Source Of Innovation Research Articles

The power of purpose: how material sustainability and stakeholder orientation drive financial success

PurposeConsidering the standards developed by the Sustainability Accounting Standards Board (SASB), this study aims to examine whether the link between material sustainability and financial performance depends on the extent to which the company is oriented toward stakeholders.Design/methodology/approachTo test the predictions, 13,942 firm-year observations from 43 different countries are used, covering the period from 2010 to 2019. Using a hand-mapping approach to match the indicators suggested by the SASB with those of the ASSET4, the authors realize that there are 170 material sustainability indicators among 466 indicators of the ASSET4. The authors use three different methods to verify if the materiality matters, including the alphas obtained from the Fama and French factor models, comparing the average abnormal returns of the portfolios and the bootstrapped Cramer technique.FindingsThe findings show that companies investing in material sustainability activities perform better than those investing in immaterial activities. Also, consistent with the theoretical foundations, the authors find that the effect of investing in material sustainability activities is more pronounced in stakeholder-oriented countries than that in shareholder-oriented countries. The results are robust to a battery of sensitivity tests.Research limitations/implicationsOwing to COVID-19 in late 2019, data from 2020 to 2022 have not been used to obtain reliable results.Practical implicationsThe results obtained in the current research provide valuable guidance for investors to make investments considering the degree of materiality of sustainability activities in different industries. It also helps managers to increase the company’s financial performance, make efficient decisions related to investment in sustainability activities and find investment strategies on the material sustainability issues in their industries.Social implicationsThis study provides a clearer understanding of investment in sustainability activities in different industries by separating material and immaterial sustainability activities in stakeholder and shareholder-oriented countries, and the results obtained can change the perspective of investors and company managers regarding investing in such activities in different countries. Investing in more materiality sustainability activities than the immateriality dimension can be new opportunities for companies to achieve predetermined goals, help retain and attract business partners or be a source of innovation for new product lines or services. Internal morale and employee engagement may increase while increasing productivity and firm performance. This discussion opens the way for future research.Originality/valueThis study provides insight into the effect of investing in material and immaterial sustainability activities in different industries on the company’s performance in shareholder and stakeholder-oriented countries.

Transforming the food system in ‘unprotected space’: the case of diverse grain networks in England

Transitioning to food systems that are equitable, resilient, healthy and environmentally sustainable will require the cultivation and diffusion of transformational sociotechnical innovations—and grassroots movements are an essential source of such innovations. Within the literature on strategic niche management, government-provided ‘protected spaces’ where niche innovations can develop without facing the pressures of the market is an essential part of sustainability transitions. However, because of their desire to transform rather than transition food systems, grassroots movements often struggle to acquire such protected spaces and so must determine how and where to generate change whilst being marginalised and exposed to unprotected spaces. The aim of this research is to gain a precise view of the multiple touchpoints of marginalisation that exist across the grassroots-government interface and to apply a new framework for conceptual analysis of these touchpoints that can help to identify where and how grassroots movements might be able to push against this marginalisation. The study finds that, by applying a ‘who, what, where’ framework of analysis to policies across this interface, it is possible to find pathways forward for achieving small wins towards food systems transformation.

Microalgae enriched in selenium as a good source of micronutrients

Recently, the market for plant-based products has been growing rapidly growing due to the increasing popularity of so-called "novel foods". Many people choose to incorporate plant-based products into their diets because of the potential health benefits. Innovative food sources are also being sought to supply the body with essential nutrients. Microalgae, including Arthrospira platensis or Chlorella vulgaris, are examples of plant products that are valuable sources of proteins, vitamins, and minerals. Enriching commercially available microalgae with elements essential for humans may be the answer to addressing the deficiency of many elements in the diets of people worldwide.One of the elements whose deficiency in the diet is widely described in the literature is selenium. Therefore, the main objective of this work is the study of the identification of certain small molecular selenium-containing compounds in microalgae cultured on a selenium-enriched medium. High-performance liquid chromatography coupled with tandem mass spectrometry with inductively coupled plasma ionization (HPLC-ICP-MS/MS) and electrospray ionization tandem mass spectrometry (HPLC-ESI-MS/MS) were used as analytical techniques.The main conclusion and novelty of the research carried out was the confirmation of the possibility of selenium accumulation by microalgae and the presence of inorganic forms and the expected certain small organic forms, the bioavailability of which is beneficial for humans. The use of HPLC-ESI-MS/MS allowed for the identification of selenium compounds present in the studied microalgae - selenomethionine, selenohomolantionine, selenoadenosine and Se-adenosyl-L-homocysteine.

Experimental Study on Wire Melting Control Ability of Twin-Body Plasma Arc

The twin-body plasma arc has the decoupling control ability of heat transfer and mass transfer, which is beneficial to shape and property control in wire arc additive manufacturing. In this paper, with the wire feeding speed as a characteristic quantity, the wire melting control ability of twin-body plasma arc was studied by adjusting the current separation ratio (under the condition of a constant total current), the wire current/main current and the position of the wire in the arc axial direction. The results showed that under the premise that the total current remains unchanged (100 A), as the current separation ratio increased, the middle and minimum melting amounts increased approximately synchronously under the effect of anode effect power, the first melting mass range remained constant; the maximum melting amount increased twice as fast as the middle melting amount under the effect of the wire feeding speed, and the second melting mass range was expanded. When the wire current increased, the anode effect power and the plasma arc power were both factors causing the increase in the wire melting amount; however, when the main current increased, the plasma arc power was the only factor causing the increase in the wire melting amount. The average wire melting increment caused by the anode effect power was approximately 2.7 times that caused by the plasma arc power. The minimum melting amount was not affected by the wire-torch distance under any current separation ratio tested. When the current separation ratio increased and reached a threshold, the middle melting amount remained constant with increasing wire-torch distance. When the current separation ratio continued to increase and reached the next threshold, the maximum melting amount remained constant with the increasing wire-torch distance. The effect of the wire-torch distance on the wire melting amount reduced with the increase in the current separation ratio. Through this study, the decoupling mechanism and ability of this innovative arc heat source is more clearly.

Unwrapping the (glyco-)lipidome in the microalgae Microchloropsis gaditana: Effects of eco-friendly extraction methods

Microalgae have recently captivated worldwide attention because of their extraordinary lipid composition, which includes essential omega-3 and omega-6 long-chain polyunsaturated fatty acids (LC-PUFA), neutral lipids, and more complex lipids (glycolipids and phospholipids), as well as eicosanoids. To explore this further, we present a novel (glyco-)lipidomics strategy, including a green chemistry extraction approach, liquid chromatography high-resolution mass spectrometry (LC-HRMS) lipid profiling, and a comprehensive data evaluation workflow. Using untargeted lipidomics based on LC-HRMS approaches, we studied the lipid composition up to the molecular species level of the microalgae Microchloropsis gaditana (formerly Nannochloropsis gaditana), focusing on the distribution of saturated, monounsaturated, and polyunsaturated fatty acids in different lipid classes. Our analysis successfully identified 520 lipid molecular species from 18 lipid classes. Regarding fatty acid composition, our primary focus was on elucidating the distribution of LC-PUFA across the different microalgal lipid classes. This particular strategy holds potential as it may unravel the use of microalgal lipids as innovative sources of food ingredients. Our findings show that LC-PUFA are relatively elevated in membrane lipids, in which cholesterol esters (ChE) have the highest PUFA share (94 %), followed by polar membrane lipids (glycolipids and phospholipids), with phosphatidylethanolamines (PE) up to 67 %, phosphatidylglycerols (PG) up to 47 %, and monogalactosyldiacylglycerols (MGDG) up to 47 % PUFA content. This highlights the high percentage of PUFA in the structural parts of microalgae and the importance of these lipid classes as a reservoir for PUFA. Finally, we also compared a classical Folch extraction method with environmentally friendly ultrasound-assisted extraction approaches and enzymatic pre-treatments to investigate the lipid composition and enrichment of valuable lipid classes. Thus, this extensive analysis of the (glyco-)lipidome of Microchloropsis gaditana provides valuable insights into the existing knowledge about this microalgae species, enhancing our understanding of the complex lipid composition and opening up new opportunities for potential applications in the biotechnology and food industry.

The Challenge of Foreign Investment in Mexico: Between Theory and Public Opinion. An Analysis of Perception and Challenges Regarding Fdi As A Source of Innovation

Purpose: This research explores the public opinion of online news consumers, expressed through Facebook comments, regarding Foreign Direct Investment (FDI) as a source of innovation in Mexico. The study seeks to comprehend the challenges faced by FDI in the country and their potential impact on the public perception of FDI as a driver of innovation in the Mexican economy. Theoretical Framework: This study examines previous research that explores FDI as a source of innovation in host economies, aiming to provide the context necessary for understanding how the public perceives the role of foreign resources in fostering innovation in Mexico. Design/Methodology/Approach: The methodology employed in this research was the phenomenological design of a qualitative approach to analyze interactions and comments on Facebook from users who consume online news related to FDI in Mexico. The aim was to identify patterns and trends in public opinion regarding the perception of FDI as a source of innovation. Findings: The theoretical perspective suggests that FDI can foster innovation in host countries; however, an analysis of public perception revealed challenges and controversies associated with FDI in the Mexican economy. Research, Practical & Social Implications: The comprehension of public opinion regarding FDI as a source of innovation allows the establishment of suitable strategies for the integration of Mexican companies into the international market. Originality/Value: This paper offers a perspective to understand how public opinion of FDI can influence its role as a catalyst for innovation in the Mexican economy.

Challenges Encountered by the SLP Beneficiaries in the Operations of the Marinated Boneless Milkfish Business

This study explores and develops an in-depth understanding of challenges encountered by the SLP beneficiaries towards business operations regarding food waste management, policy implementation, business marketing, records management, and supply chain. The output of this study will serve as the basis for further training enhancement programs. A qualitative study using the case study method was conducted in the municipality of Candijay, Bohol. Selected members of Mauswagong Pundok sa Pantawid SLP Association who were officers undergo an exploratory interview in the first phase as a basis for the structured interview guide for phase two interview. The findings have highlighted the interplay of various factors that influence the success and sustainability of this venture, encompassing food waste management, policy implementation, business marketing, records management, and supply chain management. The challenges encountered by SLP beneficiaries in the operations of the Marinated Boneless Milkfish business are multifaceted and interconnected. Addressing these challenges requires a collaborative effort from various stakeholders, including government agencies, non-governmental organizations, and the beneficiaries themselves. The theoretical contribution and originality of this research lie in its holistic examination of the challenges encountered by beneficiaries of the Marinated Boneless Milkfish business, considering the intersection of various elements. This research uniquely integrates these factors into a comprehensive analysis. This approach allows for a more nuanced understanding of how these challenges are interrelated and how addressing them collectively can lead to a more sustainable and prosperous business model. The findings of this research have significant implications for practitioners and policymakers. Clear and supportive policies regarding environmental regulations, quality standards, and fisheries management are vital to creating a conducive business environment. For practitioners, there is an urgent need to address food waste management by exploring innovative sourcing and preservation techniques, and potentially partnering with organizations to reduce waste. Keywords: Business Management, Challenges Encountered, Qualitative Research, Thematic Analysis

Impacts of User Personality Traits on Their Contributions in Idea Implementation: A Moderated Mediation Model.

In the realm of open innovation, users have emerged as a significant external source of innovation that enterprises cannot afford to overlook. Implemented ideas play a pivotal role in driving the iterative innovation of products within enterprises. However, the existing literature still lacks an exploration of specific impact mechanisms on contributions in idea implementation. This study presents a model that delineates the impact of user personality traits on idea implementation contributions, drawing upon theories such as personality trait theory, user engagement perspective, and trait activation theory. Empirical research was carried out by utilizing user data obtained from the Chinese high-tech company Xiaomi's MIUI community. Personality trait indicators were developed through the application of text mining and machine learning techniques. To evaluate the models, a negative binomial regression model, which is well-suited for handling discrete data, was employed. The findings of this study indicate that user openness and conscientiousness positively influence their idea implementation contribution, whereas neuroticism has a negative impact on implementation contribution. Additionally, it is observed that user engagement plays a partial mediating role in the relationship between openness, conscientiousness, neuroticism, and idea implementation contribution. Community incentives can positively moderate the impact of user engagement on the relationship between conscientious personality and idea implementation contribution. This study expands the analysis of the impact mechanism of user idea implementation contributions, which has important theoretical guidance and practical implications for accurately identifying leading users in open innovation communities and enhancing user innovation contributions.

Sustainability Neighborhood

This project explores the opportunities for not only for individuals aiming to increase sustainability in their lifestyles, but, for other landlords and universities nationally to incorporate the grassroots innovation of Sustainable Neighbourhood/s to their practices. Connecting innovation and community action enables a new lens on individual and community-level sustainability efforts, further highlighting the importance of community action which is often as an overlooked source of innovation (Seyfang & Smith, 2007). Otago University’s Sustainability Neighbourhoods fosters a sense of environmental responsibility, community engagement, and lifelong learning, contributing to a more resilient and eco-conscious future for both the residents and the broader community. The practical aspect of this project has been conducted through providing an interactive and locally specific online platform with resources, information, and tools to enhance for both residents and other students understanding and commitment to sustainable living. By enabling open online platform to the University of Otago’s Sustainability Neighbourhoods, this concurrently acts as a manual for other universities and landlords seeking to establish similar Sustainability initiatives, communities and/or neighbourhoods.
 Supervised by: Ray O’Brien & Jesikah Triscott

Driving frugal innovation in SMEs: how sustainable leadership, knowledge sources and information credibility make a difference.

This study investigates the driving factors behind frugal innovation in Small and Medium-sized Enterprises (SMEs). It specifically examines sustainable leadership as an independent variable, considering its impact on frugal innovation, with sources of knowledge mediating this relationship and information credibility moderating the effects. Employing a Partial Least Squares Structural Equation Modeling (PLS-SEM) approach, data were gathered from 325 employees of SMEs in Pakistan. This methodology was chosen for its ability to handle complex relationships between multiple variables simultaneously, offering robust insights into the interplay among sustainable leadership, sources of knowledge, information credibility, and frugal innovation. The results reveal significant associations between sustainable leadership, sources of knowledge, information credibility, and frugal innovation. Sustainable leadership demonstrates a substantial influence on both sources of knowledge and frugal innovation. Furthermore, sources of knowledge play a vital role in mediating the relationship between sustainable leadership and frugal innovation. Information credibility emerges as a significant moderator, affecting the pathways between sustainable leadership, sources of knowledge, and frugal innovation. The findings underscore the importance of sustainable leadership and credible information sources in driving frugal innovation within SMEs. They highlight the intricate interdependencies among these variables and emphasize the pivotal role of information credibility in shaping these dynamics. These results carry significant implications for SMEs in Pakistan, shedding light on the mechanisms through which sustainable leadership and reliable knowledge sources can stimulate frugal innovation in emerging economies.

Deciphering the determinants of firm’s engagement with universities: An insight into the Thai industrial landscape

The burgeoning interest in university-industry collaborations (UIC) has sparked significant attention in both management practice and research. However, despite extensive efforts to identify the determinants of UIC, the majority of studies have predominantly focused on the motivations of academic researchers and limited UIC channels. This study aims to delve deeper into the influence of five factors—structural, behavioral, motivational, attitudinal and policy-related on firms' decisions to collaborate with universities across five collaboration forms: research partnership, researcher service, technology transfer, utilization of university facilities, and human resource transfer. The research draws upon original microdata from the Thai Community Innovation survey, encompassing 8701 firms and spanning the years 2015, 2017, and 2018. By employing a multivariate probit model, the results unveil that Thai firms perceiving universities as innovation sources are inclined to engage with them irrespective of the UIC channels. However, the effects of structural, behavioral, and motivational factors differ when influencing industry participation in various UIC modes. Thus, this research significantly contributes to the UIC literature by offering both theoretical and practical insights. The nuanced understanding of the factors influencing collaborative decisions can inform policymakers and managers seeking to foster effective university-industry partnerships. The identified implications underscore the need for a more tailored approach, recognizing the diversity of influences on UIC, thereby advancing both academic discourse and practical strategies in the field.

Between Land Reform and Postcolonial Frustration: Understanding the Social Roots of Local Opposition to the PAIGC/PAICV in Santo Antão, Cabo Verde, 1975–91

AbstractThis study discusses the processes of increasing social malaise and an “oppositional mood” in the Cape Verdean island of Santo Antão, where growing frustration between 1975 and 1990 led to the building of massive political opposition against the single-party regime in the archipelago. Early scrutiny of the shortcomings of independent administration, anger about the installation of a new police force, resettlement schemes, a failed agrarian reform, regime violence to achieve that reform, and a generalised mood of decline in the second half of the 1980s, constitute different elements explaining the unrest in that island. Based on newly available, local archives as an innovative source, the interpretation of a remote Cape Verdean opposition island also addresses the potential of studying opposition against “winning parties” and regimes after independence in wider regional frameworks, referring to discontent and “oppositional mood” elsewhere in postcolonial (Lusophone) Africa.

Diversification of Source and Import of Intermediate Products and Innovation of Chinese Enterprises

Diversification of Source and Import of Intermediate Products and Innovation of Chinese Enterprises

Online detection of eggshell cracks using adaptive light‐source intensity

AbstractUnder the fixed light source intensity (LSI), eggshell thickness difference results in excessive exposure or darkening in imaging, which affects the accuracy of crack identification. To optimize it, a solution involves the utilization of an innovative adaptive light source for optical imaging is proposed. A multi function station is adopted. Among them, one station serves as a reference workstation is utilized to obtain the average grayscale value of the eggs image. The other sub stations serve as detection workstations to acquire and detect the panoramic images of the eggshell. By using the red component average grayscale as a reference to adjust the LSI in the remaining sub stations, imaging consistency is effectively. Moreover, a dual threshold segmentation algorithm was developed to attenuate the dark spot, thereby improving crack detection. Experiments results demonstrating the proposed method significantly improving the detection accuracy of non microcracked eggs while achieving approximately 90% and 92% detection accuracy for intact and cracked eggs, respectively.Practical ApplicationsThere are a few studies on the consistency of light for eggs, and in actual online detection, the light source is often set to a fixed light intensity value, which can lead to overexposure or over‐darkening of the egg image due to variations in the eggshell thickness, and both overexposed and over‐darkened images will result in decreased accuracy of crack recognition. This study designed and built an online detection system for eggshell cracks based on variable light intensity. Therefore, the system not only can help to improve the crack recognition rate of poultry eggs and improve their quality but also would help to promote the development of the commercialization of poultry eggs, which has a broad application prospect.

Spirulina platensis and Phaeodactylum tricornutum as sustainable sources of bioactive compounds: Health implications and applications in the food industry

AbstractThe exponential growth of the global population, coupled with issues of insufficient and imbalanced nutrition, as well as a surge in health‐related problems, has compelled individuals to seek innovative and alternative food sources while optimizing existing resources. Microalgae have been a staple source of livelihood and essential nourishment for people in various regions worldwide. Their rich content of proteins, essential amino acids, carbohydrates, lipids, vitamins, and minerals necessary for nutrition, has made them a fundamental source of sustenance. Spirulina platensis (S. platensis), a single‐celled, filamentous, prokaryotic microalgae, has long been recognized as a valuable natural food source, with historical usage dating back to ancient times. On the other hand, Phaeodactylum tricornutum (P. tricornutum), although a freshwater species, belongs to the Pennateae group of single‐celled eukaryotic diatoms and exhibits adaptability to marine environments. S. platensis and P. tricornutum have recently gained attention due to their abundant bioactive compounds, including carotenoids and phenolic acids. These bioactive compounds are known for their potential health benefits, including anticancer, antioxidant, anti‐inflammatory, neuroprotective, hepatoprotective, and hypocholesterolemic properties. This review examines the bioactive compounds produced by S. platensis and P. tricornutum, their impacts on human health, and their promising applications within the food industry.

Knowledge Exchange Networks: Does Gender Matter?

Gender diversity in knowledge exchange networks can be a source of innovation in organizations as it provides new insights that improve the creative process. Diversity literature provides enough evidence of the importance of utilizing mixed-gender teams to gain innovative outcomes. However, in knowledge management literature, gender diversity has been scarcely addressed. Knowledge management literature happens to be dominant, and there is a need to study the impact of gender diversity in knowledge creation processes and networks. This theoretical paper links the diversity literature to knowledge management literature and provides new understandings by considering gender as an important factor in the knowledge creation process. This paper contributes to the literature by emphasizing on exploring knowledge exchange relationships through a feminist perspective. Feminist perspective is also missing in knowledge management literature; thus, by making gender an important consideration in the socialization phase of the knowledge creation process, this paper provides a diverse perspective in knowledge management literature. Furthermore, this paper presents a conceptual model of gender-diverse knowledge exchange networks that shows the inclusion of women in knowledge exchange networks enhances the effectiveness of teams. Women are being neglected when it comes to inclusion in knowledge creating networks because of in-group bias against men and the stereotypical perception of women’s lack of technical and innovative knowledge. This paper sheds light on the importance of women's inclusion in knowledge exchange networks by emphasizing the vitality of diversity in creating knowledge and innovation in collaborative networks and teams in organizations.

Meme Marketing: Generation Z Consumer Behavior on Social Media

This study investigates the phenomenon of "Meme Marketing" and its impact on the consumer behavior of Generation Z on social media. The research focuses on the characteristics, classification, coherence levels, and format evolution of memes, as well as their role in marketing strategies. Meme characteristics, such as fidelity, fecundity, longevity, and additional elements like relevance, ease of replication, uniqueness, and humor, are identified as key influencers on meme dissemination. Meme classification involves four types proposed by Knobel and Lankshear, along with considerations of genre, format, and media, providing an overview of meme diversity. The transformation of meme formats, from single images to GIF videos, reflects adaptation to trends and social media technology. The role of memes in marketing strategies goes beyond brand awareness, becoming a source of innovation in the cultural industry. Humor, as a key element, plays a crucial role in attracting attention and creating appeal for consumers. Meme virality factors, such as relevance, iconicity, humor, and format, require effective embedding and distribution strategies. In the context of Generation Z consumer behavior, memes provide satisfaction in entertainment, social interaction, and information. Media factors, including embedding and distribution strategies, are crucial for the successful dissemination of memes and consumer engagement. Applying marketing theory frameworks, this research offers both theoretical and practical implications for the development of effective marketing strategies in the digital era

The Innovation of Gender Mainstreaming Implementation: A Study on Gender Festival at the Ministry of Environment and Forestry

Government agencies need to carry out public policy innovations to deal with changes that occur quickly and dynamically. The Ministry of Environment and Forestry (MoEF) developed an innovation called the Gender Festival as an effort to transform a "Gender Neutral" work environment into a "Nature Gender." This study, therefore, aims to evaluate the fulfillment of innovation aspects and the obstacles encountered in the Gender Festival by using the Australian Public Sector Innovation Indicators (APSII) theory. This qualitative-descriptive research collected data through interviews and documentation data. Data were then analyzed using Miles and Huberman's interactive analysis. The study findings demonstrated that the Gender Festival fulfilled 12 of the 15 aspects of innovation based on the APSII criteria. They comprise investment in innovation, human resources and skills innovation, staff attitudes and attributes for innovation, sources of innovation, technological infrastructure for innovation, diffusion of innovation, innovation culture and leadership, innovation strategy, activities and implementation, types of innovation, innovation novelty, and intangible outputs. On the other hand, the obstacle to implementing a Gender Festival was the limited number of human resources with sufficient capacity to understand gender in managing the workload, which is quite heavy; as a result, innovation collaboration, innovation management practices, and innovation intensity could not be implemented.

Linear and phase controllable terahertz frequency conversion via ultrafast breaking the bond of a meta-molecule

The metasurface platform with time-varying characteristics has emerged as a promising avenue for exploring exotic physics associated with Floquet materials and for designing photonic devices like linear frequency converters. However, the limited availability of materials with ultrafast responses hinders their applications in the terahertz range. Here we present a time-varying metasurface comprising an array of superconductor-metal hybrid meta-molecules. Each meta-molecule consists of two meta-atoms that are “bonded” together by double superconducting microbridges. Through experimental investigations, we demonstrate high-efficiency linear terahertz frequency conversion by rapidly breaking the bond using a coherent ultrashort terahertz pump pulse. The frequency and relative phase of the converted wave exhibit strong dependence on the pump-probe delay, indicating phase controllable wave conversion. The dynamics of the meta-molecules during the frequency conversion process are comprehensively understood using a time-varying coupled mode model. This research not only opens up new possibilities for developing innovative terahertz sources but also provides opportunities for exploring topological dynamics and Floquet physics within metasurfaces.

An examination of spiritual capital and innovation: insights from high-growth aspiration entrepreneurs in a developing economy

PurposeThis study aimed to examine the relationship between spiritual capital and small business innovation in a developing market economy and the highly religious society of Minangkabau.Design/methodology/approachA quantitative method was used by analyzing the data with partial least squares (PLS), comprising 278 entrepreneurial and high-growth aspiration small and medium-sized enterprises (SMEs) owners in a developing economy such as Indonesia.FindingsThe results showed that spiritual capital was a source of acquiring knowledge from innovation failure situations, serving as a catalyst for the occurrence of novelty and differentiation-related innovation.Research limitations/implicationsThe perspective of spiritual capital was provided within a religious community, showing that future reports should produce comparative analyses from varying contexts. Since understanding entrepreneurs' perspectives and spiritual capital situation remained ambiguous, the performance of qualitative analysis was crucial.Practical implicationsEntrepreneurs were expected to obtain considerable benefits from spiritual capital as a source of inspiration for differentiation and higher levels of novelty-related innovation. Similarly, policymakers should implement the capital and learn from failure to evaluate entrepreneurial SMEs concerning their capabilities.Originality/valuePrevious studies were unable to acknowledge an alternative source of innovation in a specific context, such as entrepreneurial SMEs with high-growth aspirations and spiritual capital. This is because capital contributes to innovation, helps in the assimilation of innovative knowledge and causes novelty-related innovation.