Radical Innovation Capabilities Research Articles

High-Performance Work System and Innovation Capabilities: The Mediating Role of Intellectual Capital

This study examined the effect of high-performance work systems on developing incremental and radical innovation capabilities. Drawing on resource-based and knowledge-based theories, the mediating effects of human capital, social capital, and organizational capital were tested. Data were collected from 233 middle-to-senior level managers working in the banking sector of Pakistan, and hypotheses were tested through partial least squares structural equation modeling using Smart PLS 4.0. The findings showed that all components of intellectual capital mediated the relationship to develop both types of innovation capabilities. In terms of the strength of the relationship, social capital was found to be a more effective mediator, and next to this were human capital and organizational capital, respectively. Our findings contribute to the existing literature by explaining the relationship between HPWS and innovation capabilities, which is also referred to as the black box through the mediation of intellectual capital. Decision makers should recognize the importance of this relationship because it develops innovation capabilities that enhance organizational performance by giving them a competitive advantage.

How the dairy industry in North America is leveraging analytics for increased efficiency

With big data analytics rising in recognition, academic providers are considering the methods whereby they're competent to obtain the shifts these remedies carry into the competitive methods. Drawing on the resource based view, features, and also on the most recent literature on big data analytics, this specific analysis examines the indirect link between a huge data analytics capability, as well as two types of development capabilities, incremental and radical. The study extends present investigation by proposing that BDACs allow firms to produce insight that could help strengthen dynamic features, which positively affect incremental innovation capabilities and radical. To evaluate our proposed hypothesis, we used survey info from 185 chief officers and supervisors in Italian companies. By partial least squares structural equation modeling, results confirm our assumptions about the indirect effect BDACs have on growth capabilities. Especially, we find that dynamic abilities fully mediate the end result on both incremental and radical innovation capabilities. Furthermore, under conditions of increased eco-friendly heterogeneity, the result of BDAC's on effective features, and also in sequence, incremental innovation skill is enhanced, while under conditions of higher eco-friendly dynamism, the effect of effective capabilities on incremental innovation capabilities is amplified.

How analytics is driving the supply chain innovation in North America

With big data analytics becoming more popular, academics have been wondering how they can adapt to the changes in competitive strategies that these solutions bring. This analysis, using the resource-based perspective, capabilities and also the most recent literature on big data analytics, examines the indirect connection between a big data analytics capability and two types of development capabilities, incremental and radical. The study extends existing research by proposing that BDACs enable companies to produce insight that could help strengthen dynamic capabilities that positively influence incremental innovation capabilities and radical. To test the hypothesis we proposed, we utilized survey data from 185 chief executives and managers operating in Italian companies. The outcomes of partial least squares structural equation modeling confirm our assumptions about the indirect effect that BDACs have on development capabilities. In particular, we find out that dynamic abilities completely mediate the outcome on both incremental and radical innovation capabilities. Furthermore, under conditions of higher environmentally friendly heterogeneity, the effect of BDACs on powerful features and in sequence is improved incremental innovation ability, while under conditions of higher eco-friendly dynamism, the effect of powerful abilities on incremental innovation abilities is increased.

Why shape a market? Empirical evidence on the prominent firm-level and market-level outcomes of market-driving strategy

Market-driving strategy (MDS) is defined as influencing the market structure and/or the market players’ behavior in a direction that reinforces a firm’s competitive edge. Hitherto, limited evidence exists regarding its consequences, while innovation is of profound importance for MDS. The objectives of this project are to identify: (1) the main firm-level and market-level outcomes of MDS, (2) mediating mechanisms among those outcomes, and (3) the influence of radical and incremental product innovation capabilities on MDS. A mixed-methods research design is applied, grounded in three complementary studies (a qualitative study [27 in-depth interviews], an online survey [241 participants], and a follow-up online survey [101 participants]). Findings suggest that: (a) the firm-level outcomes of MDS are financial and customer performance, organizational reputation, and sustained competitive advantage; (b) radical and incremental product innovation trigger MDS; (c) incremental innovation and organizational reputation are positively related to financial performance; and (d) MDS enhances market change.

THE IMPACT OF TEAM GOAL ORIENTATION IN THE FUZZY FRONT END OF THE INNOVATION PROCESS

Many organisations face intense pressure to produce radical innovations. Consequently, innovation researchers have highlighted the need for incubating dedicated radical innovation capabilities. R&D teams are especially pivotal in generating these radical, highly-novel, original ideas at the front end of innovation (FEI). But such efforts end more often in failure than success. Organisational learning theorists have begun to draw on Goal Orientation theory as a motivational driver that might boost the success rate of teams working on such radical innovation projects. But, as yet, no fieldwork has been conducted on R&D teams to explore this promising theoretical model. In this paper, we use a case study of a corporate experiment comprising two innovation teams to investigate how situationally induced goal orientation in R&D teams might impact the radicality of innovation ideas. We find that a shared team Learning Goal orientation is associated with radical innovation and that a shared team Performance Goal orientation is associated with incremental innovation. This paper provides field-based evidence of the role of shared team goal orientation on FEI ideation outcomes. An implication of our findings for R&D managers faced with the difficulties of generating radical innovations from internal teams is that more attention should be paid to the situational cues that impact team FEI efforts, and in particular, a team’s goal orientation.

Developing radical innovation capabilities: Exploring the effects of training employees for creativity and innovation

The resilience of organizations is increasingly dependent on their ability to develop radical innovation capabilities. While the literature documents numerous cases of organizations that already have radical innovation capabilities, the question of organizational devices that can be used to stimulate the emergence of such capabilities remains poorly addressed. Specifically, training for innovation and creativity has been proposed as a means to foster innovation capabilities; however, there has been little empirical evidence concerning the long‐term impacts of such training. To fill this gap, this article aims to document and evaluate the efforts of the research institute of a major Canadian energy company to provide training for innovation and creativity to initiate a radical innovation capability. We rely on a longitudinal study over the span of 18 months, where we observed 128 h of training and conducted 70 semi‐structured interviews with a sample of 40 researchers. We found that training for creativity and innovation has the potential to develop individual creative skills for exploration, to catalyze and federate collective action through common methods and a shared sense of what innovation entails, and to help create a common language and vocabulary between the different groups or divisions of an organization to talk about exploration.

Research on the influence of R&D human resources on innovation capability—Empirical research on GEM‐listed enterprises of China

This study aims to ascertain the influence of R&D human resources on innovation capability by evaluating the innovation capability of growth enterprise market‐listed companies using a stepped‐regression analysis. It also employs various models to assess incremental and radical innovation capabilities and obtain evaluation scores. The findings show a significant positive correlation between the size of R&D human resources investment and innovation capability, and a significant negative correlation between the intensity of R&D human resources investment and comprehensive innovation capability. The R&D personnel's number improves incremental innovation capability more significantly than radical innovation capability, which is better incentivized by higher salaries.

Incremental and radical product innovation capabilities in a quality management context: Exploring the moderating effects of control mechanisms

This paper addresses calls for understanding of the contextual conditions under which Quality Management (QM) may be effective in supporting radical and incremental innovation in a technologically dynamic sector. Particularly, formal and informal control mechanisms can play a role in such a knowledge intensive sector, where the degree of formalisation may be a constraint to explorative behaviours. This study focuses on the moderating role of support for creativity and formalisation of the innovation process as two types of control mechanisms entailing different levels of formalisation. The sample consists of 111 organisations from the information technology service sector featuring technological dynamism. The results evidence that QM is associated with incremental innovation capability, but not with radical innovation. A positive moderating role of formalisation of the innovation process was found in incremental innovation. The results indicate that these two types of innovation require different kinds of resources and enabling actions, which advises the adoption of a contingent perspective when analysing the QM–innovation link in future research. The existence and use of specified procedures are not a drawback in the innovation process within a firm. Thus, organisations should be aware that the effectiveness of QM to increase incremental innovation capability is likely to be enhanced by a formalisation of the innovation process. In contrast, for breakthrough innovation, QM was not evidenced to be a successful mechanism. The findings suggest that support for creativity is the mechanism that managers can best use to promote radical innovation.

Examining the interplay between big data analytics and contextual factors in driving process innovation capabilities

ABSTRACT The potential of big data analytics in enabling improvements in business processes has urged researchers and practitioners to understand if, and under what combination of conditions, such novel technologies can support the enactment and management of business processes. While there is much discussion around how big data analytics can impact a firm’s incremental and radical process innovation capabilities, we still know very little about what big data analytics resources firms must invest in to drive such outcomes. To explore this topic, we ground this study on a theory-driven conceptualisation of big data analytics based on the resource-based view (RBV) of the firm. Based on this conceptualisation, we examine the fit between the big data analytics resources that underpin the notion, and their interplay with organisational contextual factors in driving a firm’s incremental and radical process innovation capabilities. Survey data from 202 chief information officers and IT managers working in Norwegian firms are analysed by means of fuzzy set qualitative comparative analysis (fsQCA). Results show that under different combinations of contextual factors the significance of big data analytics resources varies, with specific configurations leading to high levels of incremental and radical process innovation capabilities.

Total quality management and high-performance work systems for social capital development

PurposeThe purpose of this paper is to analyse social capital (SC) development oriented to innovation. The relationship between high-performance work systems (HPWSs) and total quality management (TQM) philosophy is considered in this paper as an enabling factor that allows firms to accumulate SC oriented to develop radical and incremental innovation capabilities (IIC).Design/methodology/approachThis paper establishes hypotheses and a model based on partial and total mediating effects of SC to develop innovation capabilities, which are focused on previous unexplored connections between HPWS and TQM and their effects on SC. The model and hypotheses are statistically tested through a partial least squares approach to structural equations models in a multi-industry sample of Spanish companies.FindingsThe study results show a system of specific human resource practices connected to SC development. Moreover, SC is found to be a mediating factor in the relationship between TQM and IIC, although the effect is not significant when radical innovation capabilities (RIC) are considered in the model. Finally, it is shown that HPWS partially mediates the relationship between TQM and SC.Research limitations/implicationsThis paper mainly contributes to the study of organizational context enablers for intellectual capital (IC) development from a knowledge-based view, especially when firms are seeking to build or improve innovation capabilities. As a managerial approach, HPWSs and TQM are shown as powerful tools to establish prolific contexts for SC development, especially when TQM is rightly supported by a HPWS.Originality/valueThis is a quantitative study that analyses, for the first time, predictive relationships between popular tools such as TQM and HPWSs to create an organizational context for SC development, considering a multi-industry sample of firms. Important implications are also drawn to help managers to create IC assets related to social interaction and network relationships.

EFFECTS OF INNOVATION TYPES ON PRODUCT IDENTITIES: DOES RADICAL INNOVATION LEAD TO A MORE INTEGRATED PRODUCT IDENTITY?

In this study, the relation between innovation capabilities and product identity integrity is investigated through a theoretical frame, which is briefly tested through Turkish television industry.There are many studies in literature that discuss design’s role in innovation. The differentiation of product design activities from technological improvements was also discussed before; however more recent studies conducted by Dell’Era and Verganti also discuss the visual language aspect and its contribution to product innovation. Even if many aspects of visual elements and their effect on perceived novelty are discussed, the overall outcomes of design-driven innovation on product identity and brand identity still need to be discussed. There is a prior study conducted by Dell’Era and Vergani (2007) that provide quantitative clues on the subject, but theoretical explanations and their evaluations on fieldworks are still needed.This study aims to provide theoretical explanations to product identity outcomes of certain innovation types. Literatures on innovation, organizational creativity, and comparative studies on radical and incremental innovations are studied together with studies on product identity strategies to provide a relation between innovation types and product identity outcomes.The results support prior studies that claim companies with radical innovation capabilities have more homogenous product identity. Also, the provided theoretical relations are identified to a degree in the study. The outcomes can be suggested and developed further for developing product identity strategies in organizations.

Big Data Analytics Capabilities and Innovation: The Mediating Role of Dynamic Capabilities and Moderating Effect of the Environment

AbstractWith big data analytics growing rapidly in popularity, academics and practitioners have been considering the means through which they can incorporate the shifts these technologies bring into their competitive strategies. Drawing on the resource‐based view, the dynamic capabilities view, and on recent literature on big data analytics, this study examines the indirect relationship between a big data analytics capability (BDAC) and two types of innovation capabilities: incremental and radical. The study extends existing research by proposing that BDACs enable firms to generate insight that can help strengthen their dynamic capabilities, which in turn positively impact incremental and radical innovation capabilities. To test their proposed research model, the authors used survey data from 175 chief information officers and IT managers working in Greek firms. By means of partial least squares structural equation modelling, the results confirm the authors’ assumptions regarding the indirect effect that BDACs have on innovation capabilities. Specifically, they find that dynamic capabilities fully mediate the effect on both incremental and radical innovation capabilities. In addition, under conditions of high environmental heterogeneity, the impact of BDACs on dynamic capabilities and, in sequence, incremental innovation capability is enhanced, while under conditions of high environmental dynamism the effect of dynamic capabilities on incremental innovation capabilities is amplified.

ORGANISING FOR RADICAL INNOVATION: THE BENEFITS OF THE INTERPLAY BETWEEN COGNITIVE AND ORGANISATIONAL PROCESSES IN KCP WORKSHOPS

In several industries, competitive and societal factors have highlighted the need for incubating dedicated radical innovation (RI) capabilities. Traditional approaches to RI strategies have often emphasised either organisational or cognitive aspects, but tend to overlook how these dimensions interact within the organisation. This paper tackles the issue of these interplays by investigating the effects of a creativity-based collaborative method, the KCP Workshops, on the RI capability of a firm. We present an in-depth case study of a leading aeronautics firm that adopted the method to face its RI challenges. While being consistent with prior research and underscoring the impact of organisational settings on creative cognitive processes, our analysis empirically demonstrates a triple capability developed through the KCP Workshops: (1) collectively building a conceivable RI strategy, (2) deploying a monitoring process adapted to the exploration of cognitive breakthroughs, (3) collectively building “emerging creative organisations” at the ecosystem level to support the development of RI strategy. Beyond the performance of the RI capability for commercial applications, these findings underline how the collective design of an RI strategy also involves players in the exploration and establishment of organisational innovations.

How Does Ambidexterity Matter for Radical and Incremental Innovation Capabilities?

The notion that ambidextrous learning—involving both exploration and exploitation—will improve firm performance, has become prominent in academia and practice. While arguing that innovation capabilities are central to the ambidexterity hypothesis, we investigate how the two dimensions of ambidextrous learning (combined and balanced) affect firms’ incremental and radical innovation capabilities. Based on organizational learning theory, we develop theoretical arguments underpinning the idea that the combined dimension of ambidexterity drives incremental innovation capability while the balance dimension of ambidexterity positively influences radical innovation capability. We base our empirical analysis on a survey of high-tech firms in China. We find support for our theoretical arguments.

Building Radical Innovation Capabilities in Emerging Market Subsidiaries: The Case of Intel India

The paper explores the processes that lead to new capability development in emerging market subsidiaries of MNCs. The capability in question is that of bringing about radical innovation in a reliable and repeatable manner. In this exploratory research, we study the radical innovation capability building process at Intel India using the Charter- Competence co- evolution model proposed by Birkinshaw and Hood (1988). The inferences we offer are, firstly, capability evolution process adopts multiple, intertwined pathways which are shaped by choices and actions of the head-office and subsidiary. Secondly, a subsidiary’s local embeddedness leads to newer insights, but the global connectedness renders the necessary legitimacy and head- office attention for executing such insights. Finally, a pre- requisite for a radical innovation capability is a subsidiary’s initiative in setting up an incremental program that offers a run rate of ideas to build on, and that such a capability can’t be imported from the parent organization.

How do established firms improve radical innovation performance? The organizational capabilities view

The paper examines organizational capabilities for improving performance, with respect to radical innovation (RI), in established firms. These organizational capabilities are (1) openness capability, (2) autonomy capability, (3) integration capability and (4) experimentation capability. The paper proposes four research hypotheses, to examine the relationship between four types of organizational capabilities and radical innovation performance. A dataset of 112 corporate RI-specific capabilities and innovation performance data, from the top 500 Taiwanese manufacturing firms, is collected via a postal questionnaire survey. The multiple regression results reveal a positive relationship between organizational capabilities and radical innovation performance. Finally, some managerial recommendations, to develop radical innovation capabilities, are provided.

Открытые инновации: эффекты для корпоративных стратегий, государственной политики и международного «перетока» исследований и разработок

Жан Гине- заведующий Лабораторией исследований науки и технологий, ИСИЭЗ НИУ ВШЭ. E-mail: jguinet@hse.ru Адрес: Национальный исследовательский университет «Высшая школа экономики», 101000, Москва, Мясницкая ул., 20.Дирк Майснер- заместитель заведующего Лабораторией исследований науки и технологий, ИСИЭЗ НИУ ВШЭ. E-mail: dmeissner@hse.ru Адрес: Национальный исследовательский университет «Высшая школа экономики», 101000, Москва, Мясницкая ул., 20.Перемены, происходящие в инновационной сфере, ставят новые серьезные вызовы перед субъектами инновационной политики. Они вынуждены адаптировать свои стратегии к усиливающейся глобальной конкуренции, которая все в большей степени основывается на знаниях. Повышается необходимость синхронизации разных звеньев инновационного цикла: от коммерческой эксплуатации новых продуктов до долгосрочных инвестиций в радикальные инновации. Появляются новые формы комплементарного взаимодействия между бизнесом и государственным сектором науки. Для ведущих глобальных компаний поставщики сегодня играют беспрецедентно важную роль не только как источники, но и как соавторы инноваций. Как следствие, получила распространение концепция открытых инноваций, позволяющих преодолеть географические, институциональные и дисциплинарные барьеры.Новые подходы к управлению в рамках «парадигмы открытых инноваций» подразумевают ориентацию на результат вне зависимости от места создания инноваций и происхождения вложенных в них ресурсов, оптимизацию всех звеньев инновационного процесса, синхронизацию инновационных стратегий компании и ее внешних партнеров, совместное использование знаний посредством кооперации. Модель открытых инноваций нацелена на извлечение преимуществ из сетевого взаимодействия участниками, разных по масштабу и вида деятельности.В статье анализируется роль государственной политики в открытом инновационном процессе. Авторы приводят общие рекомендации о наборе мер стимулирования инновационной активности в бизнесе и государственном секторе науки. Среди них - усиление связи между фундаментальными и прикладными исследованиями, развитие сетевого взаимодействия, в том числе стратегических коллаборативных проектов, адресная поддержка малых и средних предприятий и т. п.

How to create and sustain an open and radical innovation capability in the fuzzy front end: the case of Vodafone Group R&D Germany and selected ongoing radical innovation projects

Research has increasingly addressed the question of which capabilities are required to manage Radical Innovation (RI), but so far, a common framework is missing. This paper develops an improved theoretical framework that enhances the existing literature and integrates the Open Innovation (OI) concept to support processes through accelerated learning, access to new capabilities and the creation of new markets. In a case study approach, we apply our framework to the German part of the Research and Development (R&D) unit of Vodafone Group R&D (VF Group R&D.DE). Analysing their RI capabilities in the fuzzy front end, we identified a new type of transdisciplinary exchange that integrates art and design in the RI process. Through cooperation with artists and designers, VF Group R&D.DE creates a transdisciplinary environment that influences the processes of idea creation and opportunity recognition, as well as the approaches to reduce uncertainties. In conclusion, management implications are derived from the theoretical findings.

Development and return on execution of product innovation capabilities: The role of organizational structure

This paper conceptualizes and tests an integrated model that combines the dual-core and ambidextrous models of product innovation. The integrated model distinguishes the development and return on execution of radical and incremental product innovation capabilities. The authors argue that organizational structure plays an important dual role as an (a) antecedent to the development of radical and incremental product innovation capabilities and (b) as a moderator in determining the new product performance returns from executing such capabilities. Using a sample of high-tech firms, the study finds that organizational structure is more consistent in predicting the execution of product innovation capabilities into new product performance than in predicting the development of such capabilities. For example, the effect of radical product innovation capability on new product performance is negative but nonsignificant under a formal structure, while the same effect is positive under an informal structure. Conversely, the effect of incremental product innovation capability on new product performance is positive under a formal structure, while the same effect is negative under an informal structure. The implications for managing different types of product innovation capabilities under formal versus informal structures and their effects on new product performance are discussed.

Organizing for Radical Innovation: An Exploratory Study of the Structural Aspects of RI Management Systems in Large Established Firms

To escape the intense competition of today's global economy, large established organizations seek growth options beyond conventional new product development that leads to incremental changes in current product lines. Radical innovation (RI) is one such pathway, which results in organically driven growth through the creation of whole new lines of business that bring new to the world performance features to the market and may result in the creation of entirely new markets. Yet success is elusive, as many have experienced and scholars have documented. This article reports results of a three‐year, longitudinal study of 12 large established firms that have declared a strategic intent to evolve their RI capabilities. In contrast to other academic research that has analyzed specific projects to understand management practices appropriate for RI, the present research reported explores the evolution of management systems for enabling radical innovation to occur repeatedly in large firms and reports on one aspect of this management system: organizational structures for enabling and nurturing RI. To consider organizational structure as a venue for capability development is new in the management of innovation and dynamic capabilities literatures. Conventional wisdom holds that RIs should be incubated outside the company and assimilated once they have gained traction in the marketplace. Numerous experiments with organizational structures were observed that instead work to manage the interfaces between the RI management system and the mother organization. These structures are described here, and insights are drawn out regarding radical innovation competency requirements, transition challenges, senior leadership mandates, and business‐unit ambidexterity. The centerpiece of this research is the explication of the Discovery–Incubation–Acceleration framework, which details three sets of necessary, though not sufficient competencies, for building an RI capability.