Non-technological Innovations Research Articles

Speculation beyond technology: building scenarios through storytelling

‘Modern methods of construction’ is a term largely synonymous with the prefabrication of product components in factories. Emerging technologies, <em>e.g.</em> robotics and artificial intelligence (AI), are redefining the concept of modern methods of construction and destabilising the structure of the sector to meet the conditions of their implementation. Robotics and machine-based automation, for example, are expected to transform construction manufacturing techniques in rapid and significant ways, but the extent of change and the associated impacts on organisations, supply chains and business models that constitute the sector remains unknown. Existing foresight is dominated by trajectorial perspectives that overemphasise technological predictions and underemphasise the contextual stories of implementation most helpful in understanding technology adoption. An alternative approach presented here focuses on storytelling, the design of the scenarios and the visual images used to help convey these scenarios. These allow practitioners to explore how robotics and machine-based automation may play out in different characterisations of the industry. The research involved the analysis of an existing dataset to create four scenarios, before adapting and extending these scenarios through participatory workshops and interviews. Project participants were comprised of seven small and medium-sized enterprises (SMEs) in manufacturing and architectural fabrication, one tier 1 contractor, and two acclaimed industry experts from an industry advisory board and education centre. <em><strong>Practice relevance</strong></em> Robotics and machine-based automation are expected to transform the construction sector in rapid and significant ways, but the extent of change and associated impacts on organisations, supply chains and business models remains unknown. An alternative approach to foresight is presented that uses scenario creation to understand the implications of robotics and automation. The implications of robotics and automation are explored at the project, firm and industry levels. This will assist decision-makers to responsibly turn technological promise into substantive change. Four future scenarios of a construction industry where manufacturing robotics are business as usual are described. As an often-overlooked stakeholder, SMEs were at the centre of the scenario development process. Each scenario has a dominant player at the centre: tier 1 contractors, SME cooperatives, software vendors and original equipment manufacturers, and government. These scenarios illustrate the potential implications and non-technological innovations to resolve them (<em>e.g.</em> business model modification, development opportunities and contractual relationships), co-constructed with construction professionals.

Toward Holistic Experience-Oriented Service Innovation: Co-Creating Sustainable Value With Customers and Society

Hospitality exists from the grassroots level of society upward and plays a central role in the global economy. For the many organizations active in this sector and the societies they are based in, innovation in hospitality services is considered their lifeblood. Recent advancements in digitalization, artificial intelligence, robotics, communications technologies, and platform-based new business models are transforming the global business environment at a rapid pace. However, unlike many other service sectors, the hospitality and tourism sectors are unique in their focus on people, experiences, and the wider ecosystem (i.e., society and the environment). The unique makeup of the hospitality sector, therefore, demands a distinctive approach to innovation. This study aims to examine service innovation with a focus on the hospitality sector. It provides a holistic theoretical framework and proposes an agenda for future research. The framework suggests the hospitality experience to be at the core of innovation in this sector. Consequently, hospitality firms must focus on creating value through both technological and nontechnological innovation. This innovation must be facilitated in a symbiotic manner, with a strong focus on people at its center, showcasing the “soul” of the hospitality across the extended “footprints” of the experience.

Innovations and service firms’ performance: a firm-level mediating and moderating effects analysis for India

PurposeThis study aims to identify the effects of innovation types on the service firm’s financial and nonfinancial performance as well as mediation and moderation effects of innovation and the firms’ performance linkages in the Indian service sector.Design/methodology/approachThis study uses combined data from the World Bank innovation survey 2014 and World Bank enterprise survey (WBES) 2014 for India. It classified innovations into technological innovation (service and process) and nontechnological innovation (organizational and marketing) and used financial and nonfinancial performance measures. This study applies variance-based partial least square structural equation modeling (PLS-SEM) using Smart PLS 3 software.FindingsThe study results suggest that service innovation has the highest significant effect on a firm’s financial and nonfinancial performance, followed by process innovation. Marketing and organizational innovation have a long route to contribute to a firm’s financial performance via innovative and nonfinancial performance. The study results do not find any synergy effects of innovation types. Multi-group analysis (MGA) results suggest several significant distinctions in the path relationships between small and medium-sizes and large firms.Originality/valueThis study provides several crucial policy suggestions for the managers and policymakers concerning the effects of service and process innovation on service firms’ performance in India and the mediating factors of these relationships. The study suggests that managers should pay the highest importance to service innovation to swiftly and markedly surge service firms’ financial and nonfinancial performances. In contrast, a service firm’s innovative performance mainly results from its organizational and marketing innovations.

Beyond “good company”: The mediating role of innovation in the corporate social responsibility and corporate firm performance relationship

PurposeThe link between corporate social responsibility (CSR) and corporate firm performance (CFP) has been extensively studied, but a significant research gap remains when considering potential mediating factors that can provide a more comprehensive and complete picture of the CSR-CFP link. Among the possible mediators, innovation is one of the most noteworthy factors, but previous studies have found inconsistent results between CSR and innovation in the service industry context. Existing studies have reported an insignificant or negative relationship between CSR and innovation in the service industry, including the hospitality industry. To clarify this controversy, this study aims to propose the positive mediating role of innovation to explain the CSR-CFP link in the hotel and casino industry.Design/methodology/approachTo discover the relationship among CSR, innovation and CFP, a panel data analysis, the two-way fixed-effects model, is used with robust standard errors. Particularly, to examine the mediating role of innovation, this study conducts Sobel, Aroian and Goodman tests. The sample period is from 2000 to 2017, consisting of 342 firm-year observations.FindingsWith a sample of publicly traded US hotel and casino firms, this study confirms the mediating role of innovation and suggests a strategic direction of CSR, highlighting the importance of innovation in the hospitality industry.Practical implicationsThis study presents an important piece of evidence regarding non-technological innovation and proposes a strategic direction of CSR in the hotel and casino industry to achieve competitive advantages.Originality/valueAdopting a new measurement method of innovation using data envelopment analysis, this study serves as a reference for a better understanding of a role of innovation in the CSR-CFP link for hospitality scholars.

Environmental innovation across SMEs in Europe

This paper focuses on the relation between business innovation modes and environmental innovation. Over time firms have recognized the importance of prioritizing innovation to gain competitive advantages in open markets. Yet, in more recent times with the more recent international agreements on environmental sustainability (rounds in Doha in 2004; Copenhagen in 2009; Paris in 2016; and Glasgow in 2021), innovation needs to be guided through new boundaries and requirements that individual businesses and the business system as a whole face. One of these boundaries is nature and its resources which require significant protection as part of the international priority agenda on climate change agreed by most countries with the 2016 Paris Agreement on the Environment and recently confirmed with COP26. As firms are found to adopt alternative archetypical strategies of innovation, some science-driven (STI innovation mode) and others practice-driven (DUI innovation mode), we investigate whether any of these strategic modes is beneficial in relation to the capacity of the firms to produce eco-innovations, and which one is more beneficial in relation to which type of eco-innovation (e.g. technological and non-technological innovation). This analysis is seen in relation to the size of the firms as SMEs typically rely on practice and interactive-based innovation activities (DUI mode). This may help design environment protection-orientated policies that focus on specific drivers, thus making policy action efficient and effective. The analysis is based on the Community Innovation Survey (CIS) database for European countries. Our findings support the view that both STI and DUI drivers support eco-innovation through technological nuances that work also in the specific case of SME environmental innovation.

MANAGEMENT AND TECHNOLOGICAL INNOVATIONS: IS THERE A VIRTUOUS CIRCLE?

Purpose: The main aim of this paper is to analyse the association between management and technological innovations. Specifically, we determine whether organisational innovations influence technological ones or vice versa. Design/approach: This study is drawn from a sample of listed firms on the SBF120 1 index and French Community Innovation Surveys (CIS) carried out between 2004 and 2016. Findings: Our study provides the following: First, we show that the introduction of new technological innovations could stimulate organisational changes in a firm’s structure. Second, the adoption of new management practices is likely to increase the introduction of new processes, however, it is not sufficient to favour the development of new or significantly improved products. Research limitations/implications: We studied different types of innovations, but we have ignored other forms of non-technological innovation, such as marketing innovations. It would be interesting to analyse the interaction between marketing and technological innovations. Practical implications: From a business perspective, we emphasise that firms should introduce new organisational methods in the firm’s business practices, workplace organisation, or external relations, and adopt managerial transformations to boost their innovation potential. Originality/value: To the best of our knowledge, this is the first paper that looks at the dynamic character between organisational and technological innovations, especially through a longitudinal study. 1 The SBF120 index consists of the largest 120 capitalizations listed on the French stock Exchange market (SBF: Société des Bourses Françaises).

Technological and non-technological innovation effects on firm performance

The effects of technological and non-technological innovation affecting firm performance are investigated. Technological innovation involves new product development, while non-technological innovation involves strategy and leadership, culture and climate, innovation and collaboration, and organizational and environmental evolution. 342 firms participated in the research; thirteen hypotheses are tested; eleven are significant. Demographic analyses on job roles, firm types, industry groupings and firm size are also conducted. The majority of the demographic factors were not significant. However a small number of significant results are confirmed. Structural equation modelling is used to test the model. Important lessons for managers and future research areas are suggested.

The effect of top managers’ human capital on SME productivity: the mediating role of innovation

Using a sample of 309 Small and Medium-sized Enterprises (SMEs) from Tanzania and applying partial least square structural equation modeling, the study analyses the different effects of managers' general and specific human capital on SME innovation and productivity. The results demonstrate that top managers with higher education qualification place greater importance on non-technological innovation in comparison with their less educated peers. They further show that managers with more years of experience in the sector place higher importance on technological innovation than their less experienced counterparts. In addition, the results show that SMEs with managers who have higher education qualification achieve higher productivity than their less educated peers, with marketing innovation partially complementarily mediating this relationship. The effect of top managers' experience in the sector on SME productivity is shown to be insignificant. This paper uncovers the mediating role of marketing innovation on the relationship between top managers' human capital and SME productivity in Tanzania. Previous research did not consider the role of innovation as a means to translate top manager's human capital into firm productivity. These results help to provide some practical suggestions for managers, entrepreneurs and policy makers. This is a cross-sectional study which might not have captured all the effects of top managers' human capital fully.

Innovation, trade barriers and exports: evidence from manufacturing firms in ASEAN countries

PurposeThis study aims to integrate both internal and external factors to examine the effect of innovation and perceived trade barriers on firms’ export activity. In particular, the authors expand the scope of innovation into both technological (product and process) and non-technological (marketing and management) innovation. Furthermore, the authors examine the potential joint effect of perceived customs and trade barriers on firms.Design/methodology/approachThe authors empirically test the hypotheses by using firm-level data from the World Bank Enterprise Survey during the most recent year available for each ASEAN country, together with both firm- and country-level controls from various data sources. Specifically, the final sample for analysis includes 3,602 firms from Cambodia (100), Indonesia (1157), Laos (99), Malaysia (445), the Philippines (719), Thailand (572) and Vietnam (510).FindingsFirst, the results show that firm-specific innovation capabilities (including non-technological of managerial innovation) do matter for explaining export propensity. Furthermore, in contexts in which location-bound advantages are prevalent, the effects of innovation may disappear and further deteriorate performance in the post-entry stage. Second, the findings support the notion regarding the prevalence of country- over firm-specific advantages for the international expansion of companies from ASEAN countries. More specifically, this study holds that innovation does not matter for export intensity and that factors related to the location’s institutions appear to be more important.Originality/valueFirst, it acknowledges and examines the effect of not only technological innovation, but also non-technological innovation on export intention. Second, the paper measures the institutional effect at the firm level, rather than as a country-specific factor, to better understand the combined effect of internal and external variables on firms’ export strategy. Furthermore, it performs a cross-country analysis while controlling for other confounding firm and macro factors. Third, the authors test the model on both pre-entry (export propensity) and post-entry (export intensity) stages. Finally, the study responds to calls for research that examines the international competitive advantages of firms from ASEAN countries.

Innovation in Micro Firms Builders of Machine Tool? Effects of T-KIBS on technological and non-technological innovations

Purpose – This study aims to evaluate the effects of KIBS on innovation outcomes in micro firm builders of machine tools according to the categories of KIBS. Theoretical framework – This article not only contributes to the innovation process theory by reinforcing the arguments that micro firms can achieve innovations but also, that KIBS have a positive influence on technological and non-technological innovation in manufacturing firms. Design/methodology/approach – To achieve the objective of the study, the Mann-Whitney U Test was used as the analysis techniques. A survey was carried out to collect the data from 40 micro firm builders of machine tools located in the Basque Country (Spain) and Emilia-Romagna (Italy). Findings – The results suggest that KIBS have positive effects on innovations in manufacturing firms. However, there are differences according to the categories of KIBS. For instance, T-KIBS are prone towards technological innovation, while P-KIBS and C-KIBS affect non-technological innovation. In addition, ICT services also have a positive relationship with non-technological innovation. We conclude by highlighting the importance of T-KIBS to confront the challenges of Industry 4.0 and the need for further research to determine the role of KIBS in the context of the Fourth Industrial Revolution. Research Practical &amp; Social implications – Micro firms need to enhance their absorptive capacity by increasing ICT and R&amp;D investments, to confront the challenges of the Industry 4.0, and given the fact that the industry is beginning to incorporate more and more codified science-based knowledge. Perhaps hiring T-KIBS would be an adequate decision for micro firms. Originality/value – This study contributes to the advancement of research involving different category of KIBS and their effects on manufacturing firms’ innovation, especially in micro firm builders of machine tool. Keywords – KIBS, Technological innovation, Non-technological innovation, Micro firms, Machine Tool.

The First Android Based Sharia Fintech Innovation In Indonesia To Increase Inclusive and Literate on Society’s Finance

Technology has become the part of today’s people life. Then, it is actually close to the application of it. Absolutely, it has example; such as the electricity for having more sophisticated in financial technology (Fin-Tech). The simplicity and speed of this technology have led people to adopt it in everyday’s life. One of the innovations in developing business and the economy, especially in the banking sector, is currently to develop Fintech (Financial Technology) which is able to facilitate all types of buying and selling transactions, investments and fundraising. Next, the purpose of this study is to explain and provide an understanding of the technical, procedures and benefits of the application, it is called Sharia FinTech. Then, it is also to contribute to the literature on the capacity of the latest technological and non-technological innovations. The research method used is descriptive research method with a qualitative approach. It is to describe and explore the phenomena in the form of engineering human innovation in the financial technology industry. It is done by taking into account the characteristics, quality, and interrelationships between activities It has several aspects; they are: conducting the observation, having an interview session, creating the documentation, and the last one is doing the Literature review. The result of this study is to increase the knowledge, skills and confidence of the community in managing personal finances to be better and to provide access to be having convenient and accountable financial services. Afterwards, this study linits on explaining and providing an understanding of the technical, procedure and benefits of Sharia Fintech for all people in need. Thence, the limitation of the research only discusses the role of Islamic Fintech in increasing the public financial inclusion and literacy. As for the the next researchers, they can be even wider by adding the collaboration of fintech and the banking world. The novelty of this research is the use of the android application as a digital platform in financial inclusion and literacy.

Empirical analysis of innovation and productivity in services firms: The case of South Africa

The purpose of this paper is to investigate the impact of innovation on productivity in the services sector firms in South Africa. Using a three-stage econometric model we find that service sector firms are innovative. We show that firm size, public financial support, patent protection and market sources of information have a positive impact on the decision to innovate. The level of investment in innovation significantly influences the success of both technological and non-technological innovations in service sector firms. The results find that both technological and non-technological innovations have a positive impact on labour productivity, with a greater impact from non-technological innovation.

The effects of importing activities on technological and non-technological innovation: evidence from Chilean firms

PurposeThe authors analyzed the effects of importing activities on both technological and non-technological innovation in Chile. They contribute to the literature by hypothesizing and testing the idea that importing activities can foster the introduction of product, process, marketing and organizational innovations in emerging market firms.Design/methodology/approachThe authors used a combination of two economic surveys that included 1,347 Chilean companies. To test their hypotheses, they applied a variant of the Crépon-Duguet-Mairesse (CDM) model (Crépon et al., 1998) accounting for technological and non-technological innovation outputs. Specifically, four alternative innovation output indicators were used to measure the introduction of product, process, marketing and organizational innovations.FindingsThe results revealed that importing activities had positive effects on technological and non-technological innovation. Importers showed a significant advantage in the introduction of product, marketing and organizational innovations. Firms that both import and export (i.e. two-way traders) had an even greater advantage in the introduction of new or significantly improved products.Originality/valueThe authors demonstrated a relationship between importing activities and both technological and non-technological innovation that is novel and relevant, particularly at a historical moment when COVID-19 poses huge economic challenges to emerging market firms. As trade disruptions caused by the pandemic have predisposed some governments to favor protectionist policies, the authors warn that erecting barriers against imports can hamper the innovative success of local businesses.

Determinants of non-technological upgrading strategies for rice market improvements in Uganda

A strategic shift incorporating global business perspective sets a new standpoint on how firms can gain entry into or upgrade networks that form value chains. Contemporary interventions and initiatives in value chain development are being geared towards non-technological innovations and upgrading. This study was conducted to ascertain the determinants of non-technological upgrading strategies for rice market improvements. A cross sectional survey was carried out in northern Uganda on a sample of 442 rice farmers selected using multi-stage and random sampling techniques. Data were collected on rice actors using structured questionnaires while a binary logistic regression model was employed for analysis. The results indicated that factors such as location, household size, farm income, access to hired labor and market information, marketing on formal and informal contracts, individual marketing and marketing as a farmer group positively influenced horizontal, vertical and inter-chain upgrading strategies. However, experience and marital status of the actors affected all the three forms of upgrading negatively. Non-technological upgrading strategies were therefore, found to be key for competitiveness and emergence of other upgrading strategies (functional, product and process) in the rice value chain. Our results further, pointed to horizontal upgrading as a precursor for other strategies to emerge. Consequently, development agents working with geographically isolated smallholder farmers should start by promoting horizontal upgrading through training of farmers, organizing them into groups and later exploring other forms of upgrading strategies with the determinants under consideration.

Evaluating the Relationship between Stakeholder Pressure and Innovation in Ghanaian SMEs: Moderating Role of Firm Size

The study examines the relationship between stakeholder pressure and innovation (Technological and non-technological) in Ghanaian SMEs. Further, it explores the moderating role of firm size in this relationship. This is in response to the ongoing debate on the role of innovation in the performance and survival of small businesses in Ghana. Using the survey response of 523 registered SMEs, the SmartPLS model estimate reveals that; stakeholder pressure influences both technological and non-technological innovation in Ghanaian SMEs. Further, the size of the SMEs has no significant moderation in the positive relationship between stakeholder pressure and innovation in Ghana. Consequently, SMEs in Ghana can take advantage of the pressure from internal and external stakeholders to innovate for sustainable growth. Again, the government should provide avenues for innovative collaborations between universities, government agencies, and SMEs. Finally, studies should focus on inexpensive innovation channels capable of transforming the SME industry of Ghana.

Innovation Behavior of Salvadoran Food &amp; Beverage Industry Firms

This paper presents a quantitative analysis of the external and internal determinants that affect the innovation dynamics of a low-tech sector in a less developed economy; the food &amp; beverage (F&amp;B) industry in El Salvador. The empirical framework relies on a multivariate probit analysis applied to data from El Salvador’s First National Innovation Survey 2013. The results show that R&amp;D activities, use of industrial protection by F&amp;B industry firms as well as relationships between firms and knowledge agents are useful for technological innovations while the qualifications of firms’ workforce and the relationships between firms and value chain agents prove useful for non-technological innovations. In addition, firms can take advantage of their size and location in the department of San Salvador to promote product innovation, whereas firms’ maturity is seen to be a disadvantage. Based on the results to emerge, the role that public science, technology and innovation (STI) policies as well as STI business strategies can play in the Salvadoran agri-food industry innovation system is seen to be huge.

Innovation Behavior of Salvadoran Food &amp; Beverage Industry Firms

This paper presents a quantitative analysis of the external and internal determinants that affect the innovation dynamics of a low-tech sector in a less developed economy; the food &amp; beverage (F&amp;B) industry in El Salvador. The empirical framework relies on a multivariate probit analysis applied to data from El Salvador’s First National Innovation Survey 2013. The results show that R&amp;D activities, use of industrial protection by F&amp;B industry firms as well as relationships between firms and knowledge agents are useful for technological innovations while the qualifications of firms’ workforce and the relationships between firms and value chain agents prove useful for non-technological innovations. In addition, firms can take advantage of their size and location in the department of San Salvador to promote product innovation, whereas firms’ maturity is seen to be a disadvantage. Based on the results to emerge, the role that public science, technology and innovation (STI) policies as well as STI business strategies can play in the Salvadoran agri-food industry innovation system is seen to be huge.

The Sustainable Socially Responsible Society: Well-Being Society 6.0

The purpose of this study is to introduce Sustainable Socially Responsible Society 6.0 as a new concept that is supposed to extend ‘Corporate Social Responsibility’ to the entire society for humankind to gain a new chance to survive beyond the dangerous neoliberalism that abuses the market and democracy to the benefit of very few humans—the richest one percent and a few around them—and beyond Society 5.0. This study aims to define the framework conditions of ‘Well-being Society 6.0’, where humans can both achieve and define their targeted quality of life, including work–life balance, etc. Mulej’s Dialectical Systems Theory provides requisite (i.e., sufficient and necessary) integrity/holism of approach that leads to a Sustainable Socially Responsible (SSR) Society without overlooking the necessity of personal, including managerial, responsibility. Most humans try to satisfy their basic survival needs by management, which is requisitely holistic; it can and shall contribute to setting the framework conditions, foremost with non-technological innovation management. The Economy for the Common Good can contribute to SSR Society 6.0, including ‘Well-being society’. In addition, in 2019–2021 humankind is experiencing the ‘new Corona Virus’ crisis, killing millions, but also enabling a crucial step toward a well-being society by returning worldwide economic governance from neoliberalism to Keynes-based state capitalism with no loud objections.

Do innovations improve firm performance in the Indian manufacturing sector? A mediation and synergy effect analysis

PurposeThis study examines the effects of both technological and non-technological innovations on the overall performance of Indian manufacturing firms, and identifies the mediation and synergy effects in the relationship between innovation and performance.Design/methodology/approachThe study applies the partial least squares structural equation modelling (PLS-SEM) technique using Smart PLS3 on a combined data set from the World Bank Enterprise Survey and the follow-up Innovation Survey for India in 2014. Different newly developed statistical tests [PLS predict, importance performance map analysis (IPMA), multi-group analysis (MGA) and confirmatory tetrad analysis PLS (CTA-PLS)] have been used to check the robustness of the empirical results.FindingsThe results of the study suggest that technological innovations (product and process innovation) significantly affect a firm's overall performance, and that innovation strategy significantly mediates the effects, whereas the effects of non-technological innovations (marketing and organisational innovation) on a firm's performance are fully mediated by innovative performance. IPMA results suggest that technological innovations and their respective strategies are very important in improving a firm's performance, whereas non-technological innovations have great importance for increasing the innovative performance of the firms. The MGA results suggest that there are several distinctions in the path relationship and mediation effect among a firm's segment based on technology intensity and firm size. The study results do not find that innovation types have significant synergy effects on a firm's performance.Originality/valueThe study results suggest that managers should focus on technological innovations, along with their respective strategies to improve the overall performance of a firm, whereas non-technological innovations should be given priority for increasing the firm's innovative performance. Moreover, while making policy regarding innovation the people concerned should bear in mind which segment of the firms they are dealing with, as the effects differ across a firm's technology-intensity and size.

Paying Attention to Informal Peers: Informal Competition and Time Assigned For Innovation

Despite their ubiquity in emerging economies, informal firms have received scant attention in strategic management literature. Given the salience of informal sector competition for formal firms in emerging economies, a nascent stream of literature has investigated the role of innovation as a potential response. Studies examining this relationship have however not accounted for a) formal firms which pursue a combination of technological and non-technological innovation and b) formal firms which may have engaged in innovation-activities but did not achieve desired innovation outcomes within a specific observation period. Additionally, prior innovation research also suggests that the impact of an antecedent may be different on innovation inputs as compared to innovation outputs. In this article, we address these gaps by examining the effect of informal competition on a generic upstream innovation input: time. Drawing on the attention-based view, we predict that the level of informal competition increases the propensity of formal firms to assign time to its employees for innovation. We also argue that this relationship is contingent on two important firm conditions: numerical labor flexibility and location in special economic zones. Results from our empirical analysis, using data from a large sample of Indian firms, provide support for our hypotheses.