Innovation Performance Of Firms Research Articles

Empirical Determinants of Innovation in European Countries: Firm-level Analysis Based on CIS 2018

This study examines the role of perceptions about environmental regulations and their influence on the innovative performance and productivity of firms in Germany, Southern Europe, and Central and Eastern Europe. Utilizing the CDM model for innovative performance and data stemming from the Community Innovation Survey (CIS), we explore the alignment with the Porter hypothesis, which posits that well-designed environmental regulations can stimulate technological innovation and enhance market competitiveness. Our findings present a mixed view: in Germany, positive perceptions about environmental regulations correlate with the initiation of innovation activities, contributing to an increase in labour productivity. This supports the Porter hypothesis, evidencing that regulations can lead to beneficial ‘innovation offsets’ such as reduced resource use and pollution. Conversely, in Southern Europe and Central and Eastern Europe, the perceptions about these regulations on innovation activities are insignificant, with no considerable correlation observed between perceptions about environmental regulations and innovation output. Our findings are crucial for policymakers, environmental regulators, and business leaders aiming to leverage environmental regulations to boost innovation and competitiveness within their regions.

The masking effect of green innovation: A study based on carbon market shocks

Previous empirical evidence indicates that the carbon market exerts a positive influence on the performance of corporate green innovation. In light of the proposition that there are differences in the green innovation capabilities of firms, we propose a masking effect hypothesis which suggests that the carbon market does, in fact, improve firms' green innovation performance at the overall level. However, separately, this improvement effect is only observed for high-capability firms, and not for ordinary firms. We test the hypothesis and explore the potential mechanism. The results show that, firstly, the outstanding green innovation performance of high-capability firms leads to a masking effect, which is robust to different estimation methods and variable settings. Secondly, the high innovation capability increases the positive effect of the carbon market on green innovation, irrespective of whether the capability is brown or green, which means a weak version of the masking effect. Finally, the different propensities towards co-innovation lead to the masking effect.

Innovation Eco-Embeddedness, Breakthrough Innovation, and Performance of Non-Core Firms: A Mediation Moderation Study

Innovation Eco-Embeddedness, Breakthrough Innovation, and Performance of Non-Core Firms: A Mediation Moderation Study

The impact of executive team competency-sharing degree on firm innovation performance

In China’s high-quality development context, the key role of executive teams in corporate innovation is increasingly prominent. However, effectively utilizing the synergistic effect of competencies within these teams to boost innovation performance remains a crucial research issue. A sample of 2,350 companies in Shanghai and Shenzhen A-shares from 2010 to 2022 was used to examine the impact of the executive team’s capability-sharing degree on firm innovation performance. The study indicates that the degree of managerial competence sharing, entrepreneurial competence sharing, and technological competence sharing within the executive team positively impacts firm innovation performance. These findings remain robust in the face of variations in dependent variable measures, lagged independent variables, and the propensity score matching method. Environmental dynamism is identified as playing a positive moderating role in the relationship between the influence of managerial, entrepreneurial, and technological capability-sharing degrees and firm innovation performance. Further analysis of heterogeneity reveals that the impact of the executive team’s capability-sharing degree on firms’ innovation performance varies based on the nature of property rights, firm size, and industry competitiveness. This study, grounded in top-level ladder theory, offers a framework for enhancing team capabilities and overcoming growth obstacles through executive team competence sharing.

Impact of patent infringement damages on firms' innovation performance: the moderating effects of patent-intensive industries

PurposeThe patent thickets exacerbate patent infringement, especially in patent-intensive industries. Damages are a crucial remedy for patent infringement, upholding innovation incentives in the patent system. This paper aims to examine the impact of damages on the subsequent innovation performance of plaintiff and defendant firms and the moderating role of patent-intensive industries in these effects.Design/methodology/approachBased on data from 1,062 Chinese firms involved in patent infringement litigation, this paper uses Poisson panel regression models to examine the dynamic impact of damages on incremental and breakthrough innovation performance for plaintiff and defendant firms and further validates the moderating role of patent-intensive industries on the impacts. Additionally, this paper conducts heterogeneity analysis by categorizing the sample into micro and small enterprises (MSEs) and medium and large enterprises (MLEs).FindingsThis paper shows that MLE plaintiffs skew toward incremental rather than breakthrough innovations after awarding damages, whereas MSEs transiently engage in high-level innovation activities. (2) Plaintiffs with higher payout ratios are more inclined toward undertaking breakthrough innovations. (3) Awarded damages significantly inhibit the innovative output of defendants at varying levels of innovation. (4) Plaintiff firms in patent-intensive industries show more innovation after awarding damages than those in other sectors, but damages do not effectively encourage MSEs to innovate. Defendants in patent-intensive industries are also more reluctant to innovate after damages.Originality/valueThis paper empirically investigates the relationship between patent damages and firms' subsequent innovation performance in terms of litigation status, organizational scale and level of technological innovation. Besides, this paper reveals the differences in the impact of patent protection on firms' innovation in patent-intensive industries versus other industries.

How do knowledge-intensive business services improve innovation? A resource-based model for antecedents of innovation in a developing country

Purpose Firms strive to find new ways of boosting value creation through integrating knowledge for innovation. Open innovation has altered this quest for excellence and, accordingly, this study aims to investigate the antecedents and enablers of innovation performance in firms belonging to a knowledge-intensive service sector of a developing country. Design/methodology/approach As such, data were gathered through a survey approach, targeting telecom service firms in Pakistan. Hypotheses were tested using the partial least squares technique. Measurement and structural models were assessed following the recommended two-stage procedure. Findings Results showed that knowledge sourcing and customer engagement impact the innovation performance of firms, whereas transformational leadership, knowledge sourcing and customer engagement are linked to innovation with the mediating effect of absorptive capacity. Practical implications This research helps to improve the innovation management practices of the firms belonging to this important sector and thus enables them to achieve sustainable competitive advantage through building their absorptive capabilities. Originality/value Knowledge-intensive business services are largely excluded from the great debate on open innovation so far, with a few exceptions. This research proposes and tests a model of enablers of open innovation that contributes toward improving the innovation performance of telecom firms in a developing country.

Sustainable knowledge management: Driving green technology innovation and long-term performance in construction firms

Sustainable knowledge management: Driving green technology innovation and long-term performance in construction firms

How does the interaction of digitalization and servitization contribute to manufacturing financial performance? The intermediary effect of manufacturing innovation performance

Digitalization and servitization are two crucial transition pathways for manufacturing firms, with their relationship explored by some existing studies. However, there is limited research on the mechanism of their interaction's effect on the firm financial performance. To address the gap, this paper draws on service-dominant logic, resource-based view and dynamic capabilities theory to establish a theoretical model. A sample of 567 Chinese manufacturing firms is selected, and a mediated moderation model is used to explore this mechanism. The findings indicate that the interaction between digitalization and servitization has a positive effect on the firm financial performance, with firm innovation performance partially mediating the relationship. Besides, heterogeneity analysis reveals that this interactive effect is mainly manifested in capital and technology-intensive manufacturing sectors. Therefore, this paper suggests managers in manufacturing firms promote the interaction between digitalization and servitization, leveraging their synergy to advance the sustainable long-term development of both the manufacturing firm and industry.

Integrating CSR and Business Strategy into Social Innovation: Insights from Taiwan’s Cultural and Creative Industries

ABSTRACT Design/methodology/approach This study’s contributions lie in the use of multiple methods and data collected from developing industries from cultural and creative industries in Taiwan. Purpose This study aims not only to emphasize the importance of corporate social responsibility (CSR) for businesses but also to examine how CSR activities affect communities while ensuring that the firm meets its necessary social performance standards. Findings The results show the multiple mediation mechanism of business strategy, multiple moderation effects of marketing orientation in the initial stage, and the role of social entrepreneurial self-efficacy in the final stage of improving the social innovation. Practical implications This study considers how CSR could affect the results of business strategy, whereby cultural and creative firms should embrace social responsibility behavior altruistically rather than merely seeking economic benefits but focus on social innovation to improve their own competitive advantage. Originality/value This study argues that the relationship among CSR, business competitive strategy and firm innovation performance is more complex than previous business management studies have revealed.

Exploring fiscal incentives, financial constraints, and firm innovation performance: A multidimensional correlation analysis and mechanism exploration

The article study selects the panel data of 3407 A-share listed companies between 2010 and 2022, aiming at exploring the impact of fiscal incentives on firms' innovation performance and revealing the mediating role of financing constraints. The empirical results show that fiscal incentives have a significant positive impact on both corporate innovation performance and financing constraints; meanwhile, corporate financing constraints are found to play a fully intermediary role between fiscal incentives and corporate innovation performance. This research result is of great significance to both enterprises and governments. Enterprises can take the initiative to utilize fiscal incentives to improve innovation performance, strengthen financing ability, and then promote enterprise development. The government can take fiscal incentives and other measures to support enterprise innovation and promote the healthy development of the national economy. At the same time, governments should also explore more effective financing mechanisms to provide enterprises with a favorable financing environment to further promote enterprise development and innovation capacity.

Impact of boundary-spanning search on firm innovation performance: a strategic knowledge integration perspective

Purpose This study aims to explore the mechanism of boundary-spanning search on firm’s innovation performance under environmental dynamics from the perspective of strategic knowledge integration. Design/methodology/approach A survey was conducted among Chinese firm managers and R&D personnel, resulting in the collection of 315 valid samples. Hierarchical regression analysis was mainly adopted to demonstrate the hypothesized relationships, while the Sobel test and bootstrap method were used to further validate the mediating effects. Findings The results demonstrate that boundary-spanning search in different dimensions is a critical factor in the improvement of firm innovation performance (FIP). Two types of strategic knowledge integration are the main factors causing FIP and mediate the influence of boundary-spanning search on FIP. Furthermore, environmental dynamics moderate the relationship among boundary-spanning search, strategic knowledge integration and FIP. Practical implications Managers need to strengthen the boundary-spanning search for market and technical knowledge, which will promote firm innovative performance. Managers also need to implement strategic knowledge integration, which specifically includes using planned strategic knowledge integration to compensate for knowledge deficiencies, thereby achieving predetermined objectives; and using emergent strategic knowledge integration to update their understanding of internal and external environments, and to reset strategic objectives. In dynamic environments, managers should emphasize strategic knowledge management activities more. Originality/value From a strategic management perspective, this study categorizes strategic knowledge integration into planned and emergent forms. By applying the logic of knowledge acquisition, integration and creation, it explores how boundary-spanning search affects FIP through strategic knowledge integration as the intermediary and the boundary conditions of environmental dynamics. This not only provides a deeper understanding of the nature and effects of boundary-spanning research but also enhances the theory of strategic knowledge management.

How to configure the supply chain to stimulate firm innovation performance?

Supply chain characteristics are an important driving force for innovation at the focal firm. Previous research has separately examined the impact of structural, relational, and capability dimensions of the supply chain on firm innovation. Relying on the structure-relationship-capability framework, this study explores the configurational impact of geographical distance, business concentration, and partner innovation of both the supplier-base and the customer-base on firm innovation. Necessary causality analysis (NCA) and fuzzy-set qualitative comparative analysis (fsQCA) are employed. Based on a dataset of 123 Chinese listed firms in high-tech manufacturing sectors, we provide novel insights on the antecedent configurations of the partner characteristics in both ends of supply chains for facilitating firm innovation. Our findings indicate that there are no necessary conditions for high firm innovation performance. We identify three distinct paths - namely, innovation-driven, customer-dominated, and relationship-driven configurations - that consistently lead to high firm innovation performance. From a configurational perspective, this research contributes to the innovation and supply chain literature and provides practical implications for managers to facilitate firm innovation.

Synergistic governance and innovation: the positive effect of cross-holding partners

ABSTRACT Innovation within enterprises stands as a crucial component of effective enterprise management, serving as the primary determinant influencing the company's developmental trajectory, scale, and pace. The primary objective of this study is to analyze the effects of cross-holding partnerships on firms’ innovation performance, as well as the interplay between internal cross-holdings and innovation results. By examining data from 2011 to 2021 of A-share listed companies, this paper empirically analyzes the impact of cross-holding shareholders on firm innovation performance. According to the study, cross-holding shareholders positively impact enterprise innovation performance, indicating a synergistic governance effect. Besides, the study finds that both information transparency and internal control play significant mediating roles in enhancing the relationship between cross-holding shareholders and enterprise innovation performance. The study's novelty lies in its in-depth exploration of cross-holding intricacies and their specific influence on innovation. By dissecting various cross-holding scenarios, the research contributes valuable insights that refine the understanding of how shareholder dynamics can shape innovation within enterprises. Based on the findings suggestions for practitioners include a nuanced approach to cross-holding arrangements, emphasizing the need for strategic alignment between shareholders and innovation goals. Additionally, developing transparency and communication among cross-holding entities may mitigate potential negative effects on innovation.

Impact of knowledge management infrastructure and processes on automobile manufacturing firm innovative performance through the mediating role of agile project management practice

Purpose The purpose of this study is to examine knowledge management (KM) infrastructure and processes on automobile manufacturing firm innovative performance through the mediating role of agile project management (APM) practice. Design/methodology/approach The data collection involved purposive and convenience sampling techniques to gather information from 692 employees employed in various public and private automobile manufacturing firms operating in Pakistan. To test the hypothesis, data analysis was conducted using Smart PLS software version 4, using the partial least squares and structural equation modeling technique. Findings The result revealed that knowledge management infrastructure and processes has a positive and significant effect on firm innovative performance. Moreover, agile project management practices positively and significantly mediate the relationship between knowledge management infrastructure and processes and firm innovative performance. Practical implications The performance of high-tech automobile manufacturing firms can be enhanced by implementing agile project management practices, especially when stimulated by external factors such as innovation. In an increasingly dynamic environment, innovation acts as a favorable factor that amplifies the positive impact of agile methodologies on firm performance. Originality/value Researchers can use these findings to identify knowledge gaps that need to be addressed in future studies and understand how strategies relate to processes within the KM-APM framework. This study provides practitioners with insights on applying KM practices in an APM context to enhance knowledge performance. Practitioners can use the framework to plan KM activities that support corporate strategy across all organizational layers, ensuring the appropriate knowledge is conveyed at each level.

Policy Instrument Mix and Firm Innovation Performance: The Moderating Role of Financial Slack

Policy Instrument Mix and Firm Innovation Performance: The Moderating Role of Financial Slack

Fostering Sustainable Innovation and Hybrid Performance in Family Firms

Fostering Sustainable Innovation and Hybrid Performance in Family Firms

Stock liquidity and the signaling value of patents: Evidence from china's national equities exchange and quotations market

Young and technology-oriented firms suffer from asymmetric information in seeking access to finance. An increase in stock liquidity can improve a firm's stock price informativeness and mitigate such information problems. We expect that firms will patent less when they face an increase in liquidity if patenting is used as a costly signal mechanism to demonstrate firm quality. By examining an exogenous policy shock that dramatically improves the stock liquidity of treated firms in China's National Equities Exchange and Quotations (NEEQ) market, we document evidence that treated firms patent less after the shock. Our findings reveal the importance of liquidity in reducing the deadweight costs caused by asymmetric information and the signaling value of patenting, and urge caution regarding the sole use of patent applications to measure innovation performance in entrepreneurial firms.

How to Configure the Supply Chain to Stimulate Firm Innovation Performance?

How to Configure the Supply Chain to Stimulate Firm Innovation Performance?

Can environmental tax promote green M&A in emerging market firms? Evidence from China's heavy polluters

AbstractBased on a sample of heavily polluting firms listed in China, we examine the impact of environmental taxes on the green M&A behavior of these firms. Our findings underscore that environmental taxes have significantly increased the likelihood of heavily polluting firms engaging in green M&A endeavors. This impact is particularly pronounced in areas with high media attention, low financing constraints, and high environmental investment. However, our examination of the economic consequences shows that green M&A does not improve the green innovation performance and ESG performance of firms. The analysis of M&A motivations shows that the majority of heavy polluters' green M&A targets are located in regions with weak environmental regulation, confirming that green M&A under the environmental tax burden is a tool used by firms to engage in pollution transfer. In addition, green M&A under the environmental tax burden is characterized by financial investment, connected M&A, and nonsignificant M&A, confirming that green M&A under the environmental tax burden may be a tool used by companies seeking only the appearance of “greenwashing.” Therefore, green M&A under the environmental tax burden tends to be underpinned by opportunistic motives of pollution transfer and “greenwashing,” rather than substantive green transformation and upgrading. We provide evidence from emerging markets on the impact of environmental taxes on green M&A, which adds to the literature in this area and has policy implications for government regulation of corporate environmental governance practices.

The Effect of the Acquisition Rate on Post-Acquisition Innovation

Technology acquisitions are one of the most common growth strategies for firms. Firms that have made multiple acquisitions in the past are more likely to make new ones. With previous M&A experience, firms are more likely to make acquisitions. The acquisition rate is the total number of acquisitions a firm has made at a given time. In technology acquisition, the acquisition rate affects innovative firm performance. The more frequent acquisitions a firm makes, the less innovative performance will occur. A high acquisition rate negatively affects post-acquisition performance by dominating the attention of decision-makers and overloading the firm. During the process, there needs to be structural integration between the acquirer and the target firm. This study empirically analyzes 380 cases of technology acquisitions of U.S. publicly traded companies from 1990 to 2005. The results show that a high acquisition rate is negatively related to the post-acquisition innovation performance of the acquirer. Although structural integration has no impact on the negative relationship between post-acquisition performance and acquisition rate, considering the acquisition rate when pursuing M&A allows acquiring firms to avoid detrimental consequences.