Relationships between external knowledge, internal innovation, firms’ open innovation performance, service innovation and business performance in the Pakistani hotel industry

PurposeThe purpose of this study is to evaluate the effectiveness of the new service development (NSD) process in tourism. For this reason, factors influencing the process of service innovation in the hospitality sector were explored and correlated with business performance in the hospitality industry through a multicriteria decision analysis approach.Design/methodology/approachAn original multicriteria decision analysis approach is applied in order to estimate the efficiency of the NSD process. The approach follows the principles of ordinal regression analysis, using goal programming techniques. Collected data are based on in-depth structured and questionnaire-based interviews of 77 hotel managers in 147 new services in a representative sample of 99 hotels in Greece. Several financial ratios, covering different aspects of business performance, are used in order to evaluate the NSD process for three years after the services innovation had been launched.FindingsThese findings reveal the importance of financial liquidity and business efficiency for the hotel industry (i.e. the ability of a firm to use available resources in order to achieve specific sales goals). The aforementioned variables can determine how quickly and effectively assets are converted to cash. In general, the findings show the emphasis that should be given to customer needs, as well as to the effective management of a NSD project.Originality/valueFindings of this study may support hotel managers to make complex strategic decisions for future development. These findings have suggested that service innovation should be included as a strategic tool to assess differentiation effort in the hotel industry.

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Improving Innovation Performance by Convergence in Open Innovation: Evidence from Software Firms in Sri Lanka

Vidyodaya Journal of Management ◽

10.31357/vjm.v4i1.3633 ◽

2018 ◽

Vol 4 (1) ◽

Author(s):

S.R. Yapa ◽

R. Senathiraja ◽

I. Kauranen

Keyword(s):

Sri Lanka ◽

Empirical Data ◽

Open Innovation ◽

Research Study ◽

Innovation Performance ◽

Popular Approach ◽

Extant Literature ◽

External Knowledge ◽

Software Firms

Open innovation, which encourages firms to use external knowledge and external partners to accelerate innovation, has become a popular approach among organisations globally. Researchers have highlighted multiple benefits that open innovation offers. Extant literature often discusses factors of open innovation that increase innovation performance. However, open innovation does not always bring higher innovation performance and reasons for this are not adequately addressed in the existing literature. The objective of this research study is to increase understanding of factors that can hinder innovation performance in open innovation implementations. Special attention has given to convergence. In this case, convergence refers to alignment and coordination between innovation partner firms. The empirical data for this research study will be gathered from software firms in Sri Lanka. The background for this study is the software firms in Sri Lanka which have not reached the expectation that have been placed on them.

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Unpacking the relationship between external IT capability and open innovation performance: evidence from China

Business Process Management Journal ◽

10.1108/bpmj-06-2019-0242 ◽

2020 ◽

Vol 26 (7) ◽

pp. 1789-1805 ◽

Cited By ~ 1

Author(s):

Su-Ming Wu ◽

Xiu-Hao Ding

Keyword(s):

Information Technology ◽

Open Innovation ◽

Knowledge Integration ◽

Search Strategy ◽

Innovation Performance ◽

External Information ◽

Content Type ◽

External Knowledge ◽

It Capability ◽

The Relationship

PurposeInformation technology plays a critical role in the open innovation process. The purpose of this study is to explore the inner mechanism of external information technology (IT) capability that affects open innovation performance.Design/methodology/approachIn this paper, responses to 232 questionnaires from different firms were collected in China. Then, the proposed hypotheses were tested using regression analysis by statistical product and service solutions (SPSS).FindingsThe results indicate that external knowledge integration plays a mediating role in the relationship between external IT capability and open innovation performance, openness breadth positively moderates the influence of external IT capability on external knowledge integration and openness depth negatively moderates the relationship between external IT capability and external knowledge integration.Practical implicationsThe results, which are based on Chinese responses, provide useful suggestions for firms in China. To use external IT capability to improve open innovation performance, firms should not only stress the role of external knowledge integration but also consider their search strategy.Originality/valueBoth researchers and practitioners are interested in the relationship between information technology and open innovation. However, the way in which the inner mechanism of external IT capability affects open innovation performance has not been thoroughly researched. Based on knowledge integration theory, the authors construct a model that includes external IT capability, external knowledge integration, search strategy and open innovation performance. The results of this paper confirm the mediating and moderating roles of external knowledge integration and search strategy, respectively.

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ASSESSING THE OPEN INNOVATION TRENDS BY MEANS OF THE EUROSTAT COMMUNITY INNOVATION SURVEY

International Journal of Innovation Management ◽

10.1142/s1363919616500390 ◽

2016 ◽

Vol 20 (03) ◽

pp. 1650039 ◽

Cited By ~ 16

Author(s):

LIVIO CRICELLI ◽

MARCO GRECO ◽

MICHELE GRIMALDI

Keyword(s):

Open Innovation ◽

Large Scale ◽

Innovation Performance ◽

Scale Analysis ◽

Community Innovation Survey ◽

External Knowledge ◽

Large Scale Analysis

Many authors showed the benefits of open innovation (OI) to firms, consequently encouraging managers to adopt the OI paradigm to improve innovation performance. Nevertheless, whether firms have accepted such exhortations or not is almost empirically unexplored. The frequent claim that firms are increasingly adopting the OI paradigm is mostly anecdotal. This paper presents a large-scale analysis of firms’ OI adoption by means of four waves of the community innovation survey, including 275,697 questionnaires. The analysis focuses on the trends in the use of inbound (internal use of external knowledge) and coupled (collaboration with partners) OI approaches. The results confirm that the share of firms adopting the OI paradigm has increased, both in terms of inbound and coupled OI actions. Similarly, firms have intensified the use of the inbound OI mode, whereas they have not intensified the use of collaborations. However, the analyses of different measures of OI show that in most cases the positive trends have not been monotonic, nor steep as they are anecdotally considered to be.

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EXTERNAL KNOWLEDGE SOURCING AND MNES’ SUBSIDIARIES SERVICE INNOVATION PERFORMANCE: THE ROLE OF ENTREPRENEURIAL ORIENTATION AND EXPLORATORY LEARNING.

International Journal of Innovation Management ◽

10.1142/s1363919621500171 ◽

2020 ◽

pp. 2150017

Author(s):

CHARLES ODURO ACHEAMPONG OTOO ◽

WENYUAN LI ◽

COURAGE SIMON KOFI DOGBE ◽

WISDOM WISE KWABLA POMEGBE

Keyword(s):

Entrepreneurial Orientation ◽

Multinational Enterprises ◽

Service Innovation ◽

Ordinary Least Squares ◽

Innovation Performance ◽

Exploratory Learning ◽

Knowledge Sourcing ◽

External Knowledge ◽

The Relationship

This study assessed the influence of external knowledge sourcing on multinational enterprises’ (MNEs) subsidiaries service innovation performance. It also considered the moderating role of entrepreneurial orientation, as well as the mediating role of exploratory learning. Empirical analysis was based on primary data gathered from 156 MNEs’ subsidiaries. Various validity and reliability checks were conducted before the presentation of the actual analysis, which was conducted using ordinary least squares approach, run using SPSS (v. 20). Findings indicate that exploratory learning fully mediates the relationship between external knowledge sourcing and MNEs’ subsidiaries service innovation performance. Entrepreneurial orientation was also found to moderate the relationship between external knowledge sourcing and exploratory learning. This study adds to the existing debate in the arena of resource-based theory.

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EXPLORING OPEN SEARCH STRATEGIES AND THEIR PERCEIVED IMPACT ON INNOVATION PERFORMANCE—EMPIRICAL EVIDENCE

International Journal of Innovation Management ◽

10.1142/s1363919611003428 ◽

2011 ◽

Vol 15 (03) ◽

pp. 525-541 ◽

Cited By ~ 16

Author(s):

KAISA HENTTONEN ◽

PAAVO RITALA ◽

TIINA JAUHIAINEN

Keyword(s):

Empirical Evidence ◽

Open Innovation ◽

Search Strategies ◽

Innovation Performance ◽

Cross Sectional ◽

Innovative Performance ◽

External Knowledge ◽

Market Driven ◽

Perceived Impact ◽

The Relationship

Given Chesbrough's idea of open innovation, it could be said that external knowledge is an important element in the optimisation of in-house innovation. External knowledge is distributed among various actors and is accessible through many channels. However, we still do not know much about the search strategies that affect innovation performance. Our study therefore explores the relationship between open knowledge search strategies and company-level innovative performance. This study examines the open search strategies of 193 firms on the basis of cross-sectional data from Finnish markets. We identified four specific strategies, namely (1) market-driven, (2) science-driven, (3) intermediary-driven and (4) generic-knowledge-driven. According to the results, all except intermediary-driven strategies positively affect innovation performance.

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Open and closed knowledge sourcing

Industrial Management & Data Systems ◽

10.1108/imds-08-2016-0338 ◽

2017 ◽

Vol 117 (6) ◽

pp. 1166-1184 ◽

Cited By ~ 6

Author(s):

Juyeon Ham ◽

Byounggu Choi ◽

Jae-Nam Lee

Keyword(s):

Open Innovation ◽

Small And Medium Enterprises ◽

Innovation Performance ◽

Knowledge Sourcing ◽

Content Type ◽

External Knowledge ◽

Negative Effect ◽

Medium Enterprises ◽

The Relationship ◽

Internal Knowledge

Purpose Many studies have investigated the relationship between the adoption of open innovation and performance in large firms. However, limited research is available with regard to the use of open innovation in small and medium enterprises (SMEs). SMEs are important because of their contribution to innovation in almost all economies. The purpose of this paper is to extend the current literature by focusing on SMEs. Using complementarity and knowledge-based theories, this study develops three hypotheses to identify the effect of knowledge sourcing approaches for innovation on SMEs’ innovation performance. Design/methodology/approach Surveys collected from 196 SMEs in Korea were analyzed using the supermodularity function to test the hypotheses. Findings Results indicate that an external knowledge-oriented approach has no significant effect, whereas an internal knowledge-oriented (i.e. closed) approach has a positive effect on innovation performance. Interestingly, this study found that open innovation has a negative effect on SMEs’ innovation performance (i.e. both internal knowledge-oriented and external knowledge-oriented approaches have a substitutive relationship). Originality/value This study sheds new light on open innovation and knowledge management research by identifying the relationship between knowledge sourcing approaches for innovation, and innovation performance in SMEs. Practical implications highlight that open innovation could impede SMEs’ innovation performance.

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SEARCHING WIDELY OR DEEPLY? THE IMPACT OF OPEN INNOVATION ON INNOVATION AND INNOVATION PERFORMANCE AMONG INDONESIAN MANUFACTURING FIRMS

Journal of Indonesian Economy and Business ◽

10.22146/jieb.29218 ◽

2018 ◽

Vol 33 (2) ◽

pp. 123

Author(s):

Arif Hartono ◽

Ratih Kusumawardhani

Keyword(s):

Technological Innovation ◽

Open Innovation ◽

Innovation Process ◽

Manufacturing Firms ◽

Innovation Performance ◽

External Knowledge ◽

Process Innovations ◽

Innovation Surveys ◽

External Sources ◽

The Impact

Since the term Open Innovation (OI) was coined by Henry Chesbrough in 2003, OI studies have been frequently conducted. Surprisingly, OI insights, in the context of Indonesian firms, are scarce. Furthermore, there are no existing OI studies that use data derived from innovation surveys. Hence, this study attempts to close the gap in the literature, by providing insights into Indonesian firms’ openness toward external knowledge, and its impact on innovation performance. The main aim of this study is to investigate the impact of OI practices on Indonesian manufacturing firms’ propensity to innovate (i.e. their product, process, organization, and marketing) and innovation performance. Product and process innovations are grouped under the term technological innovation, while organization and marketing innovations are classified as non-technological innovation. Data used in this study were derived from the Indonesia Innovation Survey (IIS) 2011 that covered the period from 2009-2010. Following Laursen and Salter’s (2006) study, OI indicators consist of external search breadth (i.e. the number of external sources or search channels that firms rely upon in their innovative activities) and depth (the extent to which firms draw deeply from the different external sources or search channels) in innovation process. Undertaking logistic and tobit regressions, this study shows that in general, both breadth and depth significantly and positively affect technological and non-technological innovation, as well as innovation performance. However, the over-search on external knowledge, measured by breadth squared and depth squared, negatively and significantly influence innovation and innovation performance. This indicates that too much external knowledge, sourced during the innovation process will diminish the return of innovation. This study also finds an indication of a complementary relationship existing between internal R&D and external knowledge; meaning that the implementation of one knowledge-sourcing strategy (either sourcing from internal R&D or external knowledge) increases the marginal returns from another. Lastly, important implications related to theoretical and innovation strategies are proposed.

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Linking open innovation, innovation barriers and performance of Indonesian firms

International Journal of Innovation Science ◽

10.1108/ijis-10-2020-0218 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Arif Hartono ◽

Abdur Rafik

Keyword(s):

Open Innovation ◽

Innovation Performance ◽

Content Type ◽

Barriers To Innovation ◽

External Knowledge ◽

Wide Range ◽

Innovation Barriers ◽

Knowledge Search ◽

The Impact ◽

Firm Openness

Purpose This study aims to examine open innovation that consists a wide range of external knowledge search activities, such external search breadth and depth, external R&D, cooperation and acquisition activities, as a response to different innovation barriers faced by Indonesian firms. Design/methodology/approach Data are derived from Indonesia innovation survey. Exploratory factor analysis is used to identify and combine innovation barriers variables. Ordered logistic estimation is used to measure the impact of innovation barriers on firm openness decision. Logistic regression is used to measure the impact of innovation barriers on firm openness indicators such as external R&D, cooperation and acquisition as the variables are binary. Finally, Tobit regression is used to measure the impact of firm openness decision on innovation performance. Findings The main findings indicate that different barriers to innovation lead to different firms’ openness decisions, and different decisions on openness have differentiated influence on innovation performance. Originality/value This study contributes to the innovation barrier literature by empirically testing whether experiencing barriers to innovation is associated with a broader external knowledge search activity. Previous studies tend to link innovation barriers with a narrow activity as indicated by external knowledge searching widely and deeply.

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Putting marketing knowledge to use: marketing-specific relational capital and product/service innovation performance

Journal of Business and Industrial Marketing ◽

10.1108/jbim-07-2020-0369 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Carmela Peñalba-Aguirrezabalaga ◽

Paavo Ritala ◽

Josune Sáenz

Keyword(s):

Service Innovation ◽

Innovation Process ◽

Innovation Performance ◽

Relational Capital ◽

Content Type ◽

Knowledge Resources ◽

External Knowledge ◽

Marketing Function ◽

Product Service ◽

Access To Knowledge

Purpose The importance of integrating both internal and external knowledge into the product/service innovation process has been widely recognized in the knowledge management and innovation literature. Likewise, the role of the marketing and sales function as a driver of innovation has been stressed because of its market-facing role. However, limited research has investigated the complementarity of both internal and external knowledge regarding product/service innovation performance in a marketing context. The purpose of this study is to analyze marketing departments’ role in accessing internal and external knowledge resources (i.e. marketing-specific relational capital [RC]) to reach improved product and service innovation performance. Design/methodology/approach The analysis uses empirical evidence collected by a structured survey of 346 respondents representing marketing and sales functions in Spanish companies. Findings The survey revealed that marketing-specific internal relational capital at the department and inter-department levels, as well as noncustomer external RC, are directly associated with product/service innovation performance. Further, the analyses show that the relationship between customer-specific RC and innovation performance is mediated by other types of RC, making it a fundamental antecedent to the innovation process. Finally, significant differences in marketing-specific RC subcomponents were found between business-to-consumer (B2C) and business-to-business (B2B) firms. Originality/value This study makes a valuable contribution to marketing and management literature by revealing the types of social interactions in the marketing function that enable access to knowledge sources that promote successful product/service innovation.

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