Can a region’s network location characteristics affect its innovation capability? Empirical evidence from China

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Minrui Han ◽  
Bing Sun ◽  
Xiao Su
Keyword(s):  
Network Centrality ◽  
Innovation Network ◽  
Innovation Capability ◽  
Regional Innovation ◽  
Content Type ◽  
Network Location ◽  
Structural Hole ◽  
Innovation Capacity ◽  
New Perspective ◽  
The Relationship

Purpose This study aims to explore the influence of a region’s network location characteristics and indirect connections on its innovation capability. The aim is to assist regions in different network locations to use innovation resources to improve their innovation capabilities more efficiently. Design/methodology/approach This paper represents the Chinese regional innovation network using the gravity model. A theoretical framework is developed to explore the relationships between a region’s innovation capability and its network location. Hypotheses are tested using hierarchical regressions. Findings First, this paper finds that a region’s network centrality can promote its innovation capability. Second, a structural hole can positively adjust the relationship between a region’s centrality and innovation capability. Third, a region’s indirect connections can inhibit its innovation capability while exhibiting a U-shaped relationship in moderating centrality and innovation capability. Originality/value This study uses a multi-index system to construct an innovation network covering 29 regions in China. This network represents the innovation cooperation and overall situation of innovation in China. The paper is one of the first attempts at investigating the relationship between regional network locations and innovation capability. It is also the first attempt at testing the influence of indirect connections on a region’s innovation capability. The findings provide a new perspective on the factors influencing regional innovation capacity and a new way for regions to improve their innovation capability.

Innovation capability configuration and its influence on the relationship between perceived innovation requirement and organizational performance

2018 ◽  
Vol 29 (8) ◽  
pp. 1316-1331 ◽  
Author(s):  
Ming-Feng Su ◽  
Kuo-Chih Cheng ◽  
Shao-Hsi Chung ◽  
Der-Fa Chen
Keyword(s):  
Organizational Performance ◽  
Product Innovation ◽  
Information Quality ◽  
Process Innovation ◽  
Innovation Strategy ◽  
Innovation Capability ◽  
Manufacturing Companies ◽  
Content Type ◽  
Innovation Capacity ◽  
The Relationship

Purpose When the management of an information technology (IT) manufacturing firm perceives a need for innovation due to any threat in the external environment, it will be prompted to use organizational resources to support innovation and improve organizational performance through the implementation of the innovation. The purpose of this paper is to explore whether an IT manufacturing firm’s budget slack, information quality of information system (IS), process innovation and product innovation would interact to collectively form an innovation capacity, which is termed “innovation capability configuration (ICC)”, and whether ICC mediates the relationship between perceived innovation requirement and organizational performance. Design/methodology/approach To answer these questions, a structural equation model was built and a questionnaire survey was conducted to collect data from research and development and production managers of IT manufacturing companies listed on the Taiwan Stock Exchange and Over-The-Counter markets. Findings The results showed that budget slack, IS information quality, process innovation and product innovation are all significantly related to ICC, in which high-quality information and low level of budget slack are the key factors that underpin the innovation capacity. In addition, ICC has a full mediation effect, that is, perceived innovation requirement positively influences ICC, which, in turn, improves organizational performance. Research limitations/implications Because all items in a questionnaire were answered by a manager, the common method variance might exist in this study. In addition, the effective recovery rate of the questionnaire was not high due to which the non-response bias might occur. Following the research limitations, several future research recommendations are proposed. Practical implications This study offers managerial implications for the development of an IT manufacturing firm’s innovation strategy and structure to smooth the implementation of innovation in the severe environment. Originality/value The study is the first attempt to integrate the four elements clearly illustrating the ICC, which is a more complete innovation strategy, thus contributing to improve the past fragmental studies and clarify some controversial points existing in the extant innovation research.

Open innovation, network embeddedness and incremental innovation capability

2020 ◽  
Vol 58 (12) ◽  
pp. 2655-2680
Author(s):  
Shaojie Han ◽  
Yibo Lyu ◽  
Ruonan Ji ◽  
Yuqing Zhu ◽  
Jingqin Su ◽  
...  
Keyword(s):  
Open Innovation ◽  
Moderating Effect ◽  
Incremental Innovation ◽  
Innovation Network ◽  
Innovation Capability ◽  
Content Type ◽  
Network Embeddedness ◽  
Structural Embeddedness ◽  
Negative Effect ◽  
The Relationship

PurposeThis study aims at developing a better understanding of the relationship between network embeddedness and incremental innovation capability and further examines the moderating effect of open innovation.Design/methodology/approachThis paper adopts hierarchical regressions to validate the theoretical model and collect the patent data of the top 54 firm patentees in the smartphone industry as empirical sample. Using patent citation network data, this paper estimates the relationship between open innovation, network embeddedness and incremental innovation capability.FindingsThis paper empirically shows that structural embeddedness exerts a negative effect on incremental innovation capability, while relational embeddedness is positively related to incremental innovation capability. And open innovation strengthens the relationship between network embeddedness and incremental innovation capability.Originality/valueThis paper shifts the focus of the determinants of incremental innovation capability from internal factors to the external network features by exploring the linkage between network embeddedness and incremental innovation capability. A counterintuitive conclusion is that structural embeddedness shows a negative effect on firm's incremental innovation capability. Furthermore, in contrast to most previous studies, which only focus on the direct effect of open innovation on the firm's incremental innovation capability, our study examines the moderating effect of open innovation on the relationships between network embeddedness and incremental innovation capability. At last, the results provide practical guidance for firms to occupy the beneficial network positions and adopt appropriate open innovation strategies to improve their incremental innovation capability.

Dynamic capabilities vs. innovation capability: are they related?

2014 ◽  
Vol 21 (3) ◽  
pp. 368-384 ◽  
Author(s):  
Lidija Breznik ◽  
Robert D. Hisrich
Keyword(s):  
Literature Review ◽  
Design Methodology ◽  
Dynamic Capabilities ◽  
Dynamic Capability ◽  
Future Research ◽  
Innovation Capability ◽  
New Approach ◽  
Content Type ◽  
New Research ◽  
The Relationship

Purpose – The purpose of this paper is to provide insights into the relationship between dynamic capabilities and innovation capabilities. It links dynamic capability with innovation capability and indicates the ways they can be related. Design/methodology/approach – The relationships between dynamic and innovation capability were investigated through a systematic literature review. Findings – The review indicates that common characteristics exist between of the both fields, which demonstrate six relationships. Additionally, findings show some inconsistencies and even contradictions. Originality/value – In this paper, the authors have compared dynamic capabilities, a relatively new approach in the field of strategic management, with innovation capabilities, a widely recognised crucial domain for sustained competitiveness. Since both areas address issues that are essential to today's environment, future research should seek to clarify both concepts, by undertaking some new research and developing comprehensive and unambiguous framework.

Regional government R&D investment and innovation performance: the moderating effect of geographical and organizational proximities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dongyun Zhu ◽  
Bingfen Xu
Keyword(s):  
Moderating Effect ◽  
Innovation Performance ◽  
Regional Government ◽  
Multilevel Regression ◽  
Regional Innovation ◽  
Government Investment ◽  
Content Type ◽  
Organizational Proximity ◽  
The Relationship ◽  
D Investment

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.

The relationship between internal integration and manufacturing flexibility in the Egyptian industry

2019 ◽  
Vol 11 (1) ◽  
pp. 16-33 ◽  
Author(s):  
Magdy A. Khalaf ◽  
Mohamed Yehia El Mokadem
Keyword(s):  
Material Handling ◽  
Mediating Effect ◽  
Mediation Effect ◽  
Manufacturing Flexibility ◽  
Content Type ◽  
Research Findings ◽  
New Perspective ◽  
Internal Integration ◽  
The Relationship ◽  
Triadic Relationship

Purpose This paper aims to empirically investigate the triadic relationship between internal integration, internal flexibility and external flexibility. Design/methodology/approach This research hypothesized the mediation effect of internal flexibility on the relationship between internal integration and external flexibility. Survey data were collected and analyzed using simple and mediation regression analysis to test the study hypotheses. Findings The research finding reveals that machine, labor and material handling flexibilities; being as internal flexibility dimensions mediate the relationship between internal integration and volume and mix flexibilities; being as external flexibility dimensions. The results provided insufficient evidence on the mediating effect of routing flexibility on the relationship between internal integration and both volume and mix flexibilities. Research limitations/implications This research presents a new perspective for research studies to understand the factors that affect manufacturing flexibility. However, the nature of the surveyed sample and using of a single informant might limit the generalizability of the research findings. Practical implications This study provides useful insights for firms wishing to enhance their competitiveness through improving their flexibility. The companies should be aware of the importance of developing a suitable platform for coordinating inter-departmental activities to enhance its internal competencies, which, in turn, improve its customer-facing capabilities and boosts its competitiveness. Originality/value This paper contributes to knowledge by proposing and empirically testing the mediating effect of internal flexibility on the relationship between internal integration and external flexibility.

Under-promising and over-delivering: pleasing the customer or strategic blunder?

2017 ◽  
Vol 31 (7) ◽  
pp. 720-732 ◽  
Author(s):  
Omer Topaloglu ◽  
David E. Fleming
Keyword(s):  
Practical Implication ◽  
Business Environment ◽  
Empirical Examination ◽  
Content Type ◽  
Expectation Management ◽  
New Perspective ◽  
The Individual ◽  
Service Expectation ◽  
The Relationship ◽  
Promise Keeping

Purpose The paper aims to provide a theoretical and empirical examination of the relationship between service expectation management, expectation inducing agent and customer satisfaction. Design/methodology/approach Based on the disconfirmation paradigm in services and the promise-keeping premise in psychology, the hypotheses are developed and empirically tested using three experiments that manipulated expectations, expectation inducing agent and service outcome. Findings The findings provide reconciliation to the previous studies in services and show that effectiveness of expectation management strategy depends on the individual expectation thresholds and the expectation inducing agent. If customers patronize a firm expecting more, then over-delivering on the service promise results in a significant benefit. However, for those customers whose mental expectation threshold is exceeded, keeping promises is as effective as exceeding promises. Practical implications The practical implication of this paper is that services managers should be cognizant of the mental expectation threshold of customers and be wise in utilizing the under-promise, over-deliver strategy. Originality/value Using a threshold approach, this paper introduces a new perspective to service practitioners who are trying to manage expectations in a highly variable business environment. It also benefits service researchers who are trying to enhance the understanding of service expectation management.

The synergistic effect of ego-network stability and whole network position: a perspective of transnational coopetition network

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Guan Feiyang ◽  
Wang Tienan ◽  
Sun Linbing ◽  
Tang Liqing
Keyword(s):  
Synergistic Effect ◽  
Network Performance ◽  
Specific Situation ◽  
Network Stability ◽  
Content Type ◽  
Stable Relationship ◽  
Structural Hole ◽  
Network Position ◽  
Competitive Aggressiveness ◽  
The Relationship

PurposeThe authors selected global automobile manufacturing firms whose sales ranked within 100 in the five years from 2014 to 2018 in the Factiva database to examine how the characteristics of a firm's whole network and ego-network in a transnational coopetition network influence network performance.Design/methodology/approachThe authors analyzed the public news of the sample firms about the coopetition by structural content analysis to build the coopetition networks and access to data on the competitive actions of firms. Then, to measure the variables associated with the coopetition network, such as the structural hole, centrality and ego-network stability, the authors use UCINET 6 that is a widely used piece of software for social network analysis to establishing five undirected binary adjacency matrices.FindingsThe authors find that a firm's competitive aggressiveness mediates the relationship between a firm's whole network position and network performance that emphasizes the need for integrating competitive dynamics research and coopetition research and shows how valuable insights can be gained through such integration. And the interaction of structural hole and centrality impacts competitive aggressiveness and network performance, and the interaction is different under high and low ego-network stability. The integration of whole network and ego-network literature studies provides new insights into firm network literature.Practical implicationsIn the process of cooperation, firms should consider whether they can occupy the structural hole and center as important indicators for partner selection. Too stable relationship will prevent firms from obtaining new resources. Firms should weigh the period of cooperation according to specific situation.Originality/valueThese results indicate that ego-network stability, as an important complementary characteristic of coopetition network, has a significant synergistic effect with structural holes and centrality on competitive aggressiveness and network performance. And these findings expand the current literature on the relationship between characteristics of network, competitive aggressiveness and network performance.

The impacts of high-commitment HRM practices on exploitative and exploratory innovation: the mediating role of knowledge sharing

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Son Thanh Than ◽  
Phong Ba Le ◽  
Thanh Trung Le
Keyword(s):  
Knowledge Sharing ◽  
Equation Modeling ◽  
Innovation Capability ◽  
Content Type ◽  
Mediating Role ◽  
Hrm Practices ◽  
The Impact ◽  
The Relationship ◽  
Exploratory Innovation

Purpose The purpose of this paper is to investigate the mediating roles of knowledge sharing behaviors (knowledge collecting and donating) in linking the relationship between high-commitment human resource management (HRM)practices and specific aspects of innovation capability, namely, exploitative and exploratory innovation. Design/methodology/approach The paper is based on quantitative approach and structural equation modeling to examine the correlation among the latent constructs based on the survey data collected from 281 participants in 95 Chinese firms. Findings The findings of this study support the mediating role of knowledge sharing (KS) behaviors in the relationship between HRM practices and aspects of innovation capability. It highlights the important role of knowledge donating and indicates that the effect of knowledge donating is more significant than that of knowledge collecting on exploitative and exploratory innovation. Research limitations/implications Future research should investigate the impact of high-commitment HRM practices on innovation capability under the moderating effects of organizational variables to bring better understanding on the relationship among them. Originality/value The paper significantly contributes to increasing knowledge and insights on the correlation between high-commitment HRM practices and specific forms of innovation. The understanding on mediating role of KS contribute to advancing the body of knowledge of HRM and innovation theory.

Challenge-hindrance stressors and career initiative: a moderated mediation model

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yan Liu ◽  
Lei Ren
Keyword(s):  
Positive Affect ◽  
Job Autonomy ◽  
Content Type ◽  
Mba Students ◽  
Mediating Role ◽  
Moderated Mediation Model ◽  
Part Time ◽  
New Perspective ◽  
The Relationship

PurposeThe purpose of this paper is to explore the relationship between challenge-hindrance stressors and employees’ career initiative while incorporating the mediating role of positive affect and the moderating role of job autonomy.Design/methodology/approachFive proposed hypotheses were tested using path analysis with two waves of data collected from 136 part-time MBA students.FindingsThe findings show that challenge stressors indirectly facilitate career initiative, whereas hindrance stressors indirectly inhibit career initiative, both with positive affect as mediators. Job autonomy enhances the direct relationship between positive affect and career initiative, as well as the indirect relationships among challenge/hindrance stressors, positive affect and career initiative.Originality/valueThe study brings a new perspective to understanding why an employee conducts career initiative, thereby widening the scope of the antecedents of career initiative. The study discloses positive affect as the mediator that transmits the opposite effects from challenge-hindrance stressors to career initiative. It also identifies job autonomy as an important boundary condition for positive affect to exert its influence on career initiative, as well as challenge-hindrance stressors that influence career initiative via positive affect.

Ownership structure and audit quality: the mediating effect of board independence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Moncef Guizani ◽  
Gaafar Abdalkrim
Keyword(s):  
Ownership Structure ◽  
Audit Quality ◽  
Institutional Ownership ◽  
Audit Fees ◽  
Mediating Effect ◽  
Board Independence ◽  
Government Ownership ◽  
Content Type ◽  
New Perspective ◽  
The Relationship

Purpose This study aims to examine the mediating effect of board independence on the relationship between ownership structure and audit quality. Design/methodology/approach The research uses generalized methods of moments regression to test the relationship between ownership structure and audit quality. The sample consists of 162 non-financial firms listed on the Gulf Cooperation Council stock markets between the years of 2009 and 2016. To test the significance of the mediating effect, this paper uses the Sobel test. Findings Empirical findings show that companies with higher family ownership are less likely to demand extensive audit services and, as a result, pay lower audit fees. Conversely, this study finds that companies with higher active and passive institutional ownership are more likely to engage high-quality auditors and pay larger audit fees. As for government ownership, it has no significant impact on audit fees. The results also reveal that the negative (positive) effect of family (institutional) ownership on audit quality follows the path through reducing (enhancing) board independence. Further tests are conducted and support the main findings. Practical implications This study has important implications for policymakers and regulators to address the conflict between controlling shareholders and minorities by promoting higher standards of audit quality. The study findings may be useful to investors, assisting them in making better-informed decisions and aids other interested parties in gaining a better understanding of the role played by ownership structure in audit quality. The study also contributes to the strategic board behavior by bringing a new perspective on how boards engage in monitoring by requesting external audit services. This behavior is likely to be influenced by the type of controlling shareholder. Originality/value The main contribution of the present paper is to examine the board composition as a potential mediating variable between ownership structure and audit quality. Moreover, it highlights the issue of improving governance mechanisms.

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