovation performance and whether this level is influenced by cognitive processes.Originality/valueThe authors draw attention to the ideal number of innovation objectives and number of cooperating partners required to enhance innovation performance, thus contributing to the debate on the complex relationships between innovation, performance and cooperation in the unique setting of a large developing economy.

Uncovering the role of competitor orientation and emotional capability in enhancing innovation performance

PurposeCompetitor orientation (CO) has been considered as a traditional driver of innovation performance (IP), being an important source of innovative ideas. Nevertheless, the slowness of the analytical information processing implicit in CO has been recently questioned in the literature, given the internal resistance in firms to use knowledge coming from rivals. Hence, the purpose of this study is to analyze the mediating effect of emotional capability (EC), which is believed to help overcome this barrier by improving the use of knowledge from such innovation source.Design/methodology/approachStructural equation modeling through the partial least squares method was used to test the research model with survey data from a sample of 123 firms.FindingsContrary to what was assumed, EC mediation is partial and CO has a very significant and direct influence on IP. Nonetheless, the fact that EC mediation accounts for 28% of the total effect of CO on IP indicates that EC plays a complementary role in terms of making the information processing on rivals more agile and intuitive, as well as reducing internal resistance.Practical implicationsWhen competitor information is analyzed and used to improve innovation outcomes, a culture where first impressions or hunches expressed by employees must be encouraged and legitimized.Originality/valueThe development of EC is an alternative way of maximizing the exploitation of the competition as source of innovation. Ignoring its role implies wasting a representative percentage of the benefits of information coming from this external actor, thereby missing the opportunity to capitalize on innovation results.

Does openness enable or hinder innovation performance? The moderating effect of appropriability mechanisms

ABSTRACT Open innovation has been recognised as being important for innovation performance. However, previous studies have reported inconsistent findings regarding the impact of collaboration on innovation performance. Therefore, this study aims to reexamine this issue using recent data. We empirically examine the impact of the breadth and depth of collaboration and geographical proximity on product and process innovation, along with the moderating effect of appropriability mechanisms. The empirical analysis utilises data from the 2018 Korean Innovation Survey with a sample of 2,392 Korean firms. The results show that the breadth and depth of collaboration and geographical proximity have differential effects on product and process innovation. We also demonstrate the differential moderating impact of appropriability mechanisms. This study contributes to offering a better understanding of how firms can enhance innovation performance in the context of external collaboration and appropriability.

Managing supplier capabilities for buyer innovation performancein e-business

PurposeThe purpose of this paper is to analyze the connections between the capabilities of suppliers, buyer operations and the innovation performance of buyers in service-based supply chains. In particular, the authors use a construct of supplier capabilities comprising the capabilities needed to produce an online store and divided into capabilities related to the product, capabilities related to service delivery and capabilities related to the buyer-supplier relationship.Design/methodology/approachData were collected with cross-sectional, random sampling from Finnish companies that have an active online store. A survey was used to collect data on managerial assessments of capabilities of a supplier, the operations of buyers and the innovation performance of buyers. Multiple regressions were used to test the hypotheses.FindingsThe results reveal that capabilities related to the buyer-supplier relationship are positively connected with the innovation performance of the buyer, but those related to the product and service delivery do not significantly influence the innovation performance of the buyer. The results show that the moderating influence of buyer operations on the relationship between capabilities related to the product and the innovation performance of the buyer is negative. The moderating influence of buyer operations on the relationship between capabilities related to service delivery and the innovation performance of the buyer is positive.Research limitations/implicationsForming tight relationships with online store suppliers appears to be a successful way to attain innovation performance for online store operators. Online store operators should not expect supplier capabilities related to online store functionality and characteristics of online store delivery alone to improve their innovation performance.Originality/valueFew studies use an e-business operations model to comprehend the role played by supplier capabilities in buyer innovation performance in service-based supply chains. Building on a resource-based view with inter-organizational management and e-business literature streams, the authors focus on three supplier capabilities and buyer operations to investigate their effects in terms of enhancing innovation performance.

The Relationship between Leader-Member Exchange andInnovative Work Behavior: The Mediating Role of the Voice Behavior

Purpose - This research aims to examine the mediation mechanism between leader-member exchange (LMX) and innovative work behavior (IWB) through employee voice behavior. Specifically, this research exploited the social exchange theory (SET) to examine the influence of LMX on IWB through employee voice behavior. Within this context, employees performing in higher quality LMX relationships with IWB are likely to exhibit more voice behavior. Design/methodology/approach – Self-reported questionnaires were applied to obtain data from 360 employees mainly with engineering qualifications from four companies in the defense sector in Turkey. Data were collected with a simple random sampling method in November and December 2020. Hypotheses were tested using correlation and regression analysis. The reason why the defense sector was selected for this study is the fact that the defense industry field has characteristics that make for a unique working environment. Findings - The findings show that LMX positively and significantly affects IWB and additionally voice behavior has a mediating role in this relationship. LMX had a significant influence on employee voice behavior that was ultimately associated with IWB. Finally, Voice behavior mediated the positive correlation between LMX and IWB, and stronger voice behavior boosted the indirect relationship. Discussion - This research reveals the effects of LMX and provides practical suggestions to help employees express their opinions in the organization to enhance innovation performance. Based on the SET, this research helps to understand how certain LMX which encourage high-quality exchange relationships with the supervisors and foster employee voice behaviors, may nurture employee IWBs in the organizations.

Collaborative knowledge sharing in global distributed teams: antecedents of innovation performance

Purpose Existing research on collaborative innovation mechanisms from the perspective of global operation is very limited. This paper aims to address the research gap by studying the factors influencing globally distributed teams’ innovation performance, especially how effective knowledge sharing between distributed teams promotes collaborative team innovation. Design/methodology/approach This research proposes a model to investigate how collaborative knowledge sharing affects global operations [team dispersion, task orientation, information and communication technology (ICT) usage] and innovation performance based on the data collected from 167 managers in 40 local Chinese IT and offshoring firms. Using the theory of Cognitive Diversity and Innovation Diffusion and Synergy, separate hierarchical regression analysis was used to test the proposed model. Findings The findings of this study demonstrate that effective collaborative knowledge sharing plays a crucial role in enhancing innovation performance in a global operation. Specifically, innovation capacity can be improved by task orientation, ICT usage and team dispersion. Originality/value This research study contributes to the development of global distributed operations and innovation among distributed teams in multinational corporations.

Network embeddedness and innovation performance: a mediation moderation analysis using PLS-SEM

PurposeThis study examines the impact of network embeddedness (NE) on innovation performance in small- and medium-sized enterprises (SMEs), and analyses absorptive capacity as mediator and openness as moderator.Design/methodology/approachData were collected from 209 employees of SMEs using a convenient sampling technique. Partial least squares structural equation modeling in SmartPLS was used to analyze the various constructs.FindingsThe results exhibit a positive and significant relationship in NE and absorptive capacity. Also, this study found a positive and significant relationship in absorptive capacity and innovation performance. Moreover, absorptive capacity has a positive and significant mediation role in the relationship between NE and innovation performance. Also, openness positively moderated the relationship of NE and absorptive capacity.Practical implicationsSMEs should try to implement the functions of NE, such as interaction with other firms in higher frequency, developing trust among all parties, clear alliance among the partners to enhance innovation performance. Similarly, SMEs should focus on absorptive capacity and openness to enrich innovation performance.Originality/valueThis study adds in the current literature of the chosen constructs and empirically contributes the effects in the manufacturing industry of Jiangsu Province, China.