Organizational Innovation Capability Research Articles

Effects of organizational innovation and technological innovation capabilities on firm performance: evidence from firms in China’s Pearl River Delta

ABSTRACT This study assesses the relationship between organizational innovation (OI) and technological innovation capabilities (TICs) and analyzes their effect on firm performance. Using a sample of 265 manufacturing firms from the Pearl River Delta in China, we examined whether TICs mediated the effects of OI on firm performance. We also examined how OI moderated the relationship between TICs and firm performance. Results from structural equation modeling (SEM) analyses showed that TICs partially mediated the relationship between OI and firm performance. Similarly, OI partially moderated the relationship between TICs and firm performance. Implications of our findings for research and practice are discussed.

The Effect of Big Data Analytics Capability on Innovation Capability—The Mediation Role of Organizational Learning Capability

In order to explore the relationship between big data analytics capability, organizational learning capability and innovation capability, this study used 298 valid questionnaires of manufacturing industry to validate the proposed hypotheses through structural equation model. The study shows that the big data analytics technology, management, talent and predictive capabilities have significant impact on organizational learning capability. Organizational learning capability has a significant impact on both technological and non-technological innovation capabilities. In addition, organizational learning capability plays a significant mediation role between big data analytics technology, management, talent, predictive capabilities and technological, non-technological innovation capabilities. Moreover, organizational learning capability plays a complete mediation role between big data analytics technology capability and technological innovation capability.

Managing Organizational Open Innovation Capability in a Knowledge-Intensive Business Environment

The paper is aimed to develop a theoretical framework for investigating the main determinants of an organizational open innovation capability and provide a conceptual basis for identifying the core areas which are of importance for effectively managing the implementation of open innovation practices within business organizations. Based on a literature review of research on managerial practices for open innovation collaboration, a definition of a company’s open innovation capability is proposed which places special emphasis on the interrelationship among the strategic components of a business organization’s environment and its dynamic knowledge management capacities. As a result of the study, the integrated model of the organizational open innovation capability is presented that can be used for defining strategic priorities and managerial guidelines for achieving open innovation success. From a practical perspective, companies can apply the proposed conceptual model to review and adjust their organizational open innovation capability on a continuous basis in order to improve innovation performance in the challenging knowledge-intensive business environment.

Innovation capability in medical sciences universities: A qualitative study of Iran.

BACKGROUND:Innovation is a competitive advantage, with its preservation and continuity dependent on the organizational innovation capability. This study was conducted with the aim of determining the innovation capability dimensions and components in medical sciences universities of Iran.METHODS:The present study is a qualitative study with content analysis approach, undertaken in 2016–2017. The data processing included 10 deep interviews with the experts of the health innovation domain in top management of the three types of the medicine sciences universities of Iran with >5 years of experience. Targeted data sampling was performed using snowball method and continued until the saturation of the data. Data analysis was performed using conventional content analysis method using Maxqda 12 software.RESULTS:Data analysis resulted in the extraction of 28 categories and 8 main themes including communications and interactions, innovation climate, university setting, policy factors (policy-making, rules and regulations), organizational culture, organizational resources, management and leadership, and organizational learning in two university internal and external dimensions.CONCLUSION:To accelerate innovation in medical sciences universities, recognizing the potential of innovation capability is essential.

Linking organizational structure, culture and innovation capability: Mediating role of strategic decision-making process

Practicing strategic decision-making as a context-specific process can influence innovation capability (IC) of an organisation. This study examines the possible mediating role of strategic decision-making processes (SDMP) within the relationship between organisational structure (OS), culture (OC), and IC. The primary data was collected from the managerial and professional employees from 29 different industries. The results indicate that the selected dimensions of SDMP mediate the impact of OS and OC on IC facilitating a better understanding of the causal mechanism between them. The findings bring theoretical and practical implications for strategic decision making and innovation literature by extending the scope of research from understanding basic dimensions to designing an extended framework that connects internal resources and innovation. Accordingly, organisations need to reconsider or revise their strategies for structural and cultural changes in order to achieve an increased IC through a more effective decision-making process.

Complementarity effect of supply chain competencies on innovation capability

PurposeFrom the perspective of the economic theory of complementarity, the purpose of this paper is to examine how internal collaboration and external competencies would provoke and strengthen each other, and subsequently enhance organizational innovation capability.Design/methodology/approachThe survey data were collected from 201 manufacturing firms and checked for common method variance, validity and reliability. Structural equation modeling was then used to test the hypothetical complementarity effect.FindingsThe results suggest that internal collaboration (as a manifestation of exploitative learning) and external competencies, which include supply network flexibility and supplier operational capabilities (as manifestation of exploratory learning), do in fact compensate for each other’s deficiencies. Complementary deployment of internal collaboration and external competencies enhances each other’s contribution to innovation capability. Practically, the study indicates that organizations should consider making concerted efforts to develop internal collaboration, supply network flexibility and supplier operational capability as a bundle.Originality/valueExtensive discussions exist in the literature on exploration and exploitation being essential components of innovation and their conflicting impact on innovation efficiency and effectiveness. But how an organization should operationally develop supply chain competencies in order to maximize overall innovation capability still remains largely an unanswered question. The current study advances the research on the inter-relationships between exploration and exploitation by empirically demonstrating the complementary nature of internal collaboration and external competencies in developing sustainable innovation capabilities.

Dimensions of Social Capital and Innovation Capabilities of Firms: The Performance of Information Technology as a Mediator

This paper empirically inquire the relation of social capital dimensions (relational social capital, structural social capital, and cognitive social capital), organization innovation capabilities, and the performance of information technology (IT) as a mediator in the said relationships. A total of 263 workers of different management cadres from software SMEs (Zhongguancun Software Park, Beijing, China) were randomly selected. However, 143 respondents submitted the complete response. Thus, the response rate was 54%. For the empirical investigation, the present paper uses Partial Least Squares, Structural Equation Modeling (PLS-SEM) and Importance-Performance Matrix Analysis (IPMA) techniques to analyze the survey data. The direct and indirect relationship between dimensions of social capital and organizational innovation capabilities is significant. However, IT generates a partial mediation effect. IPMA highlights the importance of relational and structural social capital to innovation capabilities, however, IT is indicated as the key driver that trigger the effect of social capital on organization innovation capabilities. Future studies guidelines and limitations are explained at the end of this paper.

Design Thinking: Exploring the Effect of Appropriability and Capabilities on Innovation Performance in Knowledge-Intensive Business Services

Design thinking (DT) has recently gained in popularity with knowledge intensive business services (KIBS) seeking to increase innovation effectiveness. DT provides organizations with an iterative framework that supports problem-solving, using a human-centered approach to support innovation (Brown, 2009; Chasanidou, Gasparini, & Lee, 2015). This study aimed to investigate the effects of appropriability and capabilities on DT implementation and innovation performance in a KIBS. The study’s methodology is a systematic review that provides an analysis of the relevant literature evidence-based research approach. Using thematic synthesis, this study analyzed and aggregated relevant literature on organizational appropriability, innovation capabilities, and DT according to results from 49 studies. This article found the level of appropriability strategy both inhibits and facilitates the development of a collaborative partnership to support innovation. Collaboration with clients and strategic partners goes hand-in-hand with the importance of a formal appropriability mechanism (Miozzo, Desyllas, Lee, & Miles, 2016). Findings indicate that KIBS firms which measure and dynamically utilize different appropriability strategies efficiently attain improved performance than organizations that do not. Therefore, KIBS seeking to implement DT to support innovation performance need both leadership and resource support to adopt a dynamic appropriability strategy, build capabilities, encourage resources, and legitimize the viability of the DT process in the organization.

Bridging the gap between supply chain risk management and strategic technology partnering capabilities: insights from social capital theory

PurposeAs companies seek to continually innovate to remain globally competitive, they also need to be mindful of the impact of the potential associated supply chain risks. Hence, the purpose of this study is to explore the causal nexus of relationships linking supply chain risk management (SCRM) and strategic technology partnering (STP) capabilities (i.e. organizational capabilities, technological and innovative capabilities, learning and exploitation capabilities, complementary capabilities and network and partnership capabilities) as identified by Kilubi (2016).Design/methodology/approachThe authors investigate STP capabilities that may positively influence SCRM and in turn foster organizational performance. By using conceptual theory building, the authors create a conceptual framework and use it to guide future investigation through research propositions. Social capital theory serves as the theoretical background.FindingsFive STP capabilities have been identified as positive mediators for the relationship between SCRM and organizational performance, in particular flexibility and responsiveness.Originality/valueThis paper focuses on bridging the gap and identifying commonalities between two principal research disciplines, STP and SCRM, examining how these can be used to assist in the controlling and management of future risks. This study contributes to the ongoing development of SCRM and STP by integrating insights from social capital theory, supply chain management and strategic management.

Influence and Complementarity of Follow-on Managerial Innovations within a Public Organization

The objective of this research is to explore the relations between different categories of managerial innovations in public organizations. This paper aims to characterize the nature of the links between the implementation of an innovation and the subsequent adoption of a second, “follow-on” innovation. The research, which integrates the specific dimension of public managerial innovation, endeavours to enrich the research and the literature on the determinants of innovation dynamics in public organizations. Using two case studies of French local government authorities, this research highlights the direct and indirect effects and show how managerial innovations positively influence the future innovation capability of public organizations.

Designing Organizational Structure In The Age Of Digitization

The digital transformation will bring about extreme changes, as at the time when the steam engine was invented. To generate money from the emerging opportunities, companies must adapt very quickly. For this, agile forms of organization such as Holacracy are needed where the employees take over the management functions. Is the classic hierarchy still needed in companies? The following is a brief overview of traditional organizational forms. On the basis of this, the digital innovation capability of hierarchical organizations is analysed. Then it is shown how the new form of organization Holacracy works and how to move from a hierarchical organization to a holocratic one, to fulfill the need of agility. John P. Kotter replied, the hierarchy must not be replaced. He points out that dynamic network organization forms such as Holacracy are important at the beginning of the company's lifecycle. The hierarchy is better suited for stable market environments.

Improvisation for innovation: The contingent role of resource and structural factors in explaining innovation capability

This paper focuses on resource and structural factors to explore the relationship between organizational improvisation and innovation capability. Although the role of improvisation has attracted increasing academic attention in fast-changing environments, little is known about the conditions under which firms benefit from improvisation. This paper addresses this gap using an organizational learning perspective that explains the role of a firm's organizational structure and organizational resources for improvisation and innovation. A large-scale survey in China finds that firms vary in their levels of (I) centralization and formalization of decision making and (II) resource slack and investment irreversibility and that these factors moderate the relationship between improvisation and innovation capability in distinct ways. Consistent with our theorizing, improvisation enhances innovation capability when firms have a decentralized but formalized structure or pursue the dual goals of maximizing resource slack and minimizing investment irreversibility.

Customer relationship management: Innovation and performance

The aim of this study is to empirically test a framework which identifies the relationships between customer relationship management (CRM) practices, organizational performance and innovation capability of Iranian manufacturing firms.,Data for the study were collected from a sample of 211 Iranian manufacturing firms. The research model was tested using structural equation modeling.,The results reveal that CRM practices have a positive and significant, though weak, effect on organizational performance and innovation capability of Iranian manufacturing organizations. Innovation improvement caused by CRM also results in better organizational performance.,Because this study is conducted in Iranian manufacturing organizations, it implies that the generalizability of this study’s findings is limited to the manufacturing firms in Iran and cannot be applied to other markets without a further validation.,This empirical research has extended our understanding of CRM components and their impact on business performance and innovation capability of Iranian manufacturing firms which have not been addressed together in previous empirical studies in Iran. Also, the obtained findings offer the Iranian manufacturing executives and managers strategic insights in relation to CRM implementation, CRM items and, more importantly, the most influential components of CRM on the manufacturing organizations’ performance and innovation.,This paper shows the importance of CRM practices and how they directly influence organizational and innovation capabilities of the Iranian firms. This study is among the few studies which attempt to empirically investigate the relationships between these variables particularly in the context of Iran.

Developing innovation capability in a mass production organization

Mass production firms in high labor cost environments need to develop a capability of continuous innovation to survive in the global marketplace. This need is complicated by the “productivity dilemma”; that a focus on efficiency inhibits innovative activity. Operations management literature suggests that resolution of this dilemma is achieved through “organizational ambidexterity,” balancing improvement (exploitation) and innovation (exploration). Building upon current theory, this article uses case study research to illustrate how improvement and innovation capabilities evolved, and how ambidexterity was achieved in an auto parts manufacturing organization, as it implemented novel assembly processes over a 4-year period. Results show how capabilities improve by altering underlying routines as a result of experiential learning, and that ambidexterity is achieved as a temporal sequencing among different levels within the organization. Developing innovation capability in a mass production organization requires organizational alignment between the Management, Engineering, and Production groups, as each has a specific role in the process.

Relationships among organizational culture, knowledge sharing, and innovation capability: a case of the automobile industry in Taiwan

The advancement of automobiles (thereinafter auto) during these decades has not only made great contributions to the economic development, but also significantly changed people’s life. Apparently, the auto industry has entered an innovation race. Among extant literature, organizational culture (OC) has positive impact on innovation capability (INC), whereas little research concerns about how OC influences organization’s capabilities through knowledge management (KM) activities, especially for knowledge sharing (KS) taken in a firm. This study aims to explore the effect of OC and KS on INC in the knowledge-intensive auto industry. Questionnaires are given to 6 whole-car manufacturers, 49 parts suppliers, and 7 car dealers in Taiwan. 449 valid questionnaires are returned, and an empirical analysis through structural equation modeling (SEM) is performed. The result shows that KS is the mediating variable of OC and INC, and OC has a significant positive effect on KS.

Firm Export Market Performance: The Case in Uganda

Firm export performance is declining across industries and economies around the world. Despite numerous researches to explain the decline, there are controversies and lack of consensus as to what determines firm export performance. This paper was developed to identify and explain determinants of, and propose a firm export performance model from a developing economy perspective. A quantitative cross-sectional survey of 250 firm export executives from selected firms and industries was conducted. Psychometric analyses of descriptive statistics, reliability, exploratory, confirmatory, and validities were performed. Structural equation modelling was used to examine the hypothesised relationships and validate the proposed firm export performance model. The results identified export market orientation, market environment, organizational learning, market information system, export market strategy and organizational innovation capability as determinants of firm export performance. This implies that an export development strategy needs implementation and practice of these predictors. This would consequently enable the firm to gain competitiveness, achieve its strategic growth objectives and transform the national economy into a more desirable one.

Measuring organizational capabilities for technological innovation through a fuzzy inference system

As a result of the strategic and operational management of research in higher education institutions (HEIs), the organizational Technological Innovation Capabilities (TICs) contribute to reaching strategic objectives of transfer of results in research and development (R & D) to society and industry, for this reason, it is necessary to take measurements to identify the index creation and consolidation of organizational capabilities. Despite the importance, theoretically given to the TICs, a great gap is found in the scientific literature regarding the measurements of these capabilities in the higher education sector.In this paper, the results of the implementation of a fuzzy inference diagnostic system for organizational capabilities for innovation in a university institution (UI) in the city of Medellin, Colombia are presented. The system consists of the application of a structured diagnostic instrument - type interviewed-to the management and teaching staff of the institution. The data is adapted to the requirements of a fuzzy inference system, in which previously defined variables are related, their values are standardized and entered in an inference system. The values were implemented and processed in the Fuzzy Logic Toolbox - MATLAB. As inference system output, concrete numerical values, and surfaces of fuzzy inference were obtained to formulate organizational strategies aimed at improving the technological innovation capabilities of the institution.

The mediating effect of knowledge-sharing behaviour on total quality management and organisational innovation capability

Ever since innovation was recognised as a key contributor to securing competitive advantage in the higher education arena, many factors have been introduced to enhance innovation capability. The purpose of this study is to examine the relationship between total quality management (TQM) and organisational innovation capability (OIC), as well as investigate the role of knowledge-sharing behaviour (KSB) in mediating this relationship. A survey was conducted on 367 academic staff and support staff from private universities in Thailand. The analytical results suggest that TQM is positively linked to OIC and KSB, in which the KSB plays a partial mediating role between TQM and OIC. The findings should benefit university administrators to improve innovation capability in addition to implementing TQM to develop appropriate strategies for maintaining a knowledge-sharing environment, leading to the kind of tacit knowledge that can successfully raise the innovation capability of private universities.

IMPACT OF KNOWLEDGE SHARING AND ORGANIZATION INNOVATIVE CAPABILITIES ON FIRM PERFORMANCE - MEDIATING IMPACT OF CORPORATE ENTREPRENEURSHIP

The main purpose of this study is to investigate the mediating impact of corporate entrepreneurship on the relationship between knowledge sharing, organizational innovational capabilities and firm performance. Rapid change in technology and the world being a global village has forced organizations to change their way of doing business. Organizations require developing new products, improving production process and capturing new markets to survive against local and international competition. Pakistani organizations are losing their market share in local and internationals markets due to their inability to meet continuously increasing customer demands. This study will helps these organizations to understand the importance of knowledge sharing, innovation and corporate entrepreneurship in their performance. The data were collected from service sector industries by using a close ended questionnaire. Results show that knowledge sharing and organizational innovative capabilities have a positive impact on firm performance while corporate entrepreneurship more strengthens this impact. It is recommended for organizations to create the knowledge sharing environment in the organization through awareness sessions and to teach employees how knowledge sharing can collectively benefit them and the organization. Organizational culture should welcome new ideas and opportunities and strive to achieve continuous excellence.

Effect of IT Application on Project Performance Focusing on the Mediating Role of Organizational Innovation, Knowledge Management and Organizational Capabilities

Effect of IT Application on Project Performance Focusing on the Mediating Role of Organizational Innovation, Knowledge Management and Organizational Capabilities