Radical Innovation Capability Research Articles

Radical Innovation, Competitive Advantage and Management Capability on MSME Performance in Coffee Shop Businesses

Radical Innovation, Competitive Advantage and Management Capability on MSME Performance in Coffee Shop Businesses

A Study on the Mediating Effect of Knowledge Management Capability between HRM Practices and Radical Innovation Capability in Malaysia SME-ICT

Increasingly, executives understand the value of information as a source of new ideas for their companies. Only a small number of research examine the role of HR management in increasing knowledge competency, which leads to enhanced creativity inside firms. Because of this, this research examines how human resource management policies and practices affect the link between knowledge management competency and innovation. Consequently, The research is based on primary data collected from 200 SMEs in Malaysia's Klang Valley in the ICT sector. The study's goals necessitate a quantitative methodology. ICT small and medium-sized enterprises (SMEs) owners, CEOs, and managers are surveyed utilizing a survey method. More than 200 responses were received and analysed in the course of this study. The study models and hypotheses were evaluated using the Partial Least Squares (PLS) method. Research is scarce in the domains of HRM and innovation, as well as the interaction between HRM and knowledge management in the context of innovation. Research indicates a good correlation between Human Resource Management (HRM) Capabilities and Knowledge Management.

TMT's technical orientation and ambidextrous innovation capability in digital transformation age

AbstractThis study examines the effects of technical orientation of the top management team (TMT) on ambidextrous innovation capability in the digital transformation age. Our baseline results document a positive relationship between TMTs' technical orientation and ambidextrous innovation capability. While digital transformation significantly enhances the positive relationship between TMTs' technical orientation and radical innovation capability, it is not correlated with the positive relationship between TMTs' technical orientation and incremental innovation capability. We discuss the heterogeneity of state ownership, revealing that while TMTs' technical orientation enhances the ambidextrous innovation capability in Chinese state‐owned enterprises (SOEs), it is not correlated with Chinese non‐SOEs. In Chinese SOEs, digital transformation enhances the positive relationship between TMTs' technical orientation and ambidextrous innovation capability, but no correlation is observed in Chinese non‐SOEs.

How inter-firm cooperation and conflicts in industrial clusters influence new product development performance? The role of firm innovation capability

Despite ongoing cooperation among firms in industrial clusters, inter-firm conflicts are also prevalent, and little research has explored how these factors impact new product development (NPD) performance. In this study, we examine the influence of inter-firm cooperation and conflicts (i.e., constructive and destructive) on NPD performance, and explore the mediating role of innovation capability (i.e., incremental and radical) and the joint interactive effects of cooperation and conflicts on innovation capability. Based on data collected from a multi-sourced sample of 181 industrial cluster firms, our results confirm that innovation capability mediates the relationship between cooperation/constructive conflict and NPD performance. Specifically, we find that cooperation and constructive conflict positively affect both types of innovation capability, while destructive conflict negatively affects incremental innovation capability. Moreover, we identify a negative interaction effect of cooperation and constructive conflict on radical innovation capability, and a positive interactive effect of cooperation and destructive conflict on incremental innovation capability. These findings contribute to the literature on industrial clusters and provide practical implications for firm managers and government officials interested in regional development through industrial clusters.

IDENTIFYING START-UP PARTNERS: WHICH SEARCH PRACTICES AND COMBINATION STRATEGIES ARE EFFECTIVE?

Start-ups are an important source of novel knowledge and product ideas for incumbents. We investigate which search strategies are positively related to the successful search for start-ups. We identify search instruments and their various uses: intensive or broad; stand-alone or combinatory. Finding 11 search practices in the literature, we evaluate how these practices were used by 97 respondents from a cross-industry and cross-national sample. Our results show that searching broadly and intensively is positively related to a successful search for start-ups and to firms’ radical innovation capability. Specific tools that are positively related to search success are online contacts, desk research, external scouting partners, and start-up pitch events. Decision tree analysis provides effective combinations of search practices that innovation managers and purchasing managers can use. Employing these search practice combinations, we make incumbents aware of the routines used in distant knowledge search. These practices are dynamic capabilities that help them to remain successful in high-velocity markets. In identifying these search practices, we contribute to the literature on innovation routines and dynamic capability research.

Resolving conflicting results of intellectual capital’s influence on innovative capability

Previous studies have shown conflicting results of intellectual capital’s influence on innovative capability. The conflicting results impede not only theoretical development but also managers’ investment decisions on innovation. This study indicates that divergent knowledge (positive effect), reluctantly sharing knowledge, self-justification (for prior period decision), and sunk cost fallacy (negative effects) explain the human capital conflicting results; inertial (positive effect) and overinvestment (negative effect) explain the organizational capital conflicting results. This study further argues that a firm’s dynamic capability help itself sense (entirely new and partially new) opportunities, seize the strategic-fit opportunities and utilize intellectual capital to transform/enhance its innovative capabilities. Dynamic capability reflects aggregated results of above positive and negative effects and thus resolves the intellectual capital conflicting results. Furthermore, this study argued the social capital facilitate the influences of human capital and organizational capital on innovative capability via opportunities and trust. This study expects following possible findings to contribute theoretical development and managerial implications: (1) when human capital is insufficient, greater human capital increases incremental innovative capability but decreases radical innovative capability. However, to 2 increase radical innovative capability, sufficient human capital is required. (2) Firms incline to overinvest organizational capital in incremental innovative capability; however, dynamic update of organizational capital is a key to increase incremental innovative capability. (3) Dynamic capability mediates the relationship between intellectual capital and innovative capability. Dynamic capability explains the influence of organizational learning on innovative capability from a resource-based perspective. (4) Social capital moderates the relationship between human capital/organizational capital and radical/incremental innovative capability. (5) dynamic capability discloses the mechanism/process of intellectual capital’s influence on innovative capability; human capital and organizational capital, per se, are actors/predictors for increasing innovative capability. Social capital provides opportunities and trust to facilitate (moderate) human capital and organizational capital to increase innovative capability; together with human capital and organizational capital, social capital influences innovative capability through dynamic capability.

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.

Top management Team's cognitive diversity and the Firm's ambidextrous innovation capability: The mediating role of ambivalent interpretation

The top management team (TMT) diversity has received considerable attention in literature, especially due to its influence on an organization's innovation strategy. While previous studies have considered diversity in terms of education, experience, skills, functionality, and gender, little is known about the TMT's cognitive diversity. We contribute to the literature by examining the influence of the TMT's cognitive diversity on an organization's ambidextrous innovation capability; i.e., its incremental and radical innovation capability. Results from 50 TMTs involved in the electronics industry support our hypothesized mediating role of ambivalent interpretation; that the TMT cogitative diversity positively influences ambivalent interpretation, and this, in turn, positively influences both radical and incremental innovation capability. These findings have important implications for how a firm's decision makers (i.e., the TMT) with their diverse cognitive styles support building the firm's ambidextrous capability through ambivalent interpretation.

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.

The role of information governance in big data analytics driven innovation

The age of big data analytics is now here, with companies increasingly investing in big data initiatives to foster innovation and outperform competition. Nevertheless, while researchers and practitioners started to examine the shifts that these technologies entail and their overall business value, it is still unclear whether and under what conditions they drive innovation. To address this gap, this study draws on the resource-based view (RBV) of the firm and information governance theory to explore the interplay between a firm’s big data analytics capabilities (BDACs) and their information governance practices in shaping innovation capabilities. We argue that a firm’s BDAC helps enhance two distinct types of innovative capabilities, incremental and radical capabilities, and that information governance positively moderates this relationship. To examine our research model, we analyzed survey data collected from 175 IT and business managers. Results from partial least squares structural equation modelling analysis reveal that BDACs have a positive and significant effect on both incremental and radical innovative capabilities. Our analysis also highlights the important role of information governance, as it positively moderates the relationship between BDAC’s and a firm’s radical innovative capability, while there is a nonsignificant moderating effect for incremental innovation capabilities. Finally, we examine the effect of environmental uncertainty conditions in our model and find that information governance and BDACs have amplified effects under conditions of high environmental dynamism.

Ambidextrous leadership and radical innovative capability: The moderating role of leader support

Radical innovation is a fundamental approach to achieving sustainable and competitive advantage. However, existing studies have not adequately explored the antecedents of radical innovation; in particular, consideration of leadership factors in a Chinese context is lacking. Ambidextrous leadership provides a new perspective for explaining radical innovation. In this study, we developed a moderation model and tested it with three‐wave data of 511 employees from the Chinese mainland, linking ambidextrous leadership with radical innovative capability. The results support our hypotheses that high‐empowering–low‐directive leadership (punctuated ambidextrous leadership) is more beneficial for radical innovation, and strong leader support can strengthen this effect. However, our hypothesis that simultaneous ambidextrous leadership influences positively radical innovation capability was not supported. These findings indicate that leaders should change their original conservative and directive strategies to enhance radical innovative capability.

Open-and-closed process innovation generation and adoption: Analyzing the effects of sources of knowledge

This research investigates the effects of internal and external sources of knowledge on process innovation generation and adoption; moderating role of radical innovative capability. We nested the data from chemical manufacturing firms, and analyzed it by using SEM technique. The findings revealed that internal sources of knowledge facilitate process innovation generation. This relationship further strengthens when there is the presence of radical innovative capability. On the other hand, external sources of knowledge extended ambidextrous effects by affecting positively on both process innovation generation and adoption. However, contrast to research hypothesis, the presence of radical innovative capability weakens the effects of external sources of knowledge on process innovation adoption. Besides its moderation, radical innovation capability also displayed positive effects on process innovation generation. Further paper discusses some useful theoretical and practical implications.

On the contingent value of knowledge base for radical innovation capability

PurposeThis paper aims to explore how to build firm’s radical innovation capability from its own knowledge resources. It proposes the impact of knowledge base on radical innovation and outlines why and how appropriability regimes are important throughout the radical innovation capability development process.Design/methodology/approachQuestionnaire and in-depth interviews were used to empirically test the relationship between knowledge base, appropriability regimes and radical innovation capability. To correct for potential endogeneity, a two-stage regression model was used to test the interaction effectsFindingsBy examining 237 firms involved in R&D activities in high-tech manufacturing firms in China, this paper finds that when a firm have a deep knowledge base, strategic appropriability regime may reduce concerns about problems such as knowledge leakage and innovation appropriation associated with deep knowledge bases. In contrast, legal appropriability regime will also tend to strengthen the positive effect of knowledge breadth on radical innovation capability.Research limitations/implicationsIn this study, self-reported measures are used because of their potential for concept specific accuracy; future research might wish to replicate our model and test it with objective data.Practical implicationsThe paper includes implications for the fit between the existing internal knowledge base and the way a firm appropriates from its knowledge, and provides entrepreneurs and managers with direct implications about how to manage knowledge resources for radical innovation capability development.Originality/valueThis paper provides a more nuanced understanding of how knowledge base and value appropriability mechanisms jointly affect radical innovation capability development.

The organizational climate for psychological safety: Associations with SMEs' innovation capabilities and innovation performance

Abstract This paper conceptualizes psychological safety as an organizational level phenomenon, and proposes that an organizational climate for psychological safety is positively related to SMEs' innovation performance and innovation capabilities. These hypotheses are tested on data from Norwegian SMEs. The results demonstrate that psychological safety is positively associated with SMEs' innovation performance, and positively related to product-, process-, service-, and business model innovation capabilities. Furthermore, an organizational climate for psychological safety is particularly important for enhancing a firm’s radical innovative capability, while environmental dynamism is found to moderate the effect of psychological safety. The results support the relevance of psychological safety at the firm level of analysis.

Determinants of Enterprises Radical Innovation and Performance: Insights into Strategic Orientation of Cultural and Creative Enterprises

A firm’s strategic orientation determine its business direction and scope of operation. Several researchers have tried to identify how strategic orientations affect business development. However, only a few scholars have explored how strategic orientations shape a firm’s organizational capability. In addition, the extent to which radical innovation contributes to a firm’s operations has not been well researched. Given these research shortcomings, this study explores the integration of firms’ strategic orientations, radical innovation, competitive advantages, and business performance within a conceptual framework. A sample of 86 cultural and creative firms was obtained. The results of the regression analysis and of the PLS SEM model are compared in this study. Our findings suggest that factors from either market orientation or entrepreneurial orientation add to a firm’s radical innovation capability and adoption. Lastly, the brand advantage is identified to be the most important factor in firms’ performance after a radical innovation capability and product advantage. This paper offers several contributions to the research. First, it advances knowledge of the strategic orientations of cultural and creative firms in a developing market. Second, it demonstrates the usefulness of radical innovation capability in profiling the development of competitive advantages. Lastly, it adds to our understanding of factors that facilitate the business performance of cultural and creative entrepreneurs.

Inbound open innovation and radical innovation capability

PurposeThe purpose of this paper is to analyze the impact of inbound open innovation and organizational inertia on radical innovation capability (RIC). It also seeks to explore whether the existence of organizational inertia has a moderating effect and influence on the relationship between inbound open innovation and RIC.Design/methodology/approachIn this empirical research, the authors collected sample of patents in smart phone industry over the 2000-2016 period. Then, the authors examined the direct roles of inbound open innovation and organizational inertia, and the moderating role of organizational inertia by using hierarchical regression analysis.FindingsResults found that cognitive inertia (CI) has a positive influence on firms’ RIC, but network inertia (NI) has a negative influence on RIC. CI also has a significant moderating effect on the relationship between inbound open innovation and RIC, but NI only has a significant moderating effect on the relationship between open search breadth and RIC. Inbound open innovation directly affects RIC.Research limitations/implicationsThe authors collected the patent data of this study within the single industry and excluded other types of industries. And it may limit the generalization of the findings.Practical implicationsThe paper includes implications for adopting an appropriate open search strategy and developing a better understanding of organizational inertia on firms’ radical innovation behavior. The findings suggest future directions to technology intensive industries for improving their RIC.Originality/valueThis study contributes to the relationship between organizational inertia and RIC within the framework of inbound open innovation.

Materializing Radical Innovation Capability: A Management Control Perspective

Recent research in strategic management claims that firms need appropriate structures for capabilities to materialize into performance. Following this argument, we posit that the design of manageme...

The Human Resource Practice Research Based on the Radical Innovative Capability

Taking BGI (Beijing Genomics Institute) for example, the essay states, under the current situation-convergence of the Technology and Innovation and enormous critical apparatus heavily relying on import, how one can cooperate with radical innovation ability expressing its charm and kinds of hardworking on human resource behind it. In addition, the essay hopes to bring something meaningful for a great deal of fresh small businesses with the analysis of BGI human resource based on the model of Snell and AMO (ability, motivation & opportunities).

Going the extra mile: Managing individual motivation in radical innovation development

Developing radical innovations is highly demanding because of high uncertainties which give rise to unanticipated problems and discoveries. Managing individual motivation is therefore an important component of the radical innovation capability. This study presents a theoretical model of managing individual motivation in radical innovation development. The model is tested and elaborated by investigating four incumbent companies. The findings indicate that managers may influence the initial level of individual motivation and its effect on the success in development tasks by assigning external goals and providing organizational support. These methods can be found at multiple levels: individuals, project teams, and the organization.

Examining the link between service modularity and firm performance

PurposeWhile service scholars have generally supported the idea that service modularity enhances firm performance, the literature offers very little evidence of the actual process through which service modularity continuously contributes to firm performance. The purpose of this paper is to examine the link from a capability perspective: service modularity capabilities-service modularity-new service advantage-firm performance, as well as the moderating role of radical innovation capability in the effect of service modularity on new service advantage.Design/methodology/approachTo examine this link, data were collected from a cross-industry survey of 231 leading service firms. Structural equation modeling and hierarchical moderated regression analyses were employed to test the model.FindingsAnalyses reveal that new service advantage mediates the service modularity-firm performance relationship. Moreover, service modularity capabilities act in an important antecedent role to configure service modularity. Among the findings, it is worth emphasizing that radical innovation capability not only strengthens the positive effect of, but also alleviates the negative effect of, service modularity on new service advantage.Originality/valueThis study provides a more complete understanding of how service modularity enhances firm performance by discovering the hidden role of new service advantage that bridges service modularity and firm performance, clarifying the role of service modularity capabilities in configuring service modularity, and confirming the important role of radical innovation capability in sustaining the effectiveness of service modularity.