Process Innovation Capabilities Research Articles

Innovation capabilities and international competitiveness of agro-processing firms in Uganda

Purpose This paper aims to contribute to the understanding of the relationship between the different innovation capabilities and the international competitiveness of agro-processing firms in Uganda. Design/methodology/approach This study adopted a cross-sectional research design. Data were collected through a questionnaire survey of 125 firms exporting agro-processed products that are members of the Uganda Export Promotions Board (UEPB). Data was analyzed using the Statistical Package for Social Scientists (SPSS). Findings The study established that product innovation capabilities and organizational innovation capabilities are positively related to the international competitiveness of agro-processing firms in Uganda while process innovation capabilities and marketing innovation capabilities are not. Research limitations/implications A structured questionnaire was used to solicit responses and no follow-up interviews were conducted to inform the reasons behind the respondents’ responses. Nevertheless, the study reveals that agro-processing firms in Uganda should concentrate on building product and organizational innovation capabilities if they are to compete effectively in international markets. Originality/value To the authors’ knowledge, this is the first study to investigate the relationship between the four forms of innovation capabilities (product, process, marketing and organizational) and international competitiveness particularly among agro-processing firms from an African country.

Influences of collaborative culture and knowledge management on product and process innovation: the moderating role of information technology utilization

PurposeThe purpose of this study is to investigate the influence of collaborative culture on product and process innovation via mediating role of knowledge management and moderating role of information technology utilization.Design/methodology/approachThis paper used structural equation modeling to examine the level of how collaborative culture and knowledge management practices (KMC) affect two types of innovation capabilities, namely, product innovation and process innovation, using data collected from 313 participants in 128 manufacturing and service firms.FindingsThe research findings highlight positive mediating role of KMC between collaborative culture and two specific forms of innovation. In addition, the paper first confirms the moderating role of information technology utilization in the relationships between KMC and process innovation capability. The results underline the necessity of building a collaborative culture to enhance KMC for promoting innovation capabilities in an organization.Research limitations/implicationsFuture research should explore the influence of potential benefits and values of collaborative culture on other strategic or behavioral factor to produce better innovation competence for firms.Practical implicationsThis paper offers CEOs/leaders a deeper understanding of the effects of key antecedents, mechanisms and processes to promote product and process innovation in their firms.Originality/valueThis paper is unique in the attempts to provide a prospective solution for firms to pursue and improve innovation by its meaningful insights on the mediating role of KMC and moderating effect of information technology utilization in the relationship between collaborative culture and specific dimensions of innovation capability.

DIGITAL CAPABILITIES, FIRM PERFORMANCE, AND INNOVATION CAPABILITIES: A COMBINED APPROACH OF PLS-SEM AND ANN

This study, rooted in the dynamic capabilities view, examines the influence of digital capabilities on the performance and innovation capabilities of manufacturing small and medium-sized enterprises (SMEs) in an emerging market. Surveying 297 manufacturing SMEs in Vietnam, the research employed partial least squares-structural equation modelling (PLS-SEM) and artificial neural network (ANN) to test hypotheses. The results show a positive effect of digital capabilities on process and product innovation capabilities. Despite an insignificant direct impact of digital capabilities on firm performance, technological uncertainty moderates this relationship positively. Notably, process innovation capability has no direct impact on firm performance, while product innovation capability’s impact on it is negatively significant. The study explored the roles of digital culture and digital leadership, offering novel contributions to understanding a firm’s digital and innovation capabilities. It provides practical implications for managers aiming to enhance firm performance by leveraging digital capabilities for innovation.

Opportunity or destiny: how do market knowledge resources and absorptive capacities lead to competitive advantage for travel agencies?

ABSTRACT The study examines how market knowledge resources lead to competitive advantage for collaborative travel agencies (CTAs) via process innovation capabilities and value co-creation competence of CTAs. Data collection comes from key managers of travel agencies, and the partial least squares (PLS) were used for model analysis. The findings point out that market knowledge resources and absorptive capacities as two key factors that lead to the competitive advantage of CTAs; CTAs and their partners co-create value that remains relevant and in line with changing customer expectations; agile and flexible processes are essential for adapting to rapidly evolving tourism market conditions.

The Effect of Information Technology on Innovative Performance with Mediation Role of Process Innovation Capability: Evidence from Egyptian SMEs

The Effect of Information Technology on Innovative Performance with Mediation Role of Process Innovation Capability: Evidence from Egyptian SMEs

Effect of Innovation Resources on Sustainable Competitive Advantage: The Moderating Role of Responsible Innovation from Evidence of Hospitality Industry in Vietnam

This paper presents a study on the role of innovation resources, innovation capabilities, and especially the mediating role of responsible innovation in increasing sustainable competitive advantage (SCA) of enterprises in the competitive environment. This study is quantitative research that is applied in 1-5-star hotels in Hanoi, Vietnam. Research results indicate that innovation resources have positive effects on product and process innovation capabilities, responsible innovation, and SCA; Product and process innovation capabilities have positive effects on responsible innovation; Responsible innovation has a positive effect on SCA and plays the mediating role that strengthens the positive effect of innovation resources and innovation capabilities on SCA. These results make a theoretical contribution in providing empirical evidence demonstrating the important role of innovation resources, innovation capabilities, and especially responsible innovation. Therefore, useful information is delivered to managers to create innovation resources, strengthen innovation capabilities, and responsible innovation to increase enterprises’ SCA.

Big data management algorithms in artificial Internet of Things-based fintech

Research background: Fintech companies should optimize banking sector performance in assisting enterprise financing as a result of firm digitalization. Artificial IoT-based fintech-based digital transformation can relevantly reverse credit resource misdistribution brought about by corrupt relationship chains. Purpose of the article: We aim to show that fintech can decrease transaction expenses and consolidates firm stock liquidity, enabling excess leverage decrease and cutting down information asymmetry and transaction expenses across capital markets. AI- and IoT-based fintechs enable immersive and collaborative financial transactions, purchases, and investments in relation to payment tokens and metaverse wallets, managing financial data, infrastructure, and value exchange across shared interactive virtual 3D and simulated digital environments. Methods: AMSTAR is a comprehensive critical measurement tool harnessed in systematic review methodological quality evaluation, DistillerSR is harnessed in producing accurate and transparent evidence-based research through literature review stage automation, MMAT appraises and describes study checklist across systematic mixed studies reviews in terms of content validity and methodological quality predictors, Rayyan is a responsive and intuitive knowledge synthesis tool and cloud-based architecture for article inclusion and exclusion suggestions, and ROBIS appraises systematic review bias risk in relation to relevance and concerns. As a reporting quality assessment tool, the PRISMA checklist and flow diagram, generated by a Shiny App, was used. As bibliometric visualization and construction tools for large datasets and networks, Dimensions and VOSviewer were leveraged. Search terms were “fintech” + “artificial intelligence”, “big data management algorithms”, and “Internet of Things”, search period was June 2023, published research inspected was 2023, and selected sources were 35 out of 188. Findings & value added: The growing volume of financial products and optimized operational performance of financial industries generated by fintech can provide firms with multifarious financing options quickly. Big data-driven fintech innovations are pivotal in banking and capital markets in relation to financial institution operational efficiency. Through data-driven technological and process innovation capabilities, AI system-based businesses can further automated services.

Process Innovation Capability and Performance of Indigenous Oil and Gas Companies in South-South, Nigeria

This study examined the relationship between process innovation capability and performance of indigenous oil and gas companies in South-South, Nigeria. The study adopted the cross-sectional research survey design. Primary data was generated through structured questionnaire. The population of this study was thirty-three (33) registered and functional indigenous oil and gas companies in South-South, Nigeria. In this study the researcher adopted a census sampling technique to study all the 33 indigenous oil and gas companies in Rivers State because the population was small. However, preliminary field survey revealed that there are at least five (5) employees in each of the indigenous oil and gas companies in Rivers State. The reliability of the instrument was achieved by the use of the Cronbach Alpha coefficient with all the items scoring above 0.70. The hypotheses were tested using the Spearman’s Rank Order Correlation Coefficient. The tests were carried out at a 0.05 significance level. Findings revealed that there is a significant relationship between process innovation capability and performance of indigenous oil and gas companies in South-South, Nigeria. Therefore, the study concludes that an improvement in process innovation will lead to improved performance of indigenous oil and gas companies in the South-South, Nigeria. Similarly, market innovation was a key driver for the performance indigenous oil and gas companies in the South-South, Nigeria. Hence, the study recommends that the management of indigenous oil and gas companies should stipulate policies that provide and enhance platforms for process innovation so as to improve their performance. There is need also to invest in process innovation strategies that would optimize the HR practices around innovation, resource mobilization, revenue allocation and monitoring and evaluation to ensure efficiency in the innovation practices. Keywords: Process Innovation Capability, Performance, Sales Volume, Profitability, Growth

THE MODERATING EFFECT OF ENVIRONMENTAL DYNAMISM IN THE RELATIONSHIP BETWEEN INNOVATION CAPABILITY AND PERFORMANCE OF MANUFACTURING FIRMS IN NAIROBI CITY COUNTY, KENYA

The manufacturing sector is well known for its significance in upholding the economic prosperity of many nations. However, the manufacturing sector’s contribution to the gross domestic product has been consistently falling across the last few years, giving rise to fears of a premature de-industrialization phenomenon in Kenya. A growing research literature posits that the innovation capability can be considered a theoretical answer to the question of how organizations in various industries are able to achieve and sustain superior performance in turbulent environments. However, scholars still lack a complete understanding of the specific innovation capability that sustain superior firm performance over time in the dynamic environment. The purpose of this study was to examine the moderating effect of environmental dynamism in the relationship between innovation capability and performance of manufacturing firms in Nairobi City County, Kenya. The study employed the correlational, cross-sectional survey research design. The proportionate stratified random sampling technique was used to select a sample size of 228 manufacturing firms from a target population of 526 manufacturing firms in Nairobi City County, Kenya. The Pearson’s product moment correlation analysis results indicated that product innovation capability, process innovation capability, marketing innovation capability and technological innovation capability had positive and significant relationship with performance of manufacturing firms in Nairobi City County, Kenya. The standard multiple regression results showed that product innovation capability, process innovation capability, marketing innovation capability and technological innovation capability had a positive and significant effect on performance of manufacturing firms in Nairobi City County, Kenya. The moderated multiple regression results showed that environmental dynamism had a significant moderating effect on the relationship between innovation capability and performance of manufacturing firms in Nairobi City County, Kenya. The study recommended that it is imperative for the managers to implement innovation capability and strategically manage the environmental dynamism to foster the performance of manufacturing firms. Policy makers should consider initiating policy review to encourage stakeholders to implement innovation capability and strategically manage the environmental dynamism to foster the performance of manufacturing firms. The study pointed to several intriguing paths for future research.

Investigating the Key Factors Influencing the Process Innovation Capability in Organizations: Evidence from the Republic of Serbia

Research exploring quality management, knowledge management, and innovations in organizations has received significant attention from academics worldwide, providing different insights. Innovation has been widely seen as an essential organizational performance driver. This study aims to accentuate the importance of quality management and knowledge management and their direct, mediating, and total effect on an organization’s process innovations. The double-reflective second-order construct model was analyzed following the most recent methodology guidelines. Eventually, partial least squares structural equation modeling (PLS-SEM) was used to test the research hypotheses and investigate the relations between the latent factors. The results from 264 Serbian companies that implemented ISO 9001 standard point to quality management’s direct effect on process innovations and knowledge management’s mediating effect on process innovation.

External Knowledge Flows and Small and Medium-Sized Enterprises’ Innovation Capabilities Enhancement: An Empirical Investigation

This study aimed to identify sources of external knowledge in small- and medium-sized enterprises (SMEs). Additionally, it aimed to determine how external knowledge flow affects the different types of SMEs’ innovation capabilities (product, process, organizational, and marketing innovation capability). A quantitative approach was adopted to achieve the objectives. A questionnaire survey was used to collect study data from 83 random SME managers/owners in Saudi Arabia. The data were analyzed using regression analysis and descriptive statistics. The findings of the study showed that customers were the main source of external knowledge in SMEs. The results of the regression analysis also demonstrated that external knowledge flow has a significant effect on SMEs’ innovation capabilities. External knowledge explains the changes in SMEs’ products and their process innovation capability. Additionally, external knowledge flow was a significant predictor of SMEs’ organizational innovation capability. The findings of the study provide policymakers and managers with many suggestions for developing innovations in SMEs. Additionally, this study provides a basis for researchers to conduct more future studies related to innovation and knowledge flow in SMEs.

Unveiling the effects of big data analytics capability on innovation capability through absorptive capacity: why more and better insights matter

PurposeDespite the increase in studies focused on analyzing the potential of big data analytics capability (BDAC) as a driver of product and process innovation, it is still necessary to understand how the use of insights generated by BDAC in innovation may be maximized through articulation with individuals' intellect and other processes involving the assimilation and transformation of knowledge. This study thus aims to analyze the impact of BDAC's deployment on innovation capability (IC – process and product innovation capabilities), taking absorptive capacity (AC) as mediating variable in this relationship.Design/methodology/approachStructural equations were used to test the research model with survey data from 112 firms located in an emerging country that is one of the digital transformation leaders in the region.FindingsThe results show that 37% of process IC variance is explained by the indirect relationship via the variable mediator (AC), while in the case of product IC this percentage is 34%.Originality/valueThese results allow us to ascertain the extent to which individuals continue to be relevant to generating product and process innovation in the digital age at a time when the literature anticipates a total loss of prominence due to the arrival of new digital technologies. However, in the case of the relationship between BDAC and ICs, the existence of a partial mediation of AC indicates that individuals continue to play a role that, albeit not being the most prominent, remains relevant in ensuring that a company maximizes the assimilation and transformation of the insights generated by BDAC in new products and processes.

Effects of Innovation Capabilities on Organisational Sustainability: Evidence from an Emerging Economy

The role of businesses in sustainable development gained increasingly more importance, together with the increasing speed of technological advancements, in addition to the economic effects of climate change, pandemics, disasters, and wars. The capabilities of businesses allowing them to adapt to environmental conditions to use their resources and turn them into productive outputs efficiently are considered critical factors in achieving sustainable competitive advantage. Therefore, the present study aimed to determine the effects of businesses’ marketing, process, organisational, and product innovation capabilities on corporate sustainability. The data used in the present study, which has an explanatory research design, were collected from managers of 452 SMEs in an emerging economy (Turkey) using the non-random quota sampling method. During the data collection, a survey was carried out on the manufacturing firms operating in Kocaeli, Sakarya, Düzce, Yalova, and Bolu provinces in a region called TR42 in the Eastern Marmara region, which is an important industrial region in Turkey. During the data analysis, SPSS was used to obtain the descriptive statistics, and AMOS to obtain the inferential statistics. Within this context, covariance-based Structural Equation Modelling (SEM) was utilised to test organisational sustainability’s causal relationships with variables constituting the innovation capabilities. The results achieved here suggest that marketing, process, corporate, and product innovation capabilities have an effect that increases organisational sustainability. Furthermore, the results indicate that marketing innovation capability had a higher impact on organisational sustainability than other capacities constituting the innovation capability. The present study offers important interpretations and conclusions for businesses which operate in an emerging economy at the level of SME to improve their sustainability objectives in terms of resource, capability, and environmental adaptation.

Process Optimization, Innovation and Operation Flexibility Focused Capability Impact on Supply Chain Risks in Courier Companies in Sri Lanka

Process Optimization, Innovation and Operation Flexibility Focused Capability Impact on Supply Chain Risks in Courier Companies in Sri Lanka

The relationship between knowledge management strategies and corporate social responsibility: Effects on innovation capabilities

This study analyzes relationships between knowledge management (KM) strategies and company Corporate Social Responsibility (CSR). In particular, and based on knowledge-based and stakeholder theoretical perspectives, this paper focuses on specific connections between KM exploration and exploitation strategies and typical dimensions of a company's CSR performance -economic, social, and environmental. These connections suggest a different KM orientation of firms trying to take advantage of both long and short-term strategies based on either environmental, social, or economic goals for CSR. These relationships are reflected in different hypotheses that were tested by means of a structural equations model in a sample of Spanish firms from the renewable energy sector. The study findings show that KM exploration initiatives are closely related to social and environmental commitment to CSR, whereas KM exploitation initiatives are more related to economic CSR. Moreover, the social dimension of CSR is strongly associated to product innovation capabilities, while the economic dimension of CSR contributes in a greater extent to the development of process innovation capabilities. From these results, the study's discussion centers on how KM strategies and a firm's CSR orientation should be coherent in order to collect specific knowledge from stakeholders for the improvement of innovation capabilities. The study concludes by providing new insights about the relationship between KM and CSR dimensions as determinants of a firm's innovation capability development.

The Context Sensitivity of International Entrepreneurial Orientation and the Role of Process and Product Innovation Capabilities

AbstractDrawing on a contingency perspective of the resource‐based view of the firm, we test the thesis that a relationship between international entrepreneurial orientation (IEO) and the international performance of export‐manufacturing firms is context‐sensitive and contingent on innovation capabilities. Using time‐lagged survey data from 369 Bangladeshi export‐manufacturing firms in a least developed country (LDC) as an extreme empirical context, we predict that process and product innovation capabilities are essential to the relationship between IEO and international performance among export‐manufacturing firms. We find that the effect of IEO on international performance is not positive; however, the relationship becomes positive when moderated by process and product innovation capabilities. International entrepreneurial firms in an LDC succeed when they can better align IEO‐driven efforts with these capabilities. Our study advances knowledge on the context sensitivity of IEO and embellishes a resource‐based theory of IEO.

Predicting Innovation Capability through Knowledge Management in the Banking Sector

Purpose: The purpose of this study was to investigate the effects of knowledge management on innovation capability in the banking sector. Research methodology: Cross-sectional research design was employed in this study as it supports the use of questionnaire for data collection. Fifteen deposit money banks constitute the accessible population. Questionnaire was used as an instrument for data collection. A sample size of 272 was drawn from the overall population of 920. Overall, 259 staff participated in the study. Demographic characteristics of participants were analysed with frequency distribution while linear regression was used to analyse formulated hypotheses with the aid SPSS. Findings: This study found that knowledge management has significant positive effects on innovation capability. Research limitations: The research limitation is associated with cross-sectional survey and geographical scope. Future studies should employ longitudinal survey that support data collection for a year. Secondly, future studies should be carried out in other countries other than Africa. Practical implications: The implication of the finding is that managers and directors of banks should encourage knowledge management practices in their workplaces as this has proven by this study to improve innovation capability in terms of marketing innovation capability, product innovation capability and process innovation capability. Originality/Value: There is no research that has investigated the effects of knowledge management on innovation capability. Thus, this study provides new insight on promoting innovation capability through knowledge management.

“I am proud of my job”: Examining the psychological mechanism underlying technological innovation's effects on employee brand ambassadorship

Over the last century, technological innovation (TI) has driven an evolution in numerous industries. It is established that organizations can enhance their performance via process and product innovation; however, the psychological foundations of TI, and the way this affects employees, are underexplored in the organization and management literature. Drawing on organismic integration theory, we aim to enrich the field of innovation and employee branding studies by examining the role of innovation capabilities in employees' motivation at work and wellbeing, which results in employee brand ambassadorship. A mixed-method approach is employed. Study 1 uses a case study to explore how employees acquire knowledge as part of their exposure to TIs. A research model that captures the underlying mechanism of how TI capabilities influence employee brand ambassadorship is then developed based on findings in Study 1. Based on Study 1 results, Study 2 conducts surveys (n = 300) to test the hypothesized framework in high-tech organizations with employees in China. Results show that both product and process innovation capabilities increase employees' psychological empowerment and autonomy, which subsequently increase their psychological wellbeing. Further, employees satisfied with their jobs are more likely to act as ambassadors for their organizational brands. The paper concludes by discussing the theoretical contributions and managerial implications of these findings.

Cultivation Mechanism of Green Technology Innovation in Manufacturing Enterprises Under Environmental Regulations in China

The rapid development of China’s economy is increasing the pressure on the country’s ecological environment. As the largest developing country in the world, China’s environmental crisis is bound to cause global ecological risks. Therefore, green technology innovation is imperative for sustainable development as manufacturing enterprises are heavily affected by the Chinese environment. Through green technology, innovation to help China get rid of the environmental crisis, and then achieve new breakthroughs in the global economy. The Porter hypothesis notes that environmental regulation can promote the growth of green technology innovation capabilities, although the effects have not entirely been felt by China’s manufacturing enterprises. This study is based on the structural equation model and considers a sample of China’s manufacturing enterprises to empirically test the promotion mechanism of environmental regulation underlying green technology innovation capability. Command-based environmental regulation has the strongest effect on promoting green technology innovation capability, followed by incentive-based environmental regulation. Voluntary environmental regulation has the weakest effect. Green product innovation capability has been well cultivated in the field of green technology innovation capability, followed by green process innovation capability. Terminal technology governance capability is the least developed.

Process innovation capability in less-structured business processes: a systematic literature review

PurposeBuilding process innovation capability (PIC) is becoming increasingly important to keep pace with changing business environments and emerging technological opportunities. However, the literature on process innovation capability (PIC) is still very broad and does not consistently reflect today's reality that is becoming increasingly complicated and knowledge-intensive, leading to more organizational needs for supporting less-structured business processes (LSBP).Design/methodology/approachBased on a systematic literature review (SLR), the authors provide evidence for this under-investigated subject by consolidating organizational capabilities for managing PIC in LSBP. The authors screened 1,083 and identified only 26 peer-reviewed articles that simultaneously encompass process innovation and LSBP.FindingsThe authors explain which LSBP types are typically addressed, and in which sectors. The authors categorize research avenues, best practices and a framework that links PIC to performance outcomes by also considering business environments. Three theories (i.e. resource-based view, dynamic capabilities and sociotechnical theory) help to underpin the six empirically observed capabilities along three pillars (i.e. people, process and technology).Research limitations/implicationsBesides a research agenda, the authors offer a conceptual framework for PIC in LSBP as a reference to guide scholars and practitioners.Practical implicationsThe authors offer best practices, as derived from the literature.Originality/valueThis is the first SLR for PIC in LSBP, consolidating and categorizing the PIC-LSBP characteristics. Due to few studies on the subject, this work contributes to a deeper understanding of the PICs needed for LSBP to obtain the desired performance outcomes.