Incremental Innovation Performance Research Articles

Radical and incremental innovations performance in Eastern European SMEs: An empirical study of developed and emerging economies

Assessing the effectiveness of radical and incremental innovation in SMEs in Eastern European countries is a significant issue in regional economics. In contrast, radical innovation entails the creation of wholly novel goods or organization processes that establish new markets. Progressive enhancements to current goods and processes are referred to as incremental innovation. This study explains the influence of incremental and radical innovation on performance of small and medium-sized enterprises in Eastern Europe. Employing EUROSTAT data from 2012 to 2021 using regression analysis and a graphical model, we examined basic, radical, and incremental innovation and total researcher performance in SMEs, which could enormously affect business performance in Eastern European countries. Our findings indicated that radical, incremental innovation and total research are all favourably related to the performance of SMEs and an approach to studying various innovations and their impact on SMEs. The particular performance effects of radical and incremental innovations in Eastern European SMEs might vary considerably. To give more specific knowledge and suggestions for SMEs, empirical investigations and comprehensive research are required. Our results can contribute to SMEs both theoretically and practically, providing fresh theoretical perspectives for scholars and helpful management consequences for administrators of SMEs in developing countries.

State as a path breaker? Path-dependent behaviours and firm innovation: the moderating role of institutional forces

ABSTRACT This paper explores the effects and mechanisms of institutional forces on the relationship between path-dependent behaviours and innovation performance from an integrated framework combining path dependence and institution-based views. We first examine the effects of path-dependent behaviours, manifested as product line retention and extension, on incremental and radical innovation performance. In investigating this relationship, we join the institution-based view and propose that the effects of path-dependent behaviours are contingent on political and economic institutional forces. Using the samples of Chinese listed pharmaceutical enterprises from 2010 to 2016, we reveal that path-dependent behaviours are conducive to incremental innovation but detrimental to radical innovation. More importantly, while economic institutional forces can enhance the effects of these behaviours on both types of innovation, political institutional forces can mitigate their negative impact on radical innovation.

The effect of internal quality integration on financial performance: the mediating role of product innovation

PurposeThis study aims to examine the joint effect of internal quality integration and product innovation on financial performance by considering the mediating roles of incremental and radical product innovation.Design/methodology/approachA theoretical framework was developed using the organizational capability view. Based on empirical survey data collected from 209 Chinese manufacturing firms, this research uses structural equation modeling and the bootstrapping method to test hypotheses.FindingsThe results show that internal quality integration positively impacts incremental and radical product innovation and financial performance. Further, incremental product innovation can promote radical product innovation. Both incremental and radical product innovation partially mediate the relationship between internal quality integration and financial performance.Practical implicationsThe findings provide practical guidance for manufacturing companies to engage in quality integration and product innovation. Managers should encourage the internal functional departments to coordinate quality integration while promoting incremental and radical product innovation to occupy a larger market and achieve higher performance.Originality/valueThis research contributes to the literature in two ways. First, this study expands the theoretical research framework of the joint effects of quality integration and product innovation on financial performance. Second, through testing the mediating role of product innovation, this study provides empirical evidence for the intermediate role of internal quality integration for improving financial performance.

Promoting technology innovation performance through high involvement HRM, technology adaptation and innovativeness

PurposeThis paper aims to examine how high involvement HRM (HIHRM), technology adaptation and innovativeness influence employees to respond to technology innovation performance – that is, radical innovation performance and incremental innovation performance – in distinct ways.Design/methodology/approachThe purposive judgmental sample technique is used to assess the perceptions of 545 IT employees in Bangladesh's ready-made garment (RMG) industry. The partial least square-structural equation modeling (SEM-PLS) method is applied to analyze and interpret the data.FindingsFindings of the analysis show that HIHRM, technology adaptation and innovativeness influence employees to exhibit technology innovation performance. Furthermore, both technology adaptation and innovativeness show the significant mediating effects between HIHRM and technology innovation performance.Practical implicationsFirst, this study’s findings contribute to HIHRM and technology innovation performance within the context of the resource-based theory. Second, the RMG organizations would acknowledge the role of HIHRM on employee technology adaptability and innovation capability in this regard. A future study might point to the models' ability to create the best work environments, which can help organizations to boost employee productivity through adaptation and innovation.Originality/valueThe study would offer a distinctive perspective on higher-order HIHRM and how they affect IT employees in RMG organizations in Bangladesh that could be approached in other labor-intensive and developing nations. This study also expands the research on technology adaptation and innovativeness by exploring the mediating roles between HIHRM and employee technology innovation performance in the organization.

Psychosocial safety climate as a predictor of work engagement, creativity, innovation, and work performance: A case study of software engineers.

Creativity is vital for competitive advantage within technological environments facing the fourth industrial revolution. However, existing research on creativity has rarely addressed how a climate beneficial for worker psychological health, a psychosocial safety climate (PSC), could additionally stimulate the growth of workplace creativity, innovation, and performance in digital environments. To examine how individually perceived PSC influences subsequent work engagement promoting higher levels of computer-based radical and incremental creativity, innovation, and work performance, employees in a software engineering firm (N = 29, 86 observations) completed a weekly questionnaire for 4 consecutive weeks. At the between-person level PSC was positively related to average future weekly individual fluctuations of creativity (radical and incremental), work engagement, and job performance. Additionally weekly work engagement was related to future creativity (radical and incremental). Work engagement also mediated the between-person relationship between PSC and future creativity (both radical and incremental). PSC did not predict innovation. This study contributes to the theory on PSC, creativity, and work performance by elucidating the individual perceived PSC-creativity relationship and suggesting PSC systems as meaningful antecedents to digital work performance.

To protect or not to protect? Renewal capital, knowledge protection and innovation performance

PurposeFirms need to constantly renew themselves to keep up with the pace of competition and proactively establish innovations to the markets. This requires capabilities in learning and renewing of the firm’s knowledge base, conceptualized as renewal capital of the firm. On the other hand, firms that acquire high levels of competitiveness by renewing their knowledge base also need to protect that knowledge from unwanted spillovers. This study aims to examine how renewal capital affects incremental and radical innovation performance of the firm, moderated by the firm’s protection of its strategic knowledge.Design/methodology/approachThe study is based on a multi-industry survey study with a time-lagged data set, with independent variables collected in the first wave, followed by a second wave four years later for the dependent variables. The authors test the hypotheses using partial least squares structural equation modeling.FindingsThe authors find that firms’ renewal capital is positively associated with the level of incremental and radical innovation. Furthermore, the authors find that knowledge protection negatively moderates the relationship between renewal capital and incremental innovation performance of the firm. In case of radical innovation performance, similar moderating effect is not statistically supported.Originality/valueWith a time-lagged research design, this study study reveals the interdependent roles of renewal capital and knowledge protection for firm’s innovation performance, and provides insights of when (and when not) it would be beneficial for a firm to seek renewal and protective oriented approaches.

The Effect of Organizational Inertia and Customer Orientation with Incremental Innovation as the Mediating Variable towards Organizational Performance

The purpose of this study was to find out the relationship between Organizational Inertia, Customer Orientation, Incremental Innovation and Organizational Performance. The sample used in this study were 180 MSME companies spread across East Java. The reason MSMEs are used in this study is related to the concept of organizational inertia that is attached to small-scale companies. From this study it was found that incremental innovation is not a mediating variable that links organizational inertia and customer orientation with organizational performance.

Innovation Performance Measure Tension and Absorptive Capacity

In pursuit of innovation, most firms rely on a diverse set of performance measures. While this helps them manage their various innovation efforts, the inherent tension between very distinct measures may also come at a cost. In this study, we argue that a strong tension between radical and incremental innovation performance measures undermines employees’ ability to effectively search and integrate knowledge from outside the organization’s boundaries, thus reducing a firm’s absorptive capacity. Firms may, however, overcome this problem through cultural controls. More specifically, we argue that encouraging paradoxical thinking among employees helps them cope with the contradictory nature of performance measure tension, thereby improving both their search and integration strategies for new knowledge. We test our hypotheses using survey data from 131 companies in innovation-dependent industries and find support for our predictions. A supplementary analysis provides evidence that the mechanisms we present also have significant performance implications for firms.

How many to be different? The role of number and the partner type on innovation performance

ABSTRACT Collaboration with external partners for innovation is seen as a major driver of novel ideas. Previous studies have revealed the importance of collaboration with different partners on innovation performance; however, many questions regarding this association remain unresolved. This study aims to analyse the effects of collaboration with different types of partners on the innovation performance and how the cognitive distance affects this relationship. This study also distinguishes between incremental and radical innovations as outcomes of cooperation, and provides differing implications for the two innovations types. Based on empirical analyses performed on a sample of 12,000 Spanish firms, we found supportive evidence that both radical and incremental innovation require a distinct number of collaboration partners to optimise innovation performance. Further, relationship between the number of partners and innovation performance is moderated by the cognitive distance between the focal firm and the respective partner: positively for radical innovation and negatively for incremental innovation performance.

Continuous improvement behaviors and impacts on innovation

PurposeThis paper investigates whether adopting continuous improvement (CI) behaviors is related to better radical and incremental product and process innovation performance and identifies whether CI behaviors positively affect respondent perceptions on CI contributions to innovation performance.Design/methodology/approachData were collected from 139 firms in Brazil, and cluster analysis was used to identify groups with different CI adoption levels. The nonparametric Wilcoxon–Mann–Whitney test was used to verify differences in innovation performance at companies via manager perceptions on CI and innovation.FindingsData show that more CI behavior implementation was associated with better product and process innovation performance. Furthermore, companies with more mature CI behavior levels innovate more, which may reinforce CI investments.Practical implicationsOrganizational managers focused on innovation should dedicate time to evaluating and developing CI behaviors, and maturing CI philosophies to improve performance. This study can contribute to the literature by offering insights for developing public policies, especially for emerging economies, or for companies seeking to become more competitive, since CI can foster and promote a culture of long-term innovation.Originality/valueDespite the fact that a relationship between CI and operational performance has already been established, there is still a lack of research that identifies the impacts of CI behavior on innovation. Focusing on CI behavior is important because it can be fostered by various programs and improvement initiatives, highlighting paths for managerial practices and academia. This study was conducted for an emerging economy.

UNDERSTANDING THE DRIVERS OF RADICAL AND INCREMENTAL INNOVATION PERFORMANCE: THE ROLE OF A FIRM’S KNOWLEDGE-BASED CAPITAL AND ORGANISATIONAL AGILITY

Organisational agility, a specific dynamic capability, constitutes a key success factor in today’s dynamic business environments. However, it is unclear whether and how firms’ knowledge-based capital enables organisational agility. Moreover, mechanisms through which organisational agility translates knowledge-based capital into innovation performance are poorly understood. This study fills these gaps by investigating direct effects of knowledge-based capital (i.e., human, social, and organisational capital) on organisational agility and, in turn, indirect effects on radical and incremental innovation performance. Leveraging survey data from 385 German firms, this study contributes to the organisational agility and the strategic innovation management literature. First, our analysis validates human and social capital as antecedents of organisational agility, yielding evidence for the premises of the knowledge-based view in a novel context. Second, it substantiates the dynamic capability view as a pivotal theoretical lens for explaining the mechanisms underlying the relationships between firms’ knowledge-based capital, organisational agility, and incremental innovation performance.

Understanding the innovative developments with two-stage technology S-curve of nuclear energy projects

The aim of this study is to evaluate the incremental innovation performance of nuclear energy projects. Within this context, a novel model is generated which consists of two different stages, and large nuclear reactors are taken into consideration. Firstly, the Pythagorean fuzzy DEMATEL is used to weight the phases of technology S-Curve for nuclear energy projects. Moreover, the second stage includes the ranking two-generation technology S-curve with integer patterns for nuclear energy projects. In this framework, the best combinations are selected for innovation life cycle pattern with the integer code series. The findings demonstrate that the nuclear energy companies need to consider the two-generation technology S-Curve because continuous technological developments are occurring for nuclear power generation. It is also determined that aging in the first generation is the most significant period of two-generation technology S-Curve for nuclear energy projects. In this process, critical decisions should be made regarding future technological investments. In addition, the growth phase in the second generation is also important for the effectiveness of the nuclear energy technology. Conducting effective evaluations in these processes will contribute to increasing the efficiency of companies.

Knowledge assets and radical/incremental innovation performance: The role of organizational agility

To achieve and sustain radical and incremental innovation performance in today’s fast-paced environments, firms need to develop dynamic capabilities, like organizational agility, that allow them to quickly sense and respond to opportunities. Therefore, a better understanding of enabling assets and mechanisms is important for theory and practice. Drawing on the knowledge-based view and dynamic capability theory, this study investigates how specific knowledge assets enhance sensing and responding agility, which, in turn, advance radical and incremental innovation performance. Based on survey data from 385 firms, this study offers nuanced insights. First, human and social capital are positively related to sensing agility. Second, social and organizational capital are positively related to responding agility. Third, sensing agility mediates the relationships between both human and social capital and radical innovation performance, whereas responding agility mediates the link between both social and organizational capital and incremental innovation performance. Hence, this study contributes to innovation and strategic management literature by empirically validating specific knowledge assets as important antecedents of organizational agility’s underlying dimensions. Additionally, our findings substantiate dynamic capability theory as pivotal theoretical lens to explain the mechanisms underlying the relationships between a firm’s knowledge assets and radical/incremental innovation performance.

Radical or incremental: which type of innovation do stock options drive?

ABSTRACT Due to the importance and challenges, the issue of innovation has been a major one for decades in academia. In this paper, we investigate the effect that stock options have on radical and incremental innovation performance. We conclude that nonexecutive options have a significantly positive effect on both radical and incremental innovation, whereas executive options are only related to incremental innovation. The association between executive options and incremental innovation is more pronounced in firms with weaker free-rider problem and lower diversification, whereas the positive correlation between nonexecutive options and innovation is not magnified or weakened significantly by free-rider problem or firm diversification. Further analysis reveals that nonexecutive options foster radical innovation success through risk-taking and performance-based incentives, whereas executive options (nonexecutive options) contribute to incremental innovation success mainly through risk-taking (performance-based) incentives. We also determine that the distribution structure of a firm’s options matters. Collectively, our evidence shows that nonexecutive options facilitate better innovation performance, and rank-and-file employees are better innovators in a company.

Disentangling the relationship between internationalization, incremental and radical innovation, and firm performance

AbstractResearch SummaryThis study examines the impact of firm internationalization on incremental and radical product innovation, and the effects of these innovation facets on sales growth. We use a sample of 1,064 Spanish manufacturers over the period 2008–2014. We find a positive relationship between higher international scope and greater ex‐post radical innovation output, and an inverted U‐shape relationship between export intensity and both innovation forms. We also find a positive relationship between incremental innovation and sales growth for performance leaders, and negative for performance laggards. Conversely, radical innovation boosts performance laggards' sales growth, but reduces that of performance leaders. The study supports and qualifies the learning‐by‐exporting effect, by identifying some firm‐specific factors that shape the relationship between internationalization, innovation, and firm performance.Managerial SummaryIn this study, we examine the effect of a more intense and more geographically spread out international expansion in a firm's incremental and radical innovation performance. We argue that more internationalized firms may benefit from new knowledge and learning, which they may leverage to increase their incremental and radical product innovations. In turn, we posit that incremental product innovation may be beneficial for performance leaders, but useless for a turnaround of performance laggards. Conversely, radical innovation may be useful for performance laggards, but may disrupt the current position of performance leaders and lead to reduced sales growth. These results point to the importance for exporters to use their new knowledge and capabilities to develop innovation forms that are consistent with their position in the market.

Cultivating product innovation performance through creativity: the impact of organizational agility and flexibility under technological turbulence

PurposeThis study is to compare the impact of organizational agility and flexibility on performance of each type of product innovation (radical vs incremental innovation). Additionally, the moderating effect of technological turbulence on the relationship between the two types of organization is examined.Design/methodology/approachBased on gaps in the existing literature, the survey data are collected from managers who are in charge of developing new products in three industries: food and beverage, chemical and machinery (N = 431). Confirmatory factory analysis is used to verify measurement items and regression analysis is used to test hypotheses.FindingsThe results show that organizational agility increases performance in radical innovation both in a certain situation and an environment with technological turbulence. In contrast, the impact of organizational flexibility is limited to increasing performance in both radical and incremental innovation performance in a certain situation.Originality/valueOur study extends the knowledge of organizational agility and flexibility in the domain of product innovation. Adaptation of organization to respond the technological turbulence will stimulate creativity of new product development teams to produce new useful ideas and transform these ideas to product innovation. The different types of organizing a new product development team to handle technological turbulence will provide different results in product innovation performance. In addition, the findings provide a recommendation on how the organization of a new product development team can improve performance in each type of product innovation under technological turbulence.

When Crowd-Based Resources and Capabilities Generates Radical Innovation? It Depends on the Network Effects

Peer-to-peer or digital multi-sided platform (MSP) startups have created disruptions in various industries in the past few years. In this matter, the crowds within the platform ecosystem have significant contribution for digital MSP startups’ growth. However, there are limited studies that examine the crowd-based resource and capabilities as the source of radical innovation performance since it still conducts the perspective of linear product-market supply and demand. By using network theory, this research proposal wants to examine the role of network effects toward the development of the radical innovation. The findings of PLS-SEM analysis with 70 respondents from digital MSP startups show that crowds-based resources and capabilities manifested by integrative capabilities can generate radical innovation performance through decent network effect that enables to produce high incremental innovation performance beforehand. It shows the importance interaction between digital MSP startups with the crowds for innovation purposes. Hence, the findings contribute in open innovation literatures especially in finding the contributing factors to generate radical innovation

The Effect of Innovation Constraints on Innovation Performance in the Service Industry

Though innovation constraints have been studied for decades, the effect of innovation constraints on innovation performance has been controversial. As an extension of previous literature, this research subdivides and reclassifies innovation constraints into three: fund-, capability-, and market-related constraints, and investigates not only the direct effects of constraints on innovation performance, but also the moderating effects of innovation constraints on the relationship between innovation supportive factors (R&D intensity, collaboration, and international market orientation) and innovation performance in the service industry. The results show that 1) fund-related constraints are negatively related, and market-related constraints are positively related, while capability-related constraints are not significantly related to radical innovation performance, 2) none of the innovation constraints are significantly related to incremental innovation performance, 3) capability-related constraints and market-related constraints negatively moderate the positive effects of collaboration and market orientation on radical innovation performance, respectively, and 4) fund-related constraints negatively moderate the positive effect of R&D intensity on incremental innovation performance.

The asymmetric effects of exploitation and exploration on radical and incremental innovation performance: An uneven affair

Scholars have argued that the exploitation–exploration interaction provides a source of competitive advantage beyond that provided by each individually. However, we know little about the mutual effects of exploitation and exploration on either incremental or radical innovation performance. To address this gap, we examine data from 171 manufacturing firms. We find incremental innovation performance is highest when exploitation interacts with an intermediary level of exploration. Radical innovation performance, however, is solely driven by exploration. A coupling with exploitation is not effective. We contribute to the extant literature, first, by disentangling the interaction effects of exploitation and exploration on radical and incremental innovation performance, respectively. Second, we extend extant literature that agrees that maintaining an appropriate balance of exploitation and exploration is critical for innovation performance and that has conceptualized this balance as symmetrical presence and magnitude of exploitation and exploration. In particular, we provide evidence in support of an asymmetric relationship.

Association between technological innovation and firm performance in small and medium-sized enterprises

PurposeIn developing countries, numerous small- and medium-sized enterprises (SMEs) must innovate because of their scarce resources. This study aims to address the ambidextrous innovation (radical and incremental) associated with firm performance on the SMEs and investigate the moderating effect of environmental factors on the relationship between technological innovation and firm performance.Design/methodology/approachThe authors formulate a path model with the variables to investigate the impacts of the two different innovation strategies and their joint effects on firm performance. Meanwhile, they hypothesized that external environmental factors – market dynamism, labour availability, business cost and competitive hostility – moderate the association of radical and incremental innovations with firm performance. The validity of the proposed model was evaluated using a structural equation modelling approach. Confirmatory factor analysis was used to evaluate the convergent validity of the constructs.FindingsThe authors find that positive association between radical innovation and firm performance; it shows that the radical innovation strategies are positively related to firm performance in SMEs. They also find that the relationship between radical innovation and firm performance has moderated by environmental factors. Second, they find that the incremental innovation strategies have a negative impact to firm performance, and the relationship between incremental innovation and firm performance has no moderated by environmental factors.Practical implicationsThis paper suggests that the managers of SMEs must involve in technological innovation, and offer fourth main implications above. In particular, the authors forewarn SMEs’ managers of the necessity of generating that the relationship between radical innovation and firm performance has moderated by environmental factors, there are approaches fourth items around.Originality/valueThis study highlights the crucial importance of the mediating role of environmental dynamism when examining the relationship between ambidexterity (radical and incremental innovations) with firm performance; firms can perceive environmental factors and develop technological innovation strategies to enhance business performance.