Incremental Innovation Capability Research Articles

‘Buzz-and-Pipeline’ dynamics of urban dual innovation: Evidence from China's biomedical industry

The dynamics of urban innovation capacity remain to be clarified, and this study combines the ‘Buzz-and-Pipeline’ model with dual innovation theory to explain urban innovation capacity. Specifically, from the two dimensions of spatial scale and knowledge type, "inter-city—explicit knowledge" and "intra-city—tacit knowledge" were used to define Buzz and Pipeline, respectively. Then, this study meticulously classifies urban innovation capabilities into two categories: incremental and breakthrough innovation. Further, this study focuses on how the knowledge interaction in the ‘Buzz-and-Pipeline’ framework drives urban dual innovation (incremental innovation, breakthrough innovation). An empirical study was conducted with the China's biomedical industry and the results showed that: Buzz and Pipeline have different mechanisms for the city's dual innovation capabilities. Both Buzz and Pipeline and their interaction have a positive impact on city's incremental innovation capacity. Both Buzz and Pipeline have an inverted U-shaped effect on city's breakthrough innovation, and their interaction has a negative impact. This study provides some insights into differentiated strategies for fostering incremental and breakthrough innovation capabilities in cities in developing countries.

Tacit knowledge acquisition and incremental innovation capability: Proximity perspective

Knowledge, especially tacit knowledge (TK), has become the most strategic resource for firms' innovativeness and competitiveness. However, most agricultural firms struggle to effectively manage TK to improve their innovation capability. This study aims to examine the relationships between firms’ proximity, including geographic proximity (GP), cognitive proximity (CP), social proximity (SP) and organizational proximity (OP), external tacit knowledge acquisition (ETKA) and incremental innovation capacity (IIC). The study also examines the mediating role of ETKA in the relationship between proximity dimensions and FFF's IIC. The paper draws on the theoretical framework of knowledge-based view and knowledge management (KM) and adopt structural modeling equation for research hypothesis testing. Primary data are collected between October and November 2021 through face-to-face interviews at 320 FFF level. The results reveal that SP and OP positively affect ETKA and IIC of FFF, while GP and CP failed. The evidence further shows that ETKA significantly improves FFF' IIC. The results also highlight the partial mediating effect ETKA. The study suggests that FFF owner-managers can improve ETKA and boost IIC by building and optimizing strong close relationships between FFFs based on trust and shared goals. The finding provides useful implications for policymakers and agricultural firms managers regarding the adoption of embedded open innovation paradigm based on proximity dimensions. This study extends the literature on agricultural innovation by providing evidence of the link between proximity-KM-IIC.

TMT's technical orientation and ambidextrous innovation capability in digital transformation age

AbstractThis study examines the effects of technical orientation of the top management team (TMT) on ambidextrous innovation capability in the digital transformation age. Our baseline results document a positive relationship between TMTs' technical orientation and ambidextrous innovation capability. While digital transformation significantly enhances the positive relationship between TMTs' technical orientation and radical innovation capability, it is not correlated with the positive relationship between TMTs' technical orientation and incremental innovation capability. We discuss the heterogeneity of state ownership, revealing that while TMTs' technical orientation enhances the ambidextrous innovation capability in Chinese state‐owned enterprises (SOEs), it is not correlated with Chinese non‐SOEs. In Chinese SOEs, digital transformation enhances the positive relationship between TMTs' technical orientation and ambidextrous innovation capability, but no correlation is observed in Chinese non‐SOEs.

How inter-firm cooperation and conflicts in industrial clusters influence new product development performance? The role of firm innovation capability

Despite ongoing cooperation among firms in industrial clusters, inter-firm conflicts are also prevalent, and little research has explored how these factors impact new product development (NPD) performance. In this study, we examine the influence of inter-firm cooperation and conflicts (i.e., constructive and destructive) on NPD performance, and explore the mediating role of innovation capability (i.e., incremental and radical) and the joint interactive effects of cooperation and conflicts on innovation capability. Based on data collected from a multi-sourced sample of 181 industrial cluster firms, our results confirm that innovation capability mediates the relationship between cooperation/constructive conflict and NPD performance. Specifically, we find that cooperation and constructive conflict positively affect both types of innovation capability, while destructive conflict negatively affects incremental innovation capability. Moreover, we identify a negative interaction effect of cooperation and constructive conflict on radical innovation capability, and a positive interactive effect of cooperation and destructive conflict on incremental innovation capability. These findings contribute to the literature on industrial clusters and provide practical implications for firm managers and government officials interested in regional development through industrial clusters.

High-Performance Work System and Innovation Capabilities: The Mediating Role of Intellectual Capital

This study examined the effect of high-performance work systems on developing incremental and radical innovation capabilities. Drawing on resource-based and knowledge-based theories, the mediating effects of human capital, social capital, and organizational capital were tested. Data were collected from 233 middle-to-senior level managers working in the banking sector of Pakistan, and hypotheses were tested through partial least squares structural equation modeling using Smart PLS 4.0. The findings showed that all components of intellectual capital mediated the relationship to develop both types of innovation capabilities. In terms of the strength of the relationship, social capital was found to be a more effective mediator, and next to this were human capital and organizational capital, respectively. Our findings contribute to the existing literature by explaining the relationship between HPWS and innovation capabilities, which is also referred to as the black box through the mediation of intellectual capital. Decision makers should recognize the importance of this relationship because it develops innovation capabilities that enhance organizational performance by giving them a competitive advantage.

How the dairy industry in North America is leveraging analytics for increased efficiency

With big data analytics rising in recognition, academic providers are considering the methods whereby they're competent to obtain the shifts these remedies carry into the competitive methods. Drawing on the resource based view, features, and also on the most recent literature on big data analytics, this specific analysis examines the indirect link between a huge data analytics capability, as well as two types of development capabilities, incremental and radical. The study extends present investigation by proposing that BDACs allow firms to produce insight that could help strengthen dynamic features, which positively affect incremental innovation capabilities and radical. To evaluate our proposed hypothesis, we used survey info from 185 chief officers and supervisors in Italian companies. By partial least squares structural equation modeling, results confirm our assumptions about the indirect effect BDACs have on growth capabilities. Especially, we find that dynamic abilities fully mediate the end result on both incremental and radical innovation capabilities. Furthermore, under conditions of increased eco-friendly heterogeneity, the result of BDAC's on effective features, and also in sequence, incremental innovation skill is enhanced, while under conditions of higher eco-friendly dynamism, the effect of effective capabilities on incremental innovation capabilities is amplified.

How analytics is driving the supply chain innovation in North America

With big data analytics becoming more popular, academics have been wondering how they can adapt to the changes in competitive strategies that these solutions bring. This analysis, using the resource-based perspective, capabilities and also the most recent literature on big data analytics, examines the indirect connection between a big data analytics capability and two types of development capabilities, incremental and radical. The study extends existing research by proposing that BDACs enable companies to produce insight that could help strengthen dynamic capabilities that positively influence incremental innovation capabilities and radical. To test the hypothesis we proposed, we utilized survey data from 185 chief executives and managers operating in Italian companies. The outcomes of partial least squares structural equation modeling confirm our assumptions about the indirect effect that BDACs have on development capabilities. In particular, we find out that dynamic abilities completely mediate the outcome on both incremental and radical innovation capabilities. Furthermore, under conditions of higher environmentally friendly heterogeneity, the effect of BDACs on powerful features and in sequence is improved incremental innovation ability, while under conditions of higher eco-friendly dynamism, the effect of powerful abilities on incremental innovation abilities is increased.

Why shape a market? Empirical evidence on the prominent firm-level and market-level outcomes of market-driving strategy

Market-driving strategy (MDS) is defined as influencing the market structure and/or the market players’ behavior in a direction that reinforces a firm’s competitive edge. Hitherto, limited evidence exists regarding its consequences, while innovation is of profound importance for MDS. The objectives of this project are to identify: (1) the main firm-level and market-level outcomes of MDS, (2) mediating mechanisms among those outcomes, and (3) the influence of radical and incremental product innovation capabilities on MDS. A mixed-methods research design is applied, grounded in three complementary studies (a qualitative study [27 in-depth interviews], an online survey [241 participants], and a follow-up online survey [101 participants]). Findings suggest that: (a) the firm-level outcomes of MDS are financial and customer performance, organizational reputation, and sustained competitive advantage; (b) radical and incremental product innovation trigger MDS; (c) incremental innovation and organizational reputation are positively related to financial performance; and (d) MDS enhances market change.

Top management Team's cognitive diversity and the Firm's ambidextrous innovation capability: The mediating role of ambivalent interpretation

The top management team (TMT) diversity has received considerable attention in literature, especially due to its influence on an organization's innovation strategy. While previous studies have considered diversity in terms of education, experience, skills, functionality, and gender, little is known about the TMT's cognitive diversity. We contribute to the literature by examining the influence of the TMT's cognitive diversity on an organization's ambidextrous innovation capability; i.e., its incremental and radical innovation capability. Results from 50 TMTs involved in the electronics industry support our hypothesized mediating role of ambivalent interpretation; that the TMT cogitative diversity positively influences ambivalent interpretation, and this, in turn, positively influences both radical and incremental innovation capability. These findings have important implications for how a firm's decision makers (i.e., the TMT) with their diverse cognitive styles support building the firm's ambidextrous capability through ambivalent interpretation.

Research on the influence of R&D human resources on innovation capability—Empirical research on GEM‐listed enterprises of China

This study aims to ascertain the influence of R&D human resources on innovation capability by evaluating the innovation capability of growth enterprise market‐listed companies using a stepped‐regression analysis. It also employs various models to assess incremental and radical innovation capabilities and obtain evaluation scores. The findings show a significant positive correlation between the size of R&D human resources investment and innovation capability, and a significant negative correlation between the intensity of R&D human resources investment and comprehensive innovation capability. The R&D personnel's number improves incremental innovation capability more significantly than radical innovation capability, which is better incentivized by higher salaries.

Incremental and radical product innovation capabilities in a quality management context: Exploring the moderating effects of control mechanisms

This paper addresses calls for understanding of the contextual conditions under which Quality Management (QM) may be effective in supporting radical and incremental innovation in a technologically dynamic sector. Particularly, formal and informal control mechanisms can play a role in such a knowledge intensive sector, where the degree of formalisation may be a constraint to explorative behaviours. This study focuses on the moderating role of support for creativity and formalisation of the innovation process as two types of control mechanisms entailing different levels of formalisation. The sample consists of 111 organisations from the information technology service sector featuring technological dynamism. The results evidence that QM is associated with incremental innovation capability, but not with radical innovation. A positive moderating role of formalisation of the innovation process was found in incremental innovation. The results indicate that these two types of innovation require different kinds of resources and enabling actions, which advises the adoption of a contingent perspective when analysing the QM–innovation link in future research. The existence and use of specified procedures are not a drawback in the innovation process within a firm. Thus, organisations should be aware that the effectiveness of QM to increase incremental innovation capability is likely to be enhanced by a formalisation of the innovation process. In contrast, for breakthrough innovation, QM was not evidenced to be a successful mechanism. The findings suggest that support for creativity is the mechanism that managers can best use to promote radical innovation.

The role of information governance in big data analytics driven innovation

The age of big data analytics is now here, with companies increasingly investing in big data initiatives to foster innovation and outperform competition. Nevertheless, while researchers and practitioners started to examine the shifts that these technologies entail and their overall business value, it is still unclear whether and under what conditions they drive innovation. To address this gap, this study draws on the resource-based view (RBV) of the firm and information governance theory to explore the interplay between a firm’s big data analytics capabilities (BDACs) and their information governance practices in shaping innovation capabilities. We argue that a firm’s BDAC helps enhance two distinct types of innovative capabilities, incremental and radical capabilities, and that information governance positively moderates this relationship. To examine our research model, we analyzed survey data collected from 175 IT and business managers. Results from partial least squares structural equation modelling analysis reveal that BDACs have a positive and significant effect on both incremental and radical innovative capabilities. Our analysis also highlights the important role of information governance, as it positively moderates the relationship between BDAC’s and a firm’s radical innovative capability, while there is a nonsignificant moderating effect for incremental innovation capabilities. Finally, we examine the effect of environmental uncertainty conditions in our model and find that information governance and BDACs have amplified effects under conditions of high environmental dynamism.

External knowledge search and firms’ incremental innovation capability: the joint moderating effect of technological proximity and network embeddedness

PurposeThis paper aims to analyze the extent to which the influence of external knowledge search activities on firms’ incremental innovation capability, and the moderating roles of the relatedness between the partners’ technological bases and a firm’s network embeddedness in the innovation network.Design/methodology/approachIn this empirical research, the authors collected a sample of patents in the UAV industry over the period of 2004–2018. Then the authors examined the direct role of external knowledge search on firms’ incremental innovation capability and the joint moderating effects of technological proximity and network embeddedness.FindingsWe found that external knowledge search in innovation networks positively affects firms’ incremental innovation capability. Moreover, we discovered that high technological proximity to other peers positively strengthens the impact of firms’ external knowledge search on their incremental innovation capability. Finally, the findings suggested that the relationship between a firm’s external knowledge search activities and its incremental innovation capability is stronger for high technological proximity coupled with high network centrality or poor structural holes in innovation networks.Originality/valueThis study adds value to open innovation literature by pointing out a positive relationship between external knowledge search and firm incremental innovation capability. Furthermore, this study reinforces the key joint contingent roles of technological proximity and network embeddedness. This study provides a valuable theoretical framework of incremental innovation capability determinants by connecting the different perspectives.

Open innovation, network embeddedness and incremental innovation capability

PurposeThis study aims at developing a better understanding of the relationship between network embeddedness and incremental innovation capability and further examines the moderating effect of open innovation.Design/methodology/approachThis paper adopts hierarchical regressions to validate the theoretical model and collect the patent data of the top 54 firm patentees in the smartphone industry as empirical sample. Using patent citation network data, this paper estimates the relationship between open innovation, network embeddedness and incremental innovation capability.FindingsThis paper empirically shows that structural embeddedness exerts a negative effect on incremental innovation capability, while relational embeddedness is positively related to incremental innovation capability. And open innovation strengthens the relationship between network embeddedness and incremental innovation capability.Originality/valueThis paper shifts the focus of the determinants of incremental innovation capability from internal factors to the external network features by exploring the linkage between network embeddedness and incremental innovation capability. A counterintuitive conclusion is that structural embeddedness shows a negative effect on firm's incremental innovation capability. Furthermore, in contrast to most previous studies, which only focus on the direct effect of open innovation on the firm's incremental innovation capability, our study examines the moderating effect of open innovation on the relationships between network embeddedness and incremental innovation capability. At last, the results provide practical guidance for firms to occupy the beneficial network positions and adopt appropriate open innovation strategies to improve their incremental innovation capability.

Examining the interplay between big data analytics and contextual factors in driving process innovation capabilities

ABSTRACT The potential of big data analytics in enabling improvements in business processes has urged researchers and practitioners to understand if, and under what combination of conditions, such novel technologies can support the enactment and management of business processes. While there is much discussion around how big data analytics can impact a firm’s incremental and radical process innovation capabilities, we still know very little about what big data analytics resources firms must invest in to drive such outcomes. To explore this topic, we ground this study on a theory-driven conceptualisation of big data analytics based on the resource-based view (RBV) of the firm. Based on this conceptualisation, we examine the fit between the big data analytics resources that underpin the notion, and their interplay with organisational contextual factors in driving a firm’s incremental and radical process innovation capabilities. Survey data from 202 chief information officers and IT managers working in Norwegian firms are analysed by means of fuzzy set qualitative comparative analysis (fsQCA). Results show that under different combinations of contextual factors the significance of big data analytics resources varies, with specific configurations leading to high levels of incremental and radical process innovation capabilities.

Structural network embeddedness and firm incremental innovation capability: the moderating role of technology cluster

PurposeThis paper aims to propose the following questions: How do structural network embeddedness influence firms’ incremental innovation capability? Does technology cluster moderate the relationships between them?Design/methodology/approachIn this empirical research, the authors collected a sample of patent data in the smartphone industry over the period of 2000-2018. Then, the authors examined the direct roles of structural network embeddedness on firms’ incremental innovation capability and the moderating role of technology cluster by using ordinary linear squares regression.FindingsThe empirical results show that occupying the central position positively affects firms’ incremental innovation capability, and clustering strengthens this linear relationship. Furthermore, bridging structural holes has an inverted U-shaped effect on incremental innovation capability, and clustering positively moderated this nonlinear relationship, while bridging ties across different clusters plays a negative moderation role in this relationship.Originality/valueThis empirical research provides new insights into whether and how firms can grasp the benefits of structural network embeddedness to conduct incremental innovations and the moderation effects of technology cluster contingencies. It further contributes to the structural network embeddedness–incremental innovation capability issue by extending its research context to the smartphone industry.

Total quality management and high-performance work systems for social capital development

PurposeThe purpose of this paper is to analyse social capital (SC) development oriented to innovation. The relationship between high-performance work systems (HPWSs) and total quality management (TQM) philosophy is considered in this paper as an enabling factor that allows firms to accumulate SC oriented to develop radical and incremental innovation capabilities (IIC).Design/methodology/approachThis paper establishes hypotheses and a model based on partial and total mediating effects of SC to develop innovation capabilities, which are focused on previous unexplored connections between HPWS and TQM and their effects on SC. The model and hypotheses are statistically tested through a partial least squares approach to structural equations models in a multi-industry sample of Spanish companies.FindingsThe study results show a system of specific human resource practices connected to SC development. Moreover, SC is found to be a mediating factor in the relationship between TQM and IIC, although the effect is not significant when radical innovation capabilities (RIC) are considered in the model. Finally, it is shown that HPWS partially mediates the relationship between TQM and SC.Research limitations/implicationsThis paper mainly contributes to the study of organizational context enablers for intellectual capital (IC) development from a knowledge-based view, especially when firms are seeking to build or improve innovation capabilities. As a managerial approach, HPWSs and TQM are shown as powerful tools to establish prolific contexts for SC development, especially when TQM is rightly supported by a HPWS.Originality/valueThis is a quantitative study that analyses, for the first time, predictive relationships between popular tools such as TQM and HPWSs to create an organizational context for SC development, considering a multi-industry sample of firms. Important implications are also drawn to help managers to create IC assets related to social interaction and network relationships.

Big Data Analytics Capabilities and Innovation: The Mediating Role of Dynamic Capabilities and Moderating Effect of the Environment

AbstractWith big data analytics growing rapidly in popularity, academics and practitioners have been considering the means through which they can incorporate the shifts these technologies bring into their competitive strategies. Drawing on the resource‐based view, the dynamic capabilities view, and on recent literature on big data analytics, this study examines the indirect relationship between a big data analytics capability (BDAC) and two types of innovation capabilities: incremental and radical. The study extends existing research by proposing that BDACs enable firms to generate insight that can help strengthen their dynamic capabilities, which in turn positively impact incremental and radical innovation capabilities. To test their proposed research model, the authors used survey data from 175 chief information officers and IT managers working in Greek firms. By means of partial least squares structural equation modelling, the results confirm the authors’ assumptions regarding the indirect effect that BDACs have on innovation capabilities. Specifically, they find that dynamic capabilities fully mediate the effect on both incremental and radical innovation capabilities. In addition, under conditions of high environmental heterogeneity, the impact of BDACs on dynamic capabilities and, in sequence, incremental innovation capability is enhanced, while under conditions of high environmental dynamism the effect of dynamic capabilities on incremental innovation capabilities is amplified.

Lean Six Sigma and Innovation – an exploratory study among UK organisations

Although research has been carried out linking Total Quality Management and Innovation, it was found that there is a dearth of literature exploring the relationship between Lean Six Sigma (LSS) and Innovation. The purpose of this paper is to explore the link between LSS and Process/Product/Service Innovation. A number of interviews were carried out with 10 UK-based companies to explore how LSS and Process/Product/Service Innovation are linked. The interviewees (Six Sigma Black Belts and Master Black Belts) were carefully chosen to ensure that sound and valid conclusions could be derived from the investigation. Due to constraints of limited time, the number of people who participated in the study was relatively small. However, the authors argue that this study can provide a good foundation to various researchers and practitioners to further explore the nature of the relationship between one of the most popular business process improvement methodologies (LSS) and Process/Product/Service Innovation. Based on the interviews of 10 companies in the UK engaging with LSS initiatives, the authors found that LSS is commonly viewed as fostering Process/Product/Service Innovation, Incremental Innovation, or Innovation Capability. The authors also identify seven features specific to LSS that are likely to have significant influence on the above types of Innovation.

How Does Ambidexterity Matter for Radical and Incremental Innovation Capabilities?

The notion that ambidextrous learning—involving both exploration and exploitation—will improve firm performance, has become prominent in academia and practice. While arguing that innovation capabilities are central to the ambidexterity hypothesis, we investigate how the two dimensions of ambidextrous learning (combined and balanced) affect firms’ incremental and radical innovation capabilities. Based on organizational learning theory, we develop theoretical arguments underpinning the idea that the combined dimension of ambidexterity drives incremental innovation capability while the balance dimension of ambidexterity positively influences radical innovation capability. We base our empirical analysis on a survey of high-tech firms in China. We find support for our theoretical arguments.