Non-technological Innovations Research Articles

Which innovation capabilities are relevant for technological and non-technological innovation? Implications for manufacturing firms' financial performance

PurposeThis paper investigates which innovation capabilities are more important for driving technological and non-technological innovations and which of the two innovation types has the greatest impact on the financial performance of manufacturing companies.Design/methodology/approachBased on a theoretical model of four innovation capabilities – two technological: Technology Development Capability and Operations Capability, and two non-technological: Management Capability and Transaction Capability – a database of 1,331 Brazilian manufacturing companies was analyzed through partial least squares structural equation modelling (PLS-SEM).FindingsThe results indicate that technological capabilities (Technology Development and Operations) have a greater impact on technological innovation. However, both technological capabilities also affect non-technological innovation, with the Technology Development Capability being the most influential in this relationship. Results also indicate that non-technological capabilities (Management and Transaction) have a greater impact on non-technological innovation. Nevertheless, both non-technological capabilities also impact technological innovation, especially the Transaction Capability, which is the most influential in this relationship. Furthermore, it was identified that non-technological innovation has a more significant impact on financial performance than technological innovation, presenting a novel finding to the field of innovation in manufacturing.Originality/valueThis manuscript refutes prior discussions and opens new possibilities for the interconnection of dynamic and ordinary innovation capabilities in two different arrangements, each aimed at improving a specific type of innovation. A theoretical framework is proposed to highlight that, depending on the innovation type focused on, ordinary innovation capabilities can be more relevant than dynamic ones for innovation in the manufacturing sector. From these theoretical advancements, practitioners can understand that investments in non-technological resources, skills and routines can also boost technological innovation, as well as sales, profit and market share growth.

A relay race or an ironman? A systematic review of the literature on innovation in the mining sector

As global demand for minerals and metals surges, the mining industry is faced with the triple challenge of finite resources, societal resistance, and environmental considerations. To address these challenges the mining sector is relying on innovation and technological advancements to enable exploitation of so far inaccessible deposits, minimize energy consumption, and improve sustainability. This study presents a systematic review of the literature on innovation in mining and the unique management approach being adopted to respond to the above challenges. From an initial corpus of 4059 scientific articles, a reproducible process filtered out 222 documents, published between 1996 and 2023. The analysis reveals that the literature on innovation in the mining industry, predominantly qualitative and exploratory in nature, is showing a shift towards empirical validation using advanced quantitative methods. Mining innovation appears to be shaped by the industry's inherent features such as a conservative culture, market volatility, emphasis on productivity, and profitability. While the industry somewhat risk-averse approach favours stability and specialization which could hamper innovation, its simultaneous focus on productivity encourages innovation to achieve cost reductions, enhanced processes, and implementation of new technology. However, the uniformity of ore and the position of miners in the value chain is not favorable to product innovation and the focus tends to be on —mainly supplier-led— process innovation. The review also shows the potential benefits of non-technological innovations, including marketing and organizational changes although these are infrequent. The study concludes by addressing conceptualizations of innovation and mining management and highlighting gaps in research that focuses on regions, minerals, and innovation types. It also discusses the knowledge management implications in this context.

A qualitative reflexive thematic analysis of innovation and regulation in hearing health care

BackgroundThe hearing health sector is an example of a health sector that is experiencing a period of rapid innovation driven by digital technologies. These innovations will impact the types of interventions and services available to support the communication of deaf and hard-of-hearing individuals. This study explored the perceptions of informed participants on the topic of innovation and regulation within hearing healthcare in Australia and the United Kingdom (UK).MethodsParticipants (N = 29, Australia [n = 16], UK [n = 13]) were purposively sampled and joined one of two online workshops. Participants included adults with hearing loss and family members, hearing health professionals, academics/researchers, representatives of hearing device manufacturers, regulators and policymakers. Workshop data were analysed using reflexive thematic analysis.ResultsParticipants conceptualised the hearing health sector as a network of organisations and individuals with different roles, knowledge and interests, in a state of flux driven by innovation and regulation. Innovation and regulation were perceived as mechanisms to ensure quality and mitigate risk within a holistic approach to care. Innovations encompassed technological as well as non-technological innovations of potential benefit to consumers. Participants agreed it was essential for innovation and regulation to be congruent with societal values. Critical to ethical congruence was the involvement of consumers throughout both innovation and regulation stages, and the use of innovation and regulation to tackle stigma and reduce health disparities. Participants expressed the desire for accessible and inclusive innovation in the context of fair, transparent and trustworthy commercial practices.ConclusionsThis study explored how stakeholders within the hearing health sector understand and make sense of innovation and the role of regulation. Overall, and despite reservations relating to health care professionals’ changing roles and responsibilities, innovation and regulation were conceptualised as beneficial when situated in the context of holistic, whole-person, models of care. The results of this study will inform considerations to support the development and implementation of innovations and regulation within the hearing sector and across other health sectors influenced by technological advances.

Managing sustainability-oriented innovation in services: proposal of a scale for the future of hotel companies and travel agencies

PurposeThe concept of Sustainability-Oriented Service Innovation (SOSI) has been recently suggested from a conceptual reflection approach in an attempt to integrate innovation and sustainability in services, being an emerging field of innovation in services. This study aims to propose a scale to measure Sustainability-Oriented Service Innovation from the perspective of the company. Because the whole is different from the sum of its different parts, we need to better understand the synergy between sustainability and innovation for the future of tourism companies.Design/methodology/approachUpon a literature review, we propose a scale and explore its dimensionality with data from 268 to 256 Spanish hotel and travel agency managers, respectively. The dimensionality of the scale for measuring Sustainability-Oriented Service Innovation is similar in hotels and travel agencies.FindingsFive factors emerge from the principal component analyses carried out: two dimensions referred to technological and non-technological innovation, respectively, and three dimensions labelled as economic, social and environmental sustainability.Practical implicationsTo guide managers towards their operations, the proposed scale is expected to inspire models to assess the impact of SOSI practices in such a highly competitive industry and to identify the most influencing dimensions on the future performance of the tourism company.Originality/valueTo the best of our knowledge, no scale has been presented so far that brings together the dimensions of technological and non-technological innovation, as well as sustainability from a Triple Bottom Line approach.

Development Problems and New Paths of Small and Medium-Sized Enterprises under the Background of Digital Economy

This research explores the transformative impact of the digital economy on small and medium-sized enterprises (SMEs) within the global landscape. In response to the digitalization of the economy, SMEs face both opportunities and challenges that significantly shape their development. The study delves into the positive impact of the digital economy on SMEs, emphasizing the role of internet-based technologies in expanding market access, breaking down trade barriers, and restructuring supply chains. However, it also highlights cybersecurity challenges that SMEs encounter, particularly in the context of increased digitalization and the COVID-19 pandemic. The article further investigates how the digital economy fosters innovation for SMEs, enabling them to contribute significantly to radical advancements and non-technological innovation. The research underscores the symbiotic relationship between digital technologies and SMEs' innovative capabilities, emphasizing their role as catalysts for economic growth. Additionally, the study explores how the digital economy helps SMEs optimize their cost structures, achieve revenue growth, and gain access to new markets through digitalization. The article provides a comprehensive analysis of the multifaceted relationship between SMEs and the digital economy, drawing perspectives from market dynamics, cybersecurity challenges, innovation landscapes, and financial optimization. The findings contribute valuable insights for policymakers, business leaders, and stakeholders, advocating for enhanced cybersecurity measures, digital technology adoption, and strategic innovation to foster a resilient and thriving ecosystem for SMEs in the digital age. The article concludes with recommendations for bridging the digital divide, enhancing cybersecurity measures, and promoting digital transformation among SMEs in an adaptive manner.

Technological and non-technological innovation synergies under the lens of absorptive capacity efficiency

While extensive research has focused on the role of absorptive capacity on innovation performance, no attention has been paid to the investigation of the relationship between absorptive capacity efficiency -the returns of resources devoted to absorptive capacity development- and innovation synergies. Marketing or organizational innovations, although significant for firm performance, are not considered as part of firm’s innovation strategy. We argue that firms do not randomly invest on innovation projects, but instead follow specific innovation strategy, aiming at integrating multiple innovation types which allows them to exploit emerging innovation synergies and thus, increase the returns from resources devoted to their absorptive capacity. Our empirical findings suggest that innovation synergies differentially affect firms' absorptive capacity efficiency. Product-marketing innovation synergies positively affect internal knowledge generation, while process-organisational innovation synergies negatively impact in-house Absorptive Capacity efficiency. Both integrated innovations have a positive effect on externally sourced Absorptive Capacity efficiency.

Agricultural technology as a driver of sustainable intensification: insights from the diffusion and focus of patents

Sustainable intensification (SI) responds to the concurrent challenges of increasing food production while reducing the environmental impacts of agriculture. As an early disclosure of innovation, patents are a useful indicator of technology market potential. However, we lack understanding of the extent to which current agricultural technology patents relate to the goals of SI and which kinds of technologies can potentially address SI. Here, we analyzed the diffusion and focus of more than one million patents issued during the period 1970–2022. We explored the degree to which the patents relate to SI through the co-occurrence of efficiency and environmental friendliness targets. Our results reveal that while the rate of patent issuance has dramatically increased over the past five decades, the rate at which patents diffused to different countries had decreased over time. The USA was the biggest net exporter of patents and had produced by far the most high-impact patents (in the top 1% most-cited patents). Since 1970, only 4% of agricultural patents and 6% of high-impact patents were related to SI targets (i.e., promoting both agricultural efficiency and environmental friendliness), but the attention to SI has increased over time. The most highly cited SI-related patents had become more diverse over time, shifting from digital, machine, and energy technologies in 1980s to the current era of agroecology, information, and computer networking. Our results provide an early indication of promising technologies that may play a greater role for SI in the future, subject to the challenges of market transfer and farm adoption and complemented by non-technological innovations in farm management and institutional support.

The Impact of Green Supply Chain Management on Circular Economy Performance: The Mediating Roles of Green Innovations

Background: This study investigated the impact of green supply chain management (GSCM) on circular economy (CE) performance. The mediating roles of three green innovation types, namely green product innovation, green process innovation, and green management innovation, are also examined. Methods: This study’s population comprised all companies in the manufacturing sector in Jordan. A simple random method was applied to gather data from 278 companies. The research model was evaluated in terms of validity and reliability, which were found to be satisfactory. Hayes’s PROCESS macro in IBM SPSS was applied for hypothesis testing. Results: The findings showed that GSCM directly and positively affected CE performance. Moreover, GSCM showed positive impacts on the three types of green innovation. In addition, the three innovation types demonstrated positive impacts on CE performance and proved to positively mediate the GSCM–CE performance relationship. Conclusions: The present study is the first, to the best of our knowledge, to examine the mediating effect of green innovations on the GSCM–CE performance relationship. It is also among the first to examine the impact of GSCM on three different types of green innovation that represent technological and non-technological innovations.

Limits of open innovation: bridging boundaries between technological and non-technological innovation

Limits of open innovation: bridging boundaries between technological and non-technological innovation

Limits of open innovation: bridging boundaries between technological and non-technological innovation

Limits of open innovation: bridging boundaries between technological and non-technological innovation

Innovation activities in the service sector across EU states: Similarities or differences?

Until 2005, service sector innovation had been a far less popular area of scholarly interest than studies on the industrial sector, the publication in 2005 of the methodological guidelines known as the Oslo Manual, in which it was noted that in addition to technological advancements in the economy, non-technological innovations might also be pursued in economic practice. Since then, although the popularity and dynamics of dedicated research have successively increased, this field of inquiry has not yet been sufficiently explored. Therefore, the aim of this study was to identify and assess the degree of homogeneity among EU countries in terms of innovation activity in the service sector. The hypothesis adopted for this study stated that there are countries within the EU that can be divided into clusters with respect to service sector innovation activity. Bearing in mind the objective and seeking to verify the hypothesis, this research used a critical review of literature, indicator-oriented analysis as well as quantitative statistical methods, among others, while relying on the most up-to-date data from the Eurostat database on innovation activity (as of 5.07.2022). The objective was accomplished using fifteen indicators which describe the effects of innovation activity, which were classified into four groups: innovation activity, types of implemented innovations, types of product innovation, and types of business process innovation. The research proceeded in three stages: identification of groups (clusters) in the area of the surveyed European countries which demonstrated the homogeneity of analysed indicators using Ward’s agglomerative clustering method; identification of significant differences between the defined groups for each indicator carried out, using Student's t-test; an assessment of the degree of homogeneity in the scope of the surveyed EU countries with respect to innovation activity in the service sector by means of the methods outlined above. On the basis of the conducted investigations and the adopted methodology, it may be concluded, first, that the service sectors of the surveyed EU countries can be divided into three homogeneous groups in terms of innovation activity. Second, the similarity within each group was confirmed by Levene’s test, the results of which demonstrated homogeneity of variance for thirteen out of the fifteen analysed indicators. Thirdly, statistical analysis of the findings made it possible to identify significant differences between the defined groups of countries, with the exception of country clusters I and II with respect to three product innovation indicators, as well as country groups II and III relative to three business process innovation indicators, where no significant differences occurred. The conclusions from the study warrant confirmation of the baseline hypothesis, which assumed that the surveyed EU countries could be divided into clusters in terms of service sector innovation activity. The research and the analyses indicated that a homogeneous division of the surveyed EU countries into individual groups in terms of innovative activities in the service sector might offer a point of departure for further, in-depth analysis of the issues addressed in the study. Some of the compelling directions for future investigations include the determination of homogeneity and differences across the industries of the sector in question, as well as the creation of a ranking of countries in line with the analysed indicators. Approaching the issue in this manner will enable a detailed assessment of the innovation activity in the service sector and its internal structures, as well as provide grounds for validating the cluster division presented in this paper.

Innovation activity of Slovak ICT SMEs

Research background: The innovation process is a key factor when creating and maintaining competitiveness, so the SME sector has to address a special attention to it. Examining the impact of corporate co-operation on innovation activity has to be mentioned as a crucial goal. Purpose of the article: The main goal of the research is to assess the innovative activity of the SMEs operating in ICT sector, and to map the distribution between the innovative and non-innovative businesses. The article's purpose was to outline the most recent developments in Slovakia's ICT industry with regard to SME innovation. The empirical study concentrated on the types of innovation, variables that encourage and discourage innovation, and the innovation activity of SMEs in the ICT sector. Methods: In accordance with the main goal of the research, descriptive statistical methods, i.e. unweighted and weighted arithmetic mean were used to analyze the research hypothesis. A questionnaire research study was carried out between September 2021 and February 2022 in Slovak ICT SMEs. Findings & Value added: Significant differences can be determined between the innovative and non-innovative ICT companies in terms of innovation. The majority of SMEs implemented both technological and non-technological innovations. A small number of SMEs failed to implement either type. A significant portion focused on technological innovations, with the majority successfully implementing them, and over half of them introduced non-technological innovations between 2018 and 2020. Over 75% of the companies felt they were more innovative than their competitors. More than 67% of non-innovative SMEs saw themselves as less innovative than their competitors. 92% of innovative SMES implemented both technological and non-technological innovations. 51% implemented technological innovations. 56.41% innovative SMEs implemented 3 to 5 types of innovation activities, while 38.46% implemented 6 to 7 types. Only 5.13% implemented all 9 types of innovation activities considered. 38% of innovative SMEs spent the most on research and development, 33% allocated highest expenditure to machinery and equipment. In case of supporting SMEs in innovation activities, three market players received above-average ratings: customers and consumers, suppliers of raw materials and piece parts and the group of companies.

Can Islamic finance enhance the innovation capacity of Cameroonian SMEs? Empirical evidence based on a multivariate probit approach

This study examines the effects of the Islamic mode of financing on the innovation capacity of SMEs in Cameroon using a sample of 1358 SMEs. Results of the multivariate probit model indicate that Islamic finance enhances process innovation, product innovation, and marketing innovation. While the effects on organizational innovation are positive, they are statistically insignificant. Our main results equally indicate that the effects of Islamic finance on the innovation capacity of SMEs are more pronounced on technological innovation (process and product) than non-technological innovation (marketing and organizational). Policymakers are encouraged to put in place the necessary mechanisms for the promotion of Islamic finance such as the enacting of laws that ensure the creation of full-fledged Islamic banks, and raising awareness about the benefits and specificities of this mode of finance for the financing of SME innovation.

Influence of task-related diversity of R&D employees on the development of organisational innovations: a gender perspective

PurposeThis paper aims to analyse the influence of workforce diversity on the firm’s likelihood to develop organisational innovations. Operationalising human resources diversity is not straightforward, and its effect has been rather overlooked in the context of non-technological innovations. This study analyses the impact of task-related diversity among research and development (R&D) unit workers and women R&D workers, in particular.Design/methodology/approachTo estimate the impact of task-related diversity on firm propensity to undertake organisational innovation, this study uses a generalised linear model (GLM) – with a binomial family and log–log extension. GLMs are used to control problems of over-dispersion, which, in models with binary response variables, could generate inaccurate standard error estimates and provide inconsistent results.FindingsThis paper provides three important results. Firstly, employee diversity increases the firm’s propensity to engage in organisational innovations. Secondly, the influence of each facet of task-related diversity varies depending on the type of organisational innovation considered. Thirdly, gender has an effect on the innovation process; this study shows that women play a different role in the production of non-technological innovations.Originality/valueThis paper makes several contributions to the literature. Firstly, it makes a theoretical contribution to research on innovation management by considering the influence of human resources diversity on the development of non-technological innovations. Secondly, this study analyses the role of workforce diversity in an R&D department context to clarify the contribution made by women R&D workers.

EVALUATION AND CONTROL MANAGEMENT OF THE DEVELOPMENT OF DIGITALIZATION AT THE ENTERPRISE

The article examines the features of the fourth industrial revolution (G4). It is noted that the component of this revolution is Industry 4.0 with many technologies to create a single space for information exchange and virtual visualization of processes and objects. It also provides for the formation and implementation of robotic systems and Internet technologies in the format of "smart" enterprises. It is noted that there is an incorrect understanding of the very essence of the digital economy, which significantly hinders the successful implementation of digital transformation. Digital transformation (digitalization) is presented as a process of transition to such a digital business that uses digital technologies to change business processes in the company and provide new opportunities in the direction of obtaining additional income and prospects for its further development. A comparative analysis of individual approaches to the construction of models to identify the most general and priority directions for assessing the digital maturity of an enterprise is given. A conceptual scheme for managing the digital maturity of an enterprise is proposed. It is noted that the strategy serves as the basis of the entire digital transformation and it determines the focus of transformations and the target level of digital maturity of the enterprise. and also makes it possible to estimate resource, labor and financial costs in time and space. The tools for detailing and implementing the strategy are a business model, a road map and a corresponding portfolio of projects, balanced from the standpoint of the implementation of technological and non-technological innovations aimed at the permanent growth of the digital maturity of the enterprise. Updating the business model is one of the most important components of the growth of the digital maturity of the enterprise, which is carried out in the direction of expanding cooperative interactions, using multilateral platforms and creating a business ecosystem. Recommendations on digital transformation of the enterprise and increasing its digital maturity are given, and the stages of this work are substantiated.

The approach to and challenges in measuring innovation in China

In China and elsewhere, innovation features strongly in government policy as a key driver of economic development. Being able to measure innovation performance is therefore important. This paper analyses China’s approach to measuring the country’s innovation performance. In doing so and using documentary analysis, it evaluates the conceptualisation and data collection that underpin and support that measurement. The findings show that China focuses on a science and technology approach to measuring innovation. The weaknesses of this approach are identified: first, the conceptual scope is too narrow due to its exclusion of non-technological innovation; second, relatedly, data gathering is limited quantitatively and qualitatively in its coverage of types of innovation; and, third, the sample population is biased, acting to excluding a significant number of firms and employees. These weaknesses undermine understanding of innovation performance in China. With this analysis, this paper provides the first evaluation of China’s innovation conceptualization and measurement and, based on the findings, provides suggestions to address these weaknesses and improve the measurement of innovation performance and which have applicability beyond China. For China and other countries such as those which are members of the OECD and EU, the evidence provided in this paper suggest that there is a pressing need to adopt this broader policy approach and support it through the development of appropriate measures and data collection.

Towards a theory of Capability-Based Transactions: Bounded innovation capabilities, commercialization, cooperation, and complementarity

Innovation capabilities are essential to the innovative potential of companies, but in most cases, these capabilities are bounded. However, the boundedness of innovation capabilities and the way companies complement them through transactions is still a gap lacking theoretical depth. This conceptual manuscript aims to develop a theoretical approach, namely, Capability-Based Transactions, which intertwines the nature of innovation capabilities with the specificity of transaction types, resulting in complementarity for bounded capabilities. We propose a clarified definition for bounded capabilities and complementarity. From this, we theorize that commercialization complements a company's bounded non-technological innovation capabilities, while cooperation complements bounded technological innovation capabilities. From a novel perspective, we advance the intertwining of the literature on innovation capabilities and transaction costs. Our theorizing movement highlights that companies' transaction decisions depend on their bounded capabilities. Furthermore, to drive complementarity for non-technological capabilities, we propose a new kind of commercialization that underpins the Capability-Based Transactions approach. We develop a framework from a set of propositions that demonstrates the innovative behaviors shaping the theoretical approach. Finally, we present a managerial flowchart to support the adoption of Capability-Based Transactions by companies.

Retracted: High-Quality Development of Leisure Agriculture in Jiangsu Province in the New Period: From the Perspective of Non-Technological Innovation

Retracted: High-Quality Development of Leisure Agriculture in Jiangsu Province in the New Period: From the Perspective of Non-Technological Innovation

The Effect of Knowledge Creation Practices on Managerial and Marketing Innovation Through Creativity

Knowledge creation (KC) is viewed as one of the important practices in knowledge management (KM) process. It is argued that the success of the firm is measured, to a great extent, by its level of innovation. In fact, an innovation-oriented perspective contributes to sustainability. Moreover, innovation is usually developed through new knowledge and creative ideas. That’s why; it is relevant to examine the relationship between KC, creativity, and innovation. The first objective of the present paper is to study three direct relationships: The first relation is between KC and innovation (managerial, marketing). The second direct relation is between knowledge creation and creativity. The Third direct relation is between creativity and innovation. The second objective is to analyze the relationship between KC and innovation through the mediation of creativity. Finally, we will compare the results and identify the strongest and significant links useful for practice. The focus is on non-technological innovation because the majority of studies dealt with technological innovation. Added to that, managerial and marketing innovation is supposed to procure an advantage for emergent economies in a post-revolutionary and Covid context. The quantitative approach is adopted upon which 83 valid questionnaires are analyzed using the SEM with Pls3 to test the relationships between the variables. The results show that KC has a positive and significant effect on the two considered types of innovation. In addition, since KC dynamics allow organizations to develop and generate new ideas favorable to innovation, it has a positive effect on creativity. The test of mediation proves that creativity intervenes in the relation between KC, operationalized by the SECI model, and innovation. Based on these results, we may conclude that the relationship between KC and innovation becomes the strongest with the mediation of creativity. Certainly, these results have several implications both on the theoretical and empirical sides.

Innovation as a firm-level factor of the gender wage gap

PurposeThis paper investigates the relationship of both technological (product and process) and non-technological (organizational and marketing) innovation with the gender wage gap at firms.Design/methodology/approachUsing employer–employee level data from Estonia, the authors estimate Mincerian wage equations, in order to show how innovation at the firm level is associated with the gender wage gap. Next, the authors use propensity score matching (PSM) to study the effects of the movement of men and women into innovative firms, how this shapes the gender wage gap at firms.FindingsThe authors find that both technological and non-technological innovation are associated with a larger gender wage gap at firms. The relationship between innovation and the contemporaneous gender wage gap at firms reflects to a significant extent the different selection of men and women with different time-invariant characteristics to innovative firms. Further, the authors find that movement of men and women to work at innovative firms is in longer term associated with larger gains in wages for men. The authors also observe that the relationship of innovation with gender wage gap is stronger in the case of women with children.Originality/valueMuch of the prior analysis focuses on the effects of technological innovation on gender-related labour market outcomes. The authors show here that the relationship of innovation at firms with higher gender wage gap is not only specific to technological innovation, but is more general, and is observed across different types of innovation indicators, including non-technological innovation. This study's results suggest that the effects of innovation on gender wage gap may reflect to an extent the higher demand for flexibility of employees for work purposes at innovative firms, which may increase the gender wage gap, especially between men and women with children.