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Cooperation for innovation: more is not necessarily merrier
Abstract
Purpose
Embracing a large set of innovation objectives and collaborating with diverse partners have been promoted as a means to improve innovation performance. However, empirical evidence on the relationships between breadth of objectives, breadth of cooperation and innovation performance is limited, particularly in the context of emerging economies. A larger number of objectives and cooperation partners inevitably increases the complexity in organizational alignment, and cooperation eventually leads to diminishing returns. This study adds to the debate on the costs and benefits of cooperation for innovation. Understanding the optimal levels of the breadth of objectives and cooperation supports managerial decision-making and productivity in the practice of cooperation for innovation.
Design/methodology/approach
Operationalizing breadth of innovation objectives and cooperation via the Turkish Community Innovation Survey data, self-reports reflecting 5,863 firm-level responses between 2006 and 2008 are analysed using tobit and probit models. The maximum likelihood estimator is used to find the optimal levels for breadth of objectives and cooperation.
Findings
Firms with greater breadth of innovation objectives experience higher innovation performance; those with greater breadth of cooperation also experience higher innovation performance, but our results indicate the existence of optimal levels of breadth for both innovation objectives and cooperation.
Research limitations/implications
The authors extend the logic that there is no safety in numbers in cooperation for innovation. If the aim is to enhance innovation performance, managers and policymakers need to pay attention to the number of innovation objectives and the amount of cooperation pursued by firms. However, innovation success may be closely associated with a firm's dynamic capabilities and ability to mobilize its resources. Drawing on organizational learning theories, future research could explore why a lower than maximum level of cooperation may be more conducive to reaching levels of enhanced innovation performance and whether this level is influenced by cognitive processes.
Originality/value
The authors draw attention to the ideal number of innovation objectives and number of cooperating partners required to enhance innovation performance, thus contributing to the debate on the complex relationships between innovation, performance and cooperation in the unique setting of a large developing economy.
... According to Blommerde (2023), service innovation is new or significantly improved services, and they are essential to guarantee the prosperity and survival of service firms. As many factors influence the outcomes of coopetition, such as the type and number of partners within the network (Temel et al., 2023), examining the impact of coopetition within the service industry is crucial to improving the service innovation by this current, usual strategy. ...
... Fernandes et al. (2019) verified that coopetition positively impacts a company's innovation activity and performance. However, more recently, Temel et al. (2023) questioned if diversifying the number of objectives and partners could reduce the returns due to increased complexity in organisational alignment. They suggested enhancing innovative performance by considering the ideal number of innovation objectives and cooperating partners. ...
... Our study rejects some classical assumptions and provides a better understanding of the theoretical proposition of Brandenburger and Nalebuff (1996), the PARTS model, to the KIBS sectors. To some service industry groups, more partners with different interests sometimes disperse the network's efforts and reduce the network's strategic fit (Temel et al., 2023). In other groups, the risk outweighs the advantages of partnering with players of the same activity. ...
Coopetition networks are a recognised strategy to improve a firm's innovative capacity. However, many factors influence the outputs. Our study verified the effect of internal and external conditions on fostering innovative performance. We analysed five coopetition taxonomies across four Knowledge Intensive Business Services (KIBS) sub-sectors, each with varying technological intensity. Our total sample comprised 4,262 Portuguese KIBS. We tested the moderation effects and ran five multiple regression models. In parallel, a robustness check estimated the marginal impact of coopetition on the innovative performance of each KIBS sub-group. Our results provided four tactical sets that combined coopetition taxonomy and structural conditions for KIBS: Coopetition Contender Network Value, Coopetition Extended Network Value, Coopetition Buyer Network Value, and Coopetition Supportive Network Value. We confirmed that structural characteristics improve innovation, evidencing the complementarity between internal and external efforts. Additionally, our findings reveal the user community as a new player with moderation effects on the value network, contributing to a re-elaboration of the coopetition value network approach.
... Recently, other studies also supported the idea that the relationship between collaboration breadth and innovation performance follows an inverted U shape (Ismail et al., 2024;Temel et al., 2023), but do not clarify the distinct effects of the functional and geographical breadth of collaborations and do not consider the role firm size may play. Overall, scholars usually agree that the returns from collaboration breadth depend on the geographical location of partners and other internal factors (e.g. ...
... Our study shows that despite the rich and diverse knowledge inputs they both provide, that produce valuable complementarities that positively impact the development of breakthrough innovations, excessive diversity generates additional costs, thus diminishing the likelihood of radical innovation (resulting in an inverted U-shaped relationships). While this finding aligns with past research (Ismail et al., 2024;Temel et al., 2023), this study goes a step further by separately analyzing the effects of the functional and geographical breadth of collaborations. Thus, we contribute to current research on the topic that highlights that collaboration with other firms and/or organizations is key to improve internal innovation, but this result is affected by the actor's heterogeneity, the geographical context and the different dimensions of networks (Delgado-M arquez et al., 2018;Geldes et al., 2017b). ...
... Distinct effects of functional and geographical breadth of collaborations. The role of firm sizeTemel et al. (2023): The relationship between the breadth of collaboration and a firm's innovation performance follows an inverted U shape. This study separates the breadth of innovation objectives and breadth of collaborationThe separate effects of the functional and the geographical breadth of the collaboration portfolio. ...
Purpose
Due to the constantly increasing competitiveness along with the complexity of knowledge, firms perceive collaboration as a key strategy that preserves firms' radical innovation performance. In this context, this paper aims to examine how firms’ partners’ diversity in open innovation activities influences the development of radical innovations, critical for social development. In particular, this study analyzes how the functional and geographical breadth of the firm’s collaboration portfolio affects its radical innovation performance. Furthermore, it also explores the role of firm size as a moderator in the relationships proposed.
Design/methodology/approach
This research employs panel data analysis, using a sample of 4,677 Spanish firms, with data sourced from the PITEC database.
Findings
The results of this study show that there is an inverted U-shaped relationship between the functional and the geographical breadth of collaborations and the firms’ radical innovation performance. Moreover, this study finds partial support for the moderating role of firm size, in the sense that small and medium-sized enterprises (SMEs) and large firms vary in their optimal number of diversity of partners.
Originality/value
This research provides a better understanding on how partners’ functional and geographical diversity, along with organizational characteristics such as firm size, affect how firms benefit from collaboration for innovation. This study shows that both SMEs and large firms experience diminishing returns when their collaboration networks become overly diverse in pursuit of radical innovation, due to increased costs. However, in SMEs, the turning point occurs at a later stage, consistent with the idea that small firms need broader functional networks to access complementary and novel resources they usually lack.
... In synthesis, the tourism literature indicates that the industry's structure can favour the independence degree. However, in other sectors, Temel et al. (2023) verified that large networks with diverse types of firms hinder coopetition because of organisational complexity. Considering that, we test if the variety of activities and firms in the tourism destination with a degree of dependence on central resources and interdependence can impact the associationism level, becoming business associations as coopetition hubs. ...
... They can evolve into a network to integrative tourism destination management in the sequence and become necessary to foster coopetition through a business association. This result builds on an assumption previously found in other sectors by Temel et al. (2023), that large networks with very different partners have more difficulty in strategic fit due to increased organisational complexity. Thus, it hinders coopetition in the tourism destination. ...
This article examines the strategic role of business associations in the willingness toward coopetition, including variables of the three dimensions of the sectorial tourism context: firm, inter-firm, and industry levels. Data were collected through questionnaires with tourism business managers. The methodological design combined three techniques: Structural Equation Modeling (PLS-SEM), Necessary Condition Analysis (NCA) and Multi-Group Analysis (MGA). Study results suggest that industry-level context has more influence on tourism associationism than the context of the firm and inter-firm levels. That means market commonalities have more impact than interdependency or long-term orientation toward coopetition willingness. Findings suggest that tourism destinations with high market commonality are more likely to have strong business associations and can consolidate coopetition networks, while tourism destinations with low market commonalities will probably have weaker business associations, and the coopetition networks will depend on the long-term vision of firms. Associationism has a strategic role in tourism destinations as it, directly and indirectly, affects willingness toward coopetition. Market commonality, long-term view and associationism are sufficient and necessary conditions for coopetition at the tourism destination independent from dependency degree among firms.
... Technological innovation capacities are the abilities and information expected to actually retain, ace, and work on existing advancements and to make new ones (Aslam, 2021;Khlystova et al., 2022). Innovative work exercises are a significant part of an organization's mechanical development exercises and the main immaterial development consumption (Temel, Mention, & Yurtseven, 2023). In addition to the fact that fruitful mechanical development relies upon mechanical capacities, it likewise requires other advancement abilities in assembly, promotion, association, vital preparation, learning, and the asset portion (Khlystova et al., 2022). ...
... Based on a utilitarian approach, Khlystova et al. (2022) divide technological innovation skills into seven areas: the ability to learn specifically, the ability to do innovative work, the ability to make things, the ability to market them, the ability to identify assets, the ability to coordinate, and the abilit y to make important plans. Likewise, it is contended that learning capacity is the capacity to incorporate significant new information to acquire an upper hand (Temel et al., 2023). Also, innovative work capacity is the capacity to foster new items utilizing new methodologie s and advances. ...
This research aims to examine and analyze the results of knowledge sharing and technological innovation capabilities on competitive advantage. This research’s focus is on the MSMEs in the culinary industry in Makassar city. The approach to sampling in this study was a purposive sampling method, whereas the data collection technique used was a questionnaire. The examination of the data was conducted using path analysis. Results show that knowledge sharing has an impact on technological innovation capabilities, knowledge sharing has an effect on competitive advantage, technological innovation capabilities have an effect on competitive advantage, and knowledge sharing has an effect on competitive advantage through technological innovation capabilities. In terms of their relation to technological innovation capabilities, MSMEs in the culinary sector in the city of Makassar have their own challenges in managing their businesses. Companies have limitations in implementing the use of technology, especially MSMEs that are micro in nature and are still pioneering. Based on the results and discussion, it can be concluded that 1) knowledge sharing has an effect on technological innovation capabilities in culinary sector MSMEs in Makassar city; 2) knowledge sharing has an effect on competitive advantage in culinary sector MSMEs in Makassar city; 3) technological innovation capabilities shape the competitive advantage in the culinary sector MSMEs in the city of Makassar; and 4) knowledge sharing has an effect on competitive advantage through technological innovation capabilities in the culinary sector Makassar city’s MSMEs, which shows that the higher the knowledge sharing, the higher the competitive advantage through technological innovation capabilities.
... Whether it is the use of a smart-phone to access a banks mobile app or the use of a credit card to make purchase a point of sale, this new era of digital transformation and high-speed internet has set in motion the incumbent financial intermediaries to compete with for each other to develop unique and innovative solutions for selling financial products and services to the customers (Schena et al., 2018;Spender et al., 2017). All of the banks are now FinTech operators, and are developing new strategies to provide digital and user-friendly financial products and services (Corvello et al., 2021;Temel et al., 2021). ...
This study presents a comprehensive overview of the impact of Financial Technology (FinTech) on the banking sector, scrutinizing key trends and proposing future research directions to address the evolving challenges and opportunities in the field. Utilizing the PRISMA Flowchart, the study analyzes 93 papers on FinTech in banking published between 2016 and 2022 from the Web of Science database. Employing bibliometric and content analysis methodologies, RStudio, VOSviewer, and NVivo are used for descriptive, keyword co-occurrence, and content analyses, respectively. China leads in FinTech and banking research publications, while the United States surpasses all other nations in total citations. Word cloud charts and frequency analyses reveal that "Banks" and "FinTech" are frequently mentioned. The study identifies "Adoption," "Innovation," "Artificial Intelligence," and "Crowdfunding" as primary research topics. Emphasizing the global integration of blockchain, cloud computing, and big data into FinTech research, the study provides valuable insights into the possibilities and risks associated with technological advancements in the financial sector.
... Finally, we understand that emerging economies are a target audience in the consumption, search, and dissemination of innovation, with the motivation of attracting foreign investment and economic growth (Demirkan et al., 2019). Temel et al. (2021) argue that although innovation is a characteristic desired by emerging economies and that cooperation plays a relevant role in increasing innovation in emerging economies, the quantity (level) of established cooperation must be considered, aiming that the excess does not harm the result, thus weakening the relationships. In other words, a balance must be sought between the search for innovation and the number of cooperative relationships. ...
This essay aims to identify the points of congruence and divergence between the need for coexistence of compliance and innovation in companies. This essay discusses how innovation interferes with economic dynamics, and how compliance can be used to control and limit innovation. We identified factors that influence the highest level of compliance and that favor the innovative capabilities of companies. The joint analysis of these factors allowed the elaboration of eight theoretical propositions that connect compliance and innovation, being such coexistence is not an option for companies, but a necessity, exposing an antagonistic and symbiotic relationship between the two themes. We believe that this essay enriches the existing literature by connecting several research that, in a first analysis, do not establish a connection. We propose a conceptual framework with propositions to be empirically tested by future studies. In addition, we were able to expose that compliance has been a neglected term in academic research, requiring further studies on how organizations can benefit from it. We point out the various nuances of possibilities that the symbiotic relationship between compliance and innovation can give rise to. Companies that have innovative processes or partnerships for this purpose must implement compliance in their governance structure, but horizontally, defining people or sectors responsible for carrying out internal and external compliance in an active position, in the various stages of building innovation: development, testing and production. Managers should be aware that compliance should not be so rigid as to restrict freedom, self-direction and promote excessively high costs.
... Finally, we understand that emerging economies are a target audience in the consumption, search, and dissemination of innovation, with the motivation of attracting foreign investment and economic growth (Demirkan et al., 2019). Temel et al. (2021) argue that although innovation is a characteristic desired by emerging economies and that cooperation plays a relevant role in increasing innovation in emerging economies, the quantity (level) of established cooperation must be considered, aiming that the excess does not harm the result, thus weakening the relationships. In other words, a balance must be sought between the search for innovation and the number of cooperative relationships. ...
This essay aims to identify the points of congruence and divergence between the need for coexistence of compliance and innovation in companies. This essay discusses how innovation interferes with economic dynamics, and how compliance can be used to control and limit innovation. We identified factors that influence the highest level of compliance and that favor the innovative capabilities of companies. The joint analysis of these factors allowed the elaboration of eight theoretical propositions that connect compliance and innovation, being such coexistence is not an option for companies, but a necessity, exposing an antagonistic and symbiotic relationship between the two themes. We believe that this essay enriches the existing literature by connecting several research that, in a first analysis, do not establish a connection. We propose a conceptual framework with propositions to be empirically tested by future studies. In addition, we were able to expose that compliance has been a neglected term in academic research, requiring further studies on how organizations can benefit from it. We point out the various nuances of possibilities that the symbiotic relationship between compliance and innovation can give rise to. Companies that have innovative processes or partnerships for this purpose must implement compliance in their governance structure, but horizontally, defining people or sectors responsible for carrying out internal and external compliance in an active position, in the various stages of building innovation: development, testing and production. Managers should be aware that compliance should not be so rigid as to restrict freedom, self-direction and promote excessively high costs.
... Within this particular framework, the dynamics between Fintech operators and conventional financial operators are undergoing a transformation towards novel models of cooperation and integration. This shift is also evident in the increased accessibility of digital and user-centric financial products, as well as in the revitalized interaction with more astute clientele (Temel et al., 2021). Along with significant market growth opportunities (such as digital payments, cryptocurrency, or peer-to-peer lending), new technological innovations expose the financial sector to significant risks that can undermine the sound and prudent management of operators, threatening the protection of customers as well as the stability and efficiency of the entire financial services sector (Yan et al., 2021). ...
The purpose of this research is to empirically investigate the relation between financial technology(fintech) services and adoption intention with mediating role of customer experience in the Egyptian banking sector. The objectives of This research are: to examine the relation between fintech services and adoption intention, to test the relation between fintech services and customer experience, to investigate the relation between customer experience and adoption intention, to examine the mediation role of customer experience between fintech services and adoption intention and to develop a theoretical framework illustrates the relation amongst selected variables using structural equation modelling. The methodology is based on quantitative approach using a questionnaire tool to gather required data and structural equation modelling analyses is used. The main conclusions drawn from this study are: the direct effect between fintech services and adoption intention is statistically significant, the direct effect between fintech services and customer experience is statistically significant, the direct effect between customer experience and adoption intention is statistically significant. Finally, the study found that the customer experience partially mediates the relation between fintech services and adoption intention.
... As of today, there are 93 science parks established throughout Turkey. In 2007, companies were encouraged to establish their own R&D centres in order to increase new technologies, job creation and eventually support the economic growth of the regions where the R&D centres are located (Temel, Mention, and Yurtseven 2023). Today, there are 1,254 R&D centres established by companies in all the regions of Turkey (Temel 2023). ...
There has been a growing debate on the role of intellectual property rights (IPR) in the accumulation of knowledge and more recently on the role they play in ensuring long-term economic growth by supporting knowledge creation and expansion, incentivizing investment in R&D and innovation. This research aims to reveal the effects of industrial property rights on regional economic development in Turkey. In addition, and recognizing the heterogeneity across regions within the same country, we conduct the analysis with a caveat, by differentiating the effect across developed and developing regions. Our results suggest that industrial property rights have played a dual role, first by promoting the effort on investment in innovation activities measured as R&D intensity, and the amount of R&D employees, and second, by contributing to economic development. However, the impact differs between developed and developing regions. ARTICLE HISTORY
... Therefore: (Badir et al., 2020;Kafouros and Forsans, 2012;Patrucco et al., 2022;Tusiad, 2013). Third, Turkey is striving to upgrade its economy through policy initiatives designed to enhance innovation practices, including those oriented toward open innovation (Kotabe et al., 2017;Manning, 2022;Mordue and Sener, 2022;Temel et al., 2023). We choose the United States and China/India as collaboration contexts because they are the main destinations when partnering for innovation collaborations (Estrin et al., 2018;Luo et al., 2019). ...
This study investigates how combining different forms of formal collaboration (i.e., developed vs. emerging economy collaborations) and informal search (i.e., search breadth vs. depth) affects the innovation performance of emerging economy firms. The open innovation literature has primarily focused on the effect of individual open innovation practices, generating conflicting results. We argue that outcomes depend on specific combinations of open innovation practices. Drawing on the notion of external absorptive capacity routines, we argue that combining forms of openness that rely on the same absorptive capacity routine positively affects innovation performance. We specifically ask whether broad or deep search, which rely on different routines, is more appropriate for emerging economy firms who are collaborating with developed or other emerging economy partners. We test our hypotheses using responses from 659 manufacturing and service firms to two waves of the Turkish Innovation Survey. Using Tobit regression analysis, we generate findings consistent with our expectations. We find that deep search is appropriate when collaborating with developed economy partners, whereas broad search is appropriate when collaborating with other emerging economy partners. These confirm the importance of combining forms of openness with matching routines. Overall, we illustrate the importance of finding the right combination of different forms of openness.
... In this paper, we accumulate the evidence of curvilinear relationships between the components of market knowledge (market diversity and market significance) and radical product innovation performance. These findings are consistent with Temel et al. (2021). Their Moderating effect of absorptive capacity on the relationship between market significance and radical product innovation performance EJIM finding also indicates that the relationship between market knowledge and radical product innovation performance is curvilinear. ...
Purpose
This paper examines the effect of market knowledge on market success of product innovativeness and the moderating role of absorptive capacity. We separated market knowledge into market diversity and market significance components and examined their effects on radical product innovation performance.
Design/methodology/approach
This paper adopted the secondary database study. Excluding cases with missing values of main variables, a total of 1,219 Taiwanese manufacturing firms from the Third Taiwan Technology Innovation Survey (TTIS3) database were used to test the hypotheses. A moderated hierarchical regression approach was utilized to analyze the data.
Findings
The results revealed that the relationship between market diversity and radical product innovation performance is a predominantly positive concave downward curve. In contrast, the relationship between market significance and radical product innovation performance is a predominantly negative concave downward curve. Furthermore, the results also indicated that absorptive capacity has different moderating effects on the relationships between market diversity/significance and radical product innovation performance. Absorptive capacity enhances the negative effect of market significance but suppresses the positive effect of market diversity on radical product innovation performance.
Originality/value
This paper is the first research which contributes to examining the relationship between market knowledge and radical product innovation sale performance.
... This brought to the entry of new operators with innovative business models, thus pushing incumbent financial intermediaries to evolve towards digital transformation strategies, and modifying the business relations with customers (EBA, 2018a;Spender et al., 2017;Schena et al., 2018). In this context, the relationships between Fintech operators and traditional financial operators are evolving towards new schemes of collaboration and integration, and this change is also reflected in the enhanced availability of digital and user-friendly financial products, as well as in the renewed relationship with smarter customers (EBA, 2018b;Temel et al., 2021;Corvello et al., 2021). Alongside significant market growth opportunities (e.g. ...
Purpose
In recent years, the penetration of digital technologies in the financial industry determined the arising of Fintech, which generated a dynamic and rapid change that business operators and supervisory authorities in the banking industry are struggling to follow it. This is especially due to issues affecting financial intermediaries and customers, and potential risks of stability of the financial system. The aim of this paper is to provide a review of Fintech in the banking industry thus to update the knowledge about technology innovation in the banking sector, identify the major trends in the domain and delineate future research directions.
Design/methodology/approach
The study reviews 377 articles indexed on Scopus from 2014 to 2021 that focus on Fintech and the banking industry. The methodology adopted is structured in two steps: the keywords selection and the analysis of the documents extracted. The first step identified “Fintech” and “bank” as keywords to be searched within the title, abstract or keywords of documents indexed on Scopus; whereas the second step combined R and VOSviewer to provide a descriptive analysis of the dataset and the analysis of keywords and occurrences, respectively.
Findings
Results achieved in the study allow providing a systemic view of the Fintech in the banking industry, including the emergent phenomenon of digital banking. In particular, it is provided with a general overview and descriptive information on the entire sample of documents analyzed, their authors, the keywords used and the most cited works. Besides, a deepening on the model of digital banking is provided, by delineating the six dimensions of the key effects generated by the digital bank model.
Originality/value
Two main elements of originality characterize this study. The first one is related to the fact that few review studies have been published on Fintech in the banking industry, and the second one concerns the multiple dimensions of the impact of Fintech in the banking sector, which includes customer, company, bank, regulation authority and society.
... The process of innovation is heavily reliant on knowledge management (KM). KM is a process toward creating and using knowledge in an organisation (Rosenthal-Sabroux and Grundstein, 2008), to foster innovation, develop new skills and capabilities and create a positive work environment (Temel et al., 2021a). L opez-Nicol as and Meroño-Cerd an (2011) highlighted that the creation of new and valuable knowledge can be converted into products, services and processes by transforming general knowledge into specific knowledge. ...
Purpose
The adoption of knowledge management (KM) to steer new skills and capabilities among people provides evidence that KM not only offers competitive advantages but also provides a means for organisational survival, by improvising core capabilities or generate new ones that can drive people in the Fourth Industrial Revolution (4IR) era. This paperaim to identify critical new skills and capabilities among people within an organisation to stay competitive, innovative and relevant.
Design/methodology/approach
The paper presents the findings on new skills assessment for Fourth Industrial Revolution. The study was carried out through an interview with a focus group discussion technique to gather data on the role of KM in creating new set of skills or capabilities in Fourth Industrial Revolution’s landscape. The study also reports a bibliographic study of critical skills based on more than a decade of related academic and industry publications to portray research trends and future directions.
Findings
There is a demand in “must-have” skills related to Industry 4.0 such as capability for complex decision-making, complex problem-solving, collaborative innovation, project management, creativity and critical thinking, social skill and social responsibility. While these skills are critical enablers to aiding individuals in the scenarios of plausible 4IR futures, several important new research trends that emerge have also not been adequately explored including KM and Industry 4.0 skill gap, skill evolution, machine knowledge, intuitive decision-making, rational decision-making, technostress, digital fluency, collaborative innovation, industrial policies, human–machine interaction and societal systems.
Research limitations/implications
This research provides a roadmap for the next research trends and topics in the area of Fourth Industrial Revolution and new skills requirements. The study discusses some of the essential issues and challenges with upskilling required for Industry 4.0. It also focuses on how upskilling learning initiatives influence new knowledge creation. This primarily contributes to the educational field in deciding how and when to adopt appropriate strategies and identify which initiatives to best meet the needs of its community.
Practical implications
KM enables individuals to utilise their existing core capabilities or generate new ones for immediate investment in upskilling to meet current and future skills needs required by an organisation. Simply put, KM will improve the organisation’s talent-driven learning strategy and increase individuals’ ability to learn faster and attain sustainable competitive advantage in a fast-paced ever changing environment.
Originality/value
This paper is useful to academics, practitioners and policymakers in the fields of KM. The research provides initial insight into new skills mapping in the context of Fourth Industrial Revolution and the needs for researchers to understand the recent research trends in KM.
The internal technological innovation (IT) and external technological cooperation (ET) of a city are crucial drivers for its green development (GD). Although previous studies have extensively explored the effect of IT on GD, IT, ET and GD have not been integrated into the same framework to explore their relationship. Using panel data of 13 cities in the Beijing-Tianjin-Hebei urban agglomeration, this study revealed the spatio-temporal evolution of GD and analyzed the effects of IT and ET on GD from the perspective of baseline impact, spatial effect and synergy effect. Empirical results demonstrate that the level of urban GD has upgraded and the difference in GD between cities has been narrowed though it decreases from the middle to both ends. IT significantly promotes the growth of GD while ET has an inverted U-shaped effect on GD. Under the influence of spatial spillover, IT has a U-shaped effect on the GD of neighboring cities while the effect of ET on neighboring GD is not significant. Additionally, the interaction between IT and ET has not been effective, leading to an insignificant synergy effect on GD. These findings will provide reference for taking rational advantage of IT and ET to facilitate urban GD.
Purpose: Research and Development (R&D) and innovation activities critically impact an organization's development and competitive advantage. Although all industries have R&D and innovation activities, sectoral applications vary depending on readiness, investment opportunities, and organizational strategies. This study focuses on the automotive, textile, and main metal industries, with the highest export rates in Türkiye. This study aims to analyze R&D and innovation activities for the selected industries and provide practitioners with future insights. Methodology: Six different R&D and innovation indicators, i.e., current expenditure, personnel expenditures, trade investments, number of patent applications and number of R&D personnel, are considered for this study, and the GM (1,1) forecasting model is used to predict 2022-2030. Findings: As a result, although an increase in R&D and innovation activities in the automotive industry is expected, especially for each indicator, these values are limited for textile and main metal. It is realized that especially these two industries need more support. Originality: Within the scope of this study, future insights and suggestions are given under digitalization and technology adoption, encouraging postgraduate studies of employees and higher education - industry collaborations, adopting R&D and innovation as a part of corporate culture, extending R&D and innovation incentives, supporting SMEs in R&D and innovation activities according to sectoral comparisons.
In Europe, micro‐firms contribute significantly to both the economy and the environmental impact on ecosystems. Helping them become greener and stimulating innovation toward new sustainable and circular solutions could substantially contribute to the European goal of achieving carbon neutrality and environmental sustainability, as promoted by the European Green Deal and Next Generation EU programs. Nevertheless, eco‐innovation (EI) by micro‐firms is studied little in the literature. In this paper, we analyze the main determinants of conventional and EI adoption by micro‐firms. We used an ad‐hoc survey developed for enterprises in Emilia‐Romagna (Italy), an important region in terms of innovation where micro‐firms play a significant role in the economy. The paper analyzes whether human capital, training, R&D activities, collaboration activities to improve learning, and the environmental culture within the firm act as main determinants of innovation adoption, in addition to other standard drivers and barriers to innovation adoption studied in the extant literature. Moreover, we compare innovation adoption strategies between micro‐firms and SMEs. While our results highlight differences in the determinants of EI and conventional innovation adoption, there are important heterogeneities when it comes to innovation adoption strategies.
Hoe bouw en onderhoud je een duurzame en inclusieve stad die een fijne leefomgeving vormt voor iedereen in bestaande en nieuwe wijken? Het lectoraat Urban Innovation werkt daaraan met praktijkgericht onderzoek in Flevoland vanuit de thema’s circulaire, gezonde en nabije leefomgeving. Daarbij staat centraal wat de waarde van stedelijke ontwikkeling is voor bewoners en bezoekers van nu en de toekomst; en hoe gezamenlijk te leren, innoveren en te zorgen voor doorwerking van vernieuwende stedelijke ontwikkelingen in de dagelijkse praktijk.
Samenwerken en het combineren van verschillende disciplines, perspectieven en initiatieven zijn essentieel voor de diverse uitdagingen van de stad. Denk aan de aanwezigheid, toegankelijkheid en bereikbaarheid van voorzieningen zoals werk, natuur, openbaar vervoer, cultuur, winkels, onderwijs en zorg en de sociale en fysieke aspecten die het leven in de stad mogelijk en prettig maken.
This study proposes program orientation as an organizational culture that motivates organizations to manage interrelated projects like a program without a formal structure or program team. We hold that collaboration, with cooperation and coordination as its main elements, plays a critical role in aligning interrelated projects dynamically. The empirical results support our hypotheses that program orientation indirectly affects information systems alignment with interproject cooperation, coordination, and adaptability mediating its effects. This study thus confirms the benefit of treating interrelated projects as a program, even when they are not governed by a formal program structure.
Purpose
In the post-COVID-19 era, the hospitality industry is rapidly moving towards digitalization, which requires employees to upgrade their knowledge and skills. Some employees resist those changes and refuse to upgrade their knowledge, skills and ways of doing things. Therefore, there is a need to understand this unexplored area and so this study examines employee intentions to embrace digital technology from the perspective of upgrading their skills and knowledge. The study investigates the moderating role of the employees' resistance to change motive (RCM) on their intention to embrace digital technology, especially in the post-COVID-19 pandemic scenario.
Design/methodology/approach
The research is conducted using dynamic capability view (DCV) theory and status quo bias (SQB) theory. Drawing on the existing literature in this area, a theoretical model is developed, which is validated using the structural equation modelling technique to analyse data from hospitality industry employees.
Findings
The results indicate that employees' dynamic capability plays a significant role in employees' upgrading their skill and knowledge capabilities, and this significantly improves employee intention to embrace digital technology. It also finds that the employee RCM plays a significant role in the relationship between upgrading skill capability and their knowledge capability to relation to embracing digital technology.
Originality/value
The findings could be used by hospitality managers to better understand employee intentions with regard to adopting digital technology, challenges faced and the way forward.
Z Amaç: Eko-inovasyon uygulamalarının tüketici talebi ve tedarikçi iş birliği değişkenleri ile kirliliği azaltma değişkeni ilişki-sinde ara değişen etkisini ortaya koymaktır. Yöntem: Veriler, Türkiye'de araştırma geliştirme (Ar-Ge) faaliyeti gerçekleştiren 203 üretim işletmesinden toplanmıştır. Hipotez testleri yapısal eşitlik modellemesi yöntemi kullanılarak yapılmıştır. Bulgular: Tüketici talepleri, tedarikçi iş birliği değişkenleri arasında kirliliği azaltmaya yönelik eko-inovasyon uygulama-larından; eko-ürün ve eko-süreç inovasyonun aradeğişken etkisi bulunmasına rağmen eko-pazarlama inovasyonun ara değişken etkisine rastlanılmamıştır. Özgün Değer: Eko-inovasyon uygulamalarının, tüketici talebi ve tedarikçi iş birliği değişkenlerinin ilişkisinde kirliliği azalt-ma üzerindeki ara değişken etkisi ilk defa incelenmiştir. Bu çalışma ile pazarlama ve inovasyon yönetimi literatürüne katkı sağlamak, işletme yönetimine ve karar alıcılara rehber olmak hedeflenmiştir. Anahtar Sözcükler: eko-pazarlama inovasyonu, eko-süreç inovasyonu, eko-ürün inovasyonu, tedarikçi iş birliği, tüketici talebi JEL Sınıflandırması: M31, M10, M11, M19 *Yazarlar bu çalışmaya eşit derecede katkıda bulunduklarını ve isimlerinin alfabetik olarak sıralandığını teyit ederler. ABSTRACT Purpose: To reveal the mediation effect of eco-innovation practices, on the relationship between consumer demand and supplier collaboration variables and reducing pollution variable. Method: Data has been gathered from 203 manufacturing enterprises, performing research and development (R&D) activities in Turkey. Structural equation modeling method was used to test the hypotheses. Findings: Although there has been found a mediation effect of eco-product and eco-process innovations, regarding reducing pollution between consumer demand and supplier collaboration variables, a mediation effect of eco-marketing innovation has not been found. Originality: The mediation effect of eco-innovation between consumer demand and supplier collaboration relationship in reducing pollution has been examined for the first time.With this study, it is aimed to contribute to the marketing and innovation management literature and to guide business management and decision makers.
Purpose
The purpose of this study is to determine the extent to which R&D subsidy can affect the innovation process of manufacturing venture firms by examining the output additionality measured as both proximal indicators of innovation and distal indicators of growth. Further, the differences in output additionality between the clusters in the subcontracting regime were examined to investigate whether the effect of R&D subsidy can vary depending on subcontracting practices and structure among large enterprises and venture firms.
Design/methodology/approach
This study uses survey data of the Korea Venture Business Association conducted in 2012, 2013, 2014, 2015, and 2016 respectively, which selects a random sample from venture firms by stratified random sampling method based on the industry sector, size and location for each survey year. This study analyzed the data using an endogenous treatment effects model to estimate the average treatment effect of R&D subsidy, yielding more accurate estimates than a traditional treatment effects model by controlling the unobserved endogenous components.
Findings
This research found that R&D subsidy may not facilitate the process of transformation of innovation into financial growth even though R&D subsidy can facilitate the innovation process and contribute to producing new and improved products. This research also reveals that the relationship between R&D subsidy and innovation performance for firms heavily dependent on subcontracting is generally much weaker than those for independent subcontractors. Further, the present study exhibits that public R&D subsidy for independently subcontracting venture firms is more effective for the growth in both employment and sales than those for subcontracting with large enterprises or other subcontractors.
Research limitations/implications
R&D subsidy for venture firms does not relieve the burden of liability of newness and smallness of venture firms, especially the disadvantage in market penetration and competition. In addition, venture firms subcontracting with large enterprises or other prime subcontractors tend to achieve incremental innovation with the help of the technology and competence of large companies and run stable businesses through a predetermined market.
Practical implications
R&D subsidy for venture firms does not relieve the burden of liability of newness and smallness of venture firms, especially the disadvantage in market penetration and competition. Further policy measures should be implemented so as to identify and eliminate barriers to market acceptance for new products of venture firms.
Originality/value
This research verifies that the effect of R&D subsidy may harmful to the sales growth of venture firms and the output additionality differs with the degree of dependency on subcontracting practices and structure.
Purpose
This paper presents a stepwise method for identification and analysis of innovative activities in production systems. The purpose of this paper is to provide a structure in order to propose the risk paradigms and factors corresponding to the innovative activities and evaluation of the impact of these activities on innovation decisions and investment.
Design/methodology/approach
The model used here is an analytical approach that evaluates the impact of innovative activities on innovation decision and investment using product opportunity gap (POG) concept. This framework is applied for innovative activities of Asian industrial field, and the risk of innovative activities is calculated by weighted risk analysis method. In this method, the risk weights and intensities are estimated by the average of experts’ opinions in interviews.
Findings
This implementation discovered some useful information being used by investors, innovators and policymakers for taking the best strategies and decisions in various innovation domains such as innovation management, risk management and innovation policy. The results of this study show that the product innovation is the most popular category of innovation that has occurred in Asian manufacturing industries, and the product innovation, marketing innovation and organizational innovation have the most influence on technology, economic and social changes intensity, respectively.
Research limitations/implications
This study analyzed the risk of innovative activities after their occurrence and because of different views of experts, there were diverse and sometimes contradictory analyses of innovative activities risk.
Originality/value
This paper links two separate and important sectors of innovation domain: innovation risk and innovation decision making and investment. POG plays the role of a bridge to connect the two mentioned sectors and shows how innovation causes the technological, economic and social changes. This paper also provides useful and practical information for innovation investors and decision makers to take the best decisions and to avoid the probable failures and losses.
How to evaluate innovations, especially in the beginning of new product development, is a question constantly posed by academics, managers, and policymakers. One reason for this is that improved front-end decisions greatly affect company performance. To find the answers to this question, this review article analyzes scientific publications on innovation indicators published between 1980 and 2015. The objective of this article is to increase the understanding of the indicator landscape and to complement the various stages of the innovation process with relevant indicators. In doing so, this study categorizes the identified indicators into company-specific and contextual dimensions. Furthermore, this study analyzes the indicators in terms of their potential for ex-ante and ex-post evaluation and investigates the characteristics of relevant publications. The analysis finds that more process rather than product indicators exist in the literature. Current publications emphasize qualitative and indirect indicators but neglect indicators for the early stages of the innovation process. The review identifies 82 unique indicators to evaluate innovations including 26 indicators for the early stages. The results can help managers, researchers, and policymakers to better understand the innovation process and the indicator landscape. However, more concrete indicators are needed to improve front-end innovation decisions.
The study of modes of open innovation in smaller companies is still in the development phase. This study responds to this situation and, drawing upon a data set from 4,679 Turkish small and medium-sized enterprises (SMEs), explores the influence of inbound open innovation and coupled open innovation on marketing innovation as well as process and organisational innovation in SMEs. Results reveal major differences between small and medium-sized Turkish enterprises with regard to both marketing innovation as well as process and organisational innovation. While inbound open innovation positively influences both, marketing as well as process and organisational innovation, the effects for small-sized enterprises are even higher than for medium-sized ones. Coupled open innovation positively influences both innovation outcomes as well, although the effects for medium-sized enterprises are significantly higher than for smaller ones.
We study the relationship between price-setting behavior and the degree of competition in a setting where markets and information flows are relatively imperfect. Using a unique dataset that combines survey data on retail outlets in Lesotho, and detailed historical information on their product prices, we find a non-monotonic relationship between the frequency of price changes and perceived competition, measured by the number of reported competitors. This non-monotonic relationship is consistent with a model of increasing costs of coordinating price changes under tacit collusion with few competitors, and a breakdown of collusion at higher levels of competition. By exploring the nature of the relationship between competition and price rigidity, our study has implications for macroeconomic and competition policy, and underscores the scope for interaction between the two.
Open innovation is now a widely used concept in academia, business, and policy making. This article describes the state of open innovation at the intersection of research, practice, and policy. It discusses some key trends (e.g., digital transformation), challenges (e.g., uncertainty), and potential solutions (e.g., EU funding programs) in the context of open innovation and innovation policy. With this background, the authors introduce select papers published in this Special Section of California Management Review that were originally presented at the second annual World Open Innovation Conference, held in Santa Clara, California, in December of 2015.
Insurers are well versed in the litany of challenging conditions facing the sector. These challenges are economic, political, regulatory, legal, social, and technological. As a result of those pressures, the industry is experiencing increasing competition, muted growth, and an excess of capital. The increased connectivity among household and workplace devices, the development of autonomous vehicle and the rising threat of cyber attacks are transforming the way people live and risk they need to mitigate with insurance products. Insurers need to adopt their business models address the changes which can be threatening to the growth of the industry (Deloitte, 2017). Innovation is widely regarded as pinnacle success factor in highly competitive and global economy. An innovation perspective draws a clear picture of future opportunities that lie ahead. The main purpose of this paper is to explore the relationship among innovations capability, innovation type and on the different aspect of firm performance including innovation, market and financial performance based on an empirical study covering insurance industry in Sri Lanka. The research framework developed in this study was tested 379 senior managers of insurance companies. The empirical verification of assumption of this model has given evidence to confirm the relationship between innovation capabilities; innovation efforts and firm performance are significant and strong. The results of this study could lead effective management of innovation capability which helps to deliver more effective innovations outcomes to generate better performance and it would be benefits for management of the insurance companies.
Research collaboration has long been suggested as an effective way to obtain innovative outcomes. Nevertheless, relatively little is known about whether and how different research collaboration strategies inspire or inhibit firms in the exploration of new knowledge. Drawing upon the research collaboration literature and social network theory, this study examines the effects of two specific collaboration strategies (i.e., collaborating widely and collaborating deeply) on new knowledge exploration by recognizing the moderating roles of the local and global cohesion of knowledge networks. We test our hypotheses by using a manually collected sample of 730 Chinese vehicle or parts manufacturers during the period between 1985 and 2011. The empirical results suggest the positive effects of research collaboration breadth and collaboration depth on new knowledge exploration and that the global cohesion of intra-organizational knowledge networks magnifies the effect of collaboration breadth, while local cohesion negatively moderates the effect of collaboration depth on new knowledge exploration. These findings jointly indicate that a research collaboration strategy in combination with the structure of a knowledge base is crucial for obtaining novel knowledge.
Delivering impact is nowadays on top of the agenda of universities, worldwide. But what exactly does that mean? Universities' primary mission is to educate the young generations, by providing them with basic knowledge on a wide array of topics and disciplines and most importantly, by training them how to continuously learn - learn by doing, by reflecting, by challenging facts and perceptions, critically and constructively. Yet, the education mission, which can be seen as a long term investment from nations into the development and nurturing of their capabilities, competitiveness and growth, is increasingly complemented and supplemented by another role: supporting economic growth in the short run. This pressure to generate and disseminate actionable knowledge, and support its application and immediate implementation into real life, contemporary businesses, entails a tremendous shift in the way universities operate, both in terms of time and space. And this undeniably creates tensions: it is common knowledge that universities and private sector firms are not sync in the way they think, act and deliver. (...)
This study examines the relationship between breadths of two different modes of external knowledge: R&D outsourcing and cooperation. Building upon transaction costs literature and literature on research partner breadth and R&D outsourcing, we hypothesise an U-inverted relationship between outsourcing breadth and innovation performance and a complementary relationship between R&D outsourcing and R&D cooperation. The model is tested on a large sample based on CIS survey for Spain. The empirical analysis confirms the U-inverted relationship between outsourcing breadth and innovation and also reveals an interesting result: the complementary effect of R&D cooperation varies with the level of R&D outsourcing breadth and it is not confirmed for low and medium levels of R&D outsourcing breadth. The results have important implications for theory on the selection of different modes of inbound open innovation and for managers and their cooperation and outsourcing strategies.
We investigate the role of search strategy in shaping firms’ innovation performance. Firms use a wide range of external actors and sources to help them achieve and sustain innovation. In particular, the extension (breadth) and the relevance (depth) of such sources determine firms’ ability to extract and exploit knowledge and new ideas and, thus, to be innovative. Using a sample of firms in a regional context active in R&D, we built separate measures of breadth and depth for local (on a regional scale) and global (outside the regional context) search. This allows us to investigate whether localized or global knowledge spillovers are in place. We find that a wider set of partners increases coordination costs, while greater depth in search strategies contributes to innovation. We find that a more diversified search strategy at the local level (greater breadth of search) results in significant payoffs in terms of innovation, while diversifying the partnership with Italian partners has a smaller, although still positive, effect. In contrast, the benefits of depth of innovation are greatest at the global level. In addition, a broader set of information sources for R&D projects has a significant positive effect on innovation. Finally, firms that resort to R&D subsidies are less innovative.
R&D collaboration facilitates the pooling of complementary skills, learning from the partner as well as the sharing of risks and costs. Research therefore stresses the positive relationship between collaborative R&D and innovation performance. Fewer studies address the potential drawbacks of collaborative R&D. Collaborative R&D comes at the cost of coordination and monitoring, requires knowledge disclosure, and involves the risk of opportunistic behavior by the partners. Thus, while for lower collaboration intensities the net gains can be high, costs may start to outweigh benefits if firms perform a higher share of their innovation projects collaboratively. For a sample of 2735 firms located in Germany and active in a broad range of manufacturing and service sectors, this study finds that increasing the share of collaborative R&D projects in total R&D projects is associated with a higher probability of product innovation and with a higher market success of new products. While this confirms previous findings on the gains for innovation performance, the results also show that collaboration has decreasing and even negative returns on product innovation if its intensity increases above a certain threshold. Thus, the relationship between collaboration intensity and innovation follows an inverted-U shape and, on average, costs start to outweigh benefits if a firm pursues more than about two-thirds of its R&D projects in collaboration. This result is robust to conditioning market success to the introduction of new products and to accounting for the selection into collaborating. This threshold is, however, contingent on firm characteristics. Smaller and younger as well as resource-constrained firms benefit from relatively higher collaboration intensities. For firms with higher collaboration complexities in terms of different partners and different stages of the R&D process at which collaboration takes place, returns start to decrease already at lower collaboration intensities.
Several previous studies have investigated the effects of creativity and knowledge on innovation, both of them being considered prerequisites of innovation. However, the relationship among the different variables can be confusing due to redundant causality. In this paper, we study the influence of the mediating effect of creativity between breadth of knowledge (diverse sources of knowledge) and innovation by developing a conceptual model, and then test it on the Spanish ceramic cluster of Castellón. Empirical findings show that creativity is the mechanism through which the different sources of knowledge influence innovation. The implications of these results in relation to creativity, knowledge and innovation theory and practices are discussed.
The not-invented-here syndrome (NIH) describes a negative attitude toward knowledge (ideas, technologies) derived from an external source. Even though it is one of the most cited constructs in the literature on knowledge transfer, previous research has not provided a clear understanding of the antecedents, underlying attitudes, and behavioral consequences of NIH. The objective of our paper is to open the black box of NIH by providing an in-depth analysis of this frequently mentioned yet rarely understood phenomenon. Building on recent research in psychology and an extensive review of the management literature on NIH, we first develop a framework of different sources classifying knowledge as “external.” We then discuss how a perception as “external” may trigger the rejection of this knowledge, even if it is useful for the organization. Differentiating various functions of an attitude, we hereby identify possible trajectories linking NIH with such biased individual behavior and decision making. We apply this understanding to develop an extensive agenda for future research.
Will small- and medium-sized enterprises (SMEs) in emerging economies search more deeply or search more broadly for product innovation at high levels of environmental turbulence? In answering this question, unlike prior studies that treat search depth and search breadth as separate variables to measure firms’ external knowledge search strategy, this study introduces a new concept, external search towards depth-dominance, to capture the trade-off between search depth and search breadth for SMEs in a resource-constrained context. Using data on 491 Chinese manufacturing SMEs, we find that SMEs search more deeply at high levels of technological and market turbulence. Moreover, the positive relationship between perceived technological turbulence (or perceived market turbulence) and external search towards depth-dominance is stronger when the differentiation propensity of a firm's competitive strategy is lower. The findings contribute to the understanding of innovation search in a resource-constrained context and the context specificity of innovation search.
Research Summary: U- and inverted U-shaped relationships are increasingly explored in strategy research, with 11 percent of all articles published in Strategic Management Journal (SMJ) in 2008–2012 investigating such quadratic relationships. Moreover, a movement towards introducing moderation to quadratic relationships has emerged. By reviewing 110 articles published in SMJ from 1980 to 2012, we identify several critical issues in theorizing and testing of these relationships for which current practice falls short. These include insufficient causal argumentation, incorrect testing, mixing up two different types of moderation, and not realizing that the curve can flip completely. For these and other issues, a guideline is provided which, when followed, may bring clarity to theoretical motivation and rigor to empirical testing.
Managerial Summary: Too much can be as bad as too little. Many relationships in strategic management follow an inverted U-shaped pattern, where moderate levels of a strategy lead to optimal performance. To gain deeper insights into the conventional wisdom that too much of a good thing can be harmful to performance, we discuss how such relationships can be better theorized and tested based on a review of articles exploring U-shaped relationships in Strategic Management Journal during 1980–2012. We identify several critical issues that require close attention and provide a guideline to further develop and validate this important managerial intuition.
Nowadays it is commonly accepted that exploiting external knowledge sources is important for firms' innovation and performance. However, it is still not clear how this effect takes place and what internal capabilities are involved in the process. We propose to open the black box between external knowledge search strategies, and innovation and performance by proposing absorptive capacity (AC) as the mediating variable. A sample of 102 biotechnology firms from Spain is used to test the proposed theoretical model through structural equation modeling taking the partial least squares approach. Results suggest that AC acts as a full mediator in the relationship between the depth of external knowledge search and the innovation and business performance of the firm. Finally, some suggestions for managers and future lines of research are highlighted.
Even though previous research has repeatedly highlighted the critical role of network partners on innovation activities, it lacks a dedicated discussion about small and medium-sized enterprises (SMEs) and their approaches to network partners for realising innovation initiatives. This study responds to this situation and, drawing upon a data set from 1,315 Turkish SMEs, empirically conceptualises a typology of strategic types of networkers and explores the influence of these strategic types on marketing and product innovation as well as process and organisational innovation in SMEs. Results show that apart from supply-chain networkers, there are significant positive relationships between all types of network collaborations and SMEs' innovation activities. Additionally, increasing the breadth and depth of network collaboration with external partners will strengthen the positive effects of SMEs' innovation activities even more.
Purpose
Drawing on the literature on dynamic skills, this study builds upon and empirically tests a conceptual model that connects business and political ties, organizational unlearning, organizational learning and firm performance. Specifically, this study suggests that business ties enable and political ties inhibit organizational unlearning (i.e. regenerative dynamic capability), which may, in turn, affect exploratory (i.e. renewing dynamic capability) and exploitative (i.e. incremental dynamic capability) innovation behaviors of the firm. Thus, the purpose of this study is to offer a theoretical framework in which organizational unlearning and learning act as mediating mechanisms between business and political ties and firm performance.
Design/methodology/approach
Structural equation modeling and mediation analyzes were used on a sample of 302 small and medium-size enterprises in Turkey.
Findings
This study found that business ties enable organizational unlearning while political ties impede it. This study further demonstrates that business ties positively and political ties negatively relate to organizational learning through organizational unlearning. In addition, this study shows that political ties are mostly negatively and indirectly related to firm performance through organizational learning while business ties positively and indirectly relate to firm performance.
Practical implications
The findings demonstrate the critical role that personal networks play in organizational learning and firm performance. This study provides evidence to the need to recognize and evaluate the potential and undesirable impacts of political ties on cultivating innovation skills and firm performance. In addition, this study recommends managers to embrace the significance of organizational unlearning in strategic renewal, particularly as it applies to building renewing and incremental dynamic skills for enhanced firm performance.
Originality/value
This study offers a deeper perspective of the dissected relations of social ties in emerging economies to firm performance by considering organizational unlearning and learning behaviors as mediating mechanisms.
Absorptive capacity Agility Top management mindfulness A B S T R A C T Business model innovation has gained increasing attention from scholars in the last few years. However, there is a lack of large-scale empirical research on business model innovation and fewer attempts have been made to study whether and how various factors can affect innovation in business models. As a consequence, this study aims to investigate the impact of knowledge absorptive capacity, organizational agility, and top management mindfulness on business model innovation as these factors contribute to organizational changes in business models. Data were collected from IT firms operating in Pakistan. The results indicate that business model innovation is significantly dependent on the knowledge absorptive capacity, agility, and mindfulness of the top management. Furthermore, business model innovation was established as a mediator in the relationship between these factors and business performance. From a managerial perspective, the findings are significant as organizations need to focus on the antecedents to make the necessary change to their business models to improve their competitive advantage and firm performance.
Purpose
There is a dearth of empirical research on the impact of external knowledge search on innovation performance in different categories of service firms. This study explores the effectiveness of the breadth of external search on product and process innovations in German firms. In particular, the author modelled a non-linear relationship between the breadth of knowledge and product and process innovations.
Design/methodology/approach
Drawing on the Mannheim Innovation Panel (MIP) data for the German service firms in the period 2014–2016, the author reported findings from a bivariate probit model which took into account mutual interdependence between product and process innovations. Moreover, the model was separately estimated for knowledge-intensive business services (KIBS) and other services. For comparative purposes, the author also estimated the model for manufacturing firms.
Findings
Empirical findings uniformly indicated an inverted U -shaped effect of the breadth of knowledge on both product and process innovations. Furthermore, the results demonstrated that using up to three knowledge sources increases the probability of a joint implementation of product and process innovations. These findings hold for both KIBS firms and other services. However, those service firms that focussed on a single type of innovation experienced diminishing returns to external knowledge when exploiting more than one source of knowledge. These results indicated that a simultaneous introduction of different types of innovation required diverse knowledge sources. In contrast, when focussing on a single type of innovation, service firms experienced diminishing returns when multiple sources were used. However, this finding was only partially found for manufacturing firms. Accordingly, this study’s findings provided support for the demarcation approach, insofar as the breadth of knowledge had a heterogenous impact on innovation in manufacturing relative to service firms.
Originality/value
Previous studies on the breadth of knowledge search mostly examined its influence on innovation performance without separately analysing manufacturing and service firms. The present study focussed on service firms that were further divided into KIBS and other service firms. By investigating potentially non-linear relationships between knowledge breadth and product and process innovations, it illustrated how different innovation strategies were affected by a diverse pool of external knowledge sources.
Purpose
Despite their economic and cultural significance, the growth of handicraft micro firms is vulnerable, given their small size and resource limitations. By examining the impact of cooperation on firm performance via innovation capability, this study shows how micro firms can address constraints and achieve sustainable development by acquiring and utilizing external resources, complemented by innovation capability, through internal development.
Design/methodology/approach
Data were collected from 164 handicraft micro firms in Pakistan via a questionnaire. Structural equation modeling was employed to estimate interrelations of various constructs simultaneously and control measurement errors.
Findings
The impact of cooperation with customers and suppliers on firm performance via innovation capability was positive and significant. Contrarily, competitor cooperation did not significantly affect innovation capability. Furthermore, there was a positive and significant interaction effect of customer and competitor cooperation on innovation capability. Thus, micro firms must reinforce their customer and supplier relationships through innovation capability and internal transformation for sustainable development. Moreover, a balance must exist between cooperation and competition to achieve optimal innovation returns for the sustainable development of firms.
Originality/value
This study emphasized that micro firms must strengthen their customer and supplier relationships via innovation capability and internal development to achieve higher performance. Moreover, the study introduced a new dimension for measuring firm performance.
Innovation becomes one of the important tools to enhance innovation management of companies and for successful innovation results knowledge management and open innovation approaches have been recommended. The knowledge is one of the key inputs for innovation and therefore the managing the knowledge is crucial. Open innovation urges companies to collaborate with external partners to obtain maximum benefit. The aim of this chapter, while explaining the importance of open innovation and the successful implementation results, is also to explain the risks that companies face in the implementation of open innovation. In this chapter, we first explain the risks companies face in different archetypes of open innovation process such as outside-in, inside-out, and coupled open innovation processes. Secondly, we recommended some precautions companies can take to minimise this risk and maximise the advantages. This chapter provides that knowledge risk is inevitable during the implementation of open innovation no matter what the size of companies. To minimise this, it is recommended to implement some tools for better manage the knowledge such as knowledge map, IP, need assessment, and innovation management tools. Additionally, to increase motivation and dedication of staff and enhancing their skills via internal and external training are suggested.
Firms may cooperate in R&D with various types of partners to boost their innovative performance. We model the optimal partnership portfolio breadth and empirically test the model on a panel of Dutch manufacturing firms. We confirm earlier evidence of a curvilinear relationship between breadth of R&D cooperation and a firm’s innovation performance. Two firm-specific factors, firm size and R&D-intensity, moderate this relationship. Small and low R&D-intensive firms tend to benefit more from embarking on R&D cooperation compared to large and/or R&D-intensive counterparts, but such benefits also tend to reduce more quickly when the number of types of cooperation partners increases.
Purpose
The purpose of this paper is to analyze the effects of obstacles and institutional factors on the cooperation for innovation. The collaboration between different types of organizations has been seen as a strategy that allows the firms to obtain reciprocal benefits, and that incentivises innovation. However, following D’Este et al. (2012) and Antonioli et al. (2017), the authors assume that the decision to cooperate is perceived as a strategy to overcome the obstacles and barriers of the innovation process.
Design/methodology/approach
The authors analyze these questions in the frame of the PITEC-2013 data that covers the period 2012–2013 and includes 5,461 Spanish innovative companies.
Findings
The results support that an important drive for the firm’s cooperation is to overcome the obstacles of the innovation process. Moreover, the type of partner for cooperation is influenced by the different perception that those companies have on the obstacles to innovation. Additionally, results contribute to the regional literature with new empirical evidence to characterize regions in terms of innovation. Such factors shed new light about the intensity of regional innovation and variables of the cooperation pattern.
Originality/value
Considering that a fourth of the Spanish companies develop technological cooperation agreements (PITEC, 2013), it is still observed that the level of cooperation and their results are lower with respect to other countries in the environment, therefore to analyze the role of cooperation agreements, evaluating the factors that characterize the dynamics of these agreements, is a critical research question for the Spanish economy.
This study investigates the effect of project-level collaboration breadth (i.e., the number of collaboration partner types) and collaboration depth (i.e., the intensity of the interactions with these partners) on the incremental and radical innovation performance of innovation projects. The econometric analyses, based on a Community Innovation Study sample of 218 innovation projects conducted in German manufacturing companies, reveal inverted U-shaped relationships between collaboration breadth and radical innovation performance and between collaboration depth and incremental innovation performance. These curvilinear effects speak to the high sensitivity of innovation projects to the extent of collaborative activity, which implies that practitioners should exert caution in managing collaborative innovation projects. This study contributes to the understanding of project-level open innovation and to the overall understanding of the performance effects of innovation collaboration, which, following recent assertions in the literature, could be flawed by analyses conducted at the organizational level.
Due to its ability to create and disseminate knowledge, the modern university is understood as a central agent in innovation systems and technology upgrading dynamics. The main objective of this article is to assess the evolution of universities' embeddedness within the innovation system of an emerging economy in terms of patenting activity and linkages to industry. The study is based on information relating to the twelve most eminent universities in Brazil for the years 1994, 2004 and 2014. These institutions are found responsible for a substantial share of Brazilian patents – with an upward trend over the years - and these institutions have demonstrated a progressive embeddedness to the national innovation system. Such behavior seems to have co-evolved along with improvements in the national institutional environment, leading to expectations that academia can become strategic in shaping the catching-up conditions in Brazil for the coming years. However, deeper connections with both domestic and foreign agents and multinational corporations are needed in order to accelerate the pace of university contribution to value chains and technology upgrading.
This paper focuses on paths towards innovation and considers different types of innovation. It develops a new framework to analyze the internal and external factors that influence the types of innovation and their relationships with business performance in the manufacturing sector. A proposed theoretical model is tested and used to evaluate the process of innovation by country (Peru and Chile) and companies by size, type of industry, financial aspects and level of patenting. In Chile, the driver is technological innovation in processes, whereas in Peru, it is non-technological innovation. Companies with high perceptions of financial constraints exhibit a preference for the development of marketing innovations to substantially improve production performance; if a company perceives few financial barriers, it increases innovation resources and process innovation to significantly improve market performance. Small businesses increase non-technological innovation by investing in staff to manage the social networks. Moreover, the participation of foreign capital may overcome the institutional voids and lack of support systems. Furthermore, the combination of process and organizational innovation increases export performance, and the effect of the cooperation depends on the type of industry. Finally, we note the limitations and propose future research.
Purpose
The purpose of this paper is to examine the relationship between the use of open innovation (OI) practices and firm performance, and the role of organizational mechanisms (OMs) (formalization and decentralization) as moderator variables.
Design/methodology/approach
The authors build a theoretical framework to define a set of hypotheses that are then verified in an empirical study. These theoretical propositions are tested by using the data gathered from a survey addressed to 244 firms in Spanish low- and medium-technology industries.
Findings
With regard to inbound practices, the practices oriented to cooperate with partners in a R&D context have a positive influence. The results show that outbound practices, either by direct generation of revenues from licensing payments or, more indirectly, through the indirect marketing and technical benefits that can stem from revealing have a positive effect on firm performance. Coupled practices, which are related to participation in clusters and innovation networks, have the highest impact on firm performance. In the industrial context examined, decentralization exerts a positive effect which enhances the effect of outbound practices meanwhile formalization reduces their positive effect.
Practical implications
This study helps practitioners in low- and medium-technology firms to determine which OI practices are most beneficial to firm performance and how formalization and decentralization can influence the relationship between OI and firm performance.
Originality/value
This study helps determine the influence of OI practices in terms of inbound, outbound and coupled types through an analysis of low- and medium-technology firms. The OI literature is enriched by the types herein of the role of OMs, which includes an analysis of how formalization and decentralization moderate the influence of OI practices on firm performance.
Purpose
The understanding of the later stage (i.e. the exploitation phase) in the new product development (NPD) process by companies from emerging markets is underdeveloped. The purpose of this paper is to address this lack and, by drawing upon a data set from Turkish firms, explore how different factors affect the exploitation phase of the NPD process.
Design/methodology/approach
Multiple hierarchical regression analyses were carried out on a sample of 671 Turkish firms operating in five industries (i.e. information and communication technologies, biomedical, machinery, chemical and plastic, and food and beverage) in the Izmir region (Turkey) to test the hypotheses.
Findings
Results reveal major differences regarding human capital, leadership, marketing capabilities, and business and institutional networks in terms of the commercialization of newly developed products in domestic and international markets.
Originality/value
By focusing on the exploitation stage, this paper extents the growing research efforts to study the NPD process of companies in emerging economies other than China by using primary data from Turkey.
As the markets in transitional economies open and grow, major challenges and opportunities arise for multinational firms entering these markets, local firms facing these new competitors, and policymakers seeking to increase the ability of all firms to compete fairly and efficiently. Yet despite the important questions transition economies pose for policymakers and companies seeking to enter and compete in these new markets, there has been a relative absence of systematic research on these concerns.
This book seeks to fill a gap in the existing literature by offering a pioneering and comprehensive examination of issues that have developed as markets in transitional economies become more deregulated and open. The countries discussed include China, the Czech Republic, Hungary, India, Poland, Romania, Russia, South Africa and South Korea. The topics covered are divided into five main sections, and the individual chapters are written by some of the world's leading academic experts on these issues. Most of the authors draw from freshly-collected data in new studies of consumers and/or firms in transitional economies. After an opening section which discusses the marketing issues and challenges multinational and local firms face in transitional economies, the next three sections offer detailed treatments of changing consumer behavior, measuring and improving the marketing orientation of firms, and implementing and managing distribution channels. The fifth and final section is devoted to firm strategies and tactics, examined variously from the perspective of multinational firms entering these new markets, from the viewpoint of existing local firms facing new competitive challenges from global entrants, and from the perspective of local firms seeking to establish themselves in foreign markets where they have not previously competed.
Most of the individual chapters are revised versions of papers originally presented at a conference sponsored by the William Davidson Institute, which focuses on research related to emerging and transitional economies, and have not previously appeared in published form. Thus, the book is a unique collection of cutting-edge scholarship on the various aspects of marketing in transitional economies. It will prove valuable reading to academics, policymakers, and international business strategists.
Purpose
This research paper aims to examine how open innovation (OI) intermediaries facilitate knowledge collaboration between organizations and online user communities. Drawing on a Community of Practice (CoP) perspective on knowledge, the study lays out a framework of the knowledge boundary management mechanisms (and associated practices) that intermediaries deploy in enabling client organizations to engage in online community-based OI.
Design/methodology/approach
This research is based on an exploratory case study of an OI intermediary and 18 client organizations that engage with online user communities on the intermediary’s platform. Results incorporate both the intermediary and clients’ perspective, based on analysis of intermediary and client interviews, clients’ online community projects and other archival data.
Findings
Results reveal that OI intermediaries deploy three knowledge boundary management mechanisms – syntactic, semantic and pragmatic – each underpinned by a set of practices. Together, these mechanisms enable knowledge transfer, translation and transformation, respectively, and thus lead to cumulatively richer knowledge collaboration outcomes at the organization–community boundary. The findings show that the pragmatic mechanism reinforces both semantic and syntactic mechanisms, and is hence the most critical to achieving effective knowledge collaboration in community-based OI settings.
Practical implications
The findings suggest that OI intermediaries have to implement all three boundary management mechanisms to successfully enable knowledge collaboration for community-based OI. More specifically, intermediaries need to expand their focus beyond the development of digital platforms, to include nuanced efforts at building organizational commitment to community engagement.
Originality/value
Drawing on the CoP view, this study integrates the knowledge management literature into the OI literature to conceptualize the role of OI intermediaries in shaping knowledge collaboration between organizations and communities. In engaging with the interactive nature of knowledge exchange in such multi-actor settings, this research extends the firm-centric theorization of knowledge that currently dominates the existing OI research.
Purpose
Intellectual Property Protection Mechanisms (IPPMs) include a variety of methods suitable for protecting valuable intangible assets of companies and it is of great relevance to study how companies use these mechanisms to ensure the appropriability of innovation, in a context in which innovation is increasingly open. Indeed, there is a tension between the aim to share knowledge with external partners and the need to protect valuable know-how. This paper investigates the relationship among the use of IPPMs, open innovation and the innovation performance of companies.
Design/methodology/approach
The study is based upon a survey developed in 2012 conducted in Finland, Italy, Sweden and UK on 477 firms.
Findings
The study shows that IPPMs have an indirect impact on innovation performance, mediated by the degree of openness. More precisely, IPPMs positively influence the level of openness that, in turn, positively influences the innovation performance
Originality/value
The empirical analysis gives a contribution on two issues widely debated in the literature: the impact of IPPMs on innovation performance and the role of IPPMs as enablers or disablers of open innovation.
Purpose
This paper aims to provide academics and practitioners working with collaboration of technology information and innovation with a review of key interfirm-collaboration topics, such as the determinants of innovation activity, innovation, imitation, the impact of competition, collaboration versus competition and a review of game theoretic approaches.
Design/methodology/approach
This paper is a comprehensive review of extant literature, conducted and analyzed systematically.
Findings
This paper highlights that when firms absorb collaboration opportunities that involves information, there are critical elements for success, which need to be considered, including economies of scale, knowledge sharing, market size and volatility, strategic partner selection, intellectual property rights, spillover effects, collaboration costs, trust and commitment, opportunism and overall collaboration strategy.
Originality/value
This paper contributes to existing information literature by emphasizing various game theoretic approaches, which highlight how collaboration costs are shared when collaboration occurs. In conclusion, ten managerial implications are offered about collaboration of information technological innovation.
Purpose – The purpose of this paper is to explore the relationships between the openness of firms and
their innovation and financial performances.
Design/methodology/approach – In order to investigate such relationships, data on inbound and
outbound open innovation (OI) processes and performances of 110 worldwide top research and
development (R&D) spending bio-pharmaceutical companies are collected via the consolidated annual
reports and the PATSTAT database. The time period of the analysis is 2008-2012.
Findings – Regarding innovation performances, R&D productivity and revenues to patents ratio
decrease with openness, whilst patents growth is not influenced by OI adoption. As to financial
performances, sales growth exhibits a positive trend with openness, while operating profit
and turnover decrease with OI adoption. Particularly, an inverted U-relationship with inbound and a
U-shape one with outbound are observed as of operating profit.
Research limitations/implications – The study adds to the knowledge about the effect of
openness on firms’ performances, a topic of increasing interest to academics, managers and policy
makers. Both inbound and outbound facets of the phenomenon are taken into account.
Practical implications – Understanding how openness affects performances enables more informed
decision making by managers, leading to a more effective use of OI activities.
Originality/value – The work provides new insights as to what “being open” means for a company,
gauging both inbound and outbound transactions after a pecuniary perspective. Employing objective
and continuous measures, the relevance of OI for the whole business of firms can be identified.
Drawing upon data from the fifth UK Innovation Survey, this article sheds light on how management choices on the nature of appropriation relate to management choices on the degree of openness within small and medium-sized enterprises (SMEs). To this end, our findings indicate a threshold effect of both informal and formal appropriation mechanisms on the likelihood of engaging in both coupled and inbound open innovation. That is, an emphasis on appropriation appears to be important in shifting firms from a closed to an open strategy. There is, however, little evidence that either approach to appropriation increases the extent of open innovation. In this, only informal intellectual property (IP) protection mechanisms associate with an increasing extent of inbound open innovation.
We show how the tension between cooperation and competition affects the dynamics of learning alliances. 'Private benefits' and 'common benefits' differ in the incentives that they create for investment in learning. The competitive aspects of alliances are most severe when a firm's ratio of private to common benefits is high. We introduce a measure, 'relative scope' of a firm in an alliance, to show that the opportunity set of each firm outside an alliance crucially impacts its behavior within the alliance. Finally, we suggest why firms might deviate from the theoretically optimal behavior patterns. (C) 1998 John Wiley & Sons, Ltd.
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'This book provides a diverse set of perspectives on the topic. It is very useful reading for anyone interested in understanding coopetition in multiple contexts.' - Devi R. Gnyawali, Virginia Tech, US. © Saïd Yami, Sandro Castaldo, Giovanni Battista Dagnino and Frédéric Le Roy 2010. All rights reserved.
To compete successfully in world markets, firms from emerging market and newly industrialized economies need to develop strategies to participate more broadly in the transnational value chain. More specifically, they need to move beyond cost-oriented commodity approaches that rely on low-cost labor and other resources to value-creating strategies that capture a greater share of the transnational value chain. This article presents six generic strategies appropriate for emerging market firms: low cost commodity, component manufacturing, private label manufacturing, low-cost leader, first generation technology, and specialized niche. The advantages and limitations of each of these strategies are discussed, as well as general guidelines for extending the firm's participation in the transnational value chain.
In this paper, we investigate a recurrent organizational event—R&D strategic alliances—and analyze its multidimensional effect on inventive activity; in particular, we examine the quality of the inventive process outcome. In so doing, we address the still-unresolved issue of the impact of past experience in explaining performance differences between firms in the realm of alliance inventiveness. Our results offer new insights concerning the crucial drivers of invention quality and technological breakthroughs. As expected, results suggest that—in the area of R&D—alliances formed by experienced partners are more likely to produce inventions that effectively synthesize technological knowledge from more diverse domains. In fact, experienced alliance partners are more likely to generate useful inventions with a greater innovative impact on others’ subsequent inventions—knowledge that can be built upon. Surprisingly, results are indeterminate with regard to whether innovation via R&D alliance increases invention’s degree of applicability across diverse scientific and technological fields that might cite its patent.
This paper provides new theory and evidence about the benefits of openness on a firm's innovation performance and, more importantly, the specific firm-level contingencies under which those benefits are more (or less) likely to be observed. Building on Dyer and Singh's (1998) relational view, we suggest that a firm's lack of resources and absorptive capacity, as well as its use of secrecy, are significant barriers to benefiting from openness to external knowledge. Using responses from 12,152 firms to the fourth and fifth UK versions of the Community Innovation Survey (CIS) we generate findings consistent with our hypotheses.