External Innovation Research Articles

Exploring SMEs innovation paths with augmented and virtual reality technologies

PurposeAugmented reality (AR) and virtual reality (VR) are increasingly recognized among technologies potentially driving the digital innovation of small and medium-sized enterprises (SMEs). Nevertheless, the implications of AR/VR adoption in innovation processes have yet to receive much attention to date, with the need to explore the issues facilitating a systematic implementation in the SME context. This study aims to investigate the possible innovation paths of SMEs as a result of AR/VR adoption.Design/methodology/approachThe authors performed a multiple case study research involving six Italian SMEs in manufacturing and service sectors that are investing in AR and/or VR solutions and are digitally innovating thanks to these technologies.FindingsAR/VR solutions lead to different types of innovation in SMEs, i.e. for innovating product or service offerings, business processes or even the business model, when AR/VR extends to the company business logic. SMEs demonstrate being able to leverage internal sources with the essential commitment of top management and low resistance of employees in all kinds of AR/VR-enabled innovations. Conversely, they involve different external innovation sources according to the type of innovation pursued. Organizational issues emerged as more relevant than technological issues.Practical implicationsResults contribute to the literature on digital transformation of SMEs and provide managerial guidance on innovation sources and organizational issues to be considered to effectively deploy AR/VR solutions into specific innovation paths.Originality/valueThis study explores the impact of emergent technologies in the innovation process along with multiple perspectives, degree of complexity, and strategic importance in the SME context.

Implementing Strategic Resilience Through Cooperation Projects with Start-ups: a Multiple Case Study

Strategic resilience is the capacity of organizations to proactively transform and renew through innovation to minimize the effects of unknown future crises. In this context, we know that cooperation plays an essential role as an external innovation strategy, and cooperation projects with start-ups related to innovation are one specific way to implement strategic change. However, research does not provide deeper insights into the process, outcomes, and success conditions of such projects. To help fill this research gap, we use the cases of two established firms using cooperation projects with start-ups related to innovation to enhance their strategic resilience. Based on an in-depth empirical investigation, we developed a framework that describes the specifics of those cooperation projects along their course (i.e., before cooperation, entry-phase into cooperation, during cooperation, and after cooperation) and resulting direct and indirect resilience benefits for the established firms. Thereby, the relationship quality (i.e., balance between formal and informal procedures, improvisation mindset, and appreciation and prioritization) turned out to be a central condition for resilience to emerge from those projects. Our framework illustrates how strategic resilience can arise from cooperation projects with start-ups related to innovation and which factors are particularly important in this context. It thus can be used as a guideline for the successful implementation of strategic resilience in practice as well as a basis for future research on the role of cooperation in strategic resilience.

External Innovation in Javanese Vocabulary of Banten Dialect (A Study of Dialect Geography)

<p>This research is aimed to describe and to explain external innovation in the variant categories of word classes found in the usage of Banten dialect of Javanese language at the border of Serang Regency, Banten Province. The research problem formulation in this research was the external innovation and categories found in the usage of the Banten dialect of Javanese language at the border of Serang Regency, Banten Province. This research used a qualitative descriptive of observation method with the techniques of engaging in conversation and contact or mutual conversation with the technique of simultaneous conversation. This technique was then followed by note-taking, both from the interlocutors and language assistants. The research was conducted in eight villages in the districts of Pamarayan, Pontang, Tanara, and Anyer. The sample informants in each village consisted of 2 native speakers of the Banten dialect of Javanese language. The research instrument used for interviewing was a list of 314 questions. The findings of this research indicate that each region exhibited symptoms of external innovation, namely the loanwords from the contact with other language at the border of Serang Regency, such as the loanwords of Sundanese, Javanese, Betawi, and Lampung vocabulary. Variant categories of word classes are also found, such as nouns, adjectives, verbs, directional words, conjunctions, agreement words, and question words. Suggestions that could be considered in this research include creating an etymology dictionary or a dialect dictionary. Those two dictionaries are considered necessary because currently, the influence of other language might lead to convergence, and therefore documentation is needed for further study or the preservation of the language in the future</p>

Implementation of Infrastructure Project Through Public-PrivatePartnership in the Southern Part of West Java Province

The objective of this research is to investigate how infrastructure projects are executed in government-business partnerships. The study aims to accomplish three objectives: (1) evaluate the implementation of these projects, (2) identify the obstacles encountered during project execution, and (3) analyze the strategies utilized in executing disruptive innovation in government-business partnership infrastructure projects. The research employs a qualitative descriptive approach, carried out for a period of one year, from July 2021 to June 2022. The study involves six experts from the Transportation Agency, two individuals from the Department of Public Works and Public Housing, one representative from Regional Planning and Development Agency (RDPA), and one academician, with structured in-person interviews used as the primary data source. The research indicates that executing infrastructure projects through disruptive innovation in construction firms involves several steps, such as preparing for disruption, developing internal and external innovation, using incremental innovations, and utilizing open innovation to explore new technologies and business models. Nonetheless, the study identifies several obstacles encountered during the execution of these projects, including inadequate infrastructure project risk analysis, poor coordination among stakeholders, limited funding allocation, and land availability issues. To mitigate these challenges, the study recommends the need for independent professional consultants, improved project planning, regulatory ease, fiscal incentives for investors, and legal guarantees for private investors to ensure equal rights as state-owned enterprises in executing feasible projects, and good coordination among stakeholders

The Impact of User Benefits on Continuous Contribution Behavior Based on the Perspective of Stimulus–Organism–Response Theory

With the rapid development of the Internet, enterprises have integrated internal and external innovation resources through the establishment of open innovation communities, guided users to participate in innovation activities, and promoted product improvement and development. Users’ continuous contribution behavior is a key factor for open innovation communities to achieve sustainable development, yet most communities do not collect enough data on them. This study investigates the mechanism of user benefits on continuous contribution behavior in open innovation communities based on the Stimulus–Organism–Response (S-O-R) theory, which creatively takes self-verification as a member of the organism (O). This was chosen to overcome the aforementioned issues. Based on the questionnaire data of 469 users in open innovation communities, the SEM method was applied to test the relationship between user benefits, self-verification, and continuous contribution behavior, and the moderating role of future work self-salience on self-verification. The empirical results show that user benefits positively affected both continuous contribution behavior and self-verification. Self-verification positively affected continuous contribution behavior and mediated the relationship between economic, functional, and self-fulfillment benefits and continuous contribution behavior. Meanwhile, future work self-salience positively moderated the relationship between these three types of benefits and self-verification. These findings provide a theoretical basis for the sustainable development of open innovation communities and guiding users to engage in continuous contribution behavior.

Impact of Cooperative Innovation on the Technological Innovation Performance of High-Tech Firms: A Dual Moderating Effect Model of Big Data Capabilities and Policy Support.

The mechanism of cooperative innovation (CI) for high-tech firms aims to improve their technological innovation performance. It is the effective integration of the internal and external innovation resources of these firms, along with the simultaneous reduction in the uncertainty of technological innovation and the maintenance of the comparative advantage of the firms in the competition. This study used 322 high-tech firms as our sample, which were located in 33 national innovation demonstration bases identified by the Chinese government. We implemented a multiple linear regression to test the impact of CI conducted by these high-tech firms at the level of their technological innovation performance. In addition, the study further examined the moderating effect of two boundary conditions-big data capabilities and policy support (PS)-on the main hypotheses. Our study found that high-tech firms carrying out CI can effectively improve their technological innovation performance, with big data capabilities and PS significantly enhancing the degree of this influence. The study reveals the intrinsic mechanism of the impact of CI on the technological innovation performance of high-tech firms, which, to a certain extent, expands the application context of CI and enriches the research perspective on the impact of CI on the innovation performance of firms. At the same time, the findings provide insight for how high-tech firms in the digital era can make reasonable use of data empowerment in the process of CI to achieve improved technological innovation performance.

Impact of environmental sustainability on open innovation in SMEs: An empirical study considering the moderating effect of gender

Sustainable development has emerged as a crucial factor enhancing the competitiveness of small and medium enterprises (SMEs) in light of societal expectations and government regulations. Within this context, innovation assumes a significant role in this challenge, particularly for smaller companies facing greater obstacles in fostering innovation. These constraints have prompted both internal and external innovation initiatives, commonly referred to as open innovation. In this article, we scrutinize the influence of environmental practices on innovation endeavors, specifically examining whether the innovation strategy and its implementation facilitate the advancement of open innovation within SMEs. Furthermore, we explore the potential moderating effect of firm owners' gender on these relationships. The research model is validated using data from 543 companies in Ecuador, employing the partial least squares (PLS) method. The findings elucidate how environmental sustainability can promote the adoption of open innovation practices, with the innovation strategy and its implementation acting as mediators in this relationship. The impact of gender only manifests in the innovation strategy pertaining to environmental sustainability. In conclusion, open innovation stemming from the pivotal role of environmental sustainability emerges as a critical driver in augmenting innovation performance across various dimensions, such as quality, growth, efficiency, process enhancement, organizational practices, employee motivation, and acquisition of new product/service skills.

Advancing novel therapies for neurodegeneration through an innovative model for industry–academia collaborations: A decade of the Eisai–UCL experience

External innovation initiatives in the pharmaceutical industry have become an integral part of research and development. Collaborations have been built to enhance innovation, mitigate risk, and share cost, especially for neurodegenerative diseases, a therapeutic area that has suffered from high attrition rates. This article outlines the Eisai-University College London (UCL) Drug Discovery and Development Collaboration as a case study of how to implement a productive industry-academic partnership. In the first 10 years, seven projects have been established and the first project, a novel anti-tau antibody for Alzheimer's disease, has entered clinical trials, providing early validation of this collaboration model.

Leapfrogging and partial recapitulation as latecomer strategies

Latecomer firms entering established industries face a pivotal strategic conundrum: Should they prioritize learning from industry leaders or directly compete against them? This paper examines two primary strategies that latecomers can adopt in response to this challenge. Each strategy emphasizes either learning or competition. Partial recapitulation underscores knowledge acquisition by selectively replicating the developmental pathways that have led industry leaders to their current dominant positions. Conversely, leapfrogging fosters competition by harnessing the most advanced products and practices to challenge industry incumbents directly. The appropriateness of these strategies heavily depends on the latecomers' internal capabilities and their external innovation ecosystems. We propose that partial recapitulation is optimal for latecomers with nascent capabilities operating in closed ecosystems, whereas leapfrogging is ideal for latecomers with strong capabilities within open ecosystems. The strategic choice between these two approaches not only delineates firms’ competitive positioning but also defines their learning and innovation trajectory, with significant implications for their competitive performance and industry standing. Our framework enhances the understanding of key strategic choices in latecomer firms, providing valuable insights for decision-makers in this context.

The bright side of analyst coverage on corporate innovation: Evidence from China

Using a sample of A-share listed companies in China from 2007 to 2019, we investigate the effect of analyst coverage on corporate innovation. We find that analyst coverage will promote corporate innovation, supporting the information hypothesis. We also discuss possible mechanisms of how analyst coverage increases innovation. The information and monitor effects are two plausible channels that allow analyst coverage to promote innovation. Heterogeneity analysis shows the positive relation is more pronounced in non-SOEs, in higher intellectual property protection regions. And considering the firms' life cycle, we find firms in the growth and maturity stage are more vulnerably affected by analysts. Further investigation reveals a positive relationship between analyst coverage and external innovation, and the increased innovation ultimately translates into the long-term value of firms. Our research enriches the impact of analyst coverage on innovation and provides new empirical evidence to improve the multi-level capital market.

Development of a drama gong performance model: an effort to preserve the traditional Balinese drama in the digital era

Drama Gong is a traditional Balinese performance art that enjoyed popularity. However, since the 1990s, the advent of television and the internet has led to a decline in the prominence of Drama Gong. Therefore, there is a pressing need to revitalize and innovate this traditional art form. One such effort by Balinese artists involves the creation of a digital adaptation known as 'Drama Keraton Cilinaya.' This qualitative descriptive research aims to explore the development model of Drama Gong in the digital era. The research data were collected through a comprehensive document analysis, which included the examination of seven episodes of 'Drama Keraton Cilinaya,' as well as direct observations and interviews with the creators. The findings revealed that 'Drama Keraton Cilinaya' has undergone significant internal and external innovations. Internally, the artists emphasized the importance of having an open mindset to embrace global changes, packaged stories for enhanced appeal and comprehension, incorporated contemporary dialogue, employed multiple languages, engaged younger talents, enhanced makeup and costume artistry, introduced digital music, and improved stage layouts. External innovations involve collaborations with artists beyond the Drama Gong tradition, utilizing digital technology in production, and distributing the performances through TV media and YouTube channels to broaden their audience reach. It is anticipated that the findings of this research will serve as a valuable digital packaging model, not only for Drama Gong but also for the development of other traditional Balinese performing arts, ensuring their sustainability in the digital era.

Key influencing factors for the success of external innovation strategies in the biotechnology industry

PurposeNumerous biotechnology and pharmaceutical firms have undergone considerable changes and adapted to the challenge of developing sustainable products and services. However, few studies have explored the factors that contribute to the success of external innovation and value co-creation strategies adopted by biotechnology and pharmaceutical firms. The purpose of this study is to examine how biotechnology and pharmaceutical industries use value co-creation strategies to obtain external resources.Design/methodology/approachThis study developed a conceptual framework based on the relevant literature. The study applied a resource-based approach, dynamic capability theory and a qualitative multiple-case study design to investigate several research questions; semi-structured interviews were conducted with representatives from 11 biotechnology/pharmaceutical firms in Taiwan, and the data extracted from the interview content were axially coded.FindingsThis study revealed that factors such as dynamic marketing capabilities and process optimization contributed to the success of the aforementioned strategies; several propositions were also developed on the basis of the literature review and coded data, thereby providing insights regarding the relative efficacy and propriety of various external innovation and value co-creation strategies and models in various situations and contexts. Firms and technology providers might enter a technology licensing agreement, establish a joint venture company; participate in a merger/acquisition depending on their size, research and development capabilities; or goals and time- and cost-related factors.Originality/valueThe main original contributions of this study are the proposed conceptual framework and the insights provided regarding the relative efficacy and propriety of different external innovation and value co-creation strategies and models in different situations and contexts.

A multi‐industry and cross‐country comparison of technology contribution to formal and informal knowledge sharing processes for innovativeness

AbstractThe study explores the impact of organizational information technology (IT) competency on knowledge sharing, both explicit and tacit, in the context of innovativeness of products and processes. Knowledge sharing is then assessed in terms of tacit‐to‐explicit conversion and the impact of both types of knowledge on organizational innovation. Both process (internal) and product/service (external) innovation are included. As an extension, this IT competency to innovation framework is evaluated in context, both by nation (Poland and the United States) and by industry (IT, construction, and healthcare). The results obtained through the structural equation modeling method (sample size 2168 cases in total) exposed that IT competency dimensions matter for formal and informal knowledge‐sharing processes and vary across countries and industries. For instance, in the US IT industry, IT‐infrastructure, IT‐knowledge, and IT‐operations dimensions equally support explicit (formal) and tacit (informal) knowledge sharing. On the contrary, for the same industry in Poland, all dimensions support explicit knowledge sharing but regarding tacit knowledge sharing, only IT‐knowledge supports it. Summing up the general findings, this study exposes that for tacit knowledge sharing, the critical IT‐competency dimension is IT‐knowledge, whereas for explicit‐ IT operations. Next, it clarifies that tacit knowledge sharing supports the explicit, and both are needed to introduce external innovations thanks to their significant impact on internal processes improvement.

MANAGEMENT RESEARCH OF THE INNOVATION POLICY AND STRATEGY OF THE BUSINESS ENTITY

The article examines the theoretical aspects of managerial research on innovation policy and strategy of the business entity. It is substantiated that innovative management is focused on organizational and economic models and methods of managing all stages and types of innovative processes in the subject of economic activity with maximum effectiveness and efficiency. It has been proven that the possibilities of forming a complex innovation management system depend on a significant number of factors. It has been found that determining the need and possibility of managing innovative processes in a business entity allows identifying its real needs, and they can be divided into the needs of the external environment, the needs of the internal environment, and the actual needs of the innovation process as an independent object of management. It is proven that in the conditions of global challenges, the formation of the strategy of the business entity should be aimed at solving the tasks of prospective production and technological development. This type of development is, in fact, a versatile, multifaceted activity that covers almost the entire internal economic environment of the subject. It is substantiated that the innovation strategy is the most important link of the subject's economic strategy and determines its content and direction in many cases. The stages of formation of an innovative strategy of a business entity are determined. A model of formation and implementation of an innovative strategy of a business entity has been developed. It has been proven that the strategic management of innovations of a business entity consists in the timely concentration of efforts on the development and use of promising achievements of scientific and technical development and the timely provision of resources for the dynamics of innovations for the benefit of the achievement of the goals of the business entity and the creation of conditions for its long-term effective activity. Methodology. The methodological basis of the article is a complex of methods, which includes methods of scientific knowledge, analysis and synthesis, systematization and scientific abstraction. The scientific basis of the conducted research is the scientific development of Ukrainian and foreign scientists in the field of innovation in the conditions of global challenges. Results. It is justified that the innovation policy of the business entity should correspond to the nature and scale of its activity, be documented, and also accessible to innovators and responsible performers. Despite the fact that innovation policy embodies established technologies for making strategic management decisions, its provisions must be adapted to the conditions of the external innovation environment and systematically adjusted in response to changes in the strategic goals of the business entity. Innovative activity is always focused on the potential and the future result, the probability of achieving which is determined by the volatility of the business environment and the behavior of all participants in the innovation process of the economic entity. Uncertainty of the results of innovative activity acts as a source of generation of numerous threats that can change the expected results and provoke unforeseen losses and damages as a result of the materialization of innovative risks of the business entity. Practical importance. Conducted management studies will provide support for the formation of innovative policy and strategy of the business entity.

Analysis of financial support efficiency and influencing factors of listed seed companies from the perspective of energy consumption and carbon emissions.

The seed industry has a prominent role in strengthening ecological stability and national food security as it provides the basic ground for agriculture sector. In the current research, the effectiveness of financial support provided to listed seed enterprises and its influencing factors from the perspectives of energy consumption and carbon emissions are examined using a three-stage DEA-Tobit model. The dataset for the underlined study variables mainly comes from the financial data published by 32 listed seed enterprises and the China Energy Statistical Yearbook from 2016 to 2021. In order to make the results more accurate, the influence of external environmental factors such as economic development level, total energy consumption, and total carbon emission on listed seed enterprises are excluded. The results revealed that the mean value of financial support efficiency of listed seed enterprises increased significantly after excluding the influence of external environmental and random factors. External environmental factors such as regional energy consumption and carbon dioxide emission played an important role in the process of the financial system supporting the development of listed seed enterprises. The development of some listed seed enterprises with high financial support efficiency came at the cost of high local carbon dioxide emission and high energy consumption. Internal factors such as operating profit, equity concentration, financial structure, and enterprise size are the key intra-firm factors that affect the efficiency of financial support for listed seed enterprises. Thus, it is suggested that enterprises must pay attention to the environmental performance to reach a win-win situation in reducing and improving the energy consumption and financial performance, respectively. Similarly, the improvement of energy use efficiency through endogenous and external innovation should be prioritized to achieve sustainable economic development.

How does social network in patent provide changes in the Chinese manufacturing firm market value?

Patent thickets create external resource constraints that reduce the market value of enterprises. In the process of technological innovation, it is no longer possible to obtain competitive advantage by relying on individual resource endowment alone. Patent cooperation is considered an important institutional element in social network relations, through which enterprises can integrate external innovation resources to counteract their shortcomings and obtain competitive advantages. In this study, 419 electronic equipment manufacturing enterprises in China between 2009 and 2019 are used as the research objects, and panel data include the financial data of enterprises, the number of patent citations, and the number of patents jointly applied for by enterprises. Based on the patent fragmentation index, social network analysis is used to construct a patent cooperation network. Using UCINET and Gephi tools, the structure of corporate patent thicket networks and their evolutionary characteristics can be obtained. A panel regression model is used to empirically test the social network effect and the effect of patent thickets on the market value of firms in the context of patent cooperation. The findings show that patent thickets can discount the market value of enterprises. However, if a firm is at the center of patent cooperation, it can obtain more innovation resources. If it is at the intermediary of cooperation, it can absorb external knowledge and technology and occupy a richer structural hole, which can positively regulate the negative effect of the patent thicket. In addition, the negative effects of patent thickets are weaker for firms with more than five years of patent maintenance compared to those with less. Our study has important implications for improving the efficiency of patent cooperation and helping governments and firms to effectively cope with patent thickets.

The impact of e-commerce and R&D on firm-level production in China: Evidence from manufacturing sector

E-commerce provides opportunities to extend the market and plays a vital role in modern economy. However, its implementation often requires high-level technical infrastructure. This study regards both e-commerce and R&D as input factors and analyses their impact on firm output in the manufacturing sector of China. We find that e-commerce capital stocks and R&D capital stocks have a significant positive effect on the output growth, with R&D being more influential than e-commerce. Meanwhile, the inter-industry network externalities of e-commerce capital stocks have a significant positive impact on production growth. Still, the intra-industry network externalities of e-commerce capital stocks are significantly negative, which means online purchase and sales through e-commerce may induce product imitation (i.e., business stealing) and, thus, reduce output for certain companies in the industry. These findings suggest that R&D and favourable external innovation environment are the key factors for enhancing enterprise production levels.

Patent Trolls and the Market for Acquisitions

AbstractI study the effect of patent-infringement claims by patent trolls on acquisitions of small firms. Exploiting staggered adoption of state anti-patent troll laws, I find that the laws have two effects. First, the number of acquisitions of small firms declines after these laws are adopted. Second, the anti-troll laws increase the acquisition price for acquirers. The market reflects the increased cost of acquisition as measured by lower acquisition announcement returns. Large firms increase R&D after the adoption of state laws, replacing external innovation. Using a sample of acquisitions that are plausibly unaffected by the laws, I disentangle alternative explanations.

Skin in the Game: An Analysis of Venture Capital Investment in Dermatology from 2002 to 2021

Skin in the Game: An Analysis of Venture Capital Investment in Dermatology from 2002 to 2021

Influence Mechanism of Multidimensional Structure of External Knowledge Search on Firm Performance: Based on Chinese Manu-facturing

In the context of open innovation, the diversification of external innovation resources makes more and more enterprises choose to obtain new knowledge from the outside and search for external knowledge, so as to achieve the purpose of enterprise innovation and development, improve quality and increase efficiency. This paper discusses the different influences of the multidimensional spatial structure of external knowledge search on corporate financial performance and innovation performance. Through the empirical analysis of the knowledge search data of 2053 Chinese manufacturing listed companies, it is found that different external knowledge search structures have different effects on corporate performance. Compared with the three-dimensional development search structure, exploratory search in any dimension is not conducive to the improvement of corporate financial performance and innovation performance.