Enterprise's Sustainable Innovation Research Articles

Research on the Effect of Design Thinking on Enterprise Sustainable Innovation Ability and Team Performance

Design thinking is an interdisciplinary problem-solving approach that combines user-centered focus, challenge framing, visual thinking, experimental methods, and cross-functional collaboration. It has always been regarded as an important means to improve corporate sustainable innovation capabilities and team performance. However, its effectiveness is a controversial topic, with some proponents praising its ability to solve systemic problems while others question its applicability within traditional business processes and its impact on sustainable innovation success. Because of its exploratory nature, there is currently a lack of quantitative empirical research on its impact. Therefore, this study takes Huawei’s electric vehicle R&D sustainable innovation project as an example to explore the impact of design thinking on corporate sustainable innovation capabilities and team performance by analyzing the relationship between design thinking and team empowerment. The study included hypotheses, semi-structured qualitative interviews, quantitative questionnaire data, and structured equation model analysis. This study reveals the mechanism by which design thinking operates in industrial enterprises. There is a positive correlation between design thinking practice and team performance in sustainable innovation projects. Moreover, through the regulation of design thinking, team performance can be strengthened. However, the applicability of design thinking in highly sustainable innovation environments needs further research. In summary, this study provides fundamental insights into the complex relationships between design thinking, corporate sustainable innovation, and team performance, and provides direction for future research.

The impact of employee entrepreneurship on sustainable innovation capability: the effect of value cocreation and role stress

PurposeEnterprises generally change their organizational structures in an era of uncertainty for flexibility, and accordingly, employee entrepreneurship emerges as employees gain more power and responsibility during this process. This paper aims to explore how employee entrepreneurship impacts enterprises’ sustainable innovation capability. The authors consider the mediating effect of value cocreation and the moderating effect of role stress.Design/methodology/approachThe authors adopted a questionnaire survey to test the hypothesis, and 356 questionnaires were collected from an online questionnaire platform.FindingsThe results show that employee entrepreneurship has a positive impact on sustainable innovation capability, value cocreation plays a partial mediating role in this relationship between employee entrepreneurship and value cocreation and role stress plays a negative moderating role in the relationship between employee entrepreneurship and value cocreation.Research limitations/implicationsThe study makes three main contributions to the literature concerning entrepreneurship and enterprise sustainable innovation capability. First, in relation to the entrepreneurship literature, the authors shift entrepreneurship research from entrepreneurs/leaders to employees in the digital transformation context and specify the connotation of employee entrepreneurship. This shift further enriches and broadens the research boundary of entrepreneurship (Bhide, 2000; Djankov et al., 2006). Second, we add the micro dynamic mechanism of sustainable innovation capability by focusing on the effect of employee entrepreneurship. Employee entrepreneurship positively contributes to enterprise sustainable innovation capability, which is partially mediated by value cocreation, and its impact on value cocreation is moderated by role stress due to the identity change of employees in the digital transformation context. The authors answer calls to clarify the micromechanisms of building enterprise competitive advantage (Terziovski and Sohal, 2020). The research confirms the relationship change between enterprises and consumers in value creation from separation to cooperation (Tu et al., 2020; Costa and Hafto, 2021). Additionally, the authors discuss the dynamic mechanism and factors of value cocreation at the employee level and further verify the positive effect of an active interaction among enterprises, consumers and other value creators (Matarazzo et al., 2021; Heinonen et al., 2013). This approach compensates for the deficiency of previous studies investigating the influence of value cocreation at the level of organization members.Practical implicationsThe theoretical analysis and empirical conclusions of this study have important practical implications. First, employee entrepreneurship positively impacts enterprises’ sustainable innovation capabilities. Therefore, enterprises should stimulate their employees’ entrepreneurship to strengthen organizational resilience and adaptability, which are important for enterprises to survive in the changeable age. For example, enterprises can authorize their frontline employees with more resource allocation power and reduce hierarchical control; thus, their employees can address emergencies in a timely manner and catch fleeting market opportunities. Second, since value cocreation is a partial mechanism by which employee entrepreneurship contributes to an enterprise’s sustainable innovation capability, enterprises should help employees improve their capabilities and knowledge for value cocreation. For instance, enterprises should develop decision-making support toolkits, upscale training courses and efficient coordination tools to help employees achieve the necessary skills and knowledge. Only in this way can they qualify to perform an increasing number of autonomous tasks. Finally, employees’ role stress negatively moderates the relationship between employee entrepreneurship and value cocreation. This finding provides a reference for enterprises in position setting, role rule-making, role responsibility-planning, etc. Specifically, enterprises should build a feedback mechanism to manage employees’ role ambiguity, conflict and overload; thus, they can eliminate the potential negative effects on value cocreation and their sustainable innovation capability in a timely manner.Originality/valueThis study expands the boundary and connotation of entrepreneurship in an era of uncertainty, specifies the micromechanism of sustainable innovation capability and provides new insights for enterprises constructing their sustainable innovation capability.

RETRACTED ARTICLE: The effect of firm size, industry type and ownership structure on the relationship between firms' sustainable innovation capability and stock liquidity

Does the company attach importance to research and development (R&D) investment in its operations? Is stock liquidity detrimental to corporate innovation and thus damages the company’s sustainable development capabilities? We estimate the relationship between between stock liquidity and firms’ sustainable innovation capability on China’s stock market by OLS method and difference in difference (DID) method. The traditional conclusion is: the higher the stock liquidity, the weaker the enterprise's sustainable innovation level, especially in state-owned enterprises. The DID estimation using the share-trading reform and the policy of large and small-sized non-tradable share shows that: stock liquidity will affect the sustainable innovation level of the enterprise positively. The reasons for this mechanism are the supervision mechanism in the operation of the enterprise, the effect of the balance of the ownership structure and the improvement of corporate governance. The conclusions are that the improvement of ownership concentration promotes this positive relationship, and the behavior of institutional investors does not have a significant impact. These findings also provide new insights into the relationship between corporate management and shareholder investment behavior on the level of innovation.

Towards Enterprise Sustainable Innovation Process: Through Boundary-Spanning Search and Capability Reconfiguration

In the open innovation environment, enterprise sustainable innovation is no longer the result of individual decision-making. Extensive contact with suppliers, customers, scientific research institutions, and other subjects for boundary-spanning knowledge search, absorption, and reconfiguration is considered a critical path to enterprise sustainable innovation. Studying the process of “how boundary-spanning search affects enterprise sustainable innovation” has become an urgent and valuable task. Therefore, based on an innovation search perspective, this study explored the path and mechanism of boundary-spanning search affecting enterprise sustainable innovation, revealed the intermediary effect of capability reconfiguration, and clarified the regulatory role of information technology (IT) governance. We also proposed an integrated model promoting enterprise sustainable innovation process. Using questionnaire data from manufacturing companies in China, this study empirically tested the proposed model hypothesis. The results demonstrated that all boundary-spanning searches (supply-side, demand-side, and cross-regional searches) positively and significantly impacted enterprise sustainable innovation. However, the effects of the search types varied. Capability reconfiguration played a partial intermediary role between boundary-spanning search and enterprise sustainable innovation. IT governance positively moderated the relationship between boundary-spanning search and enterprise capability reconfiguration, particularly between cross-regional search and enterprise capability reconfiguration. This study enriches our understanding of the sustainable innovation process and provides theoretical guidance for enterprises to improve their sustainable innovation performance by effectively using boundary-spanning search strategies.

Capacity Reduction Pressure, Financing Constraints, and Enterprise Sustainable Innovation Investment: Evidence from Chinese Manufacturing Companies

Resolving the problem of excess production capacity through sustainable technological innovation is an important issue facing the Chinese economy in achieving high-quality development. The Guiding Opinions of the State Council on Resolving the Contradiction of Severe Overcapacity promulgated by the government in 2013 undoubtedly had a huge external impact on the traditionally competitive manufacturing market. This paper uses 6680 company-year sample observations of 1609 A-share manufacturing listed companies in China from 2010 to 2017 to examine the impact of capacity reduction pressure on ‘corporate sustainable innovation’ (the strategic response made by the enterprise administrator to cope with the impacts of the external environment including economic, social and environmental aspects) investment and the moderating role of financing constraints on this relationship. The research shows that after the promulgation of the Guiding Opinions, the degree of overcapacity had a significant positive effect on the R&D investment of enterprises, indicating that the policy to resolve overcapacity promoted their sustainable innovation investment. Such a phenomenon indicates that, to a certain extent, in the context of capacity reduction, companies have strong pressure and motivation to seek a way out through sustainable innovation. However, financing constraints have a significant inhibitory influence on the anti-forcing effect of the capacity reduction policy, indicating that the ability of enterprises to respond to external capacity reduction policies is subject to their own limited financing. Further investigation shows that capacity reduction pressure mainly promotes the sustainable innovation investment of private enterprises and has no significant impact on that of state-owned enterprises. This may be because private enterprises struggled more for survival during the transition period. The results of this paper provide a theoretical basis and reference value for the formulation of government policies and the development of enterprises.

Impact of Government Subsidies on Manufacturing Innovation in China: The Moderating Role of Political Connections and Investor Attention

Although government subsidies have gradually become a crucial means of endorsing public innovation policies, there remains no unified conclusion on the mechanism of their role in enterprise sustainable innovation investment. Employing sample data of listed Chinese manufacturing companies between 2011 and 2019, this study aims to discuss the incentive effect of government subsidies on enterprise innovation investment based on different enterprise ownership. With the combination of resource dependency theory and stakeholder theory, the findings suggest that the intensity of government subsidies exerts an incentive effect on corporate innovation investment; however, the incentive effect is different under the influence of political connections and investor attention. In particular, political connections inhibit the incentive effect and investor attention promotes the incentive effect. Overall, this study provides empirical evidence for the rational allocation of resources by the Chinese government and the acquisition of innovation investment by enterprises of different ownerships and the development of innovation capabilities.

Customer Concentration, Economic Policy Uncertainty and Enterprise Sustainable Innovation

Few studies have addressed how customer concentration affects the decision of a firm’s research and development (R&D) strategies and then innovation outcome. Using a sample of China’s listed companies for the period from 2009 to 2017, this study investigates the relationship between customer concentration and enterprise sustainable innovations, as well as how such the relationship changes with economic policy uncertainty. The findings imply that there is a significant inverted-U-shaped relationship between customer concentration and enterprise sustainable innovations. Under a high level of economic policy uncertainty, the advantage of the customer relationship is maximized. In this context, raising customer concentration significantly promotes enterprise sustainable innovations. Customer concentration affects innovations differently as the equity properties, and locations of enterprises vary under different levels of economic policy uncertainty. Thus, the interval of customer concentration conducive to enterprise innovations differs. The results are robust to econometric techniques that control for endogeneity. Overall, our findings suggest that enterprises build and adjust the customer relationship and improve the driving mechanism for sustainable innovations.

The Influencing Factors of Enterprise Sustainable Innovation: An Empirical Study

Sustainable innovation is the inexhaustible source of development of enterprises. Within fierce market competition, only by depending on continuous innovation can an enterprise exist and develop. By conducting an exploratory factor analysis and a confirmatory factor analysis, this paper proposes a theoretical model, dividing enterprise sustainable innovation ability into three aspects: knowledge innovation capability, production innovation capability, and market innovation capability, and analyzes the influencing factors respectively. Finally, applying this theoretical model to a practical case, with system dynamics method, the simulation results show that they are consistent with real enterprise facts. Therefore, the framework of determinants of sustainable innovation built in this paper has already been verified theoretically and practically. It not only lays a theoretical foundation for further research, but also provides a clear ground for firms to improve their sustainable innovation.

Enterprise's sustainable innovation in China: practice and theoretical research

PurposeThe purpose of this paper is to increase understanding of the real situation of Enterprise's Sustainable Innovation (ESI) in China.Design/methodology/approachFirst, the paper analyzes the practice of Chinese ESI in the past 30 years, and then reviews research results of the topic in China, by the authors and by other Chinese scholars. Finally, it provides the future prospects for ESI in China.FindingsThe practice of Chinese ESI started in 1978 when this country began reform, and two stages of Chinese ESI practice has been summarized. Otherwise, six major characteristics have been highlighted. China is one of the earliest countries that began to research on ESI and has achieved significant results since 1995. The paper summarizes major research findings of ESI in China, which can be divided into two categories. Especially, it stresses that one of the distinguishing achievements is research on mechanisms of ESI in China.Research limitations/implicationsThe research on ESI in China is initially implemented based on Chinese practice. So, future research may explore whether the research results could be suitable for abroad, or not.Originality/valueThis original paper analyzes ESI practice and research findings in China, and may have value in helping people to understand ESI's real situation.