Organizational Innovation Capability Research Articles

The Effect of Organizational Ambidexterity, Innovation Capability and Leadership Competencies On Business Peformance Mediated Competitive Advantage In Software House Industry Employees In Indonesia

The purpose of this study is to find out the effect of organizational ambidexterity, innovation capability and leadership competencies on business peformance mediated competitive advantage. In order to maintain business continuity, the software house must be able to improve its business performance. While previous research identified factors that impact business performance in various sectors, this study focuses on how internal organizational factors are in the software house. This study uses a quantitative approach, where the variables to be observed are quantified through an operational definition process. Data of 540 respondents was collected from 18 large-scale software in Indonesia. There are 10 hypotheses developed and tested using structural equation modeling. The results showed that organizational ambidexterity, innovation capability and leadership competencies had a significant effect on business performance and competitive advantage showed a positive and significant mediation influence in the model. The results also provide specific measurement of competitive advantage in the software house industry, managerial implications and suggestions for further research.

The impact of big data analytics on innovation capability and sustainability performance of hotels: evidence from an emerging economy

PurposeThis study aimed to examine the role of big data analytics capabilities (BDAC) in fostering organizational innovation capabilities and, consequently, in achieving economic, social and environmental sustainability.Design/methodology/approachThrough the lens of dynamic capability theory, this study surveyed 115 hotels using purposive sampling to gain in-depth insights regarding the factors affecting organizational sustainability in the hospitality industry. The data analysis was conducted using partial least squares-structural equation modeling (PLS-SEM).FindingsThe findings reported a substantial impact of seven core dimensions (i.e. technology, data, basic resources, technological skills, managerial skills, organizational learning and data-driven culture) in building BDAC among hotels. Moreover, BDAC was also revealed to significantly influence innovation capabilities, positively impacting all three sorts of sustainability performance. Innovation capability also mediated the relationship between BDAC and all sustainability factors.Practical implicationsThe findings will assist policymakers and practitioners in developing effective initiatives to enhance the adoption and implementation of data science and technologies, substantially contributing to the “National IR 4.0 Policy” and “Malaysia Digital Economy Blueprint” and achieving sustainable development goals (SDGs).Originality/valueThe originality of this study is established by investigating the interplay between BDAC, innovation capability and sustainability performance, particularly in the context of the hotel industry, whereas the existing studies focus on exploring the advantages of BDA.

How knowledge-based HRM practices and market turbulence foster organizational innovation capability: a two-path mediating role of knowledge sharing

PurposeThe purpose of this paper is to investigate the mediating roles of tacit and explicit knowledge sharing (KS) in linking the relationship between knowledge-based HRM practices and innovation competence of firms. This study also explores the potential moderating role of market turbulence in fostering the influence of KS behaviors on two forms of innovation competence namely radical innovation and incremental innovation.Design/methodology/approachThe paper applied the quantitative approach and structural equation modeling to examine the correlation among the latent constructs based on the survey data collected from 293 participants in 115 firms.FindingsThe empirical findings of this study support the mediating role of KS behaviors in the relationship between knowledge-based HRM practices and aspects of innovation competence. It highlights the important role of market turbulence in stimulating the influence of KS behaviors on innovation capabilities.Research limitations/implicationsFuture research should investigate the impact of knowledge-based HRM practices on innovation capability via the mediating effects of knowledge management processes to bring better understanding of the importance of knowledge resources in organizations.Originality/valueThe paper significantly contributes to increasing knowledge and insights into the antecedent role of knowledge-based HRM practices, the mediating role of KS behaviors as well as the moderating role of market turbulence in fostering radical and incremental innovation, thereby advancing the body of comprehension of knowledge-based resources and innovation theory.

Learning design thinking well: organizing (introductory) workshops for optimal participant experience

A better understanding of the implementation of design thinking (DT) as a means to increase the assimilation of its practices is an important concern for R&D and innovation managers because more frequent use of DT practices raises organizational innovative capabilities. Introducing DT practices in workshops is a common, but also challenging approach to learning DT. Participants often have little to no prior encounters with the tools, techniques and principles used to practice DT and often mistrust or misinterpret the DT concept after a bad experience during the first exposure. For that reason, a suboptimal experience in introductory workshops can prevent or reduce the assimilation of DT practices. This study investigates how participant experience during first exposure as a vital precursor to the assimilation of DT practices can be improved via the organization of introductory workshops. We examine flow as the core experience measure in a quantitative‐inductive, quasi‐experimental study of two 3‐day DT workshops and compare periods with step‐by‐step acquisition of DT practices under guidance, periods of flexible, independent application of DT practices and periods of recovery. Our research employs a segmented time series analysis on more than 1100 real‐time observations collected with the experience sampling method (ESM). This study contributes to the scarce empirical research on improving the implementation of DT practices by indicating that a positive initial experience depends on workshop length, the logic of guided periods, the combination of guided and unguided periods, timing and type of recovery, as well as on team formation. Our results lead to five organizing principles, which can be used as testable propositions for future research, as well as in the planning and execution of (introductory) DT workshops.

Exploring the Nexus of Corporate Social Responsibility, Innovation Capability, and Organizational Performance: Evidence from Rural Commercial Banks in China

This study investigates the impact of corporate social responsibility (CSR) on innovation capability and organizational performance in China's rural commercial banks. Utilizing a robust evaluation index system, the research quantitatively assesses CSR and its dimensions: economic, legal, moral, and charitable responsibilities. Findings indicate that CSR positively influences organizational performance and innovation capability. Moreover, innovation capability significantly enhances organizational performance and partially mediates the relationship between CSR and organizational performance. The research also highlights the moderating role of an organizational innovation atmosphere, where colleague support, supervisor support, and organizational support strengthen the relationship between innovation capability and organizational performance. These insights underscore the critical role of CSR in driving innovation and organizational success in the rural banking sector. Further research is recommended to explore additional mediating mechanisms and broaden the sample scope for more comprehensive results.

Determinant of Organizational Innovation: Literature Review

Organizational innovation is an important factor for companies to achieve more competitive performance. Understanding how innovation capabilities emerge, develop, and apply can make important managerial scientific contributions. This study investigates the results of the main study on the determinants of organizational innovation capability, suggests some theoretical propositions for further studies based on the literature review. This study aims to identify the determinants of organizational innovation capability and the context in which the study is conducted. We identified and analyzed 43 articles through content analysis via Google Scholar. This study presents several results of studies on innovation capability in organizations, which are divided into determinants, internal, external aspects, and a collection of propositions to guide a research project in depth in questions that will be tested in further research. This study also makes a practical contribution, as it shows in which context each study of the identified determinants of innovation capability is applied.

Pengembangan Keunggulan Bersaing UMKM Sektor Fashion di Kota Denpasar Berbasis Digitalisasi dan Kapabilitas Inovasi: Peran Mediasi Organizational Agility

MSMEs in the local fashion sector must be able to have a competitive advantage compared to competitors. The maintenance of a competitive edge is important for micro, small, and medium enterprises (MSMEs) operating within the fashion sector, as it enables them to surpass their competitors through the production of higher or more cost-effective products and services. This, in turn, leads to heightened sales performance. The integration of innovation, digitization, and organizational agility capabilities is crucial for the development of this model in order to attain a competitive edge. Historically, the integration of digitalization, innovation capabilities, and organizational agility within the competitive advantage framework for MSMEs was infrequently implemented. The purpose of this study is to test and explain the development of competitive advantage for MSMEs in the fashion sector in Denpasar City based on digitalization and innovation capabilities mediated by organizational agility. Based on the results of the study, it was found that innovation and digitalization capabilities have a positive and significant effect on organizational agility and competitive advantage. The implications of this research are that in order to have a competitive advantage, MSMEs in the fashion sector in Denpasar City must have good organizational agility, innovation capability, and digitalization.

Investigation of the Effect of Organizational Ambidexterity and Innovation Capability on Supply Chain Performance: An Empirical Study of Indonesian MSMEs

Objective: There is no research on organizational ambidexterity and innovation capability on supply chain performance in Indonesia. The purpose of this research is to analyze the relationship between Organizational Ambidexterity on supply chain performance, Organizational Ambidexterity on innovation capability, Innovation capability on supply chain performance in SMEs in Indonesia. Method: This research method is quantitative causality, data analysis uses structural equation modeling (SEM) partial least squares (PLS) with the data processing tool SmartPLS 3.0. The respondents of this research were 350 SMEs owners in Indonesia who were determined by simple random sampling method. The research data was obtained by distributing online questionnaires through social media. The questionnaire was designed using questions with a Likert scale of 1 to 7. The stages of data analysis were the outer model test, namely convergent validity, discriminant validity and composite reliability and the inner model test, namely the determination test and hypothesis testing or significance test. The independent variable in this study is organizational ambidexterity, the mediating variable is innovation capability and the dependent variable is supply chain performance. Result: The results of the data analysis show that organizational ambidexterity has a positive and significant effect on supply chain performance, organizational ambidexterity has a positive and significant effect on innovation capability, innovation capability has a positive and significant effect on supply chain performance. Conclusion: This research only focuses on MSME businesses. The results of this study can complement existing theories. The results of this study can be used as reference material for MSME business owners. Then the results of this research can also be used as a reference for MSMEs in improving marketing performance by increasing product innovation and market orientation directly or through organizational ambidexterity. Based on this, there is an influence of Organizational Ambidexterity and Innovation Capability on SMEs Performance. So it is necessary to analyze whether or not there is an influence exerted by Organizational Ambidexterity Innovation Capability and on SMEs Performance. This research is expected to provide theoretical benefits, namely increasing the contribution of knowledge, especially regarding Organizational Ambidexterity and innovation capability to MSME performance, while practical benefits can be used as input for SMEs in carrying out Organizational Ambidexterity and Innovation Capability in order to improve SMEs performance.

Investigating the nexus between authentic leadership, employees’ green creativity, and psychological environment: evidence from emerging economy

Employees’ green creativity is the basic input to organizational innovation capabilities, the prime focus of practitioners to stay competitive, and a mean to solve the society’s sustainable issues in dynamic markets. Hence, this study aims to evaluate the nexus between authentic leadership, psychological environment, and employees’ green creativity based on the theoretical lenses of social identity and social exchange theories that have rare application in these domains. Data were collected through questionnaires from 367 operational staff members of different technical training centers of renewable energy projects in Rawalpindi and Islamabad regions at Pakistan. The findings reveal that authentic leadership is a significant precursor of employee’s green creativity and self-efficacy. In addition, self-efficacy mediates while the environment of trust and safety has non-mediating role in the relationship between authentic leadership and employee’s green creativity. This work brings attention to the initiatives in technical training centers for renewable energy projects and contributes to the field of employees’ green creativity in the context of authentic leadership and psychological environment based on the philosophy of social identity and social exchange theories.

The consequences of innovation failure: An innovation capabilities and dynamic capabilities perspective

Organizations engage with innovation by leveraging their innovation capabilities and dynamic capabilities. In this study, we examined how organizational innovation capabilities and dynamic capabilities can influence organizational performance, taking into account cases when innovation projects do not yield beneficial outcomes to organizations. Building on the dynamic capability view and the notion of innovation capability, we developed a conceptual model and subsequently validated it by conducting a survey on a sample of organizations across multiple manufacturing and service industries that are based in India. By applying PLS-SEM, we found that different contextual factors including commercial viability and technological feasibility play a critical role towards innovation failure and success. In its turn, innovation failure negatively influences organizational performance.

Green supply chain technology and organization performance: Moderating role of environmental dynamism and product-service innovation capability

The green supply chain management (GSCM) system is considered as an environmentally friendly approach which considers different environmental issues in supply chain flow. There are different underlying technologies used in implementing GSCM; yet, we still have limited knowledge concerning how green SCM technology can enhance organizational performance. Further, the conditions that indirectly affect organizational performance within this context remain underexplored. Drawing on this gap of knowledge, the purpose of this research work is to investigate how adoption of GSCM can improve organizational performance. We also argue that the dynamism of the environment and the product-service innovation capability of organizations will have conditioning effects on this relationship. Grounded on the dynamic capability view as a theoretical lens, a conceptual model has been developed which is explored through feedback from 307 organizations involved in green supply chain management activities. We find that environmental dynamism and product-service innovation capability have moderating impacts on adopting green supply chain technology and organizational performance. The outcomes also indicate that green supply chain technology can considerably improve business value under certain contextual factors.

Unraveling the Impact of Dual Network Embeddedness on Subsidiary Performance in China: The Mediating Role of Organizational Learning and Innovation Capability

Unraveling the Impact of Dual Network Embeddedness on Subsidiary Performance in China: The Mediating Role of Organizational Learning and Innovation Capability

Service innovation capability: a systematic literature review and research agenda

ABSTRACT Though singular or discrete service innovations are accepted as essential to the performance and survival of organizations, practitioners and researchers are increasingly directing their attention towards the firm-level capability that underlies their repeated and continuous introduction, commonly referred to as service innovation capability (SIC). However, compared to the rich body of literature on the innovation capability of manufacturers and industrial organizations, SIC is poorly understood by managers and service researchers and there is no consensus on its definition, antecedents, outcomes, or dimensions. This study remedies this protracted gap through a comprehensive review of 45 academic journals reporting on firm-level studies of SIC using the SPAR-4-SLR protocol. These were found in the Web of Science and Scopus databases and analyzed according to the TCCM framework. Our research provides new theoretical and managerial insights, advancing a consolidated original definition of SIC, reconciles and organizes factors in SIC’s nomological network advanced by disparate studies and synthesizes links between them in an integrating framework, and makes 13 propositions for advancing this topic based on the research gaps identified.

Structural Empowerment, Human Capital, and Organizational Innovation Capability

Structural Empowerment, Human Capital, and Organizational Innovation Capability

Influence of managerial practices, productivity, and change management process on organizational innovation capability of small and medium businesses

PurposeThis paper aims to examine the influence of managerial practices, productivity and change management process (CMP) on organizational innovation capability of small and medium businesses. This study also investigates the moderating role of technological turbulence (TT) on organization capability.Design/methodology/approachA theoretical model was developed based on existing literature and theories. It was then validated using the partial least squares structural equation modeling technique to analyze 327 responses from small and medium businesses. Moderator analysis was conducted to investigate how TT moderates organizational innovation capability.FindingsThis study found that management practices have a significant and positive influence on the innovation capability of small and medium business. The study also found that both CMP and modern technology adoption are crucial toward improving their innovation capability. Finally, the study also demonstrated that TT has a significant impact on organizational innovation capability.Research limitations/implicationsThis research study has proposed an effective theoretical model of the relationship between managerial practices and organizational innovation capability. The proposed model is effective in demonstrating to managers and leaders of small and medium businesses the importance of managerial practices, CMP and the adoption of modern technologies on organization innovation capability, which can help to develop new products.Originality/valueThis research is unique, as the proposed model is the first of its kind to establish the relationship between managerial practices of small and medium businesses with organizational innovation capability. No other extensive study has proposed such a model especially for these businesses. Also, the explanative power of the proposed model is 72%, which shows the effectiveness of the proposed model.

The Dynamics of Innovation on Firm Performance: Empirical Analysis of Pharmaceutical Manufacturing Firms in Sindh Pakistan

Innovation is defined as the process of producing developing new products and services for significant positive change, innovation is a crucial driver of economic growth and societal progress. Aim of this paper is to analyze the direct, indirect, and total effects of exogenous variables product innovation, process innovation, and organizational innovation, with the mediating effects of organizational innovation capability and dynamic capability on endogenous variable firm performance. In the context of Resource Based view theory organizational achievement is defined with reference to utilization resources, proficiencies to achieve competitive advantage, sustainable and viable. In the framework of this concepts, innovation which leads to shape resources capabilities for better performance in pharmaceutical manufacturing firms of Sindh. Path analysis approach is incorporated for analyzing multivariate causal effect, a five-point Likert scale, and a pretested, closed ended questionnaire was used for feedback of responses. Cluster sampling technique is incorporated for compilation of data, by using SPSS 25 version software for demographic statistics, and PLS 3.5.V for inferential statistics. Direct, indirect, and total effects is significantly positive, except PI > to DC > is insignificantly associated with firm performance. Partial mediation is established by the, product innovation, and organizational innovation through organization innovation capability and dynamic capability with firm performance.The limitation only cover the pharmaceutical manufacturing firms al so limitations are expelled various variables of firm performance because of limited time. Beside these limitations, this study provides direction to top management and policymakers for enhancing of performance of manufacturing firms of Sindh.

Implications of strategic orientation on firms’ performance in a lower middle-income country: Does organizational innovation capability matter?

Implications of strategic orientation on firms’ performance in a lower middle-income country: Does organizational innovation capability matter?

Influence of organizational innovation capabilities on sustainable competitive advantage among private hospitals in Kenya

The purpose of this study was to establish the influence of organizational innovation capabilities on sustainable competitive advantage among private hospitals in Kenya. Positivism research philosophy guided the study and a descriptive correlational research design was used. The study population consisted of 690 managers from the 46 level 5 private hospitals across Kenya. Stratified simple random sampling technique was used to select a sample size of 253 managers from the population. A structured questionnaire was applied to collect data. The study used structural equation modelling for analysing the data. The study findings established that organizational innovation capabilities had significant positive effect on Sustainable Competitive Advantage (SCA) among the private hospitals in Kenya (β= 0.617, CR=3.904, p < 0.05). The study has practical implications for top management in private hospitals in Kenya to continually support acquisition and development of new resources. Management should also make required investment in Research and Development (R&D) activities to provide improved services to clients, and always encourage creativity amongst the employees and other stakeholders in order to improve on their organization offerings and appeal.

Gamification as an innovation: a tool to improve organizational marketing performance and sustainability of international firms

PurposeThis study aims to investigate an under-researched area, an international marketing perspective, based on international dynamic capability, environmental sustainability and organizational marketing performance in gamification and non-gamification-based organizational culture (OC). This paper deepens the understanding of gamification-based and non-gamification-based OC influence on innovation capability and environmental and organizational marketing performance through the theory of organizational creativity and the theory of administrative behavior (AB).Design/methodology/approachThe authors collect data from firms that abide by the ISO 14091 certifications to ensure the proper quality standards. Primary data from 384 firms are used to test the hypotheses. The results would help firms invest in technological solutions by practicing creativity over time. Additionally, the study helps explore how AB is critical in steering technological creativity for making firms climate-conscious.FindingsThe study's findings identified that OC has a positive influence on technological innovation capabilities and environmental innovation capabilities. Technological innovation capabilities have a beneficial impact on environmental sustainability. Environmental sustainability appears to have a substantial correlation with technological innovation skills. Environmental innovation capabilities positively impact environmental sustainability and organizational marketing performance. A moderating effect of gamification on the international dynamic capabilities within a relationship between organizational culture and environmental innovation capabilities exists.Originality/valueThe investigation is confined to understanding how gamification-based and non-gamification-based organizational marketing culture affects innovation capability, environmental sustainability and organizational performance through the lens of theory of organizational creativity and theory of AB.

The Effect of Innovation on the Company’s Performance in Small and Medium-Sized Businesses with the Mediating Role of Lean: Agile Project Management Office (LAPMO)

Small- and medium-sized enterprises (SMEs) require less formalized project management methods than large corporations. However, project management can play a significant role in implementing innovations. Even though lean-agile project management offices (LAPMO) are becoming increasingly important for SMEs, each company’s performance varies significantly due to varying innovative capabilities and the dynamism of internal and external contexts. Based on a literature study, innovative capabilities, and LAPMO, we have developed a theoretical model with 11 assumption models. As a follow-up, we conducted empirical research, including critical variable metrics, data collection and analyses, validity tests, reliability tests, regression analysis, and structural equation modeling. The model developed in this study considers the many roles that innovation capacity and project agility play in enhancing corporate performance. LAPMO mediates the relationship between innovation and performance in small and medium-sized businesses. Organizational innovation, open innovation, and innovation capabilities affect companies’ performance. In small and medium businesses, they also affect LAPMO. For small and medium-sized businesses, LAPMO mediates the relationship between organizational innovation, open innovation, and innovation capabilities.