Organizational Innovation Performance Research Articles

Corporate social responsibility and its effect on innovation and firm performance: An empirical research in SMEs

The link between CSR and business value has been investigated, but a significant research gap remains when considering the relationship between CSR and innovation. The paper assesses its relationship with organizational innovation and firm performance in a single integrative model by using structural equation modelling on a data set of 552 Spanish firms. Our results supports a partial mediation effect of innovation performance on the relationship between CSR and firm performance, since the effect of CSR on firm performance shrinks upon the addition of innovation performance to the model. The findings may help to understand how CSR is an important driver mechanism for companies to be more innovative, efficient and effective.

Background factors to innovation performance: results of an empirical study using fsQCA methodology

On the one hand, we have analyzed the relationships between four key constructs: entrepreneurial orientation, online social networks, organizational learning capability and innovation performance. On the other hand, we have observed the importance of correctly using and justifying the calibration in fsQCA given that the obtained results may differ. We developed an empirical study with 209 four-star and five-star Spanish hotels. Using the fsQCA methodology, the results show that in order to obtain innovative results, hotels should combine Entrepreneurial Orientation and online Social Networks along with organizational learning capability.

Organizational innovation, technological innovation, and export performance: The effects of innovation radicalness and extensiveness

This study focuses on the relevance of different types of innovation for firms’ export performance. Despite ample research on the innovation–performance relationship, previous studies have mainly focused on technological innovations, leaving the effects of organizational innovations relatively unexplored. Hypotheses on the relationship between organizational and technological innovations and firm export performance are tested by structural equation modelling using data from 218 Swedish export ventures. The results indicate that organizational innovation enhances export performance both directly and indirectly by sustaining technological innovation. Moreover, by fine-graining our analysis of the mediating role of technological innovation, according to its radicalness and extensiveness, for organizational innovation, we show how the latter enhances both the radicalness and extensiveness of technological innovation although, notably, only extensiveness is actually beneficial for export performance. This study helps alleviate the scarcity of research examining the links among different types of innovation in relation to export performance and contributes to international business and marketing literature by generating new evidence regarding the mechanisms through which organizational and technological innovations may improve export performance.

Social web knowledge sharing and innovation performance in knowledge-intensive manufacturing SMEs

This paper develops an integrative research model to assess the effect of different factors on social web knowledge sharing and its effect on innovation performance in manufacturing small and medium-sized enterprises (SMEs). In addition, this study analyzes whether social web knowledge sharing may be a mediator in the relationship between human resource (HR) practices and innovation performance. The proposed research model and its associated hypotheses were tested by using partial least squares structural equation modeling on a dataset of manufacturing SMEs. This study contributes to research seeking to understand the factors affecting social web knowledge sharing by demonstrating that technological and organizational factors have greater impact than environmental factors on social web knowledge sharing. It also contributes to research by exploring the indirect effects of the social influence of HR practices on organizational innovation performance by offering evidence on the mediating effect of social web knowledge sharing in the relationship between HR practices and organizational innovation performance in manufacturing SMEs.

A theory of multi-dimensional organizational innovation cultures and innovation performance in transitional economies

PurposeThis study aims to construct a theory of multi-dimensional organizational innovation cultures and innovation performance in transitional economies and explore the moderating effect of team cohesion on this theoretical relationship.Design/methodology/approachUsing data collected from 175 manufacturing firms in transitional economies, this study constructs a new theory framework of multi-dimensional organizational innovation cultures (knowledge sharing, organizational innovation atmosphere, team decision-making and organizational change) and firms’ innovation performance and also explores the moderating effect of team cohesion on this theoretical relationship.FindingsThe findings show that there are positive relationships between knowledge sharing, organizational innovation atmosphere, team decision-making, organizational change and innovation performance of firms. Furthermore, team cohesion plays a positive moderating role in this relationship.Practical implicationsIt extends the general understanding of multi-dimensional organizational cultures management in the context of transition economies by exploring the differences between the Chinese and Vietnamese firms in terms of the impact of organizational innovation culture on innovation performance.Originality/valueThis study constructs a new theory framework of multi-dimensional organizational innovation cultures along the four dimensions of knowledge sharing, organizational innovation atmosphere, team decision-making and organizational change. These factors together have rarely been examined before. Hence, the findings extend existing research on organizational cultures management. Moreover, a new idea for this study is that the authors consider team cohesion as a moderating variable between organizational innovation culture and innovation performance of firms, hence providing both theoretical discussion and empirical validation of the impact of team cohesion on this relationship. It thus extends existing research on the team theory.

External relationships in the organizational innovation

The empiric literature regarding on technological innovation suggests that cooperation has a highly positive effect on the performance of firms’ technological innovation, however, very little is known about its impact on the organizational innovation. To fill this gap, the present study aims to analyze the impact of the external relationships with business and science partners about the capacity of firms to introduce organizational innovation. To reach the objective proposed, a quantitative investigation was chosen, based on a sample of 684 firms. Data were obtained through the inquiry CIS 2010 – Community Innovation Survey 2010. There came evident the external relationships established with business partners and with science partners on the performance of organizational innovation of the firms.This study contributes for the development of the existent theory when analyzing the external relationships of firms and the innovating development on the organizational level, considering that the investigation that has been carried out about innovation has been focused, in general, on the technological innovation.

Direct and configurational paths of absorptive capacity and organizational innovation to successful organizational performance

This study investigates how firms can achieve high levels of organizational performance under different configurations of absorptive capacity and organizational innovation. The study uses partial least squares structural equation modeling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA) to test relationships among dimensions of absorptive capacity, organizational innovation, and organizational performance. The results provide support for the absorptive capacity's role for organizational innovation and performance. Furthermore, different configurations of absorptive capacity and organizational innovation conditions lead to better organizational performance.

Non-technological innovations: Market performance of exporting firms in South America

Innovation plays a key role in the economic growth of companies, sectors, and countries, sparking widespread interest in innovation research. Based on innovation literature, the present research seeks to validate the influence of innovation on the performance of exporting firms in emerging economies. This study contributes to research in the field of strategic innovation management and to practice in the design of public policy and exporting firm strategy, especially in emerging economies such as those in Latin America.The authors analyze the effects of organizational and marketing innovations (non-technological innovations) on the market performance of exporting firms through data collected in firms in fast growing South American emerging economies—Colombia, Peru, and Chile—with a final sample of 299 completed surveys and test hypotheses with Structural Equation Modeling (SEM). The results show that organizational innovations (new or improved organizational methods) have more influence on market performance than marketing innovations. These findings confirm the importance of innovative performance as a mediator between organizational innovation and market performance.

Effects of organisational culture on organisational innovation performance in family firms

Purpose– The purpose of this paper is to examine the effects of organisational culture (OC) on organisational innovation performance (OIP) in family small and medium-sized enterprises (SMEs). It seeks to establish the type of culture that lead to high innovation performance in family firms.Design/methodology/approach– A postal survey of family SMEs across sectors in the UK is conducted. The study employs multiple regression analyses to test which family business culture has an effect on OIP. Among the family business cultures tested are: an external cultural orientation, a flexible and open OC as well as an organisational climate based on open communication and trust, the founder culture, and a long-term cultural orientation.Findings– The findings show that a paternalistic and founder culture type do not have a positive effect on family firm innovation performance, but an entrepreneurial-like culture does, i.e. one that is externally oriented, flexible, proactive (refer to an open culture) and long-term oriented. Similarly, an inward focus culture such as, the founder culture impedes innovation; while an outward focus culture such as, an external orientation culture has a positive effect on family firm innovation performance.Originality/value– This study makes valuable contributions to the understanding of theory and practices of innovation in family businesses. It provides future research directions.

THE IMPACT OF INNOVATION STRATEGY ON ORGANIZATIONAL LEARNING AND INNOVATION PERFORMANCE: DO FIRM SIZE AND OWNERSHIP TYPE MAKE A DIFFERENCE?

Though innovation strategy and organizational learning have been credited to impact on product innovation performance, they have been rarely considered in a single model simultaneously. Thus, the main aim of the paper is to investigate the extent of impact of innovation strategy on organizational learning and product innovation performance. A structural equation modelling analysis was performed on the survey data collected from Ethiopian textile and leather product manufacturing firms. The result reveals that innovation strategy is positively related to product innovation performance. Further, firm size and ownership type moderate the effect of innovation strategy on product innovation performance.

LINKING CULTURE, ORGANIZATIONAL LEARNING ORIENTATION AND PRODUCT INNOVATION PERFORMNACE: THE CASE OF ETHIOPIAN MANUFACTURING FIRMS

Using formal survey data from textile and leather product manufacturing firms in Ethiopia, we investigate how the current national cultural setup (power distance, collectivism, masculinity and uncertainty avoidance) is affecting organizational learning, orientation and product innovation performance. Further, we assess the moderating role of sector and ownership structure on the interrelationship. The result demonstrates that the current national culture setup is negatively affecting the learning and innovation activities of the firms in the country. It also shows that while sector type is neutral, ownership type significantly affects the interrelationship among culture, learning orientation and product innovation performance.

The Impact of Organizational Learning Capability on Product Innovation Performance: Evidence from the Turkish Manufacturing Sector

This study aims to examine the effect of organizational learning capability on product innovation performance in the manufacturing sector using empirical data. A survey was conducted with 120 firms that were on the list of Top 1000 Firms of Turkey and registered with the Istanbul Chamber of Industry, to examine the relationship between the dimensions of organizational learning capability and the dimensions of product innovation performance. The findings of the study indicate a positive relationship between organizational learning capability and product innovation performance.

The Contribution of Information Engineering for Innovation Funding Source Obtainment

<p>Continued innovation in products, processes, services, technology and on the company management, is essential to maintaining and achieve more competitiveness in organizations. To execute innovation projects, many companies seek external financial resources through development agencies. Taking into consideration few theoretical approaches on this topic, the Information Engineering presents itself as an element that can contribute for this process. Therefore, this study aims to find out how the information engineering can support and improve the process of funds obtainment to innovation purposes in organizations. This is an exploratory study through a systematic literature review method, which addresses three main steps: planning, processing and divulgation. The results show that the ability to manage information has a positive and direct influence on the performance of organizational innovation. Therefore, it is possible to realize that as the more information is structured and implemented more are the chances of successful in the innovation processes including funding source obtainment.</p>

Knowledge Searching, Integrating and Performing: Always a Tuned Trio for Innovation?

External search strategies remain ineffective without the ability of the firm to communicate and share internally what has been absorbed from the environment. However, most of the literature remains silent on the advantages (and disadvantages) firms may get when they combine internal integration mechanisms and innovative management practices into their efforts to search for external knowledge inflows with the aim of product innovation. To bridge this gap, this work has investigated the external knowledge search practices firms deploy to innovate their products, exploring the relationships among the use of such practices, some internal organizational characteristics and innovation performance. In so doing, the paper raises two key findings. First, there is a complementarity between the use of search practices and practices used to facilitate horizontal cross-functional integration and to encourage, address and manage employees’ efforts in generating new solutions to technical or market issues in the front-end of innovation processes. Second, taking into consideration the complementarity between external search and such internal organization mechanisms allows unveiling a quadratic effect stemming from the use of search practices on innovation performance. This “complementarity lens” also allows us to explore different configurations for managing the front-end of innovation processes and their related outcome on the innovation process. In this regard, we found evidence of some “indifference zones”, where the effectiveness of the external search processes firms activate does not depend on the extent of the internal mechanisms firms use to absorb and articulate external knowledge.

The Effect of Market Orientation toward Organizational Learning, Innovation, Competitive Advantage, and Corporate Performance

The Effect of Market Orientation toward Organizational Learning, Innovation, Competitive Advantage, and Corporate Performance Mohammad Zainul, Endang Siti Astuti, Zainul Arifin, Hamidah Nayati Utami Abstract This study aims to examine the effect of market orientation toward organizational learning, innovation, competitive advantage, and corporate performance in South Kalimantan. The study design is classified as quantitative research design to examine the relationship between variables. The results show that market orientation has direct significant effect on organizational learning, innovation, and corporate performance, and market orientation has non-significant yet direct effect on competitive advantage. Limitation of this study lies in the reluctance of the owners of SME Sasirangan to explain the company’s financial statements that financial data can only be obtained through direct answers on the questionnaires provided. The other limitation is that most SME owners in Sasirangan education level is medium, and old business tends to be dominated by a relatively new owner resulted in a bias in providing answers or statements, so the approach in this study is less comprehensive. Full Text: PDF DOI: 10.15640/jasps.v4n1a1

Effects of employee retention practices on perceived firm and innovation performance

The current study purports to establish the linkage between various retention practices and perceived firm performance and innovation performance. Using multiple regression analysis on a sample of 563 respondents from 204 organisations operating in India, the study has highlighted that employee retention practices in the form of 'development and empowerment' and 'supportive organisational culture' are positively related to perceived firm performance. Findings have also highlighted the positive relationship between 'development and empowerment' and innovation performance. However, no such relationship has been found between supportive organisational culture and innovation performance. Implications for HR practitioners and further researches are discussed.

Towards an Innovation Culture: Enhancing Innovative Performance of Malaysian SMEs

The ability to have high level of innovative performance is essential in competitive global market, particularly for small and medium-sizes enterprises (SMEs). SME is the cutting edge of economic policy debate which innovation can be one of the engines of the growth. An examination of the relationship among organizational learning, innovation culture, and innovative performance leads to a conceptual framework that can help SMEs structure their business strategies and practices to keep them aligned with dynamic market. The framework may guide SMEs sector how to adopt innovation activities in their practices to gain a desirable performance in the competitive environment. A pilot study was conducted with a sample of five SME entrepreneurs from Malaysia participated in this study. A series of interviews were conducted among these entrepreneurs to probe into their outlook on innovation culture. The results showed that SME entrepreneurs highlighted the importance innovation culture via organisational learning in their business activities. Although some entrepreneurs perceived innovation culture is difficult to nurture, it serves as a key trend shaping their innovative performance in term of generating new ideas, knowledge and skills. In sum, this study generates agenda for researchers to reach more conclusive evidence about the practice of innovation culture and innovative performance among SMEs in Malaysia. DOI: 10.5901/ajis.2015.v4n2p85

Determinants of innovation Performance: A Resource-based Study

This study aims to investigate the determinants of innovation performance in firms. Hence, the relationship between several constructs that are innovation strategy, formal structure, customer and supplier relationships, innovation culture, and technological capabilities and innovation performance were tested. A survey that was conducted on a total of 194 firms revealed that innovation strategy and technological capabilities contributed more greatly to innovation performance. However, in contrast to the proposition of innovation literature that suggests a positive and significant relationship between formal organizational structure and innovation performance, a significant and negative relationship was found. The implication is that firms are likely to improve their innovation performance as they increasingly reconfigure their resource-base with regard to strategy development and technological investments.

Organizational Ambidexterity, Exploration, Exploitation and Firms Innovation Performance

Abstract Background and Purpose: The construct of organizational ambidexterity (OA) has attracted the growing attention in management research. Previous empirical research has investigated the effect of organisational ambidexterity on performance from various perspectives. This study aims to resolve the contradictory previous research findings on the relationship between organisational ambidexterity and innovation performance. We unpack this construct with combined dimension of ambidexterity, which relates to a combination of high levels of both exploration and exploitation (introduction of products or services that were new to the market and new to the firm). Methodology: We frame our ambidexterity hypothesis in terms of firm’s innovation orientation. The hypothesis is tested by using Community Innovation Survey (CIS) 2006 micro data at the organizational level in twelve countries. To operationalize an ambidexterity and firms innovation outcome, we used self-reported measures of innovativeness. Results: To test our hypothesis, we developed a set of models and tested them with multiple hierarchical linear regression analyses. The results indicate that exploration and exploitation are positively related to firm’s innovation performances which supports our assumption that both are complementary. Furthermore, we find that above and over their independent effects, through combining them into a single construct of organizational ambidexterity, this variable remains negatively and significantly related to innovation performance. Conclusion: These results provides the managers with an idea of when managing trade-offs between exploration and exploitation would be more favorable versus detrimental. For firms with lower organizational ambidexterity, the relationship between exploration-exploitation and the firm’s innovation performance is a more positive one.

Development of Strategy Model for Organizational Innovation through Information Systems in Higher Education in Indonesia

The promotion of innovation by means of information systems based on business process reengineering (BPR) and enterprise resource planning (ERP) has become a major trend in recent decades in organizations aiming to achieve performance improvements. To facilitate the formulation of a strategy for higher education innovation driven by strategic management, research needs to be done on organizational innovation models, information systems, and strategic innovation measures. However, no studies have focused on these areas up to now. This research used expert judgment and structural equation modeling (SEM) to obtain the variables of the designated model. The factor that most affects organizational innovation performance is organizational change, which showed values of 0.619, 0.679, and 0.679 for Jakarta, Bandung, and Bogor, respectively. Specifically, coordination improvement was the most affected aspect of organizational innovation performance. The current research shows that in higher education, the most significant factor in improving organizational innovation performance is organizational change, and in Bandung, this change relied more on ERP implementation than was the case in Jakarta and Bogor.