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Assessing the impact of organizational learning capability on product innovation performance: An empirical test

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Abstract

This paper examines how organizational learning capability affects product innovation performance. We define organizational learning capability through five dimensions or mechanisms: experimentation, risk taking, interaction with the external environment, dialogue and participative decision making. The impact of these mechanisms on product innovation performance is also analyzed. We use structural equations modeling to test our research hypotheses on a data set from the ceramic tile industry. Results support our conceptual model and underline the importance that learning has for innovation performance. Implications of the findings for both academics and practitioners are examined.

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... Thus, this study aims at filling this gap by examining the impact of big data (i.e., volume, velocity, and variety) on firm's innovation performance (i.e., innovation efficacy and innovation efficiency). The degree to which an innovation is useful to the firm is measured by its efficacy, and the time and effort needed to reach that level of benefit are measured by its efficiency (Alegre and Chiva, 2008). Innovation performance is defined as a "firm's ability to develop innovative products, the speed of the development process, and the ability to introduce the product to the market on time" (Tian et al., 2020, p. 416). ...
... Innovation Performance: Innovation performance is characterised by two dimensions: innovation efficacy and innovation efficiency. Innovation efficacy is defined as the extent to which an innovation is successful while innovation efficiency is defined as the time and effort made to achieve the degree of success (Alegre and Chiva, 2008). The eleven items were rated on a 7-point Likert scale ranging from 1= 'much worse performance' to 7= 'much better performance'. ...
... The velocity of data brings more innovation because businesses must integrate, analyse, and act quickly to take decisions in real-time before new data overwrite the current records. The significant positive effect of velocity helps the business assess data in real-time to develop important for a successful and efficient innovation process (Alegre and Chiva, 2008). ...
Conference Paper
Aim: In the past decades, the business environment has witnessed several changes and challenges that created more complexity and uncertainty, affecting the firm's performance. Global and local challenges and environmental changes resulted in higher competitiveness. All these factors have a massive impact on firm innovation performance. Firms have to maintain progressive and continuous performance since it is the only path for organisations to experience sustainability and plan for development. Big Data (volume, velocity, and variety) were acknowledged as the next front to innovate, compete, and be more productive The. Management nowadays can make decisions based on clear facts rather than intuition. Executives believe that integrating big data will add to the business's competitive structure and increase the firm's innovation performance. Accordingly, this study examines the impact of big data characteristics on firm innovation performance. Methodology: A quantitative method was selected using a survey to collect data from a sample of 128 employees in different industries in Egypt who have a solid knowledge of big data and innovation performance. The data collection of the main survey was conducted through the internet using LinkedIn through an invitation to contribute to the study and distributed physically. A reminder was sent after two weeks to follow up. The survey was sent in English, and the data was analysed using SPSS 29 software. The questions in the survey were arranged into a self-administered questionnaire that respondents complete on their own. Findings: The results showed a significant positive relationship between each big data characteristic and firm innovation performance. Regression analysis was performed to assess how much variance in innovation performance is explained by each aspect of big data. According to the findings of this study, the three elements of big data are substantial and the proposed hypotheses were supported. These findings provide further evidence to support previous literature indicating that relying on big data enhances innovation performance with a favourable impact on the overall business performance. Contribution and Implications: This study's key contribution is that it provides a broader standpoint on the significance of big data characteristics for firm innovation performance. Since big data provides visibility and makes data more accessible, which was never the case before. Many organisations that rely on possessive data as a competitive asset are at risk across all domains. On the other side, firms that rely on big data with its main characteristics and combination of volume, velocity, and variety reveal the complex task of generating knowledge that would assist the firms' decision-makers and provide them with the right tools to identify and set their strategies. Management support will be essential as they need to articulate a clear data strategy and be clear about how value will be created from data. Moreover, whether the value will be financial (e.g., increased revenue, decreased costs) or intangible (e.g., increased customer satisfaction), firms will need to use data and evidence-based management in all areas of decision-making 2 as managers and others become more data literate and self-reliant. Moreover, Big data can come with several practices, and management should exert more effort to examine, test, and adopt new practices to incorporate them effectively into their decision-making processes and apply the best practices according to its conditions to set the right strategies for their growth. Many new businesses have begun to offer data and analytic services, and these businesses are assisting other enterprises in growing faster and more efficient. Organisations should gather both unstructured and structured data from various sources, including previous purchases, social media, and site clickstream data.
... Consequently, learning has become a critical factor for organisational performance, survival, and the potential for innovation and growth in a competitive environment (Attia and Essam Eldin, 2018;Oh and Han, 2020). Alegre and Chiva (2008) recognise organisational learning capability (OLC) as both tangible and intangible resources within organisations that facilitate organisational learning and serve as a means to promote competitive advantage. OLC encompasses creating, transferring, and integrating knowledge and experience and the constant drive to learn to optimise competitive advantage ( € Ortenblad, 2017). ...
... The KM scale (α 5 0.789) is the mean value of the composite measures of knowledge sharing, knowledge generation and utilisation. The study conceptualised OLC (α 5 0.873) by adopting Alegre and Chiva's (2008) seven-item scale. The study followed previous studies that examined OLC (Jerez-G omez et al., 2005;Chiva and Alegre, 2009;Gomes and Wojahn, 2017) and adopted the composite approach to define OLC. ...
... Moderating role of MDY in the relationship between KM and PIP JSBED CI 5 À0.1530 to 0.1631). This positive insignificant effect of organisational learning capability on product innovation performance indicates that the relationship between organisational learning capability and product innovation performance is not linear as some past studies postulated (Gomes and Wojahn, 2017;Alegre and Chiva, 2008;Goh and Ryan, 2002). Thus, the result does not support the study hypothesis (H1). ...
Article
Purpose This study underscores the critical importance of knowledge management (KM) in the context of small and medium entrepreneurial firms (SMEFs) that aim to leverage their organisational learning capability (OLC) to enhance their product innovation performance (PIP). Drawing on the foundations of resource-based and contingency theories, this study delves into the impact of OLC on SMEFs' PIP through the intermediary role of KM, focussing on an emerging economy perspective. Additionally, this investigation explores how market dynamism (MDY) moderates the indirect connection between OLC and PIP via KM. Design/methodology/approach The study involved 262 SMEFs in Ghana, with data analysis conducted using PROCESS macros in SPSS 23.0 and LISREL 8.50. Findings This study's findings underscore the mediating role of KM in shaping the relationship between OLC and PIP. Furthermore, they reveal that, particularly in high MDY environments, the link between KM and PIP through KM is significantly strengthened. Practical implications The study clarifies that responding to MDY's demands is a complementary managerial capability enabling firms to channel their KM activities to improve PIP. Effectively, understanding the relationship between MDY and KM could substantially influence the policies and strategies managers adopt to improve PIP for organisational growth and survival. Originality/value This study extends the OLC–PIP research and contributes to the growing literature by offering a strong account of how OLC influences PIP and the prevailing boundary conditions that impact the KM-PIP relationship.
... Several studies explore the relationship between organizational learning capability and innovation (Akgun et al., 2007;Alegre & Chiva, 2008;Fang et al., 2011;François, 2002;Gomes & Wojahn, 2017;Ugurlu & Kurt, 2016). Similarly, there are many studies on firm performance and customer-based performance, but they are in different contexts like quality management (Modarres, 2023), insurance sector (Rajapathirana & Hui, 2017), etc. ...
... This is used to modify the behaviour of the organization to respond to a new situation to improve organizational performance (Jerez-Gomez et al., 2005). The learning capability of an organization is an important component of the learning process (Alegre & Chiva, 2008;Goh & Richards, 1997). Learning capability is a significant index of an organization's competitiveness (Jerez-Gomez et al., 2005). ...
... The term innovation capability is defined as the interrelated processes of an organization that help to implement and develop a product innovation (O'Cass & Sok, 2012). Previous literature indicates that the learning capability of a company is commonly linked to innovation (Dodgson, 1993), and it also suggests that the learning capability has a positive effect on innovation capability (Alegre & Chiva, 2008, 2013Jiménez-Jiménez & Sanz-Valle, 2011). Moreover, learning capability also has a positive influence on the innovation capability of a company (Hsu & Fang, 2009). ...
Article
Purpose: Industrialization has led to centralized development, urbanization, migration and concentration of people in selected areas, that is, cities. The current model of development is not a sustainable one. While progress has been made through this model, it has also increased social inequalities, damaged health and caused irreversible depletion of the natural environment. The need of the hour is to create a new model of development to achieve sustainable development across rural and semi-urban regions. Objective: The objective of the new development model is to find out the relation between learning and innovation capability on the customer-based performance of a textile-based micro, small and medium enterprise (MSME). The research questions that will be answered are how rural women working in textile MSMEs can improve their learning and innovation capabilities? What is the impact of learning and innovation capabilities on the customer-based performance of the MSMEs? Methodology: The research method used for this study was based on primary data collected from the stakeholders of rural textile-based MSMEs and secondary data. Findings and Suggestions: The paper suggests that localized micro-factories enable people to stay close to their roots. The need of the hour is to train people with the required skill sets. The learning and innovation capability of the MSMEs reflects on their customer-based performance. The implementation of advanced technology will make localized micro-factories profitable. These technologies will provide services to citizens efficiently and equitably. The proposed smart cities will have to create more equitable and symbiotic relationships with the surrounding semi-urban and rural areas. The emphasis should be on learning new techniques of production using locally available resources. Once the new techniques have been learned, the company should be able to implement them innovatively to improve its customer experience.
... In this perspective, studies approach innovation as a product of the learning process, individual or collective, or the ability of the organization to learn (Chiva, Alegre, & Lapiedra, 2007;Alegre & Chiva, 2008). To this end, there is a set of skills and resources at the organizational level facilitating learning called Organizational Learning Capacity (Alegre & Chiva, 2008). ...
... In this perspective, studies approach innovation as a product of the learning process, individual or collective, or the ability of the organization to learn (Chiva, Alegre, & Lapiedra, 2007;Alegre & Chiva, 2008). To this end, there is a set of skills and resources at the organizational level facilitating learning called Organizational Learning Capacity (Alegre & Chiva, 2008). To apprehend the construct Organizational Learning, the model proposed by Chiva, Alegre, and Lapiedra (2007), composed of five dimensions, according to Chart 1, was followed. ...
... This being said, to establish the necessary articulations, Self-Assessment is assumed in this research as an instrument for the construction of knowledge about and for the Program (CAPES, 2019f), especially to help in promoting improvements about the institutional objectives (Andriola & Souza, 2010;Leite et al., 2020) 2 ; and, on the other hand, the conception that learning and innovation result from the accumulation of knowledge (Lam, 2005;Alegre & Chiva, 2008;Alves, Galina, & Dobelin, 2018). ...
Article
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The objective of this research is to investigate how the Self-Assessment Policy is being implemented and the perspectives for Learning and Organizational Innovation in Postgraduation Programs stricto sensu in Business Administration of public Higher Education Institutions (IES – Instituições de Ensino Superior) in Brazilian Northeast Region. Methodologically, a multi-case study was conducted with four Postgraduation Programs; evidence was produced from interviews and documentary research and treated through Content Analysis. The conclusion is Self-Assessment can be translated into an Organizational Learning process, in which the analysis of the knowledge produced can lead to changes and innovations in the Programs. Elements confirming the perspective of learning, based on facilitating aspects, arranged in four dimensions (Experimentation, Interaction with the external environment, Dialogue, and Participatory decision-making) were identified. There was also an assertive perception regarding the perspectives for Organizational Innovation, highlighting, among other aspects, changes in the training process, approximation to other sectors of civil society, and changes in the management model. The results can help discussions about Self-Assessment in the postgraduation scenario and contribute to insights understanding learning and innovation in Postgraduation Programs beyond isomorphic aspects.
... Lumpkin and Dess [40] conceptualized it as the tendency of firms to engage in and support new ideas, novelty, experimentation, and creative processes which may result in new products, services, or technological processes. Alegre and Chiva [41] referred to it as an action-based capacity to introduce and implement new creative ideas within a firm. Our study defines innovativeness as a firm's tendency to pursue and exploit new opportunities. ...
... From these definitions, we expect innovativeness to explain the difference in the capability and performance of organizational learning. It has generally been agreed that innovativeness strongly relates to learning during the innovation processes [41], [42], [43]. According to Saha et al. [44], organizational learning through entrepreneurial innovation focuses organizations to achieve their competitive advantage through knowledge development. ...
Article
The question persists whether failures are invariably negative and therefore, something that should be avoided. The literature is inconclusive and offers mixed results, which include positive and negative effects of failure, along with claims that not all firms always benefit from them. This study aims to reevaluate the failure-innovation performance relationship. By conducting a quantile regression analysis, this study reveals that only firms beyond a threshold level of innovativeness may benefit from their experiences of failure. Moreover, firms with high innovation performance benefit more from their innovation failures than those with low innovation performance. Our results suggest that the relationship between failure and innovation performance differs at various levels of innovation performance.
... Experimentation and dialogue space -The measurement was developed on the basis of the scales validated by Arnold et al. (2000) and Alegre and Chiva (2008). In particular, Arnold et al.'s (2000) measurement scale "Participative Decision-Making" was used to capture the propensity of the organizational context to give everyone the opportunity to experiment and express their ideas and opinions. ...
... In particular, Arnold et al.'s (2000) measurement scale "Participative Decision-Making" was used to capture the propensity of the organizational context to give everyone the opportunity to experiment and express their ideas and opinions. On the other hand, Alegre and Chiva's (2008) scale "Dialogue" refers to an organizational environment able to stimulate free and open communication and dialogue. Therefore, we relied on both scales to obtain a broader measure aimed at capturing the encouragement of organizational members to express ideas and suggestions, to listen everyone's opinions, and to foster dialogue and reciprocal communication. ...
... Flexible organizations can promote complementors to quickly respond to demands for innovation and form a competitive advantage of disruptive innovation. The scale of organizational flexibility referred to the scale proposed by Tiwana [29], Zhu et al. [35], and Alegre and Chiva [37]. Meanwhile, blurred organizational boundaries made the network externality of the platform gradually prominent, and the innovation paradigm also changed from the individual traditional model to an open innovation model. ...
... Environment factors: For the internal environment, a unified value goal, complete regulations, and a relaxed innovation atmosphere on a platform can improve the efficiency and effectiveness of disruptive innovation. The scale for the internal environment of the platform was designed by referring to the scales proposed by Alegre et al. [37] and Zhu et al. [35]. The external environment in the digital platform, such as the dynamics and uncertainty in the external environment, the degree of competition, etc., could also provide important opportunities for disruptive innovation. ...
Article
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Practice shows that digital platforms could enhance disruptive innovation. Given that digital platforms have always encountered imbalance problems, this study intended to explore which factor configurations could promote disruptive innovation sustainably from the perspective of supply and demand matching. This study constructed a theoretical framework referring to the TOE framework. Based on 25 questionnaires from China, the fuzzy-set qualitative comparative analysis (fsQCA) method was used to explore the configurations of disruptive innovations. This study found the following: (1) None of the five factors in the dimensions of technology, organization, or environment could constitute a necessary condition for enabling disruptive innovation alone. (2) There were four supply and demand matching configurations that could lead to highly disruptive innovation. Based on the homogeneous characteristics of the results, the four paths were divided into “technology-organization driven transition” types and “organization-environment collaborative transition” types. (3) Non-highly disruptive innovation included three specific configurations, all of which lacked the core conditions in technical and organizational dimensions, suggesting the importance of technical and organizational factors for disruptive innovation. This study provides guidance on supply and demand matching for platform enterprises to continuously create disruptive innovation. However, the data from China may limit the results’ applicability to a more expansive setting.
... Along this line, the concept of organisational learning capability relates to organisational and managerial characteristics that facilitate the organisational learning process (Chiva and Alegre, 2007) and help shape a culture within an organisation (Abdi and Senin, 2015). Various criteria are identified to assess such capabilities: knowledge management (Akhavan et al., 2014;Omotayo, 2015), management commitment, systems perspective, openness and experimentation (Jerez-Gómez et al., 2005), risk-taking, interaction with the environment, dialogue, and participatory decision making (Alegre and Chiva, 2008). ...
Article
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Research organisations experience increasing demands to analyse on the multidimensional societal impacts of their activities. This leads to more reflections about the integration of organisational strategies devoted to research evaluation and impact monitoring, in order to answer societal and funder's demands, improve research practices, and make research and innovations more transformative to society. Establishing a "culture of impact" within an organisation is driven by multiple factors and translates into a variety of changes at different organ-isational levels. We aim to understand what motivates agricultural research organisations to develop a culture of impact, and the consequences of this culture on research, management, and collaboration practices. For this, we analyse organisational trajectories of three research organisations: the French Agricultural Research Centre for International Development (Cirad), the Brazilian Agricultural Research Corporation (Embrapa), and the Colombian Agricultural Research Corporation (AGROSAVIA). Through a cross-analysis of these cases along the reasons to integrate impact evaluation in strategic agendas, the materialisation of a culture of impact in practice, and what it entails in terms of cognitive and practical changes within their respective staff and management structures, we highlight drivers and patterns of development of a culture of impact, and circumstances that seem to either favour or hinder its emergence. This study is unique for examining various types of changes that a culture of impact can generate among individuals, in particular. It offers valuable material to enable re-interrogate and orient a research organisation's culture of impact's path in accordance with organisational values, priorities, and opportunities.
... V Sobre la relación entre las capacidades para innovar y para aprender, se observa que, cuando la empresa adquiere información desde diferentes fuentes internas o externas, realiza alianzas estratégicas e invierte en procesos de formación, aumenta la capacidad para innovar, lo cual se alinea con lo mencionado por Tidd y Bessant (2018, citado por Guerrero-Sánchez, 2021), quienes indican que la cercanía a las fuentes de conocimiento mejora la capacidad de innovación en las organizaciones. Estos hallazgos no son únicos para el caso colombiano, pues se han encontrado en otros países impactos positivos de la capacidad para aprender frente a la capacidad para innovar, principalmente en economías latinoamericanas como Brasil (Figueiredo et al., 2020), algunos europeos como Italia y España (Alegre & Chiva, 2008), o asiáticas, como Indonesia (Sutanto, 2017), por citar algunos de ellos. ...
Article
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Las capacidades dinámicas son relevantes para el actuar empresarial ante los cambios repentinos del mercado, modificando la base de recursos y capacidades existentes y alineando estos factores internos con los externos. La presente investigación ahonda en las posibles relaciones entre las capacidades de aprendizaje y de adaptación sobre la capacidad innovadora de las empresas industriales colombianas. Para esto, se tomó la base de datos edit industria 2017-2018, de donde se seleccionaron 1.571 empresas manufactureras colombianas y se consideraron 100 variables. Los datos se analizaron a través del coeficiente de correlación de Mathew y modelos de regresión logística mediante el software estadístico Stata. Como resultado se comprobó que la capacidad de aprendizaje aumenta la probabilidad de adquirir la capacidad para innovar en procesos en un 27,4% a través de la adquisición de información que proviene del departamento de producción y de los proveedores en un 7,9%. Por otra parte, la capacidad de adaptación incrementa dicha probabilidad con las dimensiones de innovación tecnológica (23,3%), estructura organizacional (14,2%), relación organización-ambiente (11,2%) y conceptual (0,6%). Las principales limitaciones corresponden a la escaza literatura acerca de la relación simultánea de las capacidades dinámicas y la dificultad para recopilar datos primarios dadas las restricciones de distanciamiento social vigentes al momento de desarrollar la investigación.
... A fivepoint Likert scale is used to measure the innovation (Asad et al., 2018). A five-point Likert scale measures the learning orientation (Alegre & Chiva, 2008). A five-point Likert scale measures the business risk (McCrimmond & Wehrung, 1986). ...
Article
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The study aims to identify the role of Access to Finance, Learning Orientation, and Innovation on the performance of SMEs. The moderating effect of business risk also examined the relationship of Access to finance, learning orientation, innovation, and Small and Medium Enterprises (SMEs). For this purpose, Data is collected from 300 SMEs in the textile sector operating in Faisalabad, Pakistan. Primarily, the data is analyzed to check the normality and multicollinearity, and then Structure Equation Modeling (SEM) is developed in the Smart PLS-3. The significant contribution of the present research study is to identify the moderating effect of business risk on the relationship between Access to finance, learning orientation, innovation, and SMEs performance. The findings revealed that Access to finance, learning orientation, and innovation have a positive and significant impact on the performance of SMEs. Moreover, results also show the contribution of business risk, which moderates the relationship between Access to finance, innovation, and SMEs performance. However, business risk does not affect the relationship between learning orientation and SMEs performance. The practitioner and policy maker would be the beneficiary of the study while making policy and strategic decisions of the SMEs.
... These models recognize that the observable indicators we study are not merely abstract data points, but rather tangible manifestations of the latent variables we strive to elucidate. Consider, for instance, the concept of OL, as examined by Alegre and Chiva (2008). This construct speaks to an organization's capacity to grow, adapt and thrivea multifaceted phenomenon that cannot be directly observed, but rather must be inferred from the various indicators that reflect the organization's learning capabilities. ...
Article
Purpose This study investigates the impact of organizational ambidexterity on employee performance within Jordanian clearance companies, focusing on the mediating role of organizational learning. This research aims to explore how the dimensions of exploration and exploitation influence performance outcomes, including effectiveness and growth. Design/methodology/approach Using analytical descriptive research, this study uses SMART-PLS 4 for hypothesis testing and mediation analysis. A meticulously developed questionnaire, grounded in scholarly literature and vetted by experts, was distributed to 230 employees across the Jordanian clearance industry, achieving a 91.3% response rate. Findings This study found that companies do better when they effectively explore and exploit, especially if they also focus on learning and adapting. This insight is particularly useful for those in the human resource development and management fields who aim to boost employee performance and, ultimately, the success of their organizations. The findings reveal a significant indirect effect of organizational ambidexterity on performance through organizational learning. Ambidexterity explained 55.6% of the variance in organizational learning, and subsequently, organizational learning accounted for 47.4% of performance variance. The total performance variance was 81.8%, indicating a strong relationship between the constructs. Research limitations/implications This study’s scope is limited to the Jordanian clearance industry, suggesting the need for further research across different contexts and industries. The reliance on self-reported data may introduce bias, warranting future use of mixed methods for a more comprehensive understanding. Practical implications The findings underscore the importance of fostering organizational learning as a mediator between ambidexterity and performance. Companies should invest in strategies that enhance both exploratory and exploitative activities, leveraging organizational learning to improve performance outcomes. Social implications By highlighting the role of organizational learning in mediating the relationship between ambidexterity and performance, this research suggests pathways for businesses to contribute to economic growth and employee development within the Jordanian context and potentially beyond. Originality/value This study contributes to the field by examining the underexplored context of the Jordanian customs clearance industry and using a robust methodological framework to assess the relationship between organizational ambidexterity, learning and performance. It provides empirical evidence supporting the significant impact of balanced competency configurations on performance outcomes.
... Essa adaptabilidade ocorre através de (a) importação de energia, (b) transformação de processos e artefatos, e (c) resistência à entropia. Além disso, esta integração aumenta a capacidade de inovação (Alegre & Chiva, 2008;Cohen & Levinthal, 1990) e de aprendizagem organizacional. Resende et al. (2013) destacam as características desejáveis do ambiente para que os esforços de inovação e integração organizacional se concretizem, a saber: (a) as condições institucionais para o seu desenvolvimento e difusão; (b) as condições culturais que sustentam aspectos relacionados à proliferação de novas ideias e à convivência com erros toleráveis; e, (c) o papel dos gestores na criação e implementação de novas práticas de gestão. ...
Article
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This research aimed to develop a management model to increase the capacity of integrating processes in the human resources area in a large Brazilian service organization. The research used a qualitative and quantitative approach to analyze data from the organization’s value chain and to evaluate the consistency of integrations and artifacts mapped in light of stakeholder requirements under the theory of constraints. Among the main results, two scales were developed to measure organizational consistency: a) validation of the level of updating of artifacts; and, b) diagnosis of technological adherence. With the model, all 16 organizational subsystems of the context, 142 artifacts and 666 integrations were mapped. The applied model resulted in significant global gains in the processes’ integration of the researched value chain. Keywords: integration; process; artifacts; requirements; validation.
... This adaptability occurs through (a) importing energy, (b) transforming processes and artifacts, and (c) resisting entropy. Furthermore, this integration increases the capacity for innovation (Alegre & Chiva, 2008;Cohen & Levinthal, 1990) and organizational learning. Resende et al. (2013) stress the desirable characteristics in the environment for organizational innovation and integration efforts to come to fruition, namely: (a) the institutional conditions for their development and diffusion; (b) the cultural conditions that support aspects related to the proliferation of new ideas and the coexistence with tolerable errors; and, (c) the role of managers in the creation and implementation of new management practices. ...
Article
Full-text available
This research aimed to develop a management model to increase the capacity of integrating processes in the human resources area in a large Brazilian service organization. The research used a qualitative and quantitative approach to analyze data from the organization’s value chain and to evaluate the consistency of integrations and artifacts mapped in light of stakeholder requirements under the theory of constraints. Among the main results, two scales were developed to measure organizational consistency: a) validation of the level of updating of artifacts; and, b) diagnosis of technological adherence. With the model, all 16 organizational subsystems of the context, 142 artifacts and 666 integrations were mapped. The applied model resulted in significant global gains in the processes’ integration of the researched value chain. Keywords: integration; process; artifacts; requirements; validation.
... Composite reliability. The use of the Cronbach's alpha coefficient in isolation is not recommended to evaluate the reliability of a measurement scale [73] and that it is why in this study it is also presented composite reliability. This measure considers that indicators present different loadings and their value should be higher than . ...
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Researchers, who play a crucial role in knowledge production, deal with various emotions in their challenging work environment. Their personality might affect how well they manage their emotions, but their moods could help counteract these effects. This study aims to investigate whether researchers’ moods influence the connection between their personality and emotional intelligence. 7,463 Spanish researchers replied to an online survey. Responses analysed through partial least squares structural equation modelling show significant positive relationships between the big five personality traits (openness to experience, conscientiousness, extraversion, agreeableness and emotional stability) and emotional intelligence. In addition, positive affect positively mediates the relationships between each of the personality traits and emotional intelligence, and negative affect mediates the same relationships but negatively. The importance of managing emotional states to regulate emotional experiences in the work of researchers is discussed.
... Gomes et al. (2022) shown that organizational learning has a significant impact on firm performance. This demonstrates that the process of organizational learning, encompassing the acquisition of resources and skills, engagement with the external environment, decision-making, and the generation of novel ideas pertaining to products and services, will significantly influence business expansion (Alegre & Chiva, 2008;Altinay et al., 2016;Gomes et al., 2021). The study conducted in Indonesia's financial services sector involved administering questionnaires to top management and found that learning organizations are either unaffected or not supported (Yuliansyah et al., 2021). ...
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This research aims to assess the impact of organizational learning and leadership style on corporate performance (CP), with organizational culture acting as a moderator. The study was carried out at an Indonesian bank that is owned by the South Korean government. Therefore, this research will examine the impact of South Korean business culture, which is unfamiliar territory. This study employs a quantitative methodology. The findings of this study demonstrate that organizational learning significantly impacts business performance. Moreover, the leadership style also has an impact on the overall functioning of the company. Similar outcomes are also demonstrated in the case of organizational culture, which has an impact on corporate performance. Organizational culture plays a role in influencing organizational learning and corporate performance. Organizational culture does not have a moderating effect on the relationship between leadership style and business performance, as evidenced by many findings.
... By altering how the organization reacts to a changing environment, this is used to increase performance (Jerez-Gomez et al., 2005). One essential element of the learning process is an organization's capacity for learning (Goh and Richards, 1997;Alegre and Chiva, 2008). According to Jerez-Gomez et al. (2005), an organization's ability to learn is a critical factor in determining its competitiveness. ...
... Firm Innovation Performance (FIP): According to the research of Hsu and Fang [19] and Alegre and Chiva [20], the overall measurement of firm innovation performance combines four indicators: better product quality achieved through technology adoption compared to competitors, improved production flexibility through technology transformation compared to competitors, customer recognition obtained through new product development, and the average patent growth rate over the past three years. ...
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In the era of big data, the industry environment is complex and volatile, and enterprises need to innovate their business models by creating innovative value networks and reconstructing transaction systems to avoid being eroded in the process of global economic transformation. The traditional closed innovation processes are no longer deemed suitable for advancing firm innovation. Instead, open innovation has become a pivotal strategic choice in the quest to foster innovative developments. This study builds upon the paradox of open innovation (OI) in the age of big data, and introduces the innovation expropriability theory. Utilizing survey data from high-tech industrial park firms in the Yangtze River Delta region of China, it empirically examines the influence of open innovation on firm innovation performance (FIP). Furthermore, it explores the independent and joint moderating effects of rival absorptive capacity (RAC) and appropriability regimes (ARs). The findings reveal that OI significantly improves FIP. The effect of OI on FIP is positively moderated by ARs, while the independent moderating effect of RAC is not significant. However, a joint moderating effect is observed between RAC and ARs. Further investigation reveals that the moderating role of RAC depends on the presence of ARs, indicating a matching relationship between RAC and ARs. This research holds significant implications for firms in implementing open innovation strategies and ensuring effective intellectual property protection to enhance innovation performance in the era of big data.
... The third factor obstructing e-commerce use is the environmental component (GS). Four items derived from [41] encompass the two aspects of innovation efficacy and efficiency, defining the dependent variable "(IP)" since 2008. Seven items for measuring the moderating variable, "ECMC," were collected from [36] and [42]. ...
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... Gomes et al. (2022) shown that organizational learning has a significant impact on firm performance. This demonstrates that the process of organizational learning, encompassing the acquisition of resources and skills, engagement with the external environment, decision-making, and the generation of novel ideas pertaining to products and services, will significantly influence business expansion (Alegre & Chiva, 2008;Altinay et al., 2016;Gomes et al., 2021). The study conducted in Indonesia's financial services sector involved administering questionnaires to top management and found that learning organizations are either unaffected or not supported (Yuliansyah et al., 2021). ...
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This research aims to assess the impact of organizational learning and leadership style on corporate performance (CP), with organizational culture acting as a moderator. The study was carried out at an Indonesian bank that is owned by the South Korean government. Therefore, this research will examine the impact of South Korean business culture, which is unfamiliar territory. This study employs a quantitative methodology. The findings of this study demonstrate that organizational learning significantly impacts business performance. Moreover, the leadership style also has an impact on the overall functioning of the company. Similar outcomes are also demonstrated in the case of organizational culture, which has an impact on corporate performance. Organizational culture plays a role in influencing organizational learning and corporate performance. Organizational culture does not have a moderating effect on the relationship between leadership style and business performance, as evidenced by many findings.
... The questionnaire was distributed in the form of a Google form to respondents using WhatsApp. Social capital is quantified by 12 items from [27] and organizational learning capabilities are quantified by 10 items from [28]; [29]. Business performance is quantified by 10 items from [30]; [31]. ...
... General innovation capability has been found to have a significant impact on organizational performance and to moderate different kinds of performance antecedents, such as an organization's learning capability (Alegre and Chiva, 2008). A successful company often has an innovative research and development (R&D) department responsible for regularly introducing novel innovative products/services to the market (Fan et al., 2021;Lin, 2007). ...
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As companies in the manufacturing and construction industries strive to meet the EU circular economy (CE) targets, they need to develop new capabilities to implement CE activities that can positively influence their product/service innovations. However, companies in both industries, and beyond, still struggle to develop internal capabilities to innovate products and services that would help them in implementing CE principles and move towards the CE. The objective of this research is to analyze the types of innovation capabilities that are needed to enable CE implementation and achieve product/service innovations in two different industrial sectors. Prior research has focused on innovating and implementing circular business models and elaborated less on the innovation capability types. We collected survey data in December 2021–January 2022 that consists of responses from companies operating in Germany (n = 177), including employees in manufacturing (n = 87) and construction companies (n = 90). The results from the partial least squares structural equation modeling (PLS-SEM) based on measurement models from the literature indicate that employees in both sectors overall perceive higher levels of CE implementation capability as important for the company's product/service innovations. Furthermore, the results reveal differences in the way CE innovation capability and IT resource orchestration capability influence CE implementation and product/service innovations in the two sectors. Our study offers theoretical implications on how dynamic capabilities are associated with CE innovations and how they influence companies' product/service innovations based on empirical evidence from two industrial sectors. Those capabilities that are crucial for circular product/service innovations need to be associated with CE implementation capabilities. The results further advise practitioners in the development of CE innovation and CE implementation capabilities and how they are linked to IT resource orchestration capability and provide evidence on their relevance to creating product/service innovations.
... However, when innovation performance mediates, this relationship strengthens. Alegre and Chiva (2008) provide empirical evidence that organisational learning capability bolsters innovation performance, suggesting a causal relationship between learning capability and organisational performance. In line with these findings, Jiménez-Jiménez and Sanz-Valle (2011) underscore the positive impact of organisational learning and innovation on business performance, with learning significantly influencing innovation. ...
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This study examined the link between strategic renewal and corporate responsiveness of the Nigerian Food and Beverages Sector in Port Harcourt, Rivers State. The researcher adopted the cross-sectional survey design in this study. The population consisted Thirty (30) food and beverage companies in Port Harcourt, Rivers State and only top four (4) managerial staff were selected from the 30 firms which made up (120) participants and was adopted as the sample size. The study made use of a standardized and structured questionnaire. The validity of the instrument was measure through peer review by experts in the field of management. Reliability was ensured using the Cronbach alpha statistical technique and all item got values above the 0.7 tress hole and was accepted. The data was analyzed using correlation coefficient method with the help of SPSS version 28. The result from the 3 dimensions of strategic renewal adopted in this study such as competence renewal, organizational learning and process renewal indicated a positive correlation with corporate responsiveness. The researcher concludes that there is a relationship between strategic renewal and corporate responsiveness of food and beverage firms. Based on the result above, the researcher recommends that; Management of firms should set up a system that maximizes the productive use of the firm's strategy to increase either the final value provided to the customers or the productivity with which that value is delivered. It is advised that food and beverage companies leverage their existing knowledge and abilities to achieve first mover advantage over their competitors when entering new markets, since organizational competencies give a platform for doing so. Management should be proactive and update strategy by reshaping their strategic goals and capabilities.
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The purpose of this study is to find out how organizational reframing creates and maintains the organizational culture of educational institutions. This research uses the Systematic Literature Review (SLR) method with a choice of Preferred Reporting Items for Systematic Reviews and Meta-analyses or PRISMA. On the official PRISMA website. The research results show. The reframing approach is an alternative choice in the midst of various strategies to increase the competitiveness and capabilities of educational institutions. For leaders, human resources should be a valuable asset so their existence must be a concern to be developed and directed towards the goals of educational institutions. Reframing has the goal of being able to change someone for the better. The assumption underlying the reframing technique is that one's beliefs, thoughts, and perceptions can create false emotions. Self-Reframing aims to help people to see problematic situations from a different perspective so that they will be more open to solutions. Maintaining culture may be more difficult than creating. The steps contained in the material can be applied to maintain the organizational culture that has been created so that it is not simply forgotten, namely Staff Selection, Orientation, Job Mastery, Reward and Control System, Adherence to Values, Strengthening the history of the institution, Consistent Example.
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The formation and transformation of international trade institutions have significant implications for the competitiveness of firms, and the adept utilization of free trade agreements (FTAs) represents a critical leverage point for exporting firms. Despite the business opportunities provided by FTAs, some firms take advantage of institutional benefits while others fail to do so. To explain these differences, this research conceptualizes institutional knowledge (IK) in the context of FTAs as a key organizational condition to gain competitive advantages. This study proposes a research model in which IK has a positive effect on FTA utilization, and organizational learning capabilities (OLC) positively affect SMEs’ IK. Based on a survey of exporting small and medium enterprises (SMEs) in the agricultural and food sectors in South Korea, this study not only shows IK’s positive impact on FTA utilization by SMEs but also identifies OLC as an essential precursor to robust IK. This study fills a notable gap in international business research by underscoring the importance of IK in enhancing SMEs’ competitiveness internationally and offers fresh insights into the role played by OLC in enhancing IK to facilitate FTA utilization. JEL Classification: F14, F23, M16
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Many factors that influence the innovativeness of a firm has been identified by a good number of scholars due to the importance of innovation in value creation and capture. This chapter, which is mainly based on Forrest et al. (Proceedings of the 2018 annual conference of NABET, November 1–2, 2018, State College, PA, 2018) and Forrest et al. (Proceedings of the 2018 annual conference of NABET, November 1–2, 2018, State College, PA, 2018), introduces the concepts of primary determinants and secondary determinants of the innovativeness of a manufacturing firm. And then, the chapter (a) broadly analyzes the 16 most influential strategy-related factors, classified empirically in the literature, for the purpose of identifying the ones that symbolize the primary determinants of the firm’s innovativeness, and (b) identifies the primary organizational factors that contribute to the innovativeness of a manufacturing firm, and distinguishes the secondary factors which naturally appear with the primary ones. To achieve goal (a), this chapter presents a general systemic theory that underlines the importance for a firm to have clearly stated missions along with a long term, unwavering ambition. It categorizes the 16 variables, pertaining to the overall strategic orientation and growth and operational strategies, as part of primary or secondary factors that influence the innovativeness of a firm. For goal (b), the chapter studies the impact of the general characteristics of firms’ culture on innovation in manufacturing based on general organizational culture by using a cost–benefit analysis approach. In particular, the impact of leadership at the firm level on innovation are demonstrated. In the conclusion section, pragmatic and efficient recommendations for managerial decision-making are formulated, highlighting the real-life applicability and contribution of this scholarly research.
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This study is to investigate the inconclusiveness of product innovation on market performance in the context of Indonesian furniture company association’s members (HIMKI). We refer to Resource Advantage Theory of Competition to develop an integrated model using proactive and reactive innovations as independent variables while product and organizational innovations as mediating variables. The population of this research is 227 furniture companies with the minimum revenue of over IDR 5 billion per year and remains in business for the last of five consecutive years. We use simple random sampling techniques and 143 companies were selected as respondent then analyzed using Structural Equation Modeling. The result finds that product innovations directly and indirectly effect significantly by proactive and reactive innovations on market performance. Surprisingly, organizational innovation does not effect significantly on market performance neither as its mediating variable of proactive innovation. The originality of this study is that, this integrated model proves the direct and indirect effect of proactive and reactive innovation on product innovation and market performance significantly positive. This study has successfully identified adoption level of innovation that makes organizational innovation has no effect on market performance.
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Prior reviews of organizational learning (OL) have noted an exponential growth in the literature through the 1990s and have expressed concerns about the lack of empirical research. In this paper, we review the literature published during the period 1990-2002 and take stock of the state of empirical research in OL. Based on the 123 articles reviewed, we note a phenomenal growth in empirical research and the emergence of a learning perspective. We discuss key research findings pertaining to internal and external learning, and the facilitators of organizational learning. We discuss the implications of the empirical research and suggest directions for future research.
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In this article, we provide guidance for substantive researchers on the use of structural equation modeling in practice for theory testing and development. We present a comprehensive, two-step modeling approach that employs a series of nested models and sequential chi-square difference tests. We discuss the comparative advantages of this approach over a one-step approach. Considerations in specification, assessment of fit, and respecification of measurement models using confirmatory factor analysis are reviewed. As background to the two-step approach, the distinction between exploratory and confirmatory analysis, the distinction between complementary approaches for theory testing versus predictive application, and some developments in estimation methods also are discussed.
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Product development professionals may have the feeling that yet another buzzword or magic bullet always lurks just around the corner. However, researchers have devoted considerable effort to helping practioners determine which tools, techniques, and methods really do offer a competitive edge. Starting 30 years ago, research efforts have aimed at understanding NPD practices and identifying those which are deemed “best practices.” During the past five years, pursuit of this goal has produced numerous privately available reports and two research efforts sponsored by the PDMA. Abbie Griffin summarizes the results of research efforts undertaken during the past five years and presents findings from the most recent PDMA survey on NPD best practices. This survey, conducted slightly more than five years after PDMA's first best‐practices survey, updates trends in processes, organizations, and outcomes for NPD in the U.S., and determines which practices are more commonly associated with firms that are more successsful in developing new products. The survey has the following objectives: determining the current status of NPD practices and performance; understanding how product development has changed from five years ago; determining whether NPD practice and performance differ across industry segments; and, investigating process and product development tools that differentiate product development success. The survey findings indicate that NPD processes continue to evolve and become more sophisticated. NPD changes continually on multiple fronts, and firms that fail to keep their NPD practices up to date will suffer an increasingly marked competitive disadvantage. Interestingly, although more than half of the respondents use a cross‐functional stage‐gate process for NPD, more than one‐third of all firms in the study still use no formal process for managing NPD. The findings suggest that firms are not adequately handling the issue of team‐based rewards. Project‐completion dinners are for the most frequently used NPD reward; they are also the only reward used more by best‐practice firms than by the rest of the respondents. The best‐practice firms participating in the study do not use financial rewards for NPD. Compared to the other firms in the study, best‐practice firms use more multifunctional teams, are more likely to measure NPD processes and outcomes, and expect more from their NPD programs.
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Participation in decision making (PDM) takes several distinct forms. A review of empirical studies demonstrates that effects of participation on satisfaction and performance vary according to form. The findings cast doubt on the conclusions of earlier reviews based on a unidimensional view of PDM and raise several issues for the study and practice of PDM.
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Purpose The present study sets out to propose and validate a measurement scale that aims to capture the organisational capability to learn, based on a comprehensive analysis of the facilitating factors for learning. The organisational learning capability scale consists of 14 items grouped into five dimensions: experimentation, risk taking, interaction with the external environment, dialogue, and participative decision making. Design/methodology/approach Data were collected from eight Spanish ceramic tile manufacturers. The survey was addressed to shop floor workers. A total of 157 valid questionnaires were obtained, representing a response rate of 61 per cent. Using confirmatory factor analysis, the construct measurement model was tested and the scale was validated. Findings The results of the study indicate that the operational measure developed here satisfies the criteria for unidimensionality, reliability, and validity. Research limitations/implications Because of the sample features, final results should be considered with caution. Further research is needed to validate the organisational learning capability scale in other contexts and addressed to other kinds of respondents. However, this study contributes to organisational learning research by providing a valid and reliable operational measure that is expected to help researchers in future theory testing. Practical implications The proposed measurement scale for organisational learning capability could be implemented as an audit tool. Thus, managers could unveil which organisational learning issues are strong and which are weak. This would provide guidance for improvement. Originality/value This paper provides a new measurement instrument for organisational learning capability.
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Purpose The purpose of this paper is to report the results of a study aimed at conceptualising and developing valid measurements for two key dimensions of product innovation performance‐efficacy and efficiency – in the context of firm competition. Design/methodology/approach Data were collected from French biotechnology firms. Using structural equations modeling, the constructs’ measurement models were tested and the scale was validated. Findings The results of the study indicate that the operational measures developed here satisfy the criteria for unidimensionality, reliability, and validity. Research limitations/implications This study contributes to innovation management research by providing a set of valid and reliable operational measures. These measures are expected to help researchers in theory testing. Because of the sample features, final results should be considered with caution. Practical implications The proposed measurement scale for product innovation performance could be implemented as an innovation audit tool. Originality/value This paper provides a new measurement instrument for product innovation performance.
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Recent research has suggested that customer evaluation of service encounters depends not only on the attributes of the particular service rendered but also on other cognitive and affective factors. This article sets out to investigate the effects that preconceptions about service types have on customers’ perceptions and on their overall evaluation of service encounters. The study is founded on Categorization Theory and Perception Distortion Theories and poses and tests three hypotheses on a customer sample taken from the Spanish retail banking sector. The results show a strong effect of preconceptions about the service category on the perceptions of quality during the service encounter; however, their direct effect on the overall evaluation of the service is unsubstantiated in our study.
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Findings regarding the direction and intensity of the relation between size and innovation in the literature are contradictory. In the journal Organization Studiesin 1992, Damanpour proposed a meta-analytical study in an attempt to clarify the diversity of existing conclusions. The present article is a replica and an extension of that study using the same methodology. Our aim is to (1) bring the pool of accumulated knowledge up to date, examining the time span 1970–2001, and (2) review in greater depth the effects of alternative ways of measuring organizational size. The sample used was made up of 87 correlations drawn from 53 empirical studies published in the most important journals on business administration. The analysis enabled us to confirm the existence of a significant and positive correlation between size and innovation. It also provided evidence showing that the contradictory results obtained in previous studies are due to divergences in the methods used to operationalize one, or more, of the variables to be analysed. The main contribution made by our work stems from the fact that the empirical analysis performs a more thorough breakdown of the definitions of the size variable used in the literature. This may well be a first step toward justifying the differences in the results of the primary studies that analyse the relation under examination
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Organizational learning matters now more than ever. In today’s hypercompetitive business environment, successful executives must be able to discover opportunities, face problems, and pursue innovative ideas, then turn those ideas into action throughout an organization. Based on both empirical research and practice experience, this book gives managers the tools to do just that. Organizational learning capability is the capacity to generate and generalize ideas with impact. Managers generate new ideas in four basic ways: experimentation, in which organizations learn by trying many new products and processes; continuous improvement, in which they learn by constantly improving what they have done before and mastering each step in a process before moving on to other processes; knowledge acquisition, in which they learn by encouraging individuals and teams to acquire new knowledge continuously; and benchmarking, in which they learn by studying how other groups do things and trying to adapt their techniques. Each learning types leads to different performance consequences. Managers must also be able to generalize information through technology, movement of people, incentives, and learning processes. By both generating and generalizing ideas with impact, managers have a blueprint for making learning happen. Learning may not be sustained, however, unless it is congruent with the larger business context—the organization’s strategy and culture and the industry’s characteristics. Unfortunately, just as organizations develop learning capabilities, they also suffer from certain learning disabilities. This book outlines common disabilities and the means to overcome them. The authors assist practicing managers by providing several examples of successful and unsuccessful organizations and describing the ways in which they have helped organizations improve learning capability in their consulting practices. Based on detailed case studies, a review of past literature, and data gleaned from a worldwide survey of companies, Organizational Learning Capability is an accessible and useful guide for managers competing in the information economy. This book turns abstract ideas into practice, offers tools that managers can use, and presents a simple yet profound road map for making learning a reality.
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This paper focuses on dynamic capabilities and, more generally, the resource‐based view of the firm. We argue that dynamic capabilities are a set of specific and identifiable processes such as product development, strategic decision making, and alliancing. They are neither vague nor tautological. Although dynamic capabilities are idiosyncratic in their details and path dependent in their emergence, they have significant commonalities across firms (popularly termed ‘best practice’). This suggests that they are more homogeneous, fungible, equifinal, and substitutable than is usually assumed. In moderately dynamic markets, dynamic capabilities resemble the traditional conception of routines. They are detailed, analytic, stable processes with predictable outcomes. In contrast, in high‐velocity markets, they are simple, highly experiential and fragile processes with unpredictable outcomes. Finally, well‐known learning mechanisms guide the evolution of dynamic capabilities. In moderately dynamic markets, the evolutionary emphasis is on variation. In high‐velocity markets, it is on selection. At the level of RBV, we conclude that traditional RBV misidentifies the locus of long‐term competitive advantage in dynamic markets, overemphasizes the strategic logic of leverage, and reaches a boundary condition in high‐velocity markets. Copyright © 2000 John Wiley & Sons, Ltd.
Article
This paper focuses on dynamic capabilities and, more generally, the resource-based view of the firm. We argue that dynamic capabilities are a set of specific and identifiable processes such as product development, strategic decision making, and alliancing. They are neither vague nor tautological. Although dynamic capabilities are idiosyncratic in their details and path dependent in their emergence, they have significant commonalities across firms (popularly termed ‘best practice’). This suggests that they are more homogeneous, fungible, equifinal, and substitutable than is usually assumed. In moderately dynamic markets, dynamic capabilities resemble the traditional conception of routines. They are detailed, analytic, stable processes with predictable outcomes. In contrast, in high-velocity markets, they are simple, highly experiential and fragile processes with unpredictable outcomes. Finally, well-known learning mechanisms guide the evolution of dynamic capabilities. In moderately dynamic markets, the evolutionary emphasis is on variation. In high-velocity markets, it is on selection. At the level of RBV, we conclude that traditional RBV misidentifies the locus of long-term competitive advantage in dynamic markets, overemphasizes the strategic logic of leverage, and reaches a boundary condition in high-velocity markets. Copyright © 2000 John Wiley & Sons, Ltd.
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This article examines product innovation as an organizational learning process. It provides a framework allowing managers and scholars to relate product-innovation learning skills to organizational goals. Daryl McKee shows how different types of organizational learning skills are involved in incremental innovation, discontinuous innovation and institutionalization of innovation within the organization. This conceptualization can help scholars and managers diagnose an organization's learning skills and how they relate to new product management; direct the organization toward learning more efficient and effective product innovation; and provide scholars with a structure for future research.
Conference Paper
This paper focuses on dynamic capabilities and, more generally, the resource-based view of the firm. We argue that dynamic capabilities are a set of specific and identifiable processes such as product development, strategic decision making, and alliancing. They are neither vague nor tautological. Although dynamic capabilities are idiosyncratic in their details and path dependent in their emergence, they have significant commonalities across firms (popularly termed 'best practice'). This suggests that they are more homogeneous, fungible, equifinal and substitutable than is usually assumed. In moderately dynamic markets, dynamic capabilities resemble the traditional conception of routines. They are detailed, analytic stable processes with predictable outcomes. In contrast, in high-velocity markets, they are simple, highly experiential and fragile processes with unpredictable outcomes. Finally, well-known learning mechanisms guide the evolution of dynamic capabilities. In moderately dynamic markets, the evolutionary emphasis is on variation. In high-velocity markets, it is on selection. At the level of REV, we conclude that traditional REV misidentifies the locus of long-term competitive advantage in dynamic markers, overemphasizes the strategic logic of leverage, and reaches a boundary condition in high-velocity markets. Copyright (C) 2000 John Wiley & Sons, Ltd.
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The foundations of a multidimensional measure designed to assess creativity and change are presented. The reliability and construct validity of the Situational Outlook Questionnaire were tested using a sample of 1,111 subjects. Cronbach alpha and exploratory factor analysis supported reliability and construct validity. The study identified areas where the Situational Outlook Questionnaire can be improved and areas for further study with the questionnaire.
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Empirical studies examining the relationship between firm size and innovative activity have produced what superficially might appear to be contradictory results.' While some studies have found a positive relationship between firm size and technological change, still others have identified no relationship or even a negative one. There are two main reasons for these seemingly inconsistent findings. The first is that different measures have been used to quantify technical change. These measures have typically involved either some measure of inputs into the innovative process, such as R&D expenditures, or else the number of patented inventions. While neither of these are direct measures of innovative output, they clearly represent different aspects of the innovative process. Thus, it is perhaps not too surprising that different results have tended to emerge when the R&D input measures are used than for the patent measures. The second reason is that virtually every study examining the relationship between firm size and technical change has had to use a truncated distribution of firm sizes where either no or only a few small firms were included. For example, Scherer's [14, 234-35] conclusion that the empirical results, ". .. tilt on the side of supporting the Schumpeterian Hypothesis that size is conducive to vigorous conduct of R&D" was based on the responses of 443 large corporations participating in the Federal Trade Commission's Line of Business Survey. Similarly, Scherer [15] used the Fortune annual survey of the 500 largest U.S. industrial corporations and found that the number of patented inventions increases less than proportionately along with firm size. Soete [16] found that R&D expenditures tend to increase more than proportionately along with firm size using a sample from Business Week, consisting of the most R&D intensive firms. Bound et al. [6] were able to include a considerably wider spectrum of firm sizes in their sample of 1,492 firms from the 1976 COMPUSTAT data. They found that R&D increases more than proportionately along with firm size for the smaller firms in their sample, but that a fairly linear relationship exists for the largest firms. Inferences about the relationship between firm size and technical change based on a severely *We thank F. M. Scherer and an anonymous referee for helpful suggestions, as well as Sigrid Raasch and Jianping
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The purpose of this study is to identify groups of firms with similar generic knowledge strategies, determine how these strategies change over time, and compare profit margins of the groups. Knowledge strategies of 21 U.S. pharmaceutical firms are analyzed from 1977 to 1991. Cluster analysis is used to group firms over different time periods based on: (a) balance between internal and external learning, (b) preference for radical or incremental learning, (c) learning speed, and (d) breadth of knowledge base. Our findings indicate that there are four generic knowledge strategy groups: ‘Explorers’, ‘Exploiters’, ‘Loners’, and ‘Innovators’. Most firms remain in the same knowledge group over time. The firms in the ‘Innovator’ and ‘Explorer’ groups tend to be more profitable than the firms in the ‘Exploiter’ and ‘Loner’ groups.
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Considers the importance of geographical and institutional factors in the development of clusters and industrial districts as a response to economic integration in the European Union (EU). Theoretical works by economists, economic geographers and organisational theorists are synthesised to provide a framework for the analysis of the emergence and/or development of the geographical concentration of firms in response to economic integration in the EU. An explanation based on competitive advantages from creating or developing geographical concentration in response to economic integration is proposed. A threefold classification is made to distinguish between different types of industrial geographical concentration - clusters, industrial districts type I, and industrial districts type II. Argues that the main difference between these three kinds of geographical concentration is attributed to the nature of their networks. Finally, the paper illustrates the importance of geographical concentrations for international business by considering a famous Italian industrial district, the ceramic tile industry in Sassuolo.
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An abstract is not available.
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The key challenges for the strategic management of technology depend on a company9s size and its core business: small firms must focus on defining and defending their product niche; large firms on building and exploiting competences based on R&D or on complex production or information systems. In all cases, they require continuous learning, the capacity to integrate specialists, and a willingness both to break down established functional and divisional boundaries and to take a view to the long term.
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This study analyses the effect of the use of cross-functional teams and effective leaders on the success of the new product development (NPD) process. With this aim, a sample of 125 firms representing the most innovative industries in Spain has been used. Results show that firms using cross-functional teams obtain a more effective NPD process (that is, better development times and costs, and superior products) and a higher percentage of new products that are successful in the market. Likewise, the firms that use effective leaders achieve better development times, superior products and a higher level of customer satisfaction.
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Product and process innovation is a key component in the success of industrial firms. Therefore, this paper focuses on the main drivers of innovation in large-scale firms such as idea generation, internal technological environment and technology acquisition/exploitation. This study examined 119 large-scale firms in Turkey. The results indicate that firms focus on the technology strategy, idea quality, idea generation, technology acquisition and exploitation rather than factors such as teamwork, learning organization, management participation and delegation as the route to developing innovative capacity.
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The dynamic capabilities framework analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change. The competitive advantage of firms is seen as resting on distinctive processes (ways of coordinating and combining), shaped by the firm's (specific) asset positions (such as the firm's portfolio of difftcult-to- trade knowledge assets and complementary assets), and the evolution path(s) it has aflopted or inherited. The importance of path dependencies is amplified where conditions of increasing retums exist. Whether and how a firm's competitive advantage is eroded depends on the stability of market demand, and the ease of replicability (expanding intemally) and imitatability (replication by competitors). If correct, the framework suggests that private wealth creation in regimes of rapid technological change depends in large measure on honing intemal technological, organizational, and managerial processes inside the firm. In short, identifying new opportunities and organizing effectively and efficiently to embrace them are generally more fundamental to private wealth creation than is strategizing, if by strategizing one means engaging in business conduct that keeps competitors off balance, raises rival's costs, and excludes new entrants. © 1997 by John Wiley & Sons, Ltd.
Article
The objective of this chapter is to provide strategy researchers with a general resource for applying structural equation modeling (SEM) in their research. This objective is important for strategy researchers because of their increased use of SEM, the availability of advanced SEM approaches relevant for their substantive interests, and the fact that important technical work on SEM techniques often appear in outlets that may not be not readily accessible. This chapter begins with a presentation of the basics of SEM techniques, followed by a review of recent applications of SEM in strategic management research. We next provide an overview of five types of advanced applications of structural equation modeling and describe how they can be applied to strategic management topics. In a fourth section we discuss technical developments related to model evaluation, mediation, and data requirements. Finally, a summary of recommendations for strategic management researchers using SEM is also provided.
Article
It is widely recognized that the development of learning capability is key to achieve a durable competitive advantage. However, the analysis of the relevance of learning capability to improve business performance and, thus, the organizational competence has been insufficiently developed in literature. Based on data from 111 Spanish companies, this article explores the link between learning capability and the improvement of business performance by comparing how the main dimensions of learning capability—stocks of knowledge and flows of learning—impact on performance, in terms of both non-financial and financial performance. The results show that those organizations with the highest levels in their knowledge stocks and learning flows obtain a superior performance.
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Here is a first report on the MIT Center for Organizational Learning's ''Dialogue Project.'' The author shows how the techniques of dialogue now being developed can create a new way of dealing with lingering conflicts-in union-management relations, among healthcare professionals, and in South African politics.
Article
A growing body of empirical literature supports key assertions of the resource-based view. However, most of this work examines the impact of firm-specific resources on the overall performance of a firm. In this paper it is argued that, in some circumstances, adopting the effectiveness of business processes as a dependent variable may be more appropriate than adopting overall firm performance as a dependent variable. This idea is tested by examining the determinants of the effectiveness of the customer service business process in a sample of North American insurance companies. Results are consistent with resource-based expectations, and they show that distinctive advantages observable at the process level are not necessarily reflected in firm level performance. The implications of these findings for research and practice are discussed along with a discussion of the relationship between resources and capabilities, on the one hand, and business processes, activities, and routines, on the other. Copyright © 2003 John Wiley & Sons, Ltd.
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The authors outline an updated paradigm for scale development that incorporates confirmatory factor analysis for the assessment of unidimensionality. Under this paradigm, item-total correlations and exploratory factor analysis are used to provide preliminary scales. The unidimensionality of each scale then is assessed simultaneously with confirmatory factor analysis. After unidimensional measurement has been acceptably achieved, the reliability of each scale is assessed. Additional evidence for construct validity beyond the establishment of unidimensionality then can be provided by embedding the unidimensional sets of indicators within a nomological network defined by the complete structural model.
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We describe the development and validation of a new instrument, KEYS: Assessing the Climate for Creativity, designed to assess perceived stimulants and obstacles to creativity in organizational work environments. The KEYS scales have acceptable factor structures, internal consistencies, test-retest reliabilities, and preliminary convergent and discriminant validity. A construct validity study shows that perceived work environments, as assessed by the KEYS scales, discriminate between high-creativity projects and low-creativity projects; certain scales discriminate more strongly and consistently than others. We discuss the utility of this tool for research and practice.
Article
The small business sector is one of the fastest growing sectors of the economy. The firms in this sector are becoming increasingly dependent on information systems (IS) for their operations. Traditional research in IS has primarily focused on large corporations. The problems, opportunities, and management issues encountered by small business in the IS area are unique, and research is too limited to provide useful guidelines. This study compares the research literature on IS implementation and research on IS in small business, examines the commonality and differences, and identifies research gaps. An overall research framework is developed to review the research in the two areas and determine areas of opportunity. As a follow-up of this analysis, a research model is developed to explore the factors influencing the adoption of computer-mediated communication technologies in small business. The model incorporates some of the innovation factors that are identified as potential gaps in the earlier analysis. The research model evaluates the impact of 6 factors-perceived usefulness, cost, compatibility, top management support, competitive advantage, and size-on the adoption of computer-mediated communications technologies. A telephone interview was used to collect data from 207 firms. The results of data analysis reveal that competitive advantage, top management support, and size are important determinants of adoption of computer-mediated communication technologies.