Role Of Innovation Capability Research Articles

The effect of market orientation and technology orientation on industry 4.0 technologies and market performance: Role of innovation capability

Today, businesses are facing increasing demands from the customers and strong competitive pressure. Firms must continuously deliver value and satisfy customer demands to survive and maintain growth in the market. In this regard, organizations are implementing Industry 4.0 (I4) technologies to satisfy customer requirements, deliver value and sustain in the market. This study examines how strategic orientations (market and technology orientation) influence firms to adopt I4 technologies, and how I4 technologies can help to deliver customer value and improve firm performance. To this end, the study posits that adoption of I4 technologies develops innovation capability, which can lead to desired performance outcomes (innovation and market performance). The proposed model is examined using survey responses from 154 US industrial firms. Findings show that market and technology orientation have significant effect on adoption of I4 technologies, and partial mediation effect of technology orientation between market orientation and adoption of I4 technologies. Further, I4 technologies help to build innovation capability, which improves performance outcomes. The study provides implications for managers in industrial firms with regard to understanding the key facets of I4 technologies.

Pentingnya Kapabilitas Inovasi dalam Meningkatkan Performa Bisnis

This study aims to explain how the role of innovation capabilities in entrepreneurial orientation in influencing business performance. The population of this study consists of MSMEs in Bali's tourism and creative economy (parekraf) industry. Purposive sampling was used to select 90 MSME managers in the tourism and creative economy sectors. Path Analysis with SEM-PLS is used as an analytical approach. The findings show that there is a positive and significant impact of entrepreneurial orientation on business performance shown by creativity, innovation, dare to take risks, be independent, and dare to compete. The positive and significant influence of entrepreneurial orientation on innovation capabilities; and the positive and significant influence of innovation capabilities on business performance. Innovation capabilities are able to mediate the influence of entrepreneurial orientation on business performance. Therefore, it is important for MSMEs in the tourism sector and creative economy in Bali to improve entrepreneurial orientation in order to be able to build higher innovation capabilities to improve business performance after the COVID-19 pandemic.

The role of innovation capability in mediation of COVID-19 risk perception and entrepreneurship orientation to business performance

The purpose of this study is to explain how innovation capability influences business performance by mediating the effect of Covid-19 risk perception and entrepreneurial orientation. This study's population consists of MSMEs in Bali's tourism and creative industries. Purposive sampling was utilized to choose 90 managers of MSMEs in the tourist and creative economy sectors. Path Analysis with SEM-PLS was employed as the analytical approach. The findings revealed that the COVID-19 Risk Perception had a negative and significant impact on business performance, but the Entrepreneurship Orientation had a positive and significant impact. Furthermore, COVID-19 Risk Perception had a negative and significant impact on Innovation Capability; while the Entrepreneurship Orientation had a positive and significant effect on Innovation Capability; and Innovation Capability had a positive and significant impact on business performance. In addition, Innovation Capability was able to mediate the influence of COVID-19 Risk Perception and Entrepreneurship Orientation on business performance. Therefore, it is important for MSMEs in the tourism and creative economy sectors in Bali to improve their Entrepreneurship Orientation so that they are able to build higher innovation capabilities in order to improve business performance in facing the risks of the COVID-19 pandemic.

INNOVATIVE CAPABILITY AS MEDIATOR BETWEEN CORPORATE SOCIAL RESPONSIBILITY, ORGANIZATIONS PERFORMANCE AND VALUE CREATION

The corporate Social Responsibility (CSR) and innovation capability are key constituents of the value creation and organisational performance. In this context, the current research examined the impact of innovation capability as a mediator between the corporate social responsibility, organizational performance, and value creation in the Pakistani banking industry. This quantitative study obtained data from 320 respondents using the survey questionnaire and a simple random sample approach. The applied data analysis technique was PLS SEM. Results depicted that CSR has significant positive effects on Innovative capability. Also, innovation on performance has a strong association with value creation and banks performance. The role of Innovative capability as a mediator between CSR and value creation was confirmed through structural equational modeling. Results indicated that innovative capability has significant mediating effect amid CSR and banks performance. This study will open new avenue for scholars and as well for practitioners in different sectors. The findings would be useful to organizations, policymakers, and investors within strategic condition at the micro or macroeconomic level.

DEVELOPMENT OF TRANSFORMATIONAL LEADERSHIP FOR WOMEN ENTREPRENEURS IN INDONESIA

The purpose of this study was to determine the effect of Transformational Leadership on Innovation Capability and Business Performance of women entrepreneurs, as well as the role of Innovation capability as a moderating variable. The population in this study was women entrepreneurs. The sample was 286 respondents using particular criteria. The questionnaire was used as a research instrument by using an online application. Data analysis using SEM PLS. The results show that transformational leadership and innovation capability affect the business performance of women entrepreneurs, and transformational leadership affects innovation capability. Besides, innovation capability is capable of being a mediator of transformational leadership in business performance. The management implication is that innovation plays a critical role in running MSME businesses. Innovation can create a competitive advantage.<p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/edu_01/0222/a.php" alt="Hit counter" /></p>

The Role of Innovation Capability in MSME Sustainability During the Covid-19 Pandemic

Micro, Small, and Medium Enterprises (MSMEs) are business activities capable of expanding employment and providing the economic services for society widely, and also play roles in equalizing and increasing people's income, encouraging economic growth, and realizing national stability. Micro, Small and Medium Enterprises (MSMEs) also play an essential role in improving the community's economy at the city and regency levels. This study aims to analyze the empirical evidence that the capabilities and environmental factors carried out by MSMEs have a positive effect on innovation, both product innovation and process innovation. The method used in this study is the Structural Equation Model PLS analysis. The population in this study is the total number of MSMEs which registered with the Department of Trade and Industry in 2020 as many as 31591 businesses. The data collection technique is done by distributing questionnaires. Measurement models are assessed by testing the reliability of each item, converging validity and discriminant validity. The results of the analysis show empirical evidence that innovation capability and environmental factors carried out by the MSME sector have a significant positive effect on innovation, both product innovation and process innovation. This study concludes that innovation capability and environmental factors in the MSME sector can increase innovation and have an impact on the sustainability of MSMEs. The contribution of this research is that the capability of innovation and environmental factors can increase the innovation made by MSMEs.

The Role of Innovation Capability in Enhancing Sustainability in SMEs: An Emerging Economy Perspective

Today, we are living in the knowledge century. Knowledge-based intangible resources in enhancing sustainable growth of small and medium enterprises (SMEs) is presently a significant scope of research. Innovation capability is the intuitive skill of an individual or a firm to transform an explicit concept towards value orientation that carries an economic value. This economic value would then lead to wealth creation and eventually result in sustainable SMEs. The SME sector has been highlighted for its significant contribution towards the creation of employment, opportunity for innovation and economic dynamism. In this study, evidence derived from knowledge-based view and knowledge creation theory was used to construct a structured model to analyze the relationships among innovation capability, disruptive technology and knowledge creation and their impacts on SMEs sustainability. A sample of 384 owners of SMEs in Sri Lanka was included in the study. The outcome of structural equation modelling (SEM) discovered positive effects of innovation capability, disruptive technology and knowledge creation on sustainability. Innovation capability also emerged as a predictor of disruptive technology and knowledge creation. Moreover, disruptive technology and knowledge creation were found to be partial mediators of the association between innovation capability and SMEs’ sustainability. These findings pave the way for policy makers to promote sustainability in SMEs, by assisting to enhance their performance in competitive and innovative economic environments. Further, the validated model can be empirically tested in future research.

Inter-organizational social capital of firms in developing economies and industry 4.0 readiness: the role of innovative capability and absorptive capacity

The globalization of markets provides opportunities for firms to collaborate on various activities. These collaborations are the resource of social capital for firms to achieve sustainable competitiveness. This study aims to investigate how social capital (i.e., structural, relational, and cognitive social capital) between firms in a developing economy and developed economy strengthens their innovation capability and enhance their industry 4.0 readiness. Using Smart PLS-SEM to analyse the data collected from 320 managers representing 81 manufacturing firms in Pakistan, we found that social capital is positively associated with industry 4.0 readiness, and innovative capability mediates this relationship. The study contributes to the existing knowledge of understanding industry 4.0 readiness and provides useful insights for firms in developing economy to improves their innovation capability during the industry 4.0 era. This study likewise reveals the significance of three dimensions of social capital, which can facilitate to bring in digital knowledge from developed economies to developed economies to get ready for the fourth industrial revolution.

Human development index and innovation capabilities in the health sector of UAE.

Based on human capital theory, the goal of this study was to look into the role of innovation capabilities in the UAE healthcare sector's competitiveness. Following the qualitative research design, data were gathered through interviews with 90 experts and professionals working in the health industry in UAE. Furthermore, the study also analyzed the UAE's Human Development Index (HDI), innovation capacities, and human development competitiveness from 2014 to 2020 using the conceptual statistics of Key Performance Indicators (KPIs) obtained in the health sector. Results revealed that UAE achieved some positive indicator results from 2020 to 2021. In addition, there are significant areas of improvement through which the UAE can build a better rank in the global competitiveness index of the health sector. The study provided key policy insights for understanding the strengths and weaknesses of innovation capabilities and human development competitiveness in the healthcare sector. Avenues of growth policy and future research directions are suggested.

The role of innovation capability in organizational success for small and medium enterprises in Kenya: A critical review of literature

This article presents the concept of innovation capability as a tool for organizational success in smalland medium enterprises. Since entrepreneurship is the vehicle that will drive the vision 2030 in Kenya,it is imperative that we -underscore the importance of small scale and medium enterprises (SMEs) asmajor contributors of this noble course. SMEs operate in a dynamic and turbulent environment yet thissector is a major source of employment for Kenyans. In addition, there is an increasing challenge tobuild innovation capabilities for organizational success. This paper therefore examines concepts suchas innovation, innovation practices, culture, sources of innovation and measurements of innovationwhile breaking from normal; innovation leaders, role of innovation and SMEs among others with aview to mitigating the challenges faced by SMEs in operating their business enterprises.

Passive but defiant: the role of innovative capabilities in knowledge management and corporate entrepreneurship

PurposeThis paper aims to examine the role of organizational innovative capabilities (OIC) on the relationship between knowledge sharing (KS), corporate entrepreneurship (CE) and firm performance (FP). Specifically, this study uses the knowledge-based view to develop a model that examines the mentioned relationship.Design/methodology/approachUsing survey data from 520 participants across 75 service sector companies in Thailand, measurement and structure models are tested through structural equation modeling to quantify the impact between constructs.FindingsThis study shows that KS and CE positively affect OIC and FP. A positive relationship is also found between KS and CE. The mediating impact of OIC strengthens the relationship between KS and CE on FP.Research limitations/implicationsLike all research using survey methods, the research is prone to respondent biases and generalizability. However, this paper has put the best effort to minimize such effects by rigorous methodological testing to avoid such biases.Practical implicationsThe findings of this study suggest that to improve organizational learning and knowledge-based performance, commitment and understanding of the employees in the entire organization is crucial. KS significantly contributes to developing innovative abilities because of its characteristics of providing firm-specific and socially complex advantages. The way a firm transforms and exploits its knowledge may ascertain its level of innovativeness, such as coming up with certain problem-solving procedures and new product development according to the rapid change in the market demand. However, organizations may only instigate to effectively organize knowledge when their employees are ready to share knowledge. Continuous KS boosts entrepreneurial practices and contributes innovativeness across individuals, groups, units or the entire organization.Originality/valueThe relationship between CE, organization innovative capabilities and FP in the presence of KS is rarely discussed in both theoretical and empirical literature. This study contributes to the literature by arguing that apart from the direct impact of KS on FP, KS can lead the firms toward generating important competitive advantage by forming innovative capabilities that can significantly influence FP.

The Impact of Organizational Learning, on Firm Performance in The Context of Manufacturing SMES in Malaysia, Mediating Role of Innovation Capability

The Impact of Organizational Learning, on Firm Performance in The Context of Manufacturing SMES in Malaysia, Mediating Role of Innovation Capability

Dynamic Capabilities and Competitive Advantage of Telecommunication Companies in Ghana. The Role of Innovation Capability

This paper explored the link between dynamic capabilities, innovation capabilities, and competitive advantage of telecommunication companies in Ghana, considering a mediation interaction. Data were obtained from two hundred and fifty (250) employees from selected telecommunication companies in the Accra metropolis through simple random probability sampling. However, two hundred and forty-two (242) responses were deemed accurate and used in the analysis. Partial Least Squares (PLS) based on Structural Equation Modeling (SEM) was employed in the analysis. From the findings, this study’s data met internal consistency reliability, convergent, and discriminant validity. Dynamic capabilities had a positive and significant impact on innovation capability and competitive advantage. Also, dynamic capabilities through innovation capability positively impacted competitive advantage and were statistically significant. Based on the findings, it’s recommended that organizations and managers consider both exploitation and exploration competencies in product development as both competencies influence various aspects of an organization’s competitive advantage, as this will help ensure organizations’ sustainable performance and thus remain competitive.

Intellectual resource and new product performance: mediating role of innovation capability

Intellectual resource and new product performance: mediating role of innovation capability

Role of Innovation Capability on firm performance in the context of Commercial Banks in Nairobi City County, Kenya

The Kenyan banking industry is characterized by increased environmental dynamism brought about by rapid technological development, customer sophistication and regulations. The achievement and sustenance of competitive advantage is important as any organization that does not gain and sustain this may not survive. In order for an organization to remain relevant, it must be able to leverage on innovation capability for effective adaptation to changes in the environment. This study therefore sought to assess the influence of innovation capability on performance of Commercial Banks in Nairobi City County, Kenya.The study was anchored on dynamic capabilities theory and resource-based view, Resource. Descriptive research design was used for this study. The target population was Commercial Banks in Nairobi City County. The unit of analysis was the commercial banks while the unit of observation was management. Data was gathered using self-administered questionnaire then analyzed using Statistical Package for Social Sciences (SPSS Version 25.0) software. Descriptive statistics such as frequencies, percentages and mean and inferential statistics such as correlation coefficient was used to analyze quantitative data. Charts, tables and graphs will be used to present the data. The study established that innovations capability positively and significantly affects performance. The study revealed that innovation capability is an important requirement for the effective management of inventions and creativity and the introduction of transformative technologies. The study recommends that in an era of faster competition and digitization, commercial banks in Nairobi City County, Kenya must increase their innovation capability. New innovations easily adopted in organizations enables banks to adjust to meet new customer needs and market changes. Innovation also enables creation of new products and services from time to time .Innovation capability of an organization affects organizational performance as it determines organization’s productivity and effectiveness.

Strategic Asset Seeking and Innovation Performance: The Role of Innovation Capabilities and Host Country Institutions

Peering through the lenses of the strategic intent perspective and strategic fit paradigm, in this study, we seek to examine the contingent conditions under which emerging market multinational enterprises (EMNEs) with strategic asset seeking (SAS) intent can achieve improved innovation performance. We developed a contingency model of how the relationship between SAS intent and innovation performance is contingent on the moderating effects of firms’ innovation capability and institutional quality in the host country, as well as on the synergistic interaction of independent moderating effects from these two factors. We combined survey data from 320 Chinese MNEs with archival data to test our hypotheses. Our results show that SAS intent can lead to positive innovation performance when (a) the investing firm has developed high levels of innovation capability, and (b) synergistic interactions exist between institutional quality and firms’ innovation capability regarding their moderating effect on the SAS intent-innovation performance link.

Customer orientation and financial performance relationship: the mediating role of innovative capability

Abstract: Existing research establishes customer orientation (CO) per se as insufficient to achieve higher levels of financial performance (FP). Such reasoning suggests the need for additional skills and capabilities, such as, innovative capability (IC). In addition, environmental variables (e.g., Technological Turbulence – TT) affect these relationships. This paper explores the relationships and effects of CO and IC on FP under different TT conditions. A research framework and hypotheses were developed. The framework captures the following relationships: (i) the direct influence of CO on FP; (ii) the mediating role of IC on the CO/FP relationship; (iii) the moderating role of TT over the mediation of IC on the CO/FP relationship. The fieldwork included an exploratory stage, followed by a cross-sectional survey applied to managers in medium-sized companies in Brazil. Findings revealed that IC partially mediates the relationship between CO and FP, in particular in high TT environments. Managerial implications and avenues for future research are presented.

MARKET ORIENTATION AND NEW PRODUCT SUPERIORITY AMONG SMALL AND MEDIUM-SIZED ENTERPRISES (SMEs): THE MODERATING ROLE OF INNOVATION CAPABILITY

The study explored the effects of the individual dimensions of market orientation on the superiority of new products introduced unto the market by SMEs, as well as the moderating role of innovation capability on these relationships. Analysis was based on 373 SMEs whose respondents were either employee-managers or owner-managers. Confirmatory Factor Analysis was conducted to check for validity and reliability of the observed items. A hierarchical regression model was estimated to test the various hypotheses set for the study. Findings revealed that customer orientation and inter-functional coordination had a positive and significant effect on new product superiority; however, competitor orientation had no significant effect. Innovation capability positively moderated the effects of customer orientation, competitor orientation and inter-functional coordination on new product superiority. This indicates the crucial role of SMEs’ innovative capability in leveraging the effect of competitor orientation on new product superiority.

Examining the Business Venture Success of Restaurants: The Role of Innovation Capability as a Mediator

ABSTRACT This research examines successful entrepreneurial practices of small and medium restaurants in Malaysia, which includes aspects of start-up planning, financial support, networking, family support, and government support. It also investigates the mediating role of innovation capability on successful entrepreneurial practices. Purposive sampling technique was used to collect data from 390 restaurant business owners through a mailed structured questionnaire. Structural equation modeling involving SmartPLS 3.0 and SPSS 20 software were used to analyse the data and to test the hypotheses. It shows that only start-up planning, networking and innovation capacity were supported, whereas financial support, family support and government support were not supported. Results revealed that innovation capability is a significant intervening variable on the relationship between start-up planning and business venture success, as well as the relationship between networking and business venture success. The study provides practical implications to restaurant owners to actively evaluate the existing resources for better decision making. Keywords: Restaurant; business venture success; networking; start-up planning; innovation capability. ABSTRAK Kajian ini meneliti amalan keusahawanan yang berjaya di restoran kecil dan sederhana di Malaysia, yang merangkumi aspek perancangan permulaan, sokongan kewangan, rangkaian, sokongan keluarga, dan sokongan kerajaan. Kajian ini juga menyiasat peranan mediasi keupayaan inovasi terhadap amalan keusahawanan yang berjaya. Teknik pensampelan purposif digunakan untuk mengumpul data dari 390 pemilik perniagaan restoran melalui soal selidik berstruktur yang dihantar. Pemodelan persamaan struktur yang melibatkan perisian SmartPLS 3.0 dan SPSS 20 digunakan untuk menganalisis data dan menguji hipotesis. Dapatan kajian menunjukkan bahawa andaian bagi permulaan perancangan, jaringan dan keupayaan inovasi adalah disokong manakala andaian bagi bantuan kewangan, sokongan keluarga dan sokongan kerajaan adalah tidak disokong. Keputusan menunjukkan keupayaan inovasi adalah pemboleh ubah intervensi yang signifikan terhadap hubungan antara perancangan permulaan dan kejayaan usaha perniagaan, serta hubungan antara jaringan dan kejayaan usaha perniagaan. Kajian ini memberikan implikasi praktikal kepada pemilik restoran untuk secara aktif menilai sumber-sumber sedia ada untuk membuat keputusan yang lebih baik. Kata kunci: Restoran; kejayaan usaha perniagaan; rangkaian; permulaan perancangan; keupayaan innovasi.

The effect of high performance work systems on radical innovation in knowledge-based companies through moderating role of innovation capabilities

The present study aims to examine the effect of high-performance systems through moderating role of marketing capabilities on radical innovation of knowledge-based companies. The statistical population of study includes all managers and employees of Iranian knowledge-based companies that are located in Isfahan province. The statistical sample of study includes 165 individuals. The results of present study suggest that the variables of employee autonomy, training and development off employees, participation in decision-making, job security and performance management affect radical innovation of knowledge-based companies significantly. In addition, the results suggest that the variables of job security and job clarity do not affect radical innovation of knowledge-based companies significantly. In addition, results of testing moderating hypothesis suggest that innovation capabilities with adjustment coefficient of 0.527 moderate the effect of high-performance systems on radical innovation significantly.