Radical Innovation Activities Research Articles

Environmental Uncertainty Participative Corporate Political Activity and Radical Innovation in China

Drawing on a sensemaking perspective, this study aims to theoretically and empirically investigate the effects of PCPA on radical innovation and how regulatory uncertainty and technological uncertainty affect firms’ choice of PCPA as well as its effectiveness on radical innovation. Hierarchical regression analyses are conducted to test the research model based on survey data collected from 227 manufacturing firms in China. The results indicated that PCPA has a significant positive effect on radical innovation. Both regulatory uncertainty and technological uncertainty relate positively to PCPA. In addition, regulatory uncertainty strengthens the positive relationship between PCPA and radical innovation, while technological uncertainty weakens the relationship. Our findings offer fresh insights into the use of PCPA to manage the uncertain external environment when pursuing radical innovation activities in China.

Environmental uncertainty, participative corporate political activity and radical innovation in China: a sensemaking perspective

PurposeDrawing on a sensemaking perspective, this study aims to theoretically and empirically investigate the effects of participative corporate political activity (PCPA) on radical innovation and how regulatory uncertainty and technological uncertainty affect firms’ choice of PCPA as well as its effectiveness on radical innovation.Design/methodology/approachHierarchical regression analyses were conducted to test the research model based on survey data collected from 227 Chinese manufacturing firms.FindingsThe results indicate that PCPA has a significantly positive effect on radical innovation. Both regulatory and technological uncertainty are positively related to PCPA. In addition, regulatory uncertainty strengthens the positive relationship between PCPA and radical innovation, whereas technological uncertainty weakens this relationship.Practical implicationsThis study reveals that firm managers should be mindful that PCPA is beneficial to firms’ radical innovation activities in China. Additionally, although regulatory uncertainty and technological uncertainty can drive firms to engage in PCPA to cope with the ambiguity they experienced, managers should also be alert to the complicated role of environment forces in enlarging or discounting the positive effect of PCPA on radical innovation.Originality/valueThe findings offer fresh insights into the use of PCPA to manage the uncertain external environment when pursuing radical innovation activities in China.

개방형 혁신활동의 수준이 혁신성과에 미치는 영향: 기술보호의 매개효과를 중심으로

This study explores the effect of open innovation activities on innovation performance by dividing into two dimensions of breadth and depth of open innovation activity, and it also verifies the mediating effect of technical protection between open innovation activities and innovation performance. In order to examine the hypothesis, it has surveyed 1,403 companies of manufacturing and service with experience in producing innovative results. The results find that the breadth of open innovation activities has a positive effect on the achievement of radical innovation, and the depth of open innovation activities brings a positive effect on the achievement of incremental innovation. The verification result of the mediating effect of technology protection indicates that partially mediated between the breadth of innovation activities and radical innovation activities, and in the case of the depth, it is completely mediated. The results of this study provide the crucial implications not only for the company promoting open innovation, but especially also for the companies promoting product innovation by acquiring technology.

Towards a stage model of regional industrial path transformation

ABSTRACT The recent debate on innovation-based structural change in Evolutionary Economic Geography is characterised by a strong focus on the rise of new industrial paths. This paper seeks to shift attention and cast light on radical innovation activities occurring within existing paths without necessarily leading to their dissolution. Departing from a systemic perspective of path development we propose a stage model of path transformation. We outline how radical change becomes initiated, reinforced and finally consolidated in established industrial paths. Particular attention is devoted to the ways in which actors – influenced by ‘the past’ and driven by visions and expectations (that is, ‘the future’) – exert agency to stimulate asset modification processes that are assumed to underpin path transformation and the reconfiguration of the wider support structures. The framework is applied to the analysis of the automotive industry in West Sweden, which is currently transforming towards the development of self-driving cars.

Capital market penalties to radical and incremental innovation

PurposeThe purpose of this paper is to investigate how access to financing for incremental as well as radical innovation activities is affected by firm-specific structural and behavioral characteristics.Design/methodology/approachDeploying a two-stage Heckman probit model on survey data spanning the period 2000–2013 and covering 1,169 firms, this paper analyzes the effect of a firm’s engagement in incremental and radical innovation on its likelihood to get constrained in their access to external finance, and how this effect is moderated by the firm’s age and size.FindingsIn line with earlier research, it is confirmed that the type of innovation matters for the access to external finance, but in a more nuanced way than generally portrayed. While incremental innovation activities have little negative effect on the access to external finance, radical innovation activities tend to be penalized by capital markets. This effect appears to be particularly strong for small firms.Originality/valueThis paper provides nuanced insights into the interplay between types of firm-level innovation activities, structural characteristic and access to external finance.

The influence of inbound open innovation on ambidexterity performance: Does it pay to source knowledge from supply chain stakeholders?

Extant research has neglected an in-depth examination of the relationship between external knowledge sourcing and the ability of firms to balance radical and incremental innovation activities (i.e., innovation ambidexterity). Therefore, the present paper seeks to reveal the effects of knowledge sourcing activities directed toward three relevant supply chain stakeholders (i.e., suppliers, customers, and competitors) on innovation ambidexterity. Based on a sample of 5897 firms that participated in the Italian Innovation Survey (IIS) (2008–2010), we reveal that sourcing knowledge from suppliers, customers, and competitors has a positive influence on innovation ambidexterity, hence confirming our hypotheses. Specifically, suppliers represent the most relevant knowledge source, followed by customers and, then, competitors. These results expand the literature discussing the relationship between inbound open innovation and ambidexterity performance, which falls short of a clear understanding of whether and the extent to which sourcing knowledge from supply chain stakeholders facilitates achieving innovation ambidexterity.

Measuring radical innovation project success: typical metrics don’t work

PurposeFirms frequently struggle with measuring the performance of their radical innovation activities. Due to the uncertainty and ambiguity involved, key performance indicators (KPIs) used for incremental innovation projects are often not useful in this context. The purpose of this paper is to explore suitable KPIs particularly useful for radical innovation projects.Design/methodology/approachThis study first reviews commonly used measures for innovation projects, which is then followed by case-study evidence from three industry-leading international firms. This study includes 13 in-depth interviews with innovation managers and directors in these firms, providing insights on how they measure the progress and performance of radical innovation projects.FindingsKPIs used commonly in incremental innovation showed lackluster results in the case firms and were problematic for radical innovation context. A key finding was that radical innovation project performance should be evaluated based on the process rather than on the expected outcome. Concurrently, based on the literature review and the cases, three sets of KPIs with 13 specific KPIs useful for radical innovation projects are proposed.Originality/valueThe paper addresses a core challenge in using established KPIs in a radical innovation context. The paper gathers and synthesizes a range of measurement points suitable for radical innovation projects and provides specific suggestions for appropriate metrics that innovation managers can use.

The Inventor’s Perspective on Conditions for Radical Innovations in Freight Transportation: Case Studies from France and Germany

Radical innovations are an important driver to achieve sustainability in transportation. Against this background, in the article, we investigate how current innovation conditions influence radical innovation activities in reality. Based on literature related to the Multi-Level Perspective and the National Innovative Capacity, we conducted interviews with the inventors of radical innovations for freight transportation in France and Germany to elaborate national specificities and commonalities. Our main findings are: first, the innovation conditions are ambiguous for radical innovations: on the one hand essential input factors for radical innovations are given. On the other hand, we identified many mechanisms that protect the status quo. Second, the innovation determinants for innovation conditions, the mechanisms of positive and hindering influences, are similar in France and Germany. However, nation-specific determinants are at the micro level: the management skills of the inventors and the business culture.JEL Codes: O31, O33

The interaction of technological innovation and increases in productive capacity: Multiplication of loaves and fishes?

Using the experience curve as a basis, this study analyses the influence of technology and increases to productive capacity on business productivity. In addition, we tested if both variables are complementary. The data used comes from the Business Environment and Enterprise Performance Survey (BEEPS), which refers to the Spanish economy in 2005. Our findings reveal that radical innovation activities and increases in productive capacity have a significant positive impact on business productivity. Incremental innovations do not have a significant influence, while the incorporation of technology through the purchase of machinery and equipment has a negative and significant influence. Finally, the conducted tests reveal that the different kinds of technologies analysed and increases in productive capacity are not complementary variables.

Innovation practices in cultural organisations: implications for innovation policy

This paper explores the innovation practices in a distinctive and vital part of the growing tourism industry, that of cultural organisations. These organisations have received limited attention from previous in-depth qualitative research on innovation practices. The investigation in this paper is based on in-depth interviews with key-employees in 27 cultural organisations. The findings suggest that the innovation practices when cultural organisations carry out incremental and liminal innovation activities differ from the practices used during more radical innovation activities. Sources of incremental and liminal innovations are often found to be stakeholders external to the organisation, such as the audience, whereas sources of more radical innovations are often found to be internal employees, and in particular the artists themselves or the artistic management team. These employees typically develop radically new cultural offerings with high levels of autonomy from the general management and the market. The paper discusses the implications that these findings have on innovation policy.

Innovation practices in cultural organisations: implications for innovation policy

This paper explores the innovation practices in a distinctive and vital part of the growing tourism industry, that of cultural organisations. These organisations have received limited attention from previous in-depth qualitative research on innovation practices. The investigation in this paper is based on in-depth interviews with key-employees in 27 cultural organisations. The findings suggest that the innovation practices when cultural organisations carry out incremental and liminal innovation activities differ from the practices used during more radical innovation activities. Sources of incremental and liminal innovations are often found to be stakeholders external to the organisation, such as the audience, whereas sources of more radical innovations are often found to be internal employees, and in particular the artists themselves or the artistic management team. These employees typically develop radically new cultural offerings with high levels of autonomy from the general management and the market. The paper discusses the implications that these findings have on innovation policy.

Product Architecture Definition: Evaluating the Potentiality of TRIZ Tools

Product Architecture definition plays more and more a crucial role for enhancing product customizability, easing after-sale management and reducing manufacturing costs. Despite major efforts have been dedicated to the development of methods and tools supporting Product Architecture definition for “Adaptive Design” tasks, no real means are available while addressing more radical innovation activities. The paper proposes a critical overview of TRIZ models and tools to evaluate their potential integration into a comprehensive methodology for Product Architecture definition. A comparison with the three major modularity methods is performed with the aim to establish how TRIZ can be located thereupon to current state of the art of Product Architecture management. An academic case study is discussed, in order to show how the OTSM Network of Problems approach can bring a significant contribution in that sense.

Innovating the innovation process: an organisational experiment in global pharma pursuing radical innovation

The challenge of managing the fuzzy front end of the innovation process is particularly acute for large, multi‐brand, research and development (R&D)‐intensive firms. Poor performance at generating radical innovations has resulted in many large organisations seeking to innovate how they organise for innovation. This paper presents an inductive, longitudinal study of an organisational experiment that sought to get ‘game‐changing, radical ideas’ into the new product development funnel of a top three pharma. The immediate outcomes of a team‐based internal innovation tournament included 33 new product ideas, 14 of which were radical. The medium term outcome of the experiment was a reorganisation of how the firm now pursues radical innovation activities. We link these outcomes to team leadership, contrasting innovation processes, including decisions about how to incorporate the ‘voice of the consumer’. The inductive, longitudinal study suggests causal interconnections between innovation team leadership, innovation team processes, and innovation outcomes.

Driving organisational ambidexterity through process management. The key role of cultural change

There is an intense debate in the literature on the impact of process management on innovation, and the division of opinions becomes particularly apparent with regard to radical innovation. Furthermore, organisational ambidexterity, the organisational capability to undertake incremental as well as radical innovation activities, has been underlined as a key source of competitiveness. In this article, we analyse how the cultural divergence driven by process management can affect organisational ambidexterity. Through a survey carried out on a sample of Spanish firms in the furniture and textile sectors, both of which have been drastically hit by competition from Asian firms, we conclude that the cultural context created by process management practices applied in a total quality management framework, which embraces exploitation along with exploration values, acts as a platform for developing organisational ambidexterity. Since organisational ambidexterity constitutes the capability of undertaking a rich variety of learning and innovation activities, these results could also have significant implications for practitioners, pointing to the need for close coordination between different functional areas in order to manage cultural change.

Who Wants it and Who Gets it? A Dynamic Perspective on the Supply-Demand Nexus of External Innovation Finance

This article investigates how access to external financing for innovation activities is affected by firm-specific structural, behavioral and outcome characteristics. External financing represents a critical factor in determining industrial evolution and technical change as well as firm's ability to survive, grow, and engage in innovative activities. Some characteristics of firms particularly associated with innovative and entrepreneurial ventures driving technological change are said to cause information asymmetries between financiers and finance seekers, making them less likely raise necessary external capital to fund innovation projects. Yet, there is little known about how different combinations of these characteristics affects their access to external financing and how contextual factors matter. Deploying a two-stage Heckman probit model on a panel data set spanning the period 2000-2013 and covering 1,169 Danish firms, we test hypotheses derived from the literature regarding the impacts of firms structural, behavioral and outcome characteristics on the firm's likelihood to get constrained in their access to external innovation finance. In line with earlier research we find that indeed the type of innovation matters for the access to external finance, but in a more nuanced way than generally portrayed. While incremental innovation activities have little negative effect on the access to external finance, radical innovation activities tend to be penalized by capital markets.

Organisational approaches to building a radical innovation dynamic capability

While the literature is increasingly recognising the importance of radical innovation for firms and for markets, our academic understanding of the phenomenon is not complete. We are challenged that firms are moving quickly to improve their management of radical innovation activities. The study reported on in this paper is a longitudinal study conducted over a period of 3.5 years time horizon, in which twelve US large established companies' radical innovation-capability-building initiatives were followed. This qualitative study contributes to our understanding of dynamic capabilities development in situations, where the capability itself is antithetical to the mainstream culture and processes. We provide observations regarding organisations' approaches to building a radical innovation dynamic capability over a lengthy observation period.

Does Market Orientation Facilitate Balanced Innovation Programs? An Organizational Learning Perspective

There appears to be widespread agreement that optimal new product development programs require a balance between customer‐led and lead‐the‐customer innovation practices. The former is associated with adaptive learning inspired incremental innovation, whereas the latter is associated with generative‐learning‐inspired radical innovation. There is debate, however, as to whether a strong market orientation can facilitate this balance. Some believe that a strong market orientation causes firms to overemphasize customer‐led incremental innovations. Others believe that a strong market orientation can facilitate this balance but assert that traditional measures of market orientation only capture the types of behaviors associated with customer‐led incremental innovations. This latter concern has led some to abandon the single‐construct operationalization of market orientation and to introduce two constructs—responsive and proactive market orientation—into the literature. The purpose of this research is to address these developments. The study makes use of a national sample of marketing executives and employs a cross‐sectional survey design. Measures used are market orientation, radical and incremental innovation priority, generative and adaptive learning priority, and new product success. Confirmatory factor analyses and structural equations models are employed to develop measures and to test hypotheses. The study's results reaffirm the position that a strong market orientation helps facilitate a balance between incremental and radical innovation by shifting firms' innovation priority more toward radical innovation activities. It also suggests that the abandonment of traditional conceptualizations and measures of market orientation are premature.

Learning in innovation networks: Some simulation experiments

According to the organizational learning literature, the greatest competitive advantage a firm has is its ability to learn. In this paper, a framework for modeling learning competence in firms is presented to improve the understanding of managing innovation. Firms with different knowledge stocks attempt to improve their economic performance by engaging in radical or incremental innovation activities and through partnerships and networking with other firms. In trying to vary and/or to stabilize their knowledge stocks by organizational learning, they attempt to adapt to environmental requirements while the market strongly selects on the results. The simulation experiments show the impact of different learning activities, underlining the importance of innovation and learning.