Radical Innovation Performance Research Articles

What is Patent Management? The Purification and Validation of an Integrated Measurement Scale

Academics and practitioners have since decades been interested in the organizational and managerial aspects of patent management. However, little attention has been devoted to validating and testing a measurement scale of patent management. With this background, the current article aims to empirically assess the factor structure of a patent management measurement scale, purify the scale, and validate it. The methodology follows the widely recognized procedure for scale validation and focuses on two steps: scale purification through an exploratory factor analysis on survey data and scale finalization through a confirmatory factor analysis performed on another set of data. The article yields that patent management has five core processes, namely generation, freedom to operate, portfolio management, exploitation and enforcement, and intelligence, as well as two supporting dimensions, namely strategy and organization for patenting. For each of these core processes and supporting dimensions, we outline the formative subconstructs as well as how these subconstructs are reflected in observable and measurable items. With the validity analysis, we show the significant impact of patent management on radical innovation performance.

How Does Paradox Strategic Cognition Affect Radical Innovation Performance in Established Firms?

How Does Paradox Strategic Cognition Affect Radical Innovation Performance in Established Firms?

Examining the Mechanism of Political Knowledge on Radical Innovation Performance

Advancing fundamental innovation is among the most popular topics in innovation management research in China in recent years; however, previous research has paid limited attention to the impact of political connections on radical innovation, particularly lacking proper explorations regarding the influence of political knowledge on radical innovation. Exploring the influence of political knowledge on breakthrough innovation from a strategy selection perspective, this study examines the mechanisms of influence, determining that two factors of strategic choice have a partial mediating role. This study presents a novel approach to further explore radical innovation from the perspective of new political knowledge.

Use big data to leverage customer need diversity for radical innovation

ABSTRACT Despite the growing diversity of customer needs, little empirical evidence would guide managers to leverage customer need diversity (CND) for radical innovation. Building on the knowledge-based view and dynamic capabilities, the authors explore relationships among CND, strategic flexibility, big data analytics capabilities, and radical innovation performance. With 308 survey responses from innovation managers, the authors find that CND impacts radical innovation performance via (1) mediation through strategic flexibility and (2) moderation by volume, variety, and velocity capabilities associated with big data analytics. The moderation effects of volume and velocity capabilities are positive and negative simultaneously, depending on the purpose for which CND is utilised. Therefore, to leverage customer need diversity, firms need to build strategic flexibility and exercise caution when utilising big data analytics capabilities.

State as a path breaker? Path-dependent behaviours and firm innovation: the moderating role of institutional forces

ABSTRACT This paper explores the effects and mechanisms of institutional forces on the relationship between path-dependent behaviours and innovation performance from an integrated framework combining path dependence and institution-based views. We first examine the effects of path-dependent behaviours, manifested as product line retention and extension, on incremental and radical innovation performance. In investigating this relationship, we join the institution-based view and propose that the effects of path-dependent behaviours are contingent on political and economic institutional forces. Using the samples of Chinese listed pharmaceutical enterprises from 2010 to 2016, we reveal that path-dependent behaviours are conducive to incremental innovation but detrimental to radical innovation. More importantly, while economic institutional forces can enhance the effects of these behaviours on both types of innovation, political institutional forces can mitigate their negative impact on radical innovation.

Outward foreign direct investment, dynamic capabilities and radical innovation performance: empirical evidence from Chinese high-tech companies

Purpose This paper aims to conduct an analysis of the influence of both the breadth and depth of outward foreign direct investment (OFDI) undertaken by Chinese high-tech listed companies during the period spanning 2010–2019. The data pertaining to these companies was used as a research sample to analyze the effects of OFDI on radical innovation performance. Design/methodology/approach Hierarchical regression analysis was used to test the proposed models, using survey data collected from 442 high-tech companies in China. Findings The findings of this study indicate a curvilinear (i.e. U-shaped) relationship between the breadth/depth of OFDI and radical innovation performance. Additional analysis reveals that OFDI plays a role in facilitating innovation breakthroughs by enhancing the internal dynamic capabilities of companies. Moreover, it is observed that a well-established institutional environment in the host country of investment can positively moderate the relationship between OFDI breadth/depth and radical innovation performance. Originality/value This study proffers a significant contribution to the understanding of the crucial role played by OFDI from emerging economy companies in enhancing radical innovation performance. Moreover, it offers theoretical guidance for multinational companies aiming to foster innovation breakthroughs.

The effect of internal quality integration on financial performance: the mediating role of product innovation

PurposeThis study aims to examine the joint effect of internal quality integration and product innovation on financial performance by considering the mediating roles of incremental and radical product innovation.Design/methodology/approachA theoretical framework was developed using the organizational capability view. Based on empirical survey data collected from 209 Chinese manufacturing firms, this research uses structural equation modeling and the bootstrapping method to test hypotheses.FindingsThe results show that internal quality integration positively impacts incremental and radical product innovation and financial performance. Further, incremental product innovation can promote radical product innovation. Both incremental and radical product innovation partially mediate the relationship between internal quality integration and financial performance.Practical implicationsThe findings provide practical guidance for manufacturing companies to engage in quality integration and product innovation. Managers should encourage the internal functional departments to coordinate quality integration while promoting incremental and radical product innovation to occupy a larger market and achieve higher performance.Originality/valueThis research contributes to the literature in two ways. First, this study expands the theoretical research framework of the joint effects of quality integration and product innovation on financial performance. Second, through testing the mediating role of product innovation, this study provides empirical evidence for the intermediate role of internal quality integration for improving financial performance.

Promoting technology innovation performance through high involvement HRM, technology adaptation and innovativeness

PurposeThis paper aims to examine how high involvement HRM (HIHRM), technology adaptation and innovativeness influence employees to respond to technology innovation performance – that is, radical innovation performance and incremental innovation performance – in distinct ways.Design/methodology/approachThe purposive judgmental sample technique is used to assess the perceptions of 545 IT employees in Bangladesh's ready-made garment (RMG) industry. The partial least square-structural equation modeling (SEM-PLS) method is applied to analyze and interpret the data.FindingsFindings of the analysis show that HIHRM, technology adaptation and innovativeness influence employees to exhibit technology innovation performance. Furthermore, both technology adaptation and innovativeness show the significant mediating effects between HIHRM and technology innovation performance.Practical implicationsFirst, this study’s findings contribute to HIHRM and technology innovation performance within the context of the resource-based theory. Second, the RMG organizations would acknowledge the role of HIHRM on employee technology adaptability and innovation capability in this regard. A future study might point to the models' ability to create the best work environments, which can help organizations to boost employee productivity through adaptation and innovation.Originality/valueThe study would offer a distinctive perspective on higher-order HIHRM and how they affect IT employees in RMG organizations in Bangladesh that could be approached in other labor-intensive and developing nations. This study also expands the research on technology adaptation and innovativeness by exploring the mediating roles between HIHRM and employee technology innovation performance in the organization.

To protect or not to protect? Renewal capital, knowledge protection and innovation performance

PurposeFirms need to constantly renew themselves to keep up with the pace of competition and proactively establish innovations to the markets. This requires capabilities in learning and renewing of the firm’s knowledge base, conceptualized as renewal capital of the firm. On the other hand, firms that acquire high levels of competitiveness by renewing their knowledge base also need to protect that knowledge from unwanted spillovers. This study aims to examine how renewal capital affects incremental and radical innovation performance of the firm, moderated by the firm’s protection of its strategic knowledge.Design/methodology/approachThe study is based on a multi-industry survey study with a time-lagged data set, with independent variables collected in the first wave, followed by a second wave four years later for the dependent variables. The authors test the hypotheses using partial least squares structural equation modeling.FindingsThe authors find that firms’ renewal capital is positively associated with the level of incremental and radical innovation. Furthermore, the authors find that knowledge protection negatively moderates the relationship between renewal capital and incremental innovation performance of the firm. In case of radical innovation performance, similar moderating effect is not statistically supported.Originality/valueWith a time-lagged research design, this study study reveals the interdependent roles of renewal capital and knowledge protection for firm’s innovation performance, and provides insights of when (and when not) it would be beneficial for a firm to seek renewal and protective oriented approaches.

The too-much-of-a-good-thing effect of digitalization capability on radical innovation: the role of knowledge accumulation and knowledge integration capability

PurposeThis study aims to investigate the complex relationship between digitalization capability (DC) and radical innovation performance (RIP). In particular, this study sheds new light on the results of previous studies on the effects of DC on firm innovation.Design/methodology/approachThe authors obtained questionnaire data from 271 IT managers of randomly selected high-tech Chinese firms. The data was used to empirically test the proposed hypotheses using hierarchical regression analysis.FindingsThe findings of this study reveal that DC has an inverted U-shaped effect on RIP. Knowledge accumulation (KA) has a partial mediating effect on the DC–RIP link. Knowledge integration capability (KIC) was found to moderate the DC–RIP relationship: the higher a firm’s KIC, the flatter the DC–RIP curve. Moreover, there is empirical evidence of the shape-flip phenomenon of the DC–RIP curve: when KIC > 1.82, the DC–RIP relationship is no longer an inverted U-shaped but presents as a U-shaped curve.Research limitations/implicationsThis study explores the DC–RIP relationship from the perspective of knowledge management, deepens the research scope of digitalization and lays the foundation for subsequent research.Originality/valueThis study provides potential explanations for contradictory views of the effect of DC on innovation in the existing literature by revealing the nonlinear relationship of DC and RIP and the important roles of KA and KIC in that relationship. The new insights into the role of KIC as a threshold for the DC–RIP link provide a direction for firms to control the pace of digital transformation.

How firms’ openness promotes radical innovation performance: The joint interaction effects of political ties and business ties

This study investigates the role of openness to innovation knowledge sources in driving firms’ radical innovation. First, we develop a theoretical model that predicts how political ties and business ties can be used by firms as a complementary mechanism to capitalize on their preferential resources. This complementary mechanism is more effective than relying on a single kind of tie. Moreover, using Chinese firm-level data, we find that openness has a curvilinear relationship with firms’ radical innovation performance. Second, we show that the joint interaction effects of political ties and business ties significantly influence firms’ openness to engaging in radical innovation.

R&D Strategy, IT Resource, and Radical Innovation Performance

How do firms in mature manufacturing industries manage their resources to adjust to the emerging trend of digital transformation and increase radical innovation (RI) performance? We start from Resource Orchestration Theory (ROT) to answer this question. ROT suggests that flexible resource management actions such as resource structuring and resource bundling could significantly contribute to the attainment of firms’ competitive advantages. Based on ROT, this study explores how different knowledge resource structuring strategies (explorative or exploitative R&D strategy) improves firm’s RI performance. In addition, firms could bundle IT resources with the knowledge resources produced by R&D, creating additional value and increasing RI performance. We collect survey data of 288 manufacturing firms in China to empirically investigate how different R&D strategies affect firms’ RI performance, and how IT resources (IT infrastructure and IT usage) moderate above relationships. The empirical results urge practitioners to pay attention to the differential roles of R&D strategies in fostering radical innovation. Bundling different types of IT resources with R&D strategy would also exert different results on firms’ radical innovation performance.

Innovation Performance Measure Tension and Absorptive Capacity

In pursuit of innovation, most firms rely on a diverse set of performance measures. While this helps them manage their various innovation efforts, the inherent tension between very distinct measures may also come at a cost. In this study, we argue that a strong tension between radical and incremental innovation performance measures undermines employees’ ability to effectively search and integrate knowledge from outside the organization’s boundaries, thus reducing a firm’s absorptive capacity. Firms may, however, overcome this problem through cultural controls. More specifically, we argue that encouraging paradoxical thinking among employees helps them cope with the contradictory nature of performance measure tension, thereby improving both their search and integration strategies for new knowledge. We test our hypotheses using survey data from 131 companies in innovation-dependent industries and find support for our predictions. A supplementary analysis provides evidence that the mechanisms we present also have significant performance implications for firms.

UNDERSTANDING THE DRIVERS OF RADICAL AND INCREMENTAL INNOVATION PERFORMANCE: THE ROLE OF A FIRM’S KNOWLEDGE-BASED CAPITAL AND ORGANISATIONAL AGILITY

Organisational agility, a specific dynamic capability, constitutes a key success factor in today’s dynamic business environments. However, it is unclear whether and how firms’ knowledge-based capital enables organisational agility. Moreover, mechanisms through which organisational agility translates knowledge-based capital into innovation performance are poorly understood. This study fills these gaps by investigating direct effects of knowledge-based capital (i.e., human, social, and organisational capital) on organisational agility and, in turn, indirect effects on radical and incremental innovation performance. Leveraging survey data from 385 German firms, this study contributes to the organisational agility and the strategic innovation management literature. First, our analysis validates human and social capital as antecedents of organisational agility, yielding evidence for the premises of the knowledge-based view in a novel context. Second, it substantiates the dynamic capability view as a pivotal theoretical lens for explaining the mechanisms underlying the relationships between firms’ knowledge-based capital, organisational agility, and incremental innovation performance.

Organizational unlearning, knowledge generation strategies and radical innovation performance: evidence from a transitional economy

PurposeEmpirical results remain unclear as to whether organizational unlearning can improve radical innovation performance. The purpose of this study is to investigate how, and under which conditions, organizational unlearning influences firms’ radical innovation performance.Design/methodology/approachDrawing on the knowledge-based view, this study develops a theoretical model that hypothesizes a positive relationship between organizational unlearning and radical innovation performance, which is mediated by knowledge generation strategies. It also proposes that the impact of unlearning on knowledge generation strategies will be moderated by dysfunctional competition. Using survey data from 191 Chinese manufacturing firms, the hierarchical regressions were used to test the hypotheses.FindingsThe empirical results show that organizational unlearning not only impacts radical innovation performance directly, but also indirectly affects radical innovation performance through two distinct types of knowledge generation strategies: (internal) knowledge creation and (external) information searching. Moreover, dysfunctional competition plays a dual role, strengthening the positive relationship between organizational unlearning and information search and weakening the positive relationship between organizational unlearning and knowledge creation.Research limitations/implicationsThe present research broadens the understanding of how to promote radical innovation performance, which has great potential to improve the performance of firms on the market. Specifically, it deepens the knowledge of how organizational unlearning facilitates radical innovation performance by focusing on two distinct types of knowledge generation strategies as the crucial links, and enriches existing literature on the effectiveness of organizational unlearning in a dysfunctional competitive environment.Practical implicationsPracticing organizational unlearning for firms’ long-term success requires firms to develop and implement appropriate knowledge generation strategies in accordance with the characteristics of market competition in their operating environment.Originality/valueThis study offers new insights into how and under what conditions organizational unlearning affects radical innovation performance, enhancing the understanding of how organizational unlearning can be implemented to drive firm radical innovation.

Barriers to radical innovation in research institutions in China

PurposeThis study aims to develop a better understanding of radical innovation performance and proposes a comprehensive and theoretical model of the barriers impeding radical innovation from the perspective of researchers working in research institutions in China. Both quantitative and qualitative techniques were used to test the hypotheses regarding barriers to radical innovation and the model proposed in this research.Design/methodology/approachThe data was collected through questionnaires and semi-structured interviews with researchers from different research institutions across several cities in China. Next, the data was analyzed by deploying the structural equation modeling technique and calculating the statistical significance of correlations, regression and path coefficients among the latent variables.FindingsThe results indicated the major barriers impeding radical innovation in Chinese research institutes. Based on these findings, suggested policies, regulations and business models are put forward that can promote radical innovation in these institutes through increasing research freedom, enhancing organizational flexibility, attracting talented researchers and expanding research collaboration.Originality/valueThe research proposes a comprehensive and theoretical model of the barriers impeding radical innovation from the perspective of researchers working in research institutions in China.

Knowledge assets and radical/incremental innovation performance: The role of organizational agility

To achieve and sustain radical and incremental innovation performance in today’s fast-paced environments, firms need to develop dynamic capabilities, like organizational agility, that allow them to quickly sense and respond to opportunities. Therefore, a better understanding of enabling assets and mechanisms is important for theory and practice. Drawing on the knowledge-based view and dynamic capability theory, this study investigates how specific knowledge assets enhance sensing and responding agility, which, in turn, advance radical and incremental innovation performance. Based on survey data from 385 firms, this study offers nuanced insights. First, human and social capital are positively related to sensing agility. Second, social and organizational capital are positively related to responding agility. Third, sensing agility mediates the relationships between both human and social capital and radical innovation performance, whereas responding agility mediates the link between both social and organizational capital and incremental innovation performance. Hence, this study contributes to innovation and strategic management literature by empirically validating specific knowledge assets as important antecedents of organizational agility’s underlying dimensions. Additionally, our findings substantiate dynamic capability theory as pivotal theoretical lens to explain the mechanisms underlying the relationships between a firm’s knowledge assets and radical/incremental innovation performance.

Radical or incremental: which type of innovation do stock options drive?

ABSTRACT Due to the importance and challenges, the issue of innovation has been a major one for decades in academia. In this paper, we investigate the effect that stock options have on radical and incremental innovation performance. We conclude that nonexecutive options have a significantly positive effect on both radical and incremental innovation, whereas executive options are only related to incremental innovation. The association between executive options and incremental innovation is more pronounced in firms with weaker free-rider problem and lower diversification, whereas the positive correlation between nonexecutive options and innovation is not magnified or weakened significantly by free-rider problem or firm diversification. Further analysis reveals that nonexecutive options foster radical innovation success through risk-taking and performance-based incentives, whereas executive options (nonexecutive options) contribute to incremental innovation success mainly through risk-taking (performance-based) incentives. We also determine that the distribution structure of a firm’s options matters. Collectively, our evidence shows that nonexecutive options facilitate better innovation performance, and rank-and-file employees are better innovators in a company.

Disentangling the relationship between internationalization, incremental and radical innovation, and firm performance

AbstractResearch SummaryThis study examines the impact of firm internationalization on incremental and radical product innovation, and the effects of these innovation facets on sales growth. We use a sample of 1,064 Spanish manufacturers over the period 2008–2014. We find a positive relationship between higher international scope and greater ex‐post radical innovation output, and an inverted U‐shape relationship between export intensity and both innovation forms. We also find a positive relationship between incremental innovation and sales growth for performance leaders, and negative for performance laggards. Conversely, radical innovation boosts performance laggards' sales growth, but reduces that of performance leaders. The study supports and qualifies the learning‐by‐exporting effect, by identifying some firm‐specific factors that shape the relationship between internationalization, innovation, and firm performance.Managerial SummaryIn this study, we examine the effect of a more intense and more geographically spread out international expansion in a firm's incremental and radical innovation performance. We argue that more internationalized firms may benefit from new knowledge and learning, which they may leverage to increase their incremental and radical product innovations. In turn, we posit that incremental product innovation may be beneficial for performance leaders, but useless for a turnaround of performance laggards. Conversely, radical innovation may be useful for performance laggards, but may disrupt the current position of performance leaders and lead to reduced sales growth. These results point to the importance for exporters to use their new knowledge and capabilities to develop innovation forms that are consistent with their position in the market.

Cultivating product innovation performance through creativity: the impact of organizational agility and flexibility under technological turbulence

PurposeThis study is to compare the impact of organizational agility and flexibility on performance of each type of product innovation (radical vs incremental innovation). Additionally, the moderating effect of technological turbulence on the relationship between the two types of organization is examined.Design/methodology/approachBased on gaps in the existing literature, the survey data are collected from managers who are in charge of developing new products in three industries: food and beverage, chemical and machinery (N = 431). Confirmatory factory analysis is used to verify measurement items and regression analysis is used to test hypotheses.FindingsThe results show that organizational agility increases performance in radical innovation both in a certain situation and an environment with technological turbulence. In contrast, the impact of organizational flexibility is limited to increasing performance in both radical and incremental innovation performance in a certain situation.Originality/valueOur study extends the knowledge of organizational agility and flexibility in the domain of product innovation. Adaptation of organization to respond the technological turbulence will stimulate creativity of new product development teams to produce new useful ideas and transform these ideas to product innovation. The different types of organizing a new product development team to handle technological turbulence will provide different results in product innovation performance. In addition, the findings provide a recommendation on how the organization of a new product development team can improve performance in each type of product innovation under technological turbulence.