Strategic drivers for product and process innovation

2019 ◽  
Vol 27 (3) ◽  
pp. 1159-1187 ◽  
Author(s):  
Julio Cesar Ferro De Guimarães ◽  
Eliana Andréa Severo ◽  
Domingos Fernandes Campos ◽  
Walid Abbas El-Aouar ◽  
Fabiana Lucena Bezerra de Azevedo

Purpose The organizations need to use strategic drivers such as market orientation (MO) and knowledge management (KM) for the development of product and process innovations, which can become a major source of sustainable competitive advantage (SCA). However, there is a gap in the use of these precepts, specifically in Brazilian companies. The purpose of this paper is to measure the relationship among MO, KM orientation, innovation (product and process), SCA and organizational performance (OP). Design/methodology/approach The research was developed through a survey in 1,072 companies from the industrial manufacturing, commerce and services activity sectors. For the analysis of data, the study used the structural equation modeling method. Findings This study contributes to managerial decisions in the choice of investment in strategic drivers and innovation, to obtain competitive advantages and economic gains. The results highlight that companies that use market information have formal structures to support innovation processes achieving more successful results. Research limitations/implications The framework proposed in this research can be used for different industries and segments. Originality/value The theoretical value of this paper is the contribution to the literature with the provision of a framework to analyze the strategic drivers, which are antecedents of innovation in different sectors of activity and in different sizes of companies. It is highlighted as managerial contributions, that the study identified evidence that organizations seek a superior OP to the competitor, creating competitive differentials that result in SCA.

2019 ◽  
Vol 22 (4) ◽  
pp. 639-659 ◽  
Author(s):  
Elisangela Lazarou Tarraço ◽  
Roberto Carlos Bernardes ◽  
Felipe Mendes Borini ◽  
Dennys Eduardo Rossetto

Purpose Is the development of local innovation capabilities enough for foreign subsidiaries in emerging markets to be able to integrate into global R&D projects? The authors argue that it is not. The purpose of this paper is to show the central role of R&D capacities when it comes to inserting foreign subsidiaries in emerging markets into global R&D projects. Design/methodology/approach The study investigated 131 foreign multinational subsidiaries operating in Brazil. For each subsidiary, the authors surveyed two to five directors or C-level executives from innovation, R&D, engineering, product development and projects. the authors used structural equation modeling for analysis. Findings The results indicate that product and process innovations alone do not guarantee the insertion of the emerging market subsidiaries into global innovation projects. Such insertion depends on the subsidiary’s accumulation of R&D capacities. Practical implications The results reinforce the central issue of building product and process innovation capabilities as the first step toward a blueprint for global projects. However, the effort is not limited to these initiatives. Product and process innovation efforts need be reverted in headquarters’ eyes in order for subsidiaries to gain R&D center status. To achieve this, subsidiaries must align their technological innovations with multinational corporations’ innovation strategies. Originality/value In authors’ view, this study contributes to the literature in three main areas: the evolutionary process of innovation capability in subsidiaries, the reverse innovation debate and the discussion of subsidiaries’ initiatives.


2020 ◽  
Vol 24 (10) ◽  
pp. 2513-2530
Author(s):  
Cristina Doritta Rodrigues ◽  
Felipe Mendes Borini ◽  
Muhammad Mustafa Raziq ◽  
Roberto Carlos Bernardes

Purpose This study aims to look at the relationship of external embeddedness and institutional distance (governance aspects) with the foreign subsidiary research and development (R&D) capacity. Furthermore, it examines whether these relationships are mediated by subsidiary product and process innovation, and whether institutional distance plays a moderating role in the relationship between subsidiary innovation and R&D capacity. Design/methodology/approach The authors draw on survey data from 130 foreign subsidiaries operating in Brazil and test their model using variance-based structural equation modeling. Findings Results suggest that subsidiary (product and process) innovation fully mediates the relationships between: subsidiary external embeddedness and R&D capacity; and institutional distance and subsidiary R&D capacity, such that the relationship is positive in case of the former and negative in case of the latter. The relationship between subsidiary product and process innovation and R&D capacity is positive and stronger at lower levels of institutional distance. Originality/value The research ignores the underlying mechanisms of the external embeddedness and institutional distance relationship with subsidiary R&D capacity. Furthermore, institutional distance based on formal governance aspects and their impacts on subsidiary innovation and R&D capacity are rarely investigated. This paper contributes with regard to these aspects.


2015 ◽  
Vol 26 (8) ◽  
pp. 1177-1200 ◽  
Author(s):  
Dimitrios Kafetzopoulos ◽  
Katerina Gotzamani ◽  
Vasiliki Gkana

Purpose – The purpose of this paper is to examine the extent to which five core dimensions of quality management, as a single factor, are associated with product innovation and process innovation; and finally how these two affect a firm’s competitive advantage in the market. Design/methodology/approach – The analysis followed in order to investigate the relations between the constructs of the proposed model, includes an initial exploratory factor analysis (EFA), followed by confirmatory factor analysis (CFA) and finally structural equation modelling (SEM) Findings – According to the study findings, quality management (QM) directly contributes to product and process innovation. Furthermore, product and process innovation have a direct impact on companies’ competitive advantage. Thus, the study proves that QM is an opportunity for a firm to improve its innovation and consequently its competitiveness. Research limitations/implications – This study relies on the perceptions of the respondents to operationalize the survey instrument. In addition, all variables are measured in the year that the survey was carried out. However, since the research exams the relationship between QM, technical innovation and competitive advantage across various organizations, it would be interesting to conduct a longitudinal study within these organizations. Practical implications – Our study offers clear implications for managers, proving that they should give higher emphasis on QM and innovation in order to prioritize their product, production and technology strategies, to achieve sustainable competitive advantage. Originality/value – Based on the multi-dimensional structure of QM, this empirical study determines the contribution of QM to specific innovation performance and overall competitiveness of companies.


2021 ◽  
Vol 18 (1) ◽  
pp. 69-89
Author(s):  
Muhammad Athar Rasheed ◽  
Khuram Shahzad ◽  
Sajid Nadeem

Purpose This study aims to investigate the impact of transformational leadership on the innovation of small and medium enterprises (SMEs) through employee voice behaviors. Drawing from the upper echelon theory, it is hypothesized that employee voice is the mediating mechanism through which transformational leadership affects the process and product innovation in SMEs. Design/methodology/approach Data was collected from 169 SMEs of Pakistan through an online self-administered questionnaire. The proposed hypotheses were tested using partial least squares structural equation modeling (PLS-SEM). Findings Findings confirm that transformational leadership positively affects both process and product innovation in SMEs and employee voice behavior mediates between these relationships. Originality/value This research contributes to both theoretical and practical domains by providing evidence that encouraging employees to raise their voice positively impacts product and process innovation and transformational leadership is a potential organizational factor to shape employee voice and process and product innovation. To the best knowledge, this is the first study that investigates the mediating role of employee voice between transformational leadership and process and product innovation in SMEs and developing country’s context.


2016 ◽  
Vol 26 (2) ◽  
pp. 402-434 ◽  
Author(s):  
Xiaoyu Yu ◽  
Bang Nguyen ◽  
Yi Chen

Purpose – The purpose of this paper is to examine the role of capability and alliance arising from the internet of things (IoT), specifically in the relationships between strategic orientations (entrepreneurial and market foci) with product and process innovations. In addition, it investigates the direct relationship between IoT capability and alliance. Improving these relationships assist in ensuring that new knowledge from the IoT can be translated into tangible business innovations that contribute to economic development. Design/methodology/approach – Data from 207 new high-technology IoT ventures in China were obtained after three-wave mailing (i.e. two reminders). Following a rigorous process to purify and validate the measurement scale items, the study used structural equation modeling to test the conceptual model. Findings – Findings demonstrate that an IoT capability only enhances product innovation, however, with the addition and support from IoT alliance, both product and process innovation can be achieved in new high-tech IoT ventures. This nuanced insight suggests that new high-tech IoT ventures should focus on building their IoT capability, and at the same time, develop IoT alliances with value chain partners in order to fully take advantage of IoT and gain a better position to formulate more novel offerings. Originality/value – The study is first to contribute with a much needed framework of IoT and entrepreneurship by examining the role of IoT capability further in the relationships between: entrepreneurial orientation and market orientation with product and process innovations arising from IoT; and the role of IoT alliance (interfirm relations, partnerships, etc.) on the relationship above.


2018 ◽  
Vol 22 (4) ◽  
pp. 802-823 ◽  
Author(s):  
Gholamhossein Mehralian ◽  
Jamal A. Nazari ◽  
Peivand Ghasemzadeh

PurposeKnowledge is a key success factor in achieving competitive advantage in the current fast-paced and uncertain economic environment. Several studies in the literature have analyzed the relationship between knowledge creation (KC) and organizational success; however, the mechanisms by which KC leads to accumulation of intellectual capital (IC) and thereby affects various dimensions of organizational performance are understudied. The purpose of this paper is to examine how KC and IC and their relationship influence key dimensions of organizational performance.Design/methodology/approachA research model was developed and tested based on the literature in the areas of KC, IC and organizational performance. This study uses a survey sent to companies in an intensive knowledge-based industry. The balanced scorecard (BSC) approach was used to measure the key dimensions of organizational performance.FindingsThe results from structural equation modeling (SEM) on 470 completed questionnaires received from the pharmaceutical companies in Iran reveal that KC activities lead to the accumulation of organizational IC and IC has a crucial and positive impact on the BSC. Furthermore, the results from the path analysis indicate that IC mediates the effects of KC on the BSC.Practical implicationsThe findings of this study contribute to the extant literature on the relationship between knowledge and organizational performance by demonstrating that knowledge and KC lead to performance when organizations utilize KC activities and leverage them to accumulate IC. Once used effectively, IC will result in a better performance in the knowledge-intensive environments.Originality/valueThis is the first study that investigates how KC contributes to firm performance by incorporating the mediating impact of IC on the BSC. The proposed model and results will help organizations to identify the mechanisms through which KC initiatives improve organizational performance.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Moazzam Ali ◽  
Yuanmei (Elly) Qu ◽  
Shoaib Shafique ◽  
Nhat Tan Pham ◽  
Muhammad Usman

PurposeThe present study aimed to test the hypothesis that ethical leadership positively contributes to exploitative learning and explorative learning simultaneously and then examine the moderating role of work centrality in the relationships of ethical leadership with exploitative learning and explorative learning.Design/methodology/approachTime-lagged survey data were collected from 257 middle managers and their 257 immediate supervisors in 76 firms in China. Data were analyzed using structural equation modeling and Hayes' PROCESS macro for SPSS.FindingsThe results revealed that ethical leadership positively contributed to exploitative learning and explorative learning simultaneously. Importantly, the authors found that work centrality strengthened the positive relationships of ethical leadership with both exploitative learning and explorative learning.Practical implicationsThe findings can help organizations enhance exploitative learning and explorative learning simultaneously and enable them to gain a sustainable competitive advantage.Originality/valueAlthough explorative learning and exploitative learning together constitute fundamental resources for organizations' long-term success, prior research has not looked into whether and when leader behaviors facilitate explorative learning and exploitative learning simultaneously. The study contributed to fill this gap by introducing ethical leadership, signifying its positive role in enhancing both explorative learning and exploitative learning, and establishing work centrality as a moderator to reinforce these two positive relationships.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Srinivasan P.

Purpose The purpose of this paper is to analyze the impact of knowledge management (KM) in terms of organizational performance using structural equation modeling. To enhance organizational performance, KM is used as a powerful strategic tool. The factors such as management commitment, leadership and organizational culture are the KM enabler’s conditions, and the step processes of KM are knowledge capture, creation, organizing/storing and transfer, and through this, KM is analyzed on organizational performance in the context of leathers manufacturing company. This study constructs with questionnaire consist of 34 variables. Design/methodology/approach There are about 101 samples that were collected through the questionnaire survey method in the leather companies in Ranipet. The data were collected from executives and associates in the leather companies. Data were analyzed using the SPSS tool and SMART PLS tool used for framing a research model and the hypothesized relationships were tested through partial least squares structural equation modeling technique. Findings The finding of this study is mandatory to implement a structured KM practice in the leather companies. Application of KM is quite an impact on organizational performance, which leads to profitability and productivity. Originality/value This is the first paper to empirically investigate the KM enablers, process and support for the role of KM practices at leather industry. Further, the positioning of KM practices as a strategic competitive tool can be considered as an influential factor to organizational performance.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kyoungshin Kim

Purpose This study aims to introduce adaptive performance as an organizational performance dimension and examine the possible dynamics between the dimensions of a learning organization and adaptive performance. Design/methodology/approach This study used a survey and applied factor analysis and structural equation modeling analysis. Findings The results supported adaptive performance as an organizational performance dimension. Also, the findings of this study empirically proved that perceived knowledge and adaptive performance mediate the positive relationship between a learning organization and perceived financial performance. Research limitations/implications In addition to the current Dimensions of a Learning Organization Questionnaire (DLOQ) studies, this study revealed that adaptive performance, one of the nonfinancial outcomes improved by learning, had a significant effect on financial performance. Also, this study provided evidence of the additional construct validity of the DLOQ, particularly its performance measures. Practical implications This study advises practitioners to take a close look at how learning and organization development activities improve organizational performance overall. Originality/value This study supported a claim that learning and organization development activities in organizations have a strong potential to induce variance in intangible performance.


2019 ◽  
Vol 34 (8) ◽  
pp. 1706-1723 ◽  
Author(s):  
Ana Cristina Ferreira ◽  
Marcio Lopes Pimenta ◽  
Paraskeva Wlazlak

Purpose The purpose of this paper is to develop a model to predict the antecedents of the integration level among marketing, logistics and production, considering the influence of formal and informal factors that generate integration and the existence of conflicts. Design/methodology/approach A survey of 179 participants from all regions of Brazil was conducted. A parsimonious model including four dimensions and 34 variables was developed through confirmatory factor analysis and structural equation modeling. Findings The field data corroborate studies dealing with the impact of various formal and informal integration factors on the cross-functional integration level as a construct. Furthermore, this paper concludes that the level of cross-functional can be defined as: the intensity of the relationship among internal functions which can be measured by the mutual existence of formal and informal factors and the absence of manifest conflicts. Research limitations/implications The findings of this paper cannot be generalized because of the convenience sampling. Future research could apply a probabilistic sampling and try to explore other geographical settings in both national and international contexts. Practical implications The proposed model can generate important information for managers by pointing out variables that can predict the integration level and their impacts on the organizational performance. The paper concludes with examples about how the model could be useful in several practical situations. Originality/value This paper proposes a model with reasonable accuracy to predict the integration level and overcomes prior research limitations with respect to models to predict the antecedents of the integration level, particularly the role of conflicts in the integration processes.


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