Influence Innovation Performance Research Articles

Nexus between intellectual capital and innovation performance: the mediating role of firm’s attractiveness and knowledge sharing

Purpose Intellectual capital has recently gained significant attention for achieving a competitive advantage for firms. Accordingly, this study aims to examines the impact of intellectual capital on small and medium enterprises (SMEs) innovation performance. Additionally, it also examines the mediating role of firm’s attractiveness (FATR) and knowledge sharing (KS) in small enterprises of India’s National Capital Region (NCR). Design/methodology/approach Data was gathered from 395 owners and managers of the NCR region through a self-administered survey questionnaire. The author applied a “variance-based structural equation modeling” to examine the outcomes. Findings The outcomes exhibited that relational capital (RC) significantly influences the FATR, while human capital (HC) and structural capital (SC) insignificantly influences the FATR. Furthermore, HC, RC and SC substantially influence KS. Interestingly, the outcomes also reveal that a FATR and KS substantially influence innovation performance. Research limitations/implications This research provides valuable opportunities to expand the study of intellectual capital and innovation performance in SMEs across different countries, paving the way for future comparative analyses in diverse international contexts. Practical implications The results assist policymakers and practitioners in assessing an organization’s ability to transform data into intellectual capital within the context of “Industrial Revolution 4.0” to strengthen its sustainability and innovation performance. Originality/value The current paper delivers a more affluent and novel understanding of Indian SMEs by examining the interplay between intellectual capital and innovation performance mediating by a FATR and KS behavior. Furthermore, the proposed model has not been previously addressed in the academic literature, which signifies advancement in scientific knowledge.

Do we get along well? A dyadic study of how and when congruence in specific investments influence innovation

Using a matched survey of 209 buyer-supplier pairs, this study adopts a dyadic approach to investigate the impact of congruence in specific investments on innovation performance. It explores the mediating role of knowledge acquisition and moderating role of digital collaboration capability. The study focuses on the outcomes differentiated by levels of investment congruence (high-high vs. low-low congruence) and scenarios (congruence vs. in congruence), including the direction of incongruence (buyer-higher vs. supplier-higher incongruence). The findings indicate that investment congruence correlates with increased knowledge acquisition compared with incongruence, particularly for high-high specific investment congruence. In cases of incongruence, scenarios with supplier-higher incongruence led to more effective knowledge acquisition compared with buyer-higher incongruence. The research also reveals that congruence in specific investments indirectly enhances buyer innovation performance through knowledge acquisition, and the effect is enhanced by digital collaboration capabilities. This study thereby contributes to the business-to-business literature by revealing how and when congruence in specific investments influence innovation performance.

Self-reliance or dependence? patterns of information technology use on innovation performance

The association between information technology (IT) and firms’ innovation performance remains underexplored within the current Operations Management literature. We attempt to address this void by exploring how patterns of IT use (exploration and exploitation) influence innovation performance. We also introduce distinct types of supply chain (SC) innovation strategies, and explore how internal, external, and ambidextrous (balanced and combined) innovation strategies moderate the relationship. Drawing upon the dynamic capability view, we consider patterns of IT use as firms’ dynamic capabilities that can foster innovation performance, and regard SC innovation strategy as organisational paths that may influence the effectiveness of IT use. We empirically examine the relationship using data from 995 manufacturing firms featured in the World Bank China Enterprise Survey. We find IT exploitation and exploration positively influence innovation performance. Additionally, the internal innovation strategy can amplify the positive effect of IT exploitation, while exerting a non-significant moderating effect on IT exploration. Interestingly, the positive impacts of both IT use patterns on innovation are weakened when firms adopt external and ambidextrous innovation strategies. Our study contributes to a deeper comprehension of the relationship among IT use, SC innovation strategies, and firms’ innovation performance based on a dynamic capability view.

R&D Alliance and Innovation: The Interaction of Network Structure and the Quality of the Relationship

AbstractMuch research has taken a structural perspective to examine how the R&D alliance network affects innovation. However, little is known about how the quality of the relationship affects firms’ innovation. In this study, I examine the interaction of network structure and the quality of the relationship and explore the impact on innovation. Using a combination of propensity score weighting and difference‐in‐difference estimation strategies to address endogeneity, I find that the quality of the relationship moderates the inverted U‐shaped relationship between network structure and innovation performance. In addition, I present evidence consistent with possible underlying mechanisms: both network structure and the quality of the relationship affect firms’ access to novel information and firms’ recombination capacity to influence innovation performance.

Board gender diversity and innovation performance in manufacturing firms: What is the role of risk-taking?

This study investigates the impact of board gender diversity on innovation performance in Chinese listed manufacturing firms, focusing on the mediating role of firm risk-taking. Analyzing 21,262 firm-year observations from 2010 to 2022, we find that board gender diversity positively influences innovation performance through increased risk-taking. Heterogeneity analysis reveals that the impact is stronger in the Eastern and Central regions and in technology-intensive industries. These findings suggest that gender-diverse boards can foster innovation by promoting balanced risk-taking, particularly in regions with better institutional environments and technology-driven sectors. The results have significant implications for corporate governance practices and policies aimed at enhancing gender diversity and innovation.

CAN ESG PERFORMANCE DRIVE FIRM INNOVATION? THE MEDIATING ROLE OF AI ADOPTION AND DIGITAL TRANSFORMATION — EVIDENCE FROM CHINA

The effectiveness of Environmental, Social, and Governance (ESG) on corporate performance is an area of growing interest with significant practical implications. However, the role of ESG in fostering corporate innovation has received limited attention, and the mechanisms through which ESG factors influence innovation performance remain inadequately understood. This paper empirically investigates the impact and mechanisms of ESG performance on corporate innovation capabilities using a sample of Chinese A-share listed companies from 2010 to 2021. The results indicate that ESG performance significantly enhances corporate innovation capacity, mediated by the degree of artificial intelligence (AI) adoption and digital transformation. By employing the concept of organisational innovation, this study elucidates the mechanisms of ESG factors on innovation performance, addressing a significant gap in the existing research. The findings offer valuable insights for enterprises aiming to improve their competitive advantage and provide a crucial foundation for policymakers seeking to enhance corporate innovation through targeted reforms.

The role of boundary-spanning behaviour in enhancing individual innovation performance: a cross-level investigation

PurposeThis study aims to investigate the impact of team boundary-spanning behaviours (BSBs) on innovation performance at both individual and team levels. The study specifically focuses on the mediating effects of knowledge sharing and creative self-efficacy, as well as the boosting influence of perceived superior trust.Design/methodology/approachThis study employs a multi-level structural equation model to examine the data collected from 108 teams and 596 individuals. The aim is to investigate both the direct and indirect effects of BSBs on innovation.FindingsThe findings indicate that BSBs have a dual impact on innovation performance, both directly and indirectly through knowledge sharing and creative self-efficacy. Moreover, this impact is magnified by the perceived confidence from higher-ranking individuals.Practical implicationsThe study indicates that managers should cultivate boundary-spanning behaviours (BSBs) and create a trusting environment in order to promote innovation. Facilitating the dissemination of knowledge and enhancing one's belief in their ability to be creative are crucial tactics.Originality/valueThis study provides fresh perspectives on how the behaviours of a team impact the individual results of creativity, emphasising the crucial role of trust in amplifying the beneficial benefits of BSBs on innovation. This study enhances the existing knowledge in the field of organisational behaviour and innovation management by providing a comprehensive analysis of the specific ways in which BSBs influence innovation performance.

Impact of Knowledge Management Strategies on Innovation Performance in Small and Medium Enterprises (SMEs) in Rwanda

Purpose: The aim of the study was to assess the impact of knowledge management strategies on innovation performance in small and medium enterprises (SMEs) in Rwanda. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The study indicate that effective knowledge management practices within SMEs positively influence innovation performance, leading to enhanced competitiveness and sustainable growth. Implementing knowledge management strategies such as knowledge sharing, creation, and utilization facilitates idea generation, problem-solving, and product/service development. Furthermore, fostering a knowledge-sharing culture among employees promotes collaboration, learning, and creativity, thus fueling innovation within SMEs. Additionally, leveraging technology platforms and tools for knowledge management facilitates seamless information exchange, retrieval, and utilization, further enhancing innovation capabilities. Implications to Theory, Practice and Policy: Resource-based view, social capital theory and dynamic capabilities theory may be used to anchor future studies on assessing the impact of knowledge management strategies on innovation performance in small and medium enterprises (SMEs) in Rwanda. SMEs should prioritize investments in knowledge management initiatives aimed at fostering a culture of innovation, collaboration, and continuous learning within the organization. Policymakers should develop supportive frameworks and incentives to encourage SMEs to invest in knowledge management initiatives.

How does a firm’s digital business strategy affect its innovation performance? An investigation based on knowledge-based dynamic capability

PurposeWhile previous research has demonstrated the positive effects of digital business strategies on operational efficiency, financial performance and value creation, little is known about how such strategies influence innovation performance. To address the gap, this paper aims to investigate the impact of a firm’s digital business strategy on its innovation performance.Design/methodology/approachDrawing on the dynamic capability view, this study examines the mechanism through which a digital business strategy affects innovation performance. Data were collected from 215 firms in China and analyzed using multiple regression and structural equation modeling.FindingsThe empirical analysis reveals that a firm’s digital business strategy has positive impacts on both product and process innovation performance. These impacts are partially mediated by knowledge-based dynamic capability. Additionally, a firm’s digital business strategy interacts positively with its entrepreneurial orientation in facilitating knowledge-based dynamic capability. Moreover, market turbulence enhances the strength of this interaction effect. Therefore, entrepreneurial-oriented firms operating in turbulent markets can benefit more from digital business strategies to enhance their knowledge-based dynamic capabilities and consequently improve their innovation performance.Originality/valueThis study contributes to the understanding of how a firm’s digital business strategy interacts with entrepreneurial orientation in turbulent markets to shape knowledge-based dynamic capability, which in turn enhances the firm’s innovation performance.

Tacit Knowledge Sharing as a Catalyst for Innovation Capability in Small and Medium Enterprises (SMEs) in the Malaysian Furniture Industry

In the shift to a knowledge-based economy, SMEs in the Malaysian furniture industry need to improve their innovation capability to meet the dynamic challenges and opportunities of the information age and secure a competitive advantage. Empirical research shows that a variety of factors play a crucial role in determining the innovation capabilities of the firm. The aim of this conceptual paper is to investigate how tacit knowledge sharing influences the innovation performance of SMEs in the Malaysian furniture industry, and to examine the mediating role of innovation capability at both individual and organizational levels. The conceptual framework was constructed after synthesizing the existing literature and highlights the essential role of tacit practices such as knowledge donation and collection are critical in cultivating a culture of knowledge sharing that significantly influences innovation performance at both individual and organizational levels. The paper hypothesizes that innovation capability could serve as a mediator between tacit knowledge sharing and innovation performance, emphasizing the need for SME owners and managers to prioritize tacit knowledge to achieve better innovation outcomes. The conceptual framework is grounded in Resources-Based View theory, which elucidates the interactions between variables. The theoretical and practical implications of this model are also discussed.

Influence of Authentic Leadership on Innovation Performance: The Role of Knowledge Sharing and Organizational Commitment

In dynamic business environments, innovation is the key to organizational success. PT. Indokemika Group recognizes leadership's pivotal role in driving innovation. The study aims to assess Authentic Leadership's impact on Innovation Performance, with Explicit and Tacit Knowledge Sharing and Organizational Commitment as mediators. Analyzing data from 180 respondents, Structural Equation Model (SEM) and Sobel Test were utilized. Findings reveal that authentic leadership and tacit knowledge sharing significantly influence innovation performance through organizational commitment mediation. However, organizational commitment doesn't mediate the link between authentic leadership and explicit knowledge. Implications entail nurturing authentic leadership, promoting knowledge-sharing culture, and fostering robust organizational commitment.

How does industrial policy experimentation influence innovation performance? A case of Made in China 2025

Made in China 2025 (MIC 2025), an industrial policy, aims to position China among the global leading manufacturing powers. Different from other industrial policies in China, MIC 2025 is implemented by policy experimentation of pilot cities, which gives priority to the local governments. However, whether MIC 2025 pilot cities promote firm innovation is unclear in current literature. Using MIC 2025 pilot cities as a quasi-natural experiment, this study analyzes the effect and the mechanism of MIC 2025 on firm innovation. The sample consists of 4422 firm-year observations of Chinese listed manufacturing firms in 2012–2022. The result indicates that focal firm located in MIC 2025 pilot cities facilitates its innovation. Mechanism analysis show that MIC 2025 promotes firm innovation through tax incentives, public subsidies, convenient financing, academic collaboration and talent incentives. This study extends industrial policy literature with regard to how place-based policy experimentation promote the implementation of China’s industrial policies. Local governments’ participations and their interaction with the central government are vital for a successful policy experimentation.

Investigating determinants of innovation performance maturity in Malaysian private universities: A partial least squares structural equation modelling analysis

In response to the dynamic changes in the contemporary world, innovation has become imperative for Private Higher Education Institutions (HEIs) to keep pace with evolving institutions. While Total Quality Management (TQM) practices have been extensively examined in the context of determining factors supporting innovation performance, conflicting results from various studies necessitate a fresh perspective. This study adopts the Capability Maturity Model (CMM) to enhance the impact of TQM practices on Innovation Performance, introducing a novel hybrid theory termed TQM-CMM which is a combination of TQM and CMM to enhance the application of TQM practices by assessing its maturity level, addressing the issue of conflicting results observed in previous studies. The objective is to elucidate the interconnected relationships among key factors influencing innovation performance in private higher education institutions (HEIs). A survey conducted at Malaysian private HEIs, yielding 115 valid responses, reveals that two out of seven hypothesized correlates among the constructs were statistically significant at two-tailed tests, evidenced bytvalues exceeding 1.96 calculated from 10,000 bootstrapped samples. This research contributes valuable insights for academics and offers potential enhancements to university performance.

A Machine Learning-Based Approach to Identifying Key Innovation Determinants for Industrial Firms: The Case of the Pharmaceutical Industry in China

With abundant resources consumed by innovation practices, it is of strategic importance for industrial firms to identify key determinants of innovation performance from both internal and external environments for better and effective innovation management. To this end, this article develops a new machine learning-based approach to examine a variety of factors influencing innovation performance. In particular, a two-process modeling approach is developed to build machine learning models efficiently for identifying key internal and external innovation factors. With extensive experiments using data collected from China's pharmaceutical industry, the approach identifies a set of key internal and external innovation factors and their best configurations in terms of two commonly used innovation performance measures. The findings enable pharmaceutical firms and local governments in China to manage innovation efforts and formulate management strategies for promoting industrial innovation. The article contributes to innovation management research by providing an objective and data-oriented approach for comprehensively exploring internal and external innovation factors and establishing their relationships with expected innovation performance. Although the approach is exemplified by China's pharmaceutical industry and the results cannot be generalized, it has general applicability to other industries or countries.

Enhancing Corporate Innovation Through Artificial Intelligence Adoption: A Study of Chinese Telecommunications Companies

This study explores the impact mechanism of artificial intelligence (AI) adoption intensity on corporate innovation performance within the context of the digital economy. Using a sample of Chinese telecommunications companies, the research investigates how AI adoption intensity influences innovation performance. Empirical analysis reveals a significant positive relationship between AI adoption intensity and innovation performance. Furthermore, AI availability, encompassing mobile, interactive, and autonomous aspects, is found to partially mediate this relationship. The study underscores the role of AI adoption in enhancing innovation efficiency and effectiveness, facilitating lean and agile product development, and supporting various stages of the innovation process. Despite its contributions, the research acknowledges limitations in sample representation and calls for future studies to broaden the scope and address potential negative impacts of AI adoption. This study provides insights into the transformative potential of AI in fostering corporate innovation.

The nexus of knowledge management processes and innovation performance: the moderates of big data analytical

PurposeThe purpose of the study is to identify how knowledge management processes impact innovation performance in the Jordanian medical sector (private hospitals) as well as identify how big data analytics moderates this performance.Design/methodology/approachTwo hundred ninety-one questionnaires were analyzed for the purpose of this study. A structural equation model (SEM) was used to test convergence validity, discriminant validity and reliability. In order to analyze the data, bootstrapping was used.FindingsThe empirical results showed that all knowledge management processes are statistically significant in influencing innovation performance. Furthermore, big data analytics moderates the relationship between knowledge management processes and innovation performance.Research limitations/implicationsThe results of this cross-sectional study are limited to one country and one industry due to methodological limitations, and the results represent a snapshot at a particular point in time.Originality/valueJordan's medical leaders will benefit from this study, since it emphasizes the importance of knowledge management processes to enhance innovation performance, especially given the importance of big data analytics in the field, increasing innovation capabilities in the medical field, thereby increasing innovation levels.

Antecedents and outcomes of open innovation over the past 20 years: A framework and meta‐analysis

AbstractThe open innovation paradigm emphasizes that firms can improve their innovation performance by collaborating with other firms. However, there is no consensus in the open innovation literature regarding what drives firms' implementation of inbound and outbound open innovation and how the two types of open innovation influence innovation and firm performance. The present meta‐analysis synthesizes previous research to advance our understanding of open innovation by reexamining its antecedents and its moderating effects on innovation and firm performance. Using data from 157 articles, our results show that appropriation strategy, formal organizational structure, learning culture and top manager competence drive inbound open innovation, while innovation strategy, appropriation strategy, learning culture, and top manager competence drive outbound open innovation. In addition, we find that absorptive capacity positively moderates the positive impact of inbound and outbound open innovation on innovation performance. However, industry type (i.e., high‐ and low‐tech) is not found to moderate the effect of open innovation on innovation or firm performance, suggesting that both high‐ and low‐tech firms can equally reap benefits from open innovation. Furthermore, this study also partially supports the moderating effects of firm size and cultural value (individualism vs. collectivism) on the open innovation—performance relationship. These findings collectively suggest that the effects of inbound and outbound open innovation on performance are subject to contextual factors. Although this meta‐analysis does not allow us to generate new theories in the open innovation literature, it offers valuable insights to both academics and practitioners regarding factors affecting the implementation of open innovation and its performance implications.

Knowledge sharing and innovation performance: a case study on the impact of organizational culture, structural capital, human resource management practices, and relational capital of real estate agents

This study focused on the factors that influence innovation performance in housing agents. Based on a worldwide literature review on the topic of innovation performance, we defined relational capital, knowledge sharing at the individual level, and organizational culture, structural capital, and human resource management practices at the organizational level to carry out the analysis using hierarchical linear modeling. The survey subjects were housing agents in Kaohsiung City, Taiwan. A total of 1130 questionnaires were distributed to 113 agencies. Of a total of 444 collected surveys, 40 unanswered questionnaires were invalid and three with fewer than three answers were eliminated. The final number of valid questionnaires was 401. The response rate of effective questionnaires was 35.49%. The results show that organizational culture can indirectly affect innovation performance through knowledge sharing, indicating that there is a partial mediating effect. Structural capital can indirectly affect innovation performance through knowledge sharing, demonstrating a complete mediating effect. Relational capital can indirectly affect innovation performance through knowledge sharing, having a partial mediating effect. Human resource management practices did not have a confounding effect on innovation performance.

Creative self-efficacy – a double-edged sword: the moderating role of mindfulness between deliberate practice, creative self-efficacy, and innovation performance

PurposeDeliberate practice, an iterative process, has garnered increasing attention of researchers and practitioners in entrepreneurship and business domains in the recent years. However, research studies are on rise that found its positive correlates with superior performance. Nevertheless, whether the relationship always holds positive is an intriguing question that wedged the authors’ attention to probe the causal mechanism that might scrutinize the association otherwise. The purpose of the study is to build on the social cognitive theory and the attribution theory to project that deliberate practice deteriorates innovation performance due to augmented creative self-efficacy (CSE). While, individuals who draw on their mindfulness can overcome the harmful effects of increased CSE on innovation performance, subsequently translating deliberate practice into enhanced innovation performance through CSE.Design/methodology/approachThe authors gather data from 312 entrepreneurs in the small and medium enterprises using a time-lagged research design and analyze the results using SmartPLS (v 4.0).FindingsThe findings reveal that deliberate practice significantly affects CSE of entrepreneurs. Besides, deliberate practice negatively influences innovation performance through CSE. In addition, the study finds that mindfulness significantly moderates the relationships between CSE and innovation performance and deliberate practice and innovation performance through CSE.Originality/valueThis is the first study that examines a moderated mediated model of CSE as a deteriorating agent and mindfulness as a coping mechanism between deliberate practice and innovation performance of entrepreneurs. The study highlights several essential theoretical and practical implications.

Coping with the heterogeneity of external knowledge sources: Corresponding openness strategies and innovation performance

Previous studies on open innovation and strategic management have emphasized the positive impact of external knowledge on firms' innovation performance. However, given that external knowledge is widely distributed across a myriad of heterogeneous sources, it presents challenges for both the openness strategy and knowledge accessibility. When designing a firm's openness strategy, the heterogeneity of these external sources must be considered, choosing a form of openness that aligns with the attributes of the targeted sources. The question remains, which form of openness aligns best with which knowledge source and leads to improved innovation performance? Our regression analysis, based on a sample of 3294 German firms from the Mannheim Innovation Panel (MIP) in 2013 and 2017, reveals that utilizing a search strategy toward market sources of knowledge influences innovation performance more positively than a collaboration strategy. Conversely, only collaboration with science-based sources of knowledge has a significant positive impact on innovation performance. We further delve into the implications of these observed results and describe the practical implications for innovation managers.