Innovation Capability Research Articles

Market Demand, Policy Environment, and Future Trends: Analysis of New Energy Vehicle Industry in China

Under the complex and ever-changing global economic situation, the sales of new energy vehicles in China are facing many development opportunities and practical challenges. Market demand and policy environment impact the development of China's new energy vehicle industry. This research takes the new energy vehicle industry in China as the research object, adopts a combination of literature review and case analysis methods by combing and analyzing relevant literature, combined with practical cases, deeply discusses the development status and problems of China's new energy vehicle industry, and proposes improvement suggestions from two dimensions: market demand and policy environment. Research shows that insufficient market demand, insufficient technological innovation, and an unstable policy environment are the main factors that restrict industrial development. To solve these problems, measures need to be taken, such as increasing government support, enhancing technological innovation capabilities, and promoting reforms and innovations in marketing and other aspects, aiming to inspire China's new energy vehicle industry to go global.

Impact of heterogenous capabilities on export performance amid the digital transformation

We investigate the effects of adopting digital technology on export performance of Korean manufacturing firms amidst the digital transformation. We recognize firm-level capabilities should be closely associated with adoption of rapidly progressing digital technology but also with export performance. And our data indicates that the most common purpose of digital technology adoption is to launch new products to the market. Hence, we consider that technology adoption is a strategic and purposeful decision to gain competitive edge mostly by producing new product, and treating technology adoption exogenous can be misleading. Due to the endogeneity and selection issues in technology adoption, the endogenous switching regression is applied to this study as Coad et al. (2020). On technology adoption decision, we find external innovative resources from strategic alliance in addition to internal innovative capabilities stand out. Given technology adoption decision, internal capabilities like patent rights and international affiliation are complementary factors to export growth. The treatment effect analysis has implications as follows: the result on contribution of technology adoption to export growth for actually adopting firms is rather small, and shows heterogenous innovation, organizational, and external capabilities are still critical factors as much as new products embedding high-end digital technology; the result on non-adopting firms indicates potential of advanced digital technology to improve export performance by helping to produce such new products if they were actually capable to do it. In sum, our findings provide another evidence that structurally positive interaction between innovative activities and export performance as Aw et al. (2011), since adoption of digital technology to products itself is innovative in the digital transformation. Furthermore, the result is consistent with the capability theory in that heterogenous innovative and complementary capabilities determine strategic technology adoption and export performance simultaneously. Finally, our findings indicate that the digital transformation might be still at the early stage. The fact that Korean firms have adopted advanced digital technology mainly for new products can be interpreted as an indicator of early development stage of transformation, since firms concentrate on product innovation than process innovation to gain competitive edge at the early stage (Utterback and Abernathy, 1975). Thus, we expect that further evolution of digital transformation can facilitate process innovation, then contribute to firm performance by improving cost efficiency that should be tackled in the upcoming study.

How are firms motivated to greenly innovate under the pressure of ESG performance? Evidence from Chinese listed firms

The impact of environmental, social, and governance (ESG) performance gaps on firm green innovation is examined in this paper by a panel database of A-share Chinese listed companies from 2011 to 2021. Using multiple linear regression and conducting a series of endogeneity tests and robustness checks, our empirical analysis shows that firm ESG performance gaps have significantly positive effect on green innovation. Both ESG performance below historical aspiration and social aspiration levels enhance a firm’s green innovation. Confucian culture negatively moderates the positive relationship between ESG performance gaps and green innovation, suggesting that firms more influenced by Confucian culture exhibit reduced green innovation than those less influenced. Additionally, firm digitalization positively moderates the positive relationship between ESG performance gaps and green innovation, indicating that firms with higher levels of digitalization are better equipped to improve green innovation when facing ESG performance shortfalls. This study extends the existing knowledge of firm ESG performance and motivation of green innovation. The research findings offer practical insights for leveraging the motivation and capabilities of green innovation to attain firm ESG objectives.

Sustainable energy transition, knowledge co-creation and trade: the case of EU residential energy efficiency

ABSTRACT The European Union (EU) sustainable energy transition requires radical changes of economic, technological, societal and political systems. This paper empirically investigates the relationships among environmental policy, innovation and technological capabilities, and economic performances, in terms of country export competitiveness, focusing on residential energy efficiency goods, a core pillar of the EU energy and climate strategy. We combine network analysis with a gravity model to investigate the evolution of the EU bilateral trade and co-patenting activities from 1990 to 2015, based on a panel of 19 European countries. Our results show that the technological skills of the exporting country, related to the production of the households’ energy-consuming appliances, strongly enhance its export performances, and this effect is stronger when countries are EU members. Cooperation in knowledge creation and institutional proximities between trade partners are further key determinants of export performances of analysed countries.

The Levels of Government Environmental Attention and Enterprises’ Green Technological Innovation

This study utilizes data from listed companies on the Shanghai and Shenzhen stock exchanges from 2010 to 2023 and employs text analysis methods to investigate the impact of government environmental concerns on corporate green technology innovation and its underlying impact mechanisms. The empirical findings demonstrate that heightened government environmental concerns significantly foster corporate green technology innovation. This relationship remains robust across a series of sensitivity analyses. The impact mechanism analysis reveals that increased government environmental concern leads to a heightened intensity of environmental regulation, drives the intelligent transformation of enterprises, and enhances the implementation of corporate environmental strategies, collectively contributing to the improvement of corporate green technology innovation capabilities. Furthermore, the heterogeneity analysis indicates that the effect of government environmental concerns is more pronounced in state-owned enterprises, mature enterprises, and industries with lower pollution levels. This study underscores that the government’s intensified focus on environmental issues can effectively promote corporate green technology innovation, thereby promoting sustainable economic and social development and supporting the dual goals of environmental protection and economic growth.

Research on the Impact Mechanism of ETS on Green Innovation in China’s High-Carbon Industries: A Perspective of Enterprise Heterogeneity

Green technology innovation is an important driving force for low-carbon development of enterprises. As a market-based environmental policy to promote greenhouse gas emission reduction, whether carbon emission trading scheme (ETS) can encourage enterprises to carry out green technology innovation under the background of “dual carbon” goal deserves further research. Taking Chinese A-share listed enterprises in the five major sectors as samples, this study constructed a modified Difference-in-Differences (DID) model to test the causal effect of ETS on green innovation in high-carbon industries. Three significant results can be summarized from the empirical study. Firstly, the ETS has a significant promoting effect on green innovation of high-carbon enterprises. And it can effectively promote high-carbon enterprises to achieve an average of a 13.24–19.56% increase in low-carbon innovation capabilities. Secondly, enterprises with different characteristics have heterogeneity in the impact of ETS implementation on green innovation. Secondly, the implementation of ETS exerts heterogeneous effects on green technology innovation across enterprises that possess diverse characteristics. Enterprises with a large capital scale (low equity concentration) have a more significant promoting effect than those with a small capital scale (high equity concentration). Thirdly, the green innovation effect of ETS exhibits significant heterogeneity across different types of industries. In the mining, manufacturing, and construction sectors, the ETS has effectively stimulated green innovation to a certain extent. There has been no significant change in green innovation in the sector of electricity, heat, gas, and water production and supply. In particular, after the implementation of the ETS, green innovation has actually been weakened in the transportation sector. As such, for policy makers, differentiated ETS policies should be implemented based on the actual situation of different industries and types of carbon-emitting enterprises.

How intelligence organisations innovate

ABSTRACT Practitioners and academics recognize the importance of innovative intelligence organisations. However, we know little about how intelligence organisations innovate and what challenges they are being confronted with. Drawing upon intelligence studies as well as innovation and organisational studies this paper forwards a conceptual framework to answer the question: how do intelligence organisations innovate? To address this, we introduce the concept of innovation capability, an organisation’s potential to innovate. The paper identifies seven attributes of innovation capability and explores these attributes within intelligence organisations. The attributes are: (1) vision and strategy, (2) competence base, (3) organisational intelligence, (4) creativity and idea management, (5) organisational structure, (6) culture and climate and (7) management of technology. The paper concludes with an agenda for further research.

Women Fighting the Crisis: Antecedents of Women's Leadership Performance in Facing the Covid-19 Pandemic

Objective: This study aims to empirically investigate the interplay between financial literacy, entrepreneurial orientation, learning orientation, and the performance of food and beverage Micro, Small, and Medium Enterprises (MSMEs) in Bontang City, East Kalimantan Province. Method: The research, grounded in Resource-Based Theory (RBT), explores the mediation role of innovation ability in this relationship. The study encompasses 272 MSME owners as its population. Utilizing Structural Equation Modeling for data analysis. Research Findingsand Discussions: The findings show that financial literacy, entrepreneurial orientation, and learning orientation positively influence innovation capability and MSME performance. In addition, innovation capability emerges as an important mediator that bridges the impact of financial literacy, entrepreneurial orientation and learning orientation on MSME performance. The results of this study contribute to enriching the understanding of the Resource-Based Theory, highlighting that effective utilization of resources, such as financial literacy, entrepreneurial orientation, learning orientation, and innovation capability, can improve MSME performance. Research Implications: This study is a valuable reference for MSME owners in the food and beverage sector, emphasizing the importance of a proactive approach. Responding quickly to market opportunities, introducing new products to new markets, and developing a learning-oriented mindset all play an important role in driving innovation and ultimately improving MSME performance. Originality/Value: This research underscores the importance of strategic resource utilization for MSME success, in line with the principles of Resource-Based Theory. Owners of food and beverage MSMEs are encouraged to develop a proactive and learning-oriented attitude, encouraging innovation as a key driver to improve business performance.

Application of Time-Series Modeling in Forecasting the Doctorate-Level Science and Technology Workforce

The science and technology (S&T) workforce plays a crucial role in social development by promoting technological innovation and economic growth, as well as serving as a key indicator of research and development productivity and measure of innovation capability. Therefore, effective S&T workforce policies must be established to enhance national competitiveness. This study proposes a time-series forecasting methodology to predict the scale and structural trends of South Korea’s doctorate-level S&T workforce. Based on earlier research and case data, we applied both the traditional time-series model exponential smoothing and the latest model Prophet, developed by Meta, in this study. Further, public data from South Korea were used to apply the proposed models. To ensure robust model evaluation, we considered multiple metrics. With respect to both forecasting accuracy and sensitivity to data variability, Prophet was found to be the most suitable for predicting the S&T doctorate workforce’s scale. The scenarios derived from the Prophet model can help the government formulate policies based on scientific evidence in the future.

Analysis of disequilibrium and driving factors of carbon emission efficiency: Evidence from five major urban agglomerations in China

Urban agglomerations (UAs) are not only highly integrated economic communities but also communities of shared destiny with integrated environmental protection and ecological construction. Although low-carbon development within UAs has garnered significant attention, a lack of comprehensive analysis remains regarding the imbalances and driving factors influencing carbon emission efficiency (CEE) in these regions. This study investigates the CEE of China's five national UAs from 2006 to 2020 by incorporating the meta-frontier framework into the super slack-based model. The global Malmquist index analyzes dynamic trends in CEE by decomposing the total factor productivity of carbon emissions to examine the catch-up, innovation, and technological leadership effects. In addition, this paper employs the Theil index to explore the disequilibrium of CEE among the five UAs. Outcomes reveal that, first, CEE has regional heterogeneity, with the Pearl River Delta UA (PRDUA) having the highest CEE and the Beijing–Tianjin–Hebei UA (BTHUA) having the lowest CEE. The gap between BTHUA's CEE and that of other UAs is widening. Second, the overall CEE holds improvement room, with its disequilibrium resulting from uneven city growth within the UA. Third, the innovation effect is the key to improving CEE. Fourth, PRDUA serves as the technical leader among all UAs, while the two UAs in the inland area possess the potential for technical leadership. Finally, drawing from the empirical results, this paper provides specific suggestions for advancing industrial transformation, boosting innovation capabilities, and minimizing internal imbalances within UAs. The goal is to steer UAs in China toward low-carbon development.

Innovation capability as a mediator of the relation between talent management and entrepreneurial firm performance

PurposeThe study aims to investigate innovation capability as a mediator in the relationship between talent management (TM) and entrepreneurial firm performance in Micro, Small and Medium Enterprises (MSMEs) in Thailand based on employer perceptions.Design/methodology/approachA questionnaire survey was completed by 674 MSMEs in Thailand, both directly and online. Four hypotheses were tested using structural equation modelling (SEM).FindingsThe results demonstrated that TM has a significant and positive influence on innovation capability, but no evidence was found for a positive relationship between TM and entrepreneurial firm performance. However, innovation capability positively influences entrepreneurial firm performance, and it fully mediates the positive relationship between TM and entrepreneurial firm performance. These results suggest that TM can enhance entrepreneurial firm performance if it is implemented with effective innovation capability.Research limitations/implicationsThe SEM model was employed with a limited number of enterprises, so the sample cannot represent the full population, as there are more than three million MSMEs in Thailand. More countries and factors should be incorporated into the model.Practical implicationsThe owner-managers and HR practitioners of MSMEs can utilise the study results to develop talent strategies and innovative interventions that will enhance their firm’s performance.Social implicationsThis study thus aims to strengthen the capacities of MSME entrepreneurs and policymakers to elevate inclusive innovation capability in MSMEs and to also accelerate progress towards the Sustainable Development Goals (SDG); innovation is one of the three important aspects of SDG9.Originality/valueThe study contributes by filling the research gap related to TM in the MSME business and enterprise development literature, and it aids in creating innovation capability to increase effective investments in TM.

Construction 4.0 implementation for performance improvement: an innovation management perspective

Purpose The emergence of Construction 4.0 technologies provides an impetus for radical change and rejuvenates the interest of stakeholders in addressing long-standing performance issues in the construction sector. However, construction firms struggle to implement Construction 4.0 technologies for performance measurement and improvement. Therefore, the purpose of this research is to develop a conceptual model of innovation management for implementing Construction 4.0 that guides and facilitates the strategic transformation of construction firms. Design/methodology/approach A conceptual model of innovation management is presented, and the findings are synthesised based on a literature review, 20 semi-structured interviews, two focus group discussions, three workshops, expert consultation and observations on three digitally-enabled projects. Data were inductively analysed using thematic analysis. Findings The analysis of empirical data revealed: (i) Four scenarios that could lead the industry to different futures, based on the extent of research and development, and the extent of integration/collaboration; (ii) Construction 4.0 capability stages for a sustained implementation route; (iii) Possible business model configurations derived from servitisation strategies; and (iv) Skills management challenges for organisations. Research limitations/implications First, the empirical data was only collected in the UK with its unique industry context, which may limit the applicability of the results. Second, most of the research data comes from the private sector, without the views of public sector organisations. Third, the model needs to be further validated with specific data-driven use cases to address productivity and sustainability issues. Practical implications Successful Construction 4.0 transformation requires a concerted effort of stakeholders, including those in the supply chain, technology companies, innovation networks and government. Although a stakeholder’s action would depend on others’ actions, each stakeholder should undertake action that can influence the factors within their control (such as the extent of collaboration and investment) and the outcomes. Originality/value The conceptual model brings together and establishes the relationships between the scenarios, Construction 4.0 capability stages, business models and skills management. It provides the first step that guides the fuzzy front-end of Construction 4.0 implementation, underpins the transformation to the desired future and builds long-term innovation capabilities.

The Influence of Strategic Human Resource Practices and Ethical Leadership on Organizational Performance of Star Hotels: Mediated by Intellectual Capital and Sustainable Competitive Advantage

The study aims to analyze the influence of strategic human resource practices and ethical leadership on organizational performance in star-rated hotels in Jakarta, mediated by intellectual capital and sustainable competitive advantage. It addresses gaps in previous studies by examining both factors simultaneously and introducing decision making based on HR metrics. A quantitative method was employed, collecting data from HR supervisor level in star-rated hotels in Jakarta, with 255 respondents. Hypotheses were tested using PLS-SEM analysis. Results indicate that strategic human resource practices and ethical leadership positively impact organizational performance. Intellectual capital and sustainable competitive advantage mediate this effect. These findings underscore the importance of investing in intellectual capital and sustainable competitive advantage to enhance hotel performance. The study provides a reference for hotel management to develop effective HR and leadership strategies, emphasizing the importance of intellectual capital and competitive advantage. Regular monitoring and evaluation of these strategies are recommended to ensure alignment and positive impacts on hotel performance. Future research should consider adding variables such as technological readiness and innovation capability, given the rapid technological advancements and intense competition in the hospitality industry, which affect hotel performance and competitive advantage.

Impact of Green Supply Chain Management on Sustainable Performance: A Dual Mediated-moderated Analysis of Green Technology Innovation And Big Data Analytics Capability Powered by Artificial Intelligence

Background This study aims to empirically test a comprehensive interrelationship between green supply chain management (GSCM), green technology innovation (GTI), waste management (WM), big data analytics capability powered by artificial intelligence (BDAC-AI), and their collective impact on sustainable performance (SP) in organizational contexts. Methods This study was conducted in Pakistan’s food processing sector. The respondents included 495 managers working in the food processing industry. A structural equation modelling (SEM) approach is used to examine direct and indirect relationships between the variables. The originality of this study lies in integration of the technology acceptance model (TAM) and dynamic capability theory (DCT) to understand sustainable practices in the context of the provided model. Results This study highlights that GSCM, GTI, WM, and BDAC-AI have positive, strong, and direct impacts on SP. Furthermore, GTI and WM only partially mediate the link between GSCM and SP, whereas the two moderate the link. In addition, BDAC-AI had a moderating effect on the relationship between GTI and SP. This study has managerial implications, including strategies that involve the use of theoretical frameworks for technological acceptance and dynamic capabilities to support sustainable initiatives. However, it is worth noting that the findings provide a practical contingency for managers and businesses interested in implementing green studies effectively, improving technologies, and strengthening sustainable performance capabilities. Conclusions The study extends the literature by establishing a model for operationalizing GSCM in the food processing sector. Furthermore, it adds value in that it first integrates TAM and DCT to explain sustainable operations and their impact on organizations. Furthermore, it extends the existing literature by establishing a relationship between GSCM and SC. It offers a model through which GSCM can be operationalized in the context of the FS sector.

Building innovation capability in SMEs through university-business collaboration

Small and medium-sized enterprises (SMEs) often struggle with company innovation, compared to their larger counterparts. A university-business collaboration (UBC) programme in the north of the Netherlands attempts to increase the innovation capabilities of regional SMEs with the support of graduating bachelor students. The 18-months long Hanze Innovation Traineeship Programme (HITP) combines the graduation phase with a consecutive 12-months traineeship, during which students are meant to implement an innovation at the company. We measure the innovation capacity of the participating SMEs at the beginning of the programme and identify strong and weak points within the organisations. We discuss the outcomes of the HITP for SME innovation and further evaluate the programme’s suitability on the intended student learning outcomes.

The Impact of Digital Capabilities on Peasants’ Wage Growth: Evidence from Chinese Farmer Entrepreneurs

The gradual integration of digital technology into traditional Chinese villages has triggered a shift in income distribution from labor to capital, posing challenges to the wage growth of employed peasants. Based on the theory of empowerment, this paper explores the mechanisms of credit availability and talent loss in the interplay between digital capabilities and wage augmentation among employed peasants. This study empirically examines or validates the mechanism of digital capabilities on wage growth for employed peasants through the entropy weight method, the OLS linear model, the mediation effect model, and propensity score matching while using survey data from 490 farmer entrepreneurs as samples. The findings are as follows. (1) The digital capabilities of farmer entrepreneurs have a significant positive impact on the wage growth of employed peasants, and this result remains robust after a series of robustness checks. In terms of hierarchical effects, digital foundational capabilities > digital application capabilities > digital innovation capabilities. (2) Credit availability and talent loss mediate the relationship between digital capabilities and wage growth for employed peasants. (3) The digital capabilities of farmer entrepreneurs who are young, highly educated, and have a low family-dependency ratio exert a more pronounced influence on the wage growth of employed peasants. Additionally, lower policy uncertainty enhances the effect of digital capabilities on wage growth for employed peasants. The study uncovers the empowerment mechanism of digital advancements embedded during the entrepreneurial journey, enriches research on digital capabilities and common prosperity, and provides a feasible path for governments to formulate reasonable entrepreneurship and digital promotion policies.

How Individual Factors Shape Innovative Work Behavior in Malaysian HEIs: The Role of Innovation Capability, Knowledge Sharing and Psychological Empowerment

This study investigates the factors driving academics' innovative work behavior (IWB) in Malaysian Higher Education Institutions (HEIs), focusing on individual innovation capability, psychological empowerment, and knowledge sharing. The respondents comprised 382 academics from 24 Malaysian universities listed in the QS World Ranking 2023, selected through convenience sampling. Data were collected via a Google Form questionnaire distributed by email. The descriptive analysis assessed individual innovation capabilities, psychological empowerment, and knowledge-sharing levels, and their impact on IWB. The findings indicate high engagement in innovative activities, with academics demonstrating strong innovative capabilities, a sense of empowerment, and active knowledge-sharing practices. These individual factors significantly contribute to fostering IWB, highlighting the importance of continuous professional development, supportive institutional environments, and collaborative cultures in promoting innovation within HEIs. This study provides valuable insights for policymakers and university administrators to enhance the innovative potential of academics, ultimately contributing to the advancement of knowledge and improvement of educational practices in Malaysian HEIs. Future research should explore longitudinal effects and potential moderating factors to further understand innovative work behavior dynamics in academic settings.

The effect of energy efficiency retrofits on radical innovation: From the perspective of supply chain

Radical innovation is crucial for continuous improvement in energy efficiency. This paper explores the backward driving effect of downstream customers on upstream suppliers' radical innovation from the perspective of supply chain vertical linkages. Using supply chain data from Chinese listed companies, this paper examines the impact of downstream customers' energy efficiency retrofits on upstream suppliers' radical innovation. We find that: (1) Downstream customers' energy efficiency retrofits significantly promote upstream suppliers' radical innovation, while suppliers' energy efficiency retrofits have a crowding-out effect on their radical innovation. (2) Heterogeneity analysis reveals that the backward driving effect of downstream customers on upstream suppliers’ radical innovation is more pronounced in supply chains where the supplier has strong market influence and the customer has weak market influence. (3) The effect in the supply chain is only effective for radical innovation, with insignificant impact on incremental innovation and no green innovation bias. The findings provide a new perspective and empirical reference for actively cultivating radical innovation capabilities and deeply understanding the pathways to improving energy efficiency.

Exploring the Nexus Between MBTI Personality Types and the Innovation Capability of Operating Room Nurses: A Cross-Sectional Study

Exploring the Nexus Between MBTI Personality Types and the Innovation Capability of Operating Room Nurses: A Cross-Sectional Study

Factors Deriving Sustainable Oriented Innovation Capability for Firm Competitiveness: Findings from the Family Businesses of an Emerging Countries

Factors Deriving Sustainable Oriented Innovation Capability for Firm Competitiveness: Findings from the Family Businesses of an Emerging Countries