Internal Innovation Capabilities Research Articles

Give us ideas! Creating innovativeness through strategic direction of reverse technology transfers

AbstractThis paper addresses the research gap in understanding the role of intra-firm reverse technology transfers for building output versus innovation capabilities. While we understand that some firms use external sources to create new technology before they are able to build internal innovation capability, the role of bridging lack of innovation capability through internal reverse technology transfers has not been explored in this context. We analyze the technology transfer strategy in the case of Huawei Technologies through a mixed methods design combining quantitative survival analysis of patents and qualitative interviews to understand and contextualize its mechanisms. The results show that the company strategically transferred ideas for new and complex technologies from centers of state-of-the-art technology towards its domestic Chinese locations. Tapping into offshore innovation capability is done by hiring experienced personnel that transfers innovative ideas to China instead of developing new products abroad. We find that this systematic transfer of complex ideas enabled Huawei to build output capability by bridging its lack of domestic innovation capability. This might be a way for growing firms to become competitive on the world market before having to build innovation capability at home first.

A Catalyst for China’s High-Tech Export Competitiveness: Perspective of Technological Innovation

This study investigates the pivotal role of technological innovation in enhancing the export competitiveness of high-tech products in China, analyzing its interplay with industrial upgrading. Theoretically, it contributes to the understanding of how technological innovation affects high-tech product markets, offering a novel product-centric perspective distinct from traditional industry-focused views. Set against China’s shift toward a dual circulation development paradigm, the research utilizes a panel regression model to analyze data from 30 Chinese provinces, cities, and autonomous regions from 2011 to 2021. The findings underscore the significant positive impact of technological innovation on export competitiveness, with variances noted across Eastern, Central, and Western regions. The study reveals that technological innovation primarily influences the global competitiveness of high-tech products through industrial upgrading. Policy recommendations emphasize strengthening technological innovation, enhancing education and government support, leveraging regional strengths, and achieving a balance between internal innovation capabilities and market openness. The findings suggest these strategies are crucial for enhancing export performance in the global market for high-tech products.

The Influence of Strategic Entrepreneurship on Competitive Advantage in CV Mutiara

Technological change, dynamic global markets, and intense competition characterize the current business era. The development of Strategic Entrepreneurship highlights the evolution of business and entrepreneurship theories, shifting the paradigm from focusing only on the creation of new businesses towards the integration of entrepreneurship into existing business strategies. This study aims to analyze the impact and contribution of Strategic Entrepreneurship to the sustainability of competitive advantage in modern businesses faced with dynamic market challenges. The method used in this research is descriptive qualitative. This research uses CV Mutiara as a concrete case study. The results show that the implementation of Strategic Entrepreneurship has a significant positive impact on organizational adaptation and sustainability in a constantly changing business environment. By focusing not only on new venture creation but also on long-term strategic planning, organizations can achieve sustainable competitive advantage. CV Mutiara applies the principles of Strategic Entrepreneurship, including innovative strategy development, external collaboration, and enhancing internal innovation capabilities.

How to Keep Investors’ Confidence after Being Labeled as Polluting Firms: The Role of External Political Ties and Internal Green Innovation Capabilities

This study delves into investors’ perceptions of the polluting label attached to listed manufacturing firms, emphasizing the interplay between external political ties and internal green innovative capability in influencing these perceptions. Drawing on a longitudinal analysis of listed manufacturing firms in China from 2010 to 2020 and employing a difference-in-differences (DID) approach, we treat firms identified under the National Specially Monitored (NSM) program as the treated group, while non-NSM firms form the control group. The time variable captures the period post the introduction of the NSM program. Our findings highlight that the polluting label created a loss prospect for investors, signifying diminishing returns over time. Interestingly, firms with closer connections to local governments experienced amplified negative investor perceptions. In contrast, strong affiliations with the central government and robust green innovative capabilities cushioned these adverse reactions. Notably, central ties proved even more beneficial when complemented by green innovative capability. By melding signal theory with the literature on sense-making, this research adds nuance to the discourse on the role of resources in determining firm success amidst environmental controversies.

Corporate Sustainability and Service Innovation; Moderating role of absorptive capacity

Purpose: The study’s goal is to examine the effect of corporate sustainability dimensions on service innovation. It further investigates the moderating role of the absorptive capability of the firm.Design/methodology/approach: Using purposive sampling, data are collected from individuals in service firms across diverse industrial sectors in Ghana. A total of 628 questionnaires were dispersed to diverse service enterprises within the period from March 2021 to June 2021. After the data collection, the response rate achieved was 82% translating into over 500 answered questionnaires. A total of 514 answered questionnaires are used for empirical analysis.Findings/results: The outcome of the study indicates environmental sustainability practices, economic sustainability practices and social sustainability practices had an impact on the service innovation process and outcome. In addition, absorptive capabilities of service enterprises are found to positively moderate the link amid the scopes of corporate sustainability practices and service innovation.Practical implications: Managers and firms need to implement their internal innovation capabilities in order to derive significant and positive effects on corporate sustainability practices. The integration of corporate sustainability and service innovation in small and medium enterprises (SMEs) is imperative.Originality/value: The outcome of the research contributes to the increasing body of literature on the liaison between corporate sustainability and service innovation by offering insights into environmental, social and economic sustainability practices. This shapes the sustainability direction and procedures towards the transmittal of value-added services.

Technopreneurship and Business Performance of Ride-Hailing Firms in Lagos State

The objective of this study is to examine the effects of Technopreneurship on Business Performance of Ride-hailing firms in Lagos State. A descriptive survey research design was used for this study. The study population covers 5,662 vendors and staff of Uber Technologies Inc., and Bolt Technology Company in Lagos State, while the sample size stood at 374, which were determined through Taro Yamane’s formula. A designed questionnaire was developed to gather data for the research. Content validity was used to validate the questionnaires developed for the study. The Cronbach’s alpha coefficient was used to examine the reliability of the scales of measurement. Three research hypotheses were formulated and tested using Pearson moment product of correlation and multiple regression analysis. Hypothesis 1 showed that the coefficient of determination (R2) is 0.625. Hypothesis 2 revealed that there is a significant strong positive relationship between technology and operational efficiency of Ride-hailing firms in Lagos State. Similarly, hypothesis 3 depicted that there is a significant strong positive relationship between innovation and market share of Ride-hailing firms in Lagos State. The study concluded that the concept of technopreneurship is an intriguing proposition for businesses looking to boost their level of performance by leveraging interactions between internal innovation capabilities, competencies, and resources, as well as favorable external factors such as technology. The study recommended among others that SMEs should be encouraged to innovate through supportive measures that allow them to develop products and manufacturing processes so that Nigerian products and services meet global quality standards.

Innovation capability and culture: How time-orientation shapes owner-managers’ perceptions

This study offers a cross-cultural perspective to better understand how time orientation shapes owner–managers’ perceptions of innovation capability in small and medium sized enterprises (SME) in tourism. We synthesise the extant literature and determine SME owner–managers’ internal and external innovation capability. Distinguishing between short- and long-term cultures and comparing data from Australian and German, Austrian and Swiss (DACH country cluster) SMEs, results confirm that perceptions of innovation capability vary across cultures. Results for SMEs in short term–oriented cultures show stronger appreciation for consumer orientation, creating prospective profit and staff incentives; by contrast, SMEs in long term–oriented cultures place higher value on accessible knowledge, commitment to learning, and adaptation. To effectively manage innovation capability in SMEs, we suggest a balanced approach of considering both short- and long-term factors. Acknowledging the scarcity of SMEs' resources, we propose that owner-managers first focus on strengthening their internal organisational drivers of innovation to enhance their innovation capability. We also discuss implications for tourism policy, offer recommendations for the field of innovation research and note the study's limitations.

Public technology transfer, commercialization and business growth

This study analyzes the conditions for the commercialization of public technologies transferred to the private sector and the subsequent effect on business growth. We focus on the commercial exploitation of technologies transferred by universities and public research institutes (U&PRIs) to companies. The empirical analysis uses detailed information regarding an extensive set of actual instances of public-private technology transfer in Korea (514 cases of technologies transferred by 43 major U&PRIs) to highlight the role of company absorptive capacity and internal innovation capabilities, cooperation with U&PRIs, and the intensity of market competition in determining commercialization success and business growth. We find that the intensity of market competition significantly influenced the paths along which absorptive capacity and internal innovation capacity affected successful commercialization, and successful commercialization in turn affected business growth. Effective partnership is a key factor of the successful commercialization of transferred technologies irrespective of market situations. Absorptive capacity contributes to their short-term success and long-term growth when market competition is strong.

An Analysis of Open Innovation Determinants: the Case Study of Singapore based Family owned Enterprises

Family businesses play an important role in the growth of global economy, and while they are arguably perceived as a conservative form of organization with high risk aversion and reluctance to change, counterintuitive empirical evidence show that they are most effective in ideation and commercialization of innovation projects. In the current business environment of rapid change in work patterns, fast adoption of enabling technologies for seamless collaborations across industry and geography, along with intense competition and high uncertainty, enterprises have no choice but to maximize returns on innovation investments. Therefore, they are increasingly dependent on an ecosystem-based approach to innovation management, which has shown greater likelihood to create radical innovations and enable profit generation.The objective of this paper is to analyse determinants of open innovation practices in family-owned enterprises in consideration of the joint effect of in-company enablers and external factors. Drawing on a sample of 33 Singapore based family-owned firms, our findings confirmed the key drivers such as family and business culture, access to external funds, government supported initiatives, market dynamics, partnership, network, family capital, and external network. Managerial implications about the necessity to leverage both environmental determinants and internal innovation capabilities to foster novel business ideas are also highlighted in the conclusion of the paper.

How collaborative routines improve dynamic innovation capability and performance in tourism industry? A path-dependent learning model

ABSTRACTCurrent results of direct relationships between collaboration and innovation capability on performance in tourism contexts are inconsistent. This research is to uncover roles of collaborative routines on promoting relationships between internal and service innovation capabilities as two distinct mechanisms, and performance. The study also examines the contingent effect of knowledge search on performance. Survey data from 181 samples from the Thai tourism industry are gathered for analyses. Findings demonstrate that knowledge search and internal innovation capability have a direct impact on performance, whereas the effect of service innovation capability on performance is significant only in the presence of collaborative routines.

Can collaborative relationship stimulate innovation capability and improve performance in the hospitality industry

An external source becomes one of important factors for sustaining long-term competitions. However, little is known about whether collaborative relationships enhance innovation capability and consequently firm performance in hospitality contexts. The purpose of this paper is to examine complex relationships of collaboration, innovations and performance in the hospitality industry. Based on a survey of 84 hotels in Bangkok, Thailand, the statistical analysis is first analysed using OLS regression method, and then utilising two-stage least-square method for robustness of the results. The findings indicate that collaboration has a positive impact on both internal and service innovation capabilities. However, only internal innovation capability has a direct positive sign on hotel performance. Interestingly, service innovation does not directly influence performance, but collaboration mediates the effect of service innovation capability on hotel performance.

The role of exploitative and exploratory innovation in export performance: an analysis of plastics industry SMEs

Innovation capabilities are important for firms to compete in the market. However, the literature has rarely examined how exploitative and exploratory innovation influences the export performance of small and medium-sized firms (SMEs). As exploitative and exploratory innovation plays different roles in sustaining SMEs' competitive advantages, this article presents an analysis of how four specific firms' innovation capabilities (i.e. marketing, strategy, research and development and manufacturing capabilities) impact these SMEs' export performance. Moreover, this study analysed how exploitative and exploratory innovation capabilities mediate the relationship of the four firms' internal innovation capabilities and export performance. The results indicate that exploitative innovation positively influences SMEs' export performance, but exploratory innovation does not. Another interesting finding is that strategy and manufacturing capabilities are important antecedents of both exploratory and exploitative innovation. Furthermore, the results reveal that only manufacturing capabilities have a direct impact on export performance, whereas strategy and manufacturing capabilities are the antecedents that most influence exploitative innovation and export performance.

Internal Innovation Capacity and External Linkages in Firms of ASEAN Economies Focusing on Endogeneity

<p class="MainText">Based on survey data of firms in four ASEAN economies, this paper examines the role of internal innovation capacity which includes technological level, organizational learning, and human resources on innovation. To make this concept more tractable for statistical analysis, an index of internal capacity using AHP (Analytical Hierarchy Process) was constructed. By using this index, this paper attempts to examine how the internal capacity of firms is enhanced by external linkages such as MNCs (Multinational Corporations), universities, and public organizations. In particular, this study analyzes the endogeneity problem, which clarifies the causality between innovation and factors to promote it. In so doing, the instrumental variable method was employed, and as a result, external linkages enhanced internal innovation capacity, and internal innovation capability promotes innovation, while external linkages indirectly enhance innovation. </p><p class="MainText"><strong> </strong></p><p class="MainText"><em>Key Words</em>- Internal capacity, absorptive capacity, AHP, causality, endogeneity, probit analysis</p>

Internal Innovation Capability and ICT Use in the Innovation Process from the View of Connectivity in Japanese SMEs

<p>Since new information necessary for innovation mainly comes from outside the firm, it is essential that the firm should innitially obtain such information, and then integrate it with indigenous resources for innovation owned by the firm. During these two processes, it is needless to say that ICT (Information and Communication Technology) has important roles to play. The research questions of this study are to examine how internal innovation capability such as the technological level and R&D (Research and Development), contributes to the innovation and how it is promoted by ICT use. Using the survey data of about 650 SMEs (Small Medium Enterprise) from all over Japan, this study constructs two models with ICT or without ICT and focuses on how SEMs (Structural Equation Modeling) obtain information from external linkages and the role of ICT in the innovation process. SEM is employed to show the causality among factors to promote innovation. The estimation results show that (i) top management is important to promote innovation; (ii) SMEs use two channels to connect to external linkages with and without ICT; and (iii) ICT is the basis of other factors which promote innovation.</p><p align="center"> </p><p>Keywords: External linkages, SEM, causality, R&D, technology</p>

Critical success factors for open innovation implementation

PurposeA comprehensive understanding about open innovation implementation is still lacking. In particular, a compilation of drivers and barriers for OI implementation is absent from the literature. Thus, the purpose of this paper is to identify critical success factors (CSFs) for OI implementation at the firm level.Design/methodology/approachA systematic literature review was conducted in order to identify CSFs for OI implementation in previously published literature. A total of 2,894 papers were identified, 156 of which were subjected to full independent analysis by the three authors. The following aspects were considered: research strategy, approach (empirical or theoretical) and objectives; theoretical background; methodological procedures; main results; and contributions to the literature. If the paper reported empirical research that included a description of actual OI implementation, additional aspects were analyzed: industry or sector of application; firm characteristics; success of OI implementation and OI tools and techniques reported.FindingsA synthetizing framework with six thematic categories of CSFs was proposed: leadership, internal innovation capability, network and relationships, strategy, technology management, and culture. A total of 22 CSFs for OI implementation were identified within these categories.Originality/valueThe proposed framework is an attempt to systematically generate a comprehensive list of factors that impact OI implementation. As such, it can support the theoretical development of OI-related capabilities, and serve as basis for future research that investigates operationalization and measurement of such capabilities.

SMES INNOVATION CAPABILITIES AND EXPORT PERFORMANCE: AN ENTREPRENEURIAL ORIENTATION VIEW

Although there are several studies analysing how innovation capabilities influence export performance, this study aims to present the impact of a set of internal innovation capabilities on export performance of small and medium-sized firms (smes), with the mediating role of entrepreneurial orientation contingent upon the proactive or reactive behaviour of the firms to external stimuli. The study involves the analysis of 147 questionnaire‐based survey of managers from plastic manufacturing smes operating in Portugal that were subjected to a Partial Least Squares-Structural Equation Modelling (PLS-SEM) technique. The results show that proactive firms to external stimuli are not only better at innovating but also their entrepreneurial orientation capabilities underpin a better performance in international markets when compared with firms that react to external stimuli. This study has implications for smes aiming at increasing their export performance and innovativeness. For practitioners the findings of this study should enable smes owner/managers to better understand the possible impacts of innovation capabilities and entrepreneurial orientation on export performance, and thus lead to more effective smes management.

Linkages between firm innovation strategy, suppliers, product innovation, and business performance

PurposeThe purpose of this paper is to use resource dependence theory to hypothesize that a buyer’s innovation strategy enhances supplier innovation focus and a buyer-supplier relationship that supports product innovation. These in turn positively impact buyer product innovation outcomes and business performance. Moreover, it is argued that the buyer-supplier relationship positively moderates the impact of supplier innovation focus on product innovation.Design/methodology/approachStructural equation modeling and hierarchical linear regression are used to test hypotheses.FindingsThe results support all hypotheses and suggest that company (buyer) age and variables related to buyer engagement with international markets directly influence performance. The results also indicate that the buyer-supplier relationship does not moderate the relationship between innovation strategy and innovation performance.Research limitations/implicationsThis study demonstrates that how a firm builds the conditions to effectively leverage the complementary resources and capabilities of suppliers directly influence innovation outcomes and business performance.Practical implicationsAn important factor in firms achieving their product innovation goals is the selection and management of suppliers that are strategically aligned with regard to innovation. While managers need to develop internal innovation capabilities, partnering with like-minded organizations, and creating conditions for effective cooperation are key drivers of innovation outcomes.Originality/valueIn contrast to prior research that has examined operational issues, this study shows how the strategic alignment of buyers and suppliers with regard to innovation is an antecedent of product innovation outcomes. Moreover, it adds to a limited literature on supply chain management practices in emerging markets.

Research on the Relationship of Innovation Capability and Operating Performance Based on Moderation of Openness

In current research on open innovation, the impact of innovative openness on the effect of innovation capability on corporate operating performance has been ignored. This paper uses hierarchical linear regression model with financial data of 137 listed enterprises in Chinese Stock Exchanges to study the moderate effect of openness on relationship of innovation capability and operating performance. The result shows that the internal innovation capability and absorption capability can significantly affect the operating performance, but the effect of technology acquisition and diffusion capability is remarkable only under the moderation of openness. Meanwhile, innovative openness negatively impacts the effect of internal innovation capability on the operating performance, and positively impacts the effect of absorptive ability. Finally, this paper provides some suggestions for helping enterprise’s implementation of open innovation strategy based on their own capabilities.

Conceptualizing organizational innovation: The case of the Brazilian software industry

This paper presents and tests a conceptual model that explains the innovation practices and innovation outcomes in Brazilian software firms. In terms of internal and external innovation capabilities, the ability to manage the relationship between people and their organizational contexts plays an important role in organizational innovation. Based on these results, we propose that the disparities between software firms in building organizational innovation can be attributed, in part, to differences in their internal capabilities. The paper aims at encouraging and supporting managers to develop internal capabilities as a means of effectively leveraging the internally and externally distributed knowledge essential to innovation development.

ANALYSING FIRM-SPECIFIC AND TYPE-SPECIFIC DETERMINANTS OF ECO-INNOVATION

This paper analyses the main determinants influencing different types of eco-innovations and eco-innovators in Spain. We differentiate between two types of eco-innovations (process vs. product and new-to-the-market (NTM) vs. new-to-the-firm (NTF)) and two different types of ecoinnovators (large vs. small and old vs. new firms). Our findings show that new firms are not more eco-innovative and that smaller firms are certainly less eco-innovative. Although the environmental regulation variable is generally a main driver of eco-innovation, there are specific drivers for some eco-innovator and eco-innovation types. This is the case with internal innovation capabilities, which clearly influence small and new firms to eco-innovate, in contrast to large and old firms. Those capabilities are also a driver of NTM eco-innovation versus NTF eco-innovation. Involvement in external knowledge flows and cooperation is also a crucial variable for small firms to eco-innovate and a main driver of NTM versus NTF eco-innovation. Contrary to expectations, there are a few differential drivers for products vs. process eco-innovations. Energy/material cost reductions and environmental regulation influence both eco-innovation types, whereas the demand-pull from the market is absent for both, probably due to a relatively low degree of environmental consciousness and/or willingness to pay for eco-products by its consumers.