scholarly journals Innovative search, capability reconfiguration and firm innovation performance in the process of technological leapfrogging

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pan Hu ◽  
Ying Wang ◽  
Tao Feng ◽  
Yuxin Duan

Purpose The purpose of this paper is to investigate three issues: how does an innovative search (local search and boundary-spanning search) impact firm innovation performance of latecomers; how does capability reconfiguration (capability evolution and capability substitution) mediates the relationship between innovative search and firm innovation performance; and how does the technological leapfrogging process (initial stage, following stage, synchronization stage and leading stage) moderate the relationship between capability reconfiguration and firm innovation performance. Design/methodology/approach A “resource-capability-performance” theoretical framework was developed to explore the relationships between local/boundary-spanning search, capability reconfiguration and firm innovation performance. The data were collected by sending out surveys to managers and employees in various industries in mainland China. These hypotheses were tested using structural equation models and hierarchical regressions. Findings The results showed that: innovative search has a direct causal relationship to capability reconfiguration; local search and boundary-spanning search are conducive to improve the innovation performance of latecomers; the impact of local search and boundary-spanning search on innovation performance is realized through the completion of mediating role of capability reconfiguration; there are differences in the path of local search and boundary-spanning search affecting the capability reconfiguration of enterprise innovation performance; and the relationship between innovative search, capability reconfiguration and enterprise innovation performance evolves with the enterprise in different stages of technological leapfrogging. Originality/value This study explores the relationship and the path of innovative search to firm innovation performance and analyzes the path difference between local search and boundary-spinning search, which enriches the research of organizational search and enterprise innovation. This paper reveals the whole path of innovative search affecting innovation performance, discusses the important role of capability reconfiguration and makes incremental contributions to dynamic capability theory. It studies the evolution of innovative search on innovation performance under the background of technological leapfrogging, which provides a new perspective for the study of organizational search and capability-based theory.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiuyuan Fang ◽  
Marshall S. Jiang ◽  
Yugang Li

PurposeIntangible resources (IRs) play an important role in enterprise innovation; previous studies find inconsistent results (positive and negative). The authors develop and test a framework to analyze IRs to see whether and how to impact firm innovation performance to reconcile the conflicting results.Design/methodology/approachThis study empirically examined the curvilinear effect of IRs and innovation performance (IP) based on data from the Annual Census of Chinese Industrial Enterprises. The moderating effect of institutional development (ID) and state ownership (SO) in the relationship between firms' IRs and IP was also examined.FindingsIt was found that there is a U-shaped relationship between IRs and IP. Moreover, the institutional development weakens the U-shaped relationship.Originality/valueThe U-shaped relationship explains the inconsistent results in previous studies. It offers some important implications for managers and policymakers, who must understand the role of IRs.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Peinan Ji ◽  
Xiangbin Yan ◽  
Yan Shi

Purpose The purpose of this study is to deepen the understanding of the effects of information technology (IT) investment on firm innovation performance and examining the investment paradox effect in China. Design/methodology/approach Using a sample of China’ public firms IT investment data between 2010 and 2016, the authors establish a test model of IT investment and innovation performance. Findings The result indicates that IT investment in firms have no effect on innovation performance in the investment period. However, in the full sample and manufacturing sample, the IT investment has a significant positive effect on innovation performance in the post-investment years. In addition, this study finds that large companies and low-age companies may contribute more to innovation when firm investment in IT. Research limitations/implications There are several limitations in this research. First, the authors are failed to obtain a larger sample about the IT investment information data set in China, so this study was compelled to use limited sample data from China, hence, this could lead to errors of too early generalization. Second, the authors use the number of invention patent applications to represent the performance of enterprise innovation, which may not show enterprise innovation effectively. Third, the firms in the sample are all in China Listed Companies, so this may not accurately reflect the entire environment of firm innovation performance, and could possibly. Practical implications The research confirms that there is a paradox and time lag effect in IT investment, which enterprises should pay attention to. Originality/value Existing research confirms that corporate IT investments can bring new products or services. However, the authors still do not know whether IT investment has improved the company’s ability of innovation. This study will fill this gap and the industry effect and time lag effect of the influence of IT investment on innovative performance are also examined.


2020 ◽  
Vol 24 (7) ◽  
pp. 1705-1718
Author(s):  
Bo Yu ◽  
Shengbin Hao ◽  
Yu Wang

Purpose This study aims to explore the impact of organizational search (local and boundary-spanning search) on business model innovation (efficiency-centered/novelty-centered business model innovation) and the moderating role of knowledge inertia between them. Design/methodology/approach The relationships are examined through data provided by a sample of Chinese firms and by multiple hierarchical regressions. Findings Local search has a stronger effect on efficiency-centered business model innovation, whereas boundary-spanning search plays a stronger role in novelty-centered business model innovation. Knowledge inertia strengthens the effect of local search on efficiency-centered business model innovation but weakens the effect of boundary-spanning search on efficiency-centered business model innovation and the effect of local search on novelty-centered business model innovation. Practical implications The findings enable firms’ managers to understand the subtle ways in which organizational search interacts with knowledge inertia to affect business model innovation and may help them to make knowledge management efforts to harvest the full value of organizational search. Originality/value Previous studies have not examined the effect of different organizational search on different business model innovation from knowledge management perspective. With knowledge inertia as the moderator, the results reveal the contingent impact mechanism of organizational search on business model innovation, the findings provide fresh evidence that can bridge the gap between knowledge management and business model innovation.


2017 ◽  
Vol 8 (4) ◽  
pp. 475-494 ◽  
Author(s):  
Xueyuan Liu ◽  
Muzhen Shen ◽  
Wenjing Ding ◽  
Xiande Zhao

Purpose In innovation networks, firm innovation performance is affected by external tie strength and internal knowledge absorptive capacity. This study aims to empirically examine the path relationship between tie strength, absorptive capacity and firm innovation performance in Chinese manufacturing industries, thus enhance our understanding on the mechanism between innovation network and innovation performance. Design/methodology/approach The authors have conducted a survey among Chinese manufacturers in four industries (textile and garment, household appliance, IT and electronics and motor vehicle assemblers) that are located in North, East, Central and South China, respectively, with a valid response from 278 manufacturers. Structural equation model is used to analyze the results. Findings This study demonstrates that in Chinese Manufacturing industry, tie strength is positively related to innovation performance. The authors also find that absorptive capacity has a positive impact on innovation performance and it mediates the relationship between tie strength and innovation performance. Then, the authors analyze the effect of ownership, industry and sub-region, and the results show that in private firms and traditional manufacturers, and the firms located in North and Eastern China, tie strength has no direct effect on innovation outcomes, but it can influence innovation indirectly through absorptive capacity. Originality/value This study further supports that in Chinese guanxi culture, strong ties with other innovation partners can improve the firm’s absorptive capacity and thus improve innovation performance. The results also suggest that a firm’s absorptive capacity has a significant mediating effect on the relationship between tie strength and innovation performance.


SAGE Open ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 215824402110071
Author(s):  
Ying Teng ◽  
Eli Gimmon ◽  
Wentong Lu

We examine how interlocking directorates influence innovation performance differentials between firms. Our study offers a new perspective of the effect of interlocking directorate ties upon innovation performance, focusing on network effects on interfirm performance. Using a sample of China’s listed companies for the period 2012–2016, we empirically examined the relationship between board interlocks and interfirm innovation performance differentials. The results demonstrate that the presence of board interlocks reduces interfirm innovation performance differentials and leads to a convergence of innovation performance between the connected companies. Furthermore, cross-level analysis found that the relationship between board interlocks and interfirm innovation performance differentials is moderated by the interfirm industry attributes and demographic characteristics of the board. This study expands the existing research in explaining the driving mechanism of enterprise innovation performance as affected by interlocking directorate ties.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thammanoon Charmjuree ◽  
Yuosre F. Badir ◽  
Umar Safdar

PurposeThis study is among the very few to examine the firm's simultaneous use of both dimensions of open innovation and its influences on the firm's process innovation performance (PIP). Specifically, the authors consider the relationship between firm's external technology acquisition (ETA) and external technology exploitation (ETE) and examine their direct, indirect and mediating effect on the firm's PIP. The authors also examine the moderating effect of the organizations' unabsorbed slack (UASL) on the relationship between ETA and ETE.Design/methodology/approachAnalyzing data collected from 311 small- and medium-sized software development firms in emerging market; Thailand, we show that both ETA and ETE have a positive effect on PIP and that ETE fully mediates the relationship between ETA and PIP.FindingsThe authors show that both ETA and ETE have a positive effect on PIP and that ETE fully mediates the relationship between ETA and PIP. Moreover, the relationship between ETA and ETE is positively moderated by the firms' unabsorbed slack (UASL) and that the influence of ETA on PIP through ETE is stronger under higher unabsorbed slack.Originality/valueThe authors extend the “traditional” performance outcome of outbound dimension of open innovation concept, which focuses exclusively on commercialization and market (Chesbrough, 2003b), by showing that ETE positively influences the firm's PIP. Moreover, the study explains the mechanism through which ETA influence the firm's PIP by proposing that ETE fully mediates the relationship between ETA and PIP.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chi Thi Phuong Nguyen ◽  
Duong Tuan Nguyen ◽  
Hang Thu Nguyen

Purpose The purpose of this paper is to examine the effect of entrepreneurs’ personality traits on firm innovation performance through the mediation role of entrepreneurs’ innovativeness. Design/methodology/approach The data consist of 2,574 firms from a survey of small and medium-scale manufacturing enterprises (SMEs) in Vietnam, a developing and transitioning economy where SMEs constitute an integral part of the economy. The estimation results based on the structural equation model was applied to analyze the data. Findings The results indicate that an entrepreneur’s innovativeness is positively associated with his extraversion, conscientiousness, and openness to experience but negatively accompanied with his neuroticism. Besides, the three traits – openness to experience, conscientiousness and extraversion have positive indirect effects, while neuroticism has a negative indirect effect on technological improvement and new technology adoption. However, the effects of agreeableness on entrepreneurial innovativeness and firm innovation performance are insignificant. In addition, the diverse backgrounds of the entrepreneur such as education and ethnics are also found to influence his innovativeness and to have indirect effects on firm innovation performance. Originality/value This study may contribute to the immature literature on the entrepreneurial process within SMEs by presenting empirical evidence on the relationship between entrepreneurial personality traits and firm innovation with a large sample of SMEs in Vietnam, an emerging economy where SMEs constitute an integral part of the economy.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dongyun Zhu ◽  
Bingfen Xu

Purpose This study aims to measure the moderating effect of geographical and organizational proximity by focusing on readily available Chinese regional economic data over a five-year period. Design/methodology/approach The authors used multilevel regression analysis to analyze the relationship. Findings Results show that increasing government investment in research and development (R&D) can improve innovation performance during this period, organizational proximity and geographic proximity have a positive moderate effect on the relationship between R&D investment and Innovation performance. Originality/value This study enriches the existing theories on government innovation input and output from the perspective of regional differences and provides meaningful guidance for current Chinese regional innovation policies.


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