EFFECT OF LEADERSHIP ON BMI AND COMPETITIVE ADVANTAGE OF SMES

This study investigated the relationships between transformational leadership (TL), entrepreneurial leadership (EL), business model innovation (BMI) and competitive advantage, as well as the role of environmental uncertainty in these relationships. The importance of BMI and leadership style for the firms and the gaps identified in literature motivated the need for this paper. Previous literature has not fully explained in detail the antecedents of BMI or how BMI improves competitive advantage of organisations. Thus, an empirical model was used to analyse data gathered from a survey of 474 small- and medium-sized enterprises (SMEs) from several sectors in Greece. The findings reveal the contribution of leadership styles on BMI, the direct contribution of TL and EL on competitive advantage, as well as the contribution of BMI in competitive advantage in all responding SMEs, those SMEs with low scores of business environmental uncertainty and those SMEs with high scores of business environmental uncertainty.

EMPLOYEE MOBILITY AND INNOVATION: THE ROLE OF TURNOVER RATE AND NETWORK CENTRALITY

Innovation is crucial to a company’s competitive advantage and employees play an important role in generating innovation within a company. Based on social capital theory, we proposed a new type of social network: the employee mobility network, and explored the impact of employee mobility on innovation. Specifically, we examined the role of both employee turnover rate, and an organisation’s centrality in the employee mobility network in predicting innovation. We collected data from World Intellectual Property Organisation (WIPO), Talentale, and Forbes Global 2000 to test our hypotheses. The results showed that turnover rate had a significantly inverted-U curve relationship with innovation, and both degree and closeness centralities of an organisation in the employee mobility network had a significant positive relationship with innovation. Based on the results, we suggest that companies should find a balanced value for their turnover rate to get the highest return in innovation. Also, we suggest that companies should improve social influence in employee mobility networks in order to attract talent and increase company innovation.

INNOVATION FAILURE IN SMEs: A NARRATIVE APPROACH TO UNDERSTAND FAILED INNOVATIONS AND FAILED INNOVATORS

While innovation is an attractive path, it is also a rocky path made up of numerous challenges, even failures. This study provides new knowledge for understanding innovation failure. It seeks answers to the question: What are the perceived factors of innovation failure in SMEs? Every individual who has experienced an innovation failure has a story to tell. Therefore, the research question of this study is answered based on these stories. The main data are collected through narratives produced by individuals who have been involved in the development of completely failed innovation initiatives. In addition, four expert interviews are conducted. The results demonstrate that the most common factor for innovation failure is the occurrence of several incidents during the innovation process that slowly contribute to complete failure. In addition, the results reveal three SME-typical narratives of failed innovations as narrators the Passionate Innovator, the Solo Innovator, and the Developer Innovator.

DESIGNING LIGHTWEIGHT OPEN INNOVATION: A CONCEPTUALISATION OF HOW LARGE FIRMS ENGAGE WITH SMALL ENTREPRENEURIAL FIRMS

There is increasing scholarly interest in how large corporations engage in open innovation with small entrepreneurial firms, with synergies potentially producing positive outcomes for both the involved parties and the surrounding ecosystem. “Lightweight models” of open innovation (LOIs) have recently been introduced, governed by trust and relationships rather than by equity ownership and transactional control. This paper introduces a design framework and an alignment model for LOIs, based on 19 inductively generated and highly interrelated design elements associated with five design themes. The study uses empirical data from 18 LOI initiatives in Sweden, and the framework explains important differences in their motives, value propositions, innovation localizations, involved participants, and forms of interactions. Applying a value perspective to open innovation highlights two different value logics, suggesting that LOI initiatives can approach value by emphasizing either value creation or value capture. These logics may greatly influence other important design elements of LOIs.

THE IMPACT OF STRATEGY AND STRUCTURE ON THE PERFORMANCE OF CORPORATE VENTURE CAPITAL UNITS

The range of organisational designs and their interplay with the objectives of corporate venture capital (CVC) units has yet to be fully understood. Using primary qualitative data collected from 20 CVC units, the authors show that although strategy does not always consciously drive structural design, there are clear patterns of beneficial organisational structure that support achievement of particular objectives. Furthermore, the authors discuss the implications of objectives and organic, hybrid and mechanistic structures on CVC performance, contributing both to the CVC literature and the practice of corporate venturing.

THE EFFECT OF EXECUTIVE INCENTIVES ON TECHNOLOGICAL INNOVATION OF DECLINING ENTERPRISES – THE MODERATING EFFECT OF DECLINE DEGREE AND ORGANISATIONAL SLACK

We examine the effects of different types of executive incentives on technological innovation of declining firms and the moderating effects of the degree of decline and organisational slack on executive incentives and enterprise technological innovation. We also assess the synergetic effects of different types of executive incentives on technological innovation of declining enterprises. We find the following: first, executive compensation incentive, equity incentive and control incentives are beneficial to promote technological innovation in declining enterprises. Second, the degree of decline negatively moderates the relationship between equity incentive and technological innovation. Third, organisational slack positively moderates the relationship between equity incentive and technological innovation, as well as the relationship between control incentives and technological innovation, especially for severely declining enterprises. Fourth, there are synergistic effects between executive control incentive and compensation incentive, control incentives and equity incentive on technological innovation. The contributions are as follows: first, taking declining enterprises as sample, we suggest that to increase the role of compensation incentive and equity incentive in promoting technological innovation in declining enterprises, the control incentives should be strengthened. Second, organisational slack should be fully exploited for severely declining enterprises so that executives should have the motivation and conditions to carry out technological innovation and further help declining enterprises to turnaround successfully.

DO OPEN INNOVATION AND DOMINANT DESIGN FOSTER DIGITAL INNOVATION?

The emergence of digital innovation in academia and practice has been established, and it is time to consider when and how it affects innovation performance. Before this background, we examine how innovation practices such as open innovation and dominant design impact innovation performance, particularly in the case of digital innovation. We develop a theoretical framework that is tested on a long panel of patent data for 788 technologies over 32 years. Open innovation has no impact on the innovative performance of technologies in general, but for digital innovation, we find a positive effect. In addition, dominant design has a stronger impact on the innovative performance for digital innovations than for other innovations. We conclude that the management of digital innovation is different from that of other innovations since both open innovation and dominant design are more important for innovative performance. Indeed, some of the benefits of openness may only apply to digital innovation.

SUSTAINABLE INNOVATION TYPES: A BIBLIOMETRIC REVIEW

The synonymic use of sustainable innovation types obstructs the impact of increasingly disperse research on sustainable innovation, environmental innovation, eco-innovation, and green innovation. To identify the meaning and contributions of each innovation type over time, we apply co-word analysis as a bibliometric technique to 1,985 papers, analysing the evolution of motor, emergent and basic themes for each type. For environmental innovation, the focus has shifted from environmental regulations and policies to patents and inventions with an environmental impact, while in sustainable innovations the societal impact of technology adoption has become a driver. Green innovation increasingly concerns environmental technology and its management, whereas eco-innovation studies aspects related to efficiency and decision making. Clear distinctions among sustainable innovation types will increase the impact of this expanding body of research and make it more available to managers and policymakers.

THE DARK SIDE OF A B2B CO-CREATION RELATIONSHIP IN THE FRONT END OF INNOVATION: A GENERATIVE REVIEW

This study aims to conceptualise the risks of a co-creation relationship between providers and customers in the front end of innovation (FEI). The existing literature on the topic of the interactions between customers and providers is vast but mostly reflects the vision of each respective field of science addressing specific issues and dynamics. This review paper combines integrative and generative approaches (Post et al., 2020). The narrative overview methodology (Green et al., 2006) fits the purpose to integrate the contributions of scholars from different areas and with distinct perspectives. The authors present a comprehensive view of the complex and, sometimes, conflictual customer–provider relationship in a business-to-business (B2B) context applied to the FEI. The review, mostly focused in the service industry, included the identification of inconsistencies and poorly explained phenomena. This work contributes decisively to the innovation, management and organisation literature, advancing a model of the projected risks of the specific customer–provider relationship in the FEI phase.

COUPLED OPEN INNOVATION AND PERFORMANCE IN SMES: THE ROLE OF KNOWLEDGE CAPABILITIES AND ENVIRONMENTAL DYNAMISM

This research proposes to shed light on the antecedents and outcomes of coupled open innovation in the specific context of small and medium-sized enterprises (SMEs). Drawing on the open innovation paradigm, knowledge-based view (KBV), and contingency theory, the paper constructs and tests a research model that investigates the effect of coupled open innovation on firm performance; the impact of knowledge management capability, knowledge appropriation capability, and environmental dynamism on coupled open innovation; and also the mediating role of collaborative open innovation practices. Using a sample of 228 SMEs operating in the Tunisian manufacturing industry, our results based on structural equation modeling (SEM) demonstrate that coupled open innovation positively and significantly influences firm performance. Furthermore, our findings confirm the crucial impact of knowledge management capacity and knowledge appropriation capacity in the implementation of coupled open innovation approach. The role of environmental dynamism in the adoption of collaborative practices is also proven in the SME context. Moreover, the results of our study add to the existing literature by empirically demonstrating the potential mediating role of coupled open innovation in the relationships that link knowledge management capacity, knowledge appropriation capacity, and environmental dynamism with SME performance, respectively. In this sense, this paper goes even further in the research on open innovation, as one of the first to fill an interesting gap regarding the antecedents of coupled open innovation and its implication on performance in the specific context of SMEs. In doing so, our research, through its results, provides interesting suggestions for SME managers who implement or intend to implement coupled open innovation to improve the performance of their company.