Increase Innovation Performance Research Articles

Creating airlines’ innovation: linking employees’ perspective of service quality, intellectual capital and innovation performance

ABSTRACT This study investigates various dimensions, including service quality, absorptive capacity, innovation performance, and intellectual capital (specifically organisational capital, social capital, and human capital), within the context of the airline industry. A survey questionnaire was administered to airline employees during the COVID-19 pandemic. The findings indicate that service quality has the potential to generate favourable innovation outcomes, such as increased absorptive capacity, thereby further enhancing employee innovation performance. Service quality is also found to have a simultaneous positive impact on human capital, leading to increased innovation performance and absorptive capacity. Therefore, organisations should prioritise the development of absorptive capacity to enhance both human capital and the accumulation of intellectual capital. Furthermore, both organisational capital and human capital play a vital role in these intricate strategy decision procedures. These factors play a crucial role in strengthening the connections between service quality and innovation performance.

The Influence of Digital Leadership on Innovation Performance by Mediating Employee Creativity

Innovation has become an important part of organizational strategy to achieve competitive advantage in the era of digitalization. This research aims to examine the influence of digital leadership on innovation performance, with employee creativity as a mediating factor. Methods: This research is a quantitative research using primary data obtained through a questionnaire survey of employees at a company in Indonesia which operates in the field of fertilizer production. The measurements were carried out using a Likert scale and data analysis was carried out with the help of the PLS-SEM tool. Research findings show that digital leadership has a positive and significant effect on innovation performance and employee creativity. Apart from that, employee creativity also has a significant effect on innovation performance and mediates the relationship between digital leadership and innovation performance. This research shows that effective digital leadership can increase innovation performance in the workplace by supporting employee creativity. This study fills the literature gap by exploring digital leadership as the main predictor of employee creativity at the micro level. The results provide valuable insights for leaders and management in responding to environmental changes by creating innovation.

Technological and Institutional Space, Entrepreneurial Activities and Innovation in Asian Economies

The East Asian region has shown increased innovation performance over the past 20 years. At the same time, individual economies within the region have shown divergent performance. This article investigated the relationship between institutional potentials, entrepreneurial activities and innovation in 12 Asian economies in order to address the question of why innovation performance in Asian economies has been dynamic as well as divergent. We empirically examine the question in the following two steps. First, we apply a multiple factor analysis to a range of indicators of multiple institutional domains that are relevant to a technological system, and we show that there can be diversity of institutional space underlying a technological architecture. Second, we investigate how and to what extent technological and institutional dimensions—derived from multiple factor analysis (MFA)—affect innovation performance by using an ordered logit model. We find that there is a diversity of technological and institutional systems available for innovation activities, leading to different innovation systems, and that entrepreneurial activity is essential for a technological and institutional potential to be linked with innovative activity. The positive synergy between innovation, technological and institutional potentials and entrepreneurial activities results in different trajectories for Asian economies to lead to increasing innovation performance. This finding implies that there can be multiple ways for emerging economies to be able to develop innovative capabilities. It also contributes to innovation policy, because it allows policymakers in emerging economies to understand how to build a synergy between institutional spaces and entrepreneurs’ activities for innovation performance.

Information and communication technology and innovation performance of firms: Evidence from Chinese listed state-owned enterprises

This study examines whether information and communication technology (ICT) improves innovation performance among Chinese state-owned enterprises (SOEs). Generalized difference-in-differences, panel data regression models, and firm-level data from 2011 to 2018 were used to generate statistically significant results, indicating that publicly traded Chinese SOEs increase innovation performance through ICT adoption. Additionally, we analyze the robustness using a three-dimensional panel data model and employ two-stage least squares estimation to remedy the possible bias generated by endogeneity problems. The results of these tests were consistent with the main findings reported above. Additionally, the existing literature suggests that ICT affects innovation by increasing the openness of information sharing and cooperation, improving efficiency, and enhancing human resource management and corporate governance. We provide evidence of the underlying mechanisms between ICT and innovation among Chinese SOEs.

Influencing Factors Enhancement Innovation Performance of Rural Tourism in Indonesia

Rural tourism starts becoming transition into activity tourism in Indonesia. Various types of innovative goods origin from nature nor created through the hands public become end spear for tour rural to attract local tourists as well as international for come to visit. Manager village tours must start to arrange several strategizes to increase innovation performance from each village tourism in Indonesia. The objective of this study is to know possible factors that increase performance innovation of rural tourism in Indonesia, so it is capable give great attraction for tourists who come to Indonesia. This study was done through village travel in Indonesia by distributing 200 questionnaires involving whole provinces in Indonesia. Data analysis was performed using SEM-PLS. Research results show that innovation capability is one of the supporting factors happening to enhance the performance of village innovation tourism in Indonesia.

Exploring predictors of innovation performance of SMEs: a PLS-SEM approach

PurposeIn the competitive business world, companies strive to be innovative, and to do so, they try to implement innovative human resource practices. Therefore, the authors propose an association between innovative human resource practice, organizational commitment, innovation performance and transformational leadership.Design/methodology/approachThis study gathered data from 1,037 small- and medium-sized enterprises and implied partial least square structural equation modeling PLS-SEM using Smart PLS was adopted to test the hypotheses.FindingsThe findings reveal positive direct relationships between innovative human resource practices, organizational commitment and innovation performance. Moreover, organizational commitment positively mediates and transformational leadership significantly and positively moderates the relationship. Companies should use innovative recruitment and selection, performance management, and innovative compensation to enhance organizational commitment and innovation performance. In addition, the optimized organizational commitment aids in strengthening the connection between innovative human resource practices and firms' innovation performance.Originality/valueManagers should also develop a sense of affiliation and attachment to increase innovation performance. The study contributes empirically to the literature on innovative human resource practices and their effect on organizational commitment and innovation performance.

How and When Does Big Data Analytics Capability Boost Innovation Performance?

The diffusion of big data in recent years has stimulated many companies to develop big data analytics capability (BDAC) to boost innovation performance. However, research regarding how and when BDAC can increase innovation performance is still scant. This study aims to test how (i.e., the mediating role of strategic flexibility and strategic innovation) and when (i.e., the moderating role of environmental uncertainty) BDAC can boost a firm’s innovation performance drawing on resource-based theory. Through a survey of 421 Chinese managers and employees who are engaged in the field of big data analytics, this study reveals that (1) BDAC has a positive effect on innovation performance, (2) strategic flexibility and strategic innovation play a significant serial mediating role in this relationship, and (3) the positive effect of BDAC on innovation performance is more significant under high (vs. low) environmental uncertainty conditions. This study contributes to the extant literature by verifying how BDAC can increase a firm’s innovation performance through the serial mediating role of strategic flexibility and strategic innovation. It also confirms a contingent factor (i.e., environmental uncertainty) regarding the positive effect of BDAC on innovation performance.

Structural power distribution between family and non-family executives and innovation performance in family firms

The top management team (TMT) of family firms is divided into two groups: family and non-family executives. Each group of executives is driven by different and multiple goals and motivations with distinct strategic innovation decision preferences. The centralized ownership and control of firms confer natural authority on family executives, and the appropriateness of the structural power distribution in the TMT has a significant impact on the level of participation and contribution of non-family executives to corporate innovation strategies that affects the innovation performance of family firms. Based on research of the power distribution of TMTs, this paper argues that a balanced structural power distribution (titles, compensation, representation) between family and non-family executives can improve the TMT interaction process, integrate information and knowledge of non-family executives, help balance economic and non-economic goals, and increase innovation performance. Moreover, we posit that this relationship becomes stronger with increasing board independence and environmental dynamism. We find support for these proposed relationships using a sample of publicly traded family firms in China representing 2,379 firm-year observations from 2009 to 2018. The implications of these findings extend to both family business and TMT research. and we offer practical guidance to encourage professional managers to actively participate in strategic decision-making and planned execution in family firms.

How Can Funding Drive Firm’s Performance in the In Vitro Diagnostics Industry?

Due to the increased need for the efficient use of public funds and the importance of private investment, there have been many studies on the effects of these factors on corporate performance. However, few studies have been conducted based on an integrated perspective. In addition, most studies have investigated cases in leading countries and have rarely studied latecomer countries. Therefore, this study investigated the step-by-step effects of government support on firm performance (innovation performance, venture capital (hereafter VC) investment, and financial performance) based on the data on in vitro diagnostic (hereafter IVD) firms in Korea. In particular, we demonstrate the sequential effects of these variables with a time lag. The results of the panel regression analysis indicate that government R&D support improved the innovation performance of IVD firms, but this increased innovation performance did not attract VC investment. Meanwhile, VC investment has a positive impact on a firm’s financial performance. These findings have policy implications and suggest that government support plays a pivotal role in a company’s innovation performance, and thus continuous investment is required. However, innovation performance negatively affects short-term financial performance, and thus technology commercialization should be supported.

The impact of advanced manufacturing technology (AMT) application on product innovation performance: a model of mediated moderated effect

PurposeDrawing on the integration of the knowledge-based theory and the resource orchestration theory, this study aims to develop a moderated mediation model on how design/manufacturing/administrative advanced manufacturing technology (AMT) influences product innovation performance. The authors hypothesized that the absorption capacity could mediate the AMT-innovation performance link and that design–manufacturing integration (DMI) could positively moderate the mediating effect of the absorption capacity.Design/methodology/approachTo test the hypothesis, the authors conducted a mail survey of equipment manufacturing firms and obtained 302 valid responses for data analysis. Both hierarchical regression and bootstrapping analysis were conducted to empirically test the research model.FindingsIt is revealed that the absorption capacity partially mediated the effect of AMT on innovation and that DMI enhanced the mediated effect. Specifically, the mediating effect of the absorption capacity was more substantial and significant when DMI was high. However, the mediating effect of the absorption capacity was weaker and insignificant when DMI was low.Originality/valueOverall, this study contributes to the AMT theory on innovation by identifying the absorption capacity and DMI as two key factors that elucidate why and under what conditions AMT affects innovation. Moreover, this study advises managers that besides developing AMT, firms should cultivate a strong DMI, which directs the absorption capacity toward converting the valuable knowledge in firms’ capital equipment into increased innovation performance.

Does corporate governance induce green innovation? An emerging market evidence

PurposeThis study aims to investigate the effect of corporate governance (CG) mechanisms (board size, independent commissioner and ownership concentration) on green innovation (GI) in publicly traded companies of Indonesia as an emerging market.Design/methodology/approachArchival data relating to CG and GI were collected for five years (2016–2020). A total of 640 observations were obtained and analyzed using a random effect model.FindingsThe results indicate that effective governance mechanisms can encourage GI implementation to promote company sustainability. Respectively, the board size, independent commissioner and ownership concentration positively and significantly affect GI. These results imply that the optimal board size will result in effective coordination and cooperation in making GI decisions. Likewise, the proportional independent commissioners in the board structure will serve an effective oversight function. And concentrated ownership can influence executives to prefer innovation policies, such as GI.Research limitations/implicationsFirst, only a few CG mechanisms were used in this investigation. Therefore, further research needs to consider other mechanisms such as the number of commissioners, internal and external commissioners. Second, this research focused solely on Indonesia as an emerging market. Future research can be expanded to include countries with other emerging market characteristics. Third, different GI measurements from this study should be considered in future studies.Practical implicationsPractically, the results of this study are expected to provide policy recommendations, including optimizing the CG mechanisms as a control tool to achieve organizational sustainability through GI according to stakeholder expectations. This can be achieved by optimizing the size of the board of directors. The low value of the board size coefficient implies that optimization of board size is needed to encourage GI. The company can gain directors’ competence, experience and skill to increase innovation performance. In addition, maximizing the role of independent commissioners in overseeing is required for continuous innovation activities. Finally, the control of large shareholders is also necessary to encourage the implementation of GI because they could influence management to make innovative decisions.Originality/valueThis study extends and contributes to the extant CG and GI literature. There is little evidence that reveals how CG mechanisms affect GI, particularly in emerging market settings. The findings offer some important evidence for improving CG in driving GI implementation.

Renewable energy deployment in the MENA region: Does innovation matter?

This paper contributes to the renewable energy literature from two perspectives. First, we investigate the factors driving renewable energy deployment in the MENA countries using economic, financial, and political variables including financial development, government effectiveness and political stability. This investigation is empirically carried out by the Panel Smooth Transition Model (PSTR) (Gonzales et al., 2017) that explicitly explores the threshold effect within the determinants of renewable energy production. Second, we introduce innovation as a new determinant of renewable energy deployment to account for the mediating role of technological innovation in the achievement of SDGs and especially the SDG7. Using two proxies of innovation (i.e. ICT and percentage of internet users), we show that higher innovation performance is likely to increase the impact of governance quality on renewable energy deployment. Therefore, governance quality, innovation, political stability, and financial development are the main drivers of renewable energy deployment. The paper calls for sustainable policy options that increase innovation performance and governance quality to increase the production of renewable energy.

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.

벤처기업의 정부 R&D정책에 대한 신뢰가 혁신 성과에 미치는 영향

Startups play an important role in economic growth and job creation in niche markets, thus governments regularly expand their research and development(R&D) budgets accordingly. As stratups are more dependent on governments to compensate for insufficient resources and capabilities than large and medium-sized companies, trust in government policies will be important. In this study, we analyzed the impact of startups’ trust in government R&D policies on innovation performance. There were three major results. The first result is that government R&D investments in startups increase innovation performance in the manufacturing and high-technology industries but did not affect other industries. The second result is that trust in government R&D policies increased innovation in high-and medium-high technology and manufacturing industries. The third result is that trust in government R&D policies affects innovation before, during, and after evaluation of support process. We analyzed the importance of trust to the effectiveness of government R&D support to determine how to effectively provide it. The results show that governments need to differentiate the types of R&D support they provide according to the target firm’s technology level and whether they are a manufacturing company and that appropriate R&D support mechanism should be developed for low-technology and non-manufacturing companies. Finally, governments should allocate resources and make fair and transparent decisions to help companies grow, not to better supervise them.

Barriers to innovation and innovation performance: the mediating role of external knowledge search in emerging economies

Using survey data from companies located in the Wuxi (Taihu) international science park in China, we aim to analyze to what extent science park residents experience barriers to innovation and to what extent opening up the innovation process allows them to overcome constraints and increase innovation performance. Findings indicate that surveyed firms that mostly undertake incremental innovation perceive many constraints and that the depth of external knowledge search—that is, the intensity of the relationship with external sources of knowledge—significantly influences innovation performance, mediating the relationships between innovation barriers and innovation performance. Our results allow us to explain how open innovation practices can be used to mitigate existing barriers, and therefore permeate the knowledge filter, and to theorize on the importance of institutional factors for open innovation theory in emerging economies.Plain English summary It is quality not quantity that matters! The intensity of relationships with external knowledge sources helps to mitigate innovation constraints, facilitate the flow of knowledge, and enhance innovation performance in emerging market firms. We surveyed high-tech SMEs located in the Wuxi (Taihu) international science park in China to find out to what extent external firm barriers to innovation have an impact on the innovation performance of science park residents, and how open innovation strategies affect this relationship. There are three key implications: First, for research, institutional factors need to be considered when studying open innovation, particularly in an emerging country context. Results emphasize the importance of deeper external knowledge sources as one mechanism to mitigate institutional barriers. Second, for management, we show human resource constraints are an important barrier for SMEs and managers should stimulate learning through reward systems and training that increase absorptive and innovative capacity ability. Third, for policy, we show that local officials responsible for the management of science parks in China should put more effort into providing financial support by creating specialized venture capital and a better knowledge of risk analysis from the financial system.

Future Work Self and Employee Creativity: The Mediating Role of Informal Field-Based Learning for High Innovation Performance

In today’s highly uncertain environment, the value of creativity and innovation are increasingly critical. How individuals could improve their creativity and innovation performance has become the focus of attention. Future work self as an intrinsic motivation factor plays an important role in creativity and innovation. Based on the self-consistency theory, this study integrated proactive personality and informal field-based learning (IFBL) to explore the relationship between future work self and employee creativity to increase innovation performance. It used data from 201 R&D department employees in China’s high-tech companies. The results show that future work self has a positive effect on employee creativity and that IFBL mediates the relationship between future work self and employee creativity. This process is then positively moderated by a proactive personality. This study’s results help clarify the formation mechanism of creativity from the perspective of intrinsic motivation and indicate that future work self can drive individuals’ creativity and innovation efforts, especially under the consistency of self-concept, motivation and personality. This research also emphasizes the importance of IFBL in improving individual creativity and further organizational innovation performance. Implications for theory and management to help improve creativity and innovation performance are then discussed in detail.

The role of internationalization in enhancing the innovation performance of Chinese EMNEs: A geographic relational approach

Abstract In attempting to integrate theory on developed and emerging countries, prior research has focused on the antecedents of specific internationalization decisions of Emerging Multinational Enterprises (EMNEs) rather than conceptualizing internationalization as a recurring process. This approach limits the understanding of the ways through which different internationalization paths lead to different performance outcomes. Using a geographic relational approach and a portfolio-level analysis, we demonstrate that the ability of Chinese EMNEs to increase innovation performance is driven by how and where they choose to internationalize over time. Our framework resolves these two strategic choices into six dimensions; namely, entry mode, geographic breadth and depth, cultural and institutional distance, and the economic state of the host country. Accordingly, it explains the geographic relational mechanisms through which these six dimensions influence the benefits and challenges of internationalization and, in turn, innovation performance. Results show that Chinese EMNEs improve their innovation performance where they have a portfolio of subsidiaries that (1) is built through M&As (rather than greenfield investments), (2) is distributed across multiple countries (rather than located in fewer locations), (3) is distant from home in terms of culture (but not in terms of institutions), and (4) is located in emerging (rather than developed) countries, although M&As perform better in developed countries.

Increased Innovation Performance through Transgenerational Rejuvenation in Family Firms

Although family firms invest less in innovation, evidence suggests that they generate a relatively higher innovation performance (per unit of investment) than non-family firms. Despite this important difference between family and non-family firms, relatively little remains known about the drivers of the vast innovation performance differences among family firms. Drawing on temporality research, we theorize that transgenerational control intentions increase family business leaders’ willingness to enhance the firms’ innovation performance to rejuvenate the family business for the next generation. Moreover, we theorize that family successors’ (1) past childhood involvement and (2) current leadership involvement reduce family business leaders’ uncertainty regarding the feasibility of transgenerational control, further fueling their motivation to enhance innovation performance to rejuvenate the firm. Hypotheses tests using a multi-respondent, multi-time period survey of 190 family leaders and potential successors in 95 private German family businesses support our theoretical framework. A key insight is that the involvement of the next generation in the family business reduces the uncertainty of senior leaders’ transgenerational intentions, thereby fueling their energy to work with the designated successor and innovate to rejuvenate the business.

Sequential Coherence: A Novel Determinant of Open Innovation

Despite its popularity as a strategy to accelerate innovations there is evidence that open innovation does not always increase innovation performance. Extant literature provides inconsistent and inconclusive arguments in respect of the relationship between open innovation practices and innovation performance. Existing theories mostly have an internal focus and fall short of explaining why some firms succeed in open innovation initiatives and why others fail. Open innovation is about knowledge flows. We argue that boundary conditions matter in innovation performance and sequential coherence can explain why some succeed while others fail in open innovation. A qualitative inquiry we made reveals that sequential coherence that facilitates the knowledge transfer at boundary level influence innovation performance in open innovation initiatives. Sequential coherence is measured through the push and the pull effects by willingness and ability of the participants of teacher firm and the preparedness and ability of the participants from the student firm respectively. We trust that our findings bridge a gap in open innovation literature. These initial findings could be generalized through a quantitative study with larger samples. Managerial implications of the finding is that ability to scan the entire chain of knowledge flow across boundaries and taking corrective measures for any bottlenecks or hindrances observed can bring better results from open innovation initiatives. Further, sequential coherence leads to multiple research opportunities in furthering our knowledge in open innovation.

Does International Diversity Increase Innovation Performance of New Ventures from Emerging Markets?

Given international new ventures (INVs) with resource constraints and lack of international experience, whether they could take advantage of knowledge from their international diversity and be inno...