Entrepreneurial orientation and innovation performance: insights from Korean ventures

2019 ◽  
Vol 23 (4) ◽  
pp. 675-695 ◽  
Author(s):  
Ribin Seo
Keyword(s):  
Performance Indicators ◽  
Entrepreneurial Orientation ◽  
Product Innovation ◽  
Technology Innovation ◽  
Innovation Performance ◽  
Future Research ◽  
Curvilinear Relationship ◽  
Sales Growth ◽  
Content Type ◽  
Curvilinear Relationships

Purpose The purpose of this paper is to explore the curvilinear relationship between entrepreneurial orientation (EO) and innovation performance in ventures of Korea, where this topic has been unexplored. Design/methodology/approach This study used 1,837 ventures’ responses in a panel data of the 2015 Korea’s Venture Business Investigation Survey. The measurements of EO based on the Miller/Covin and Slevin scale were used from the survey. The author adopted and independently measured three different indicators of innovation performance: technology innovation, product innovation and sales growth. Findings The results of the regression analysis show the significant curvilinear relationships of EO with technology innovation and product innovation, while the relationship between EO and sales growth remains linear. The author also found that multiplicative EO construct explains the changes in R2 better than the summative EO construct for the improvement of innovations in technology and product. Originality/value This paper provides empirical evidence on the EO–innovation performance relationships from Korean ventures – an underexplored area of research. It also takes into account the curvilinear relationships of summative and multiplicative EO constructs with different performance indicators. Future research can benefit from the use of the multiplicative EO estimation and multiple performance indicators to capture a clearer picture of the causal relationships.

Recent developments in China’s biopharmaceutical industry (2012-2017)

2019 ◽  
Vol 10 (3) ◽  
pp. 686-707
Author(s):  
Marcus Conlé
Keyword(s):  
Product Innovation ◽  
Academic Research ◽  
Domestic Market ◽  
Growth Strategy ◽  
Future Research ◽  
Biopharmaceutical Industry ◽  
Content Type ◽  
Drug Regulator ◽  
Recent Developments ◽  
Product Portfolios

Purpose The paper aims to take stock of China’s recent biopharmaceutical industry development by analyzing product innovation and changes in the firms’ product portfolios during the five-year period between 2012 and 2017. Design/methodology/approach The paper introduces a classification of biopharmaceutical products. By applying the classification to the product data of China’s drug regulator, the CFDA, it becomes possible to trace the developments within the sector by looking at changes in the number of firms within each subgroup and changes in the number of subgroups in which each firm is involved. The classification allows an evaluation of the latest product innovation achievements. Findings The paper demonstrates a mild shakeout of firms in the relatively long-existing domestic market segments, a trend toward more specialized product portfolios and an enduring prevalence of innovation strategies aimed at exploiting relatively unpopulated domestic market niches instead of pioneering entirely new products. Especially the capability of upgrading to second-generation protein therapeutics has become a key criterion for separating the wheat and the chaff in China’s domestic sector. The paper moreover points out the relevance of acquisitions as a corporate growth strategy. Research limitations/implications The research does not consider complementary indicators, product pipelines in particular. Future research should compare patterns across emerging economies. Originality/value The paper is unique in using the CFDA database for systematic academic research on (bio)pharmaceutical innovation and in introducing a biopharmaceutical product classification to trace innovative activities and changes in corporate product portfolios over time.

Cultivating product innovation performance through creativity: the impact of organizational agility and flexibility under technological turbulence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wilert Puriwat ◽  
Danupol Hoonsopon
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Product Innovation ◽  
New Product ◽  
Innovation Performance ◽  
Incremental Innovation ◽  
Organizational Agility ◽  
Content Type ◽  
Technological Turbulence ◽  
The Impact

PurposeThis study is to compare the impact of organizational agility and flexibility on performance of each type of product innovation (radical vs incremental innovation). Additionally, the moderating effect of technological turbulence on the relationship between the two types of organization is examined.Design/methodology/approachBased on gaps in the existing literature, the survey data are collected from managers who are in charge of developing new products in three industries: food and beverage, chemical and machinery (N = 431). Confirmatory factory analysis is used to verify measurement items and regression analysis is used to test hypotheses.FindingsThe results show that organizational agility increases performance in radical innovation both in a certain situation and an environment with technological turbulence. In contrast, the impact of organizational flexibility is limited to increasing performance in both radical and incremental innovation performance in a certain situation.Originality/valueOur study extends the knowledge of organizational agility and flexibility in the domain of product innovation. Adaptation of organization to respond the technological turbulence will stimulate creativity of new product development teams to produce new useful ideas and transform these ideas to product innovation. The different types of organizing a new product development team to handle technological turbulence will provide different results in product innovation performance. In addition, the findings provide a recommendation on how the organization of a new product development team can improve performance in each type of product innovation under technological turbulence.

Does social reporting matter? Empirical evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Adel Sarea ◽  
Monsurat Ayojimi Salami
Keyword(s):  
Performance Indicators ◽  
Voluntary Disclosure ◽  
Financial Institution ◽  
Negative Relationship ◽  
Social Reporting ◽  
Future Research ◽  
Islamic Banking ◽  
Cross Sectional ◽  
Content Type ◽  
Gcc Countries

Purpose This paper aims to examine the level of Islamic social reporting (ISR) disclosure of Islamic banking in Gulf Cooperative Council (GCC) countries using a checklist based on Accounting and Auditing Organization for Islamic Financial Institution (AAOIFI) standards. Design/methodology/approach A quantitative method – Tobit Model – is adopted in this study. The unweighted disclosure method used to measure the ISR disclosure checklist consist of 51 items in Islamic banks (IBs) in the GCC countries. The stakeholder theory and legitimacy theory are used to investigate the possible banking performance factors affecting the accounting practices such as ISR disclosure in IBs. Findings The findings show that the ISR disclosure index is linked to the IBs’ performance indicators in GCC countries. The result indicates both Islamic banking profitability and age establish positive and statistically significant relationship with ISR disclosure while leverage establishes significant negative relationship with ISR disclosure. This implies that Islamic banking profitability, leverage, and age are essential bank performance indicators that make ISR disclosure worthy of doing even in the presence of Islamic bank stakeholders in GCC countries. This finding linked compliance with the mandatory disclosure recommendations of AAOIFI Standard No. 7, as well as voluntary disclosure. Research limitations/implications This study used cross sectional data for the year 2019, which is considered more recent despite its being a year data analysis. However, future research should consider mix method as well as more analysis tools provided their number of observations are sufficient enough. Social implications The study identifies the factors that may enhance Islamic financial institutions, including Islamic banking in GCC countries, to comply with ISR disclosure. The application of this study supports Accounting standards setters to consider standards that support ISR disclosure in Islamic banking in different countries. Originality/value To the best of the authors’ knowledge, this study is novel in exploring the level of ISR disclosure in Islamic banking in GCC countries by using a checklist based on AAOIFI standard No. 7 and establishes the relationship between ISR disclosure index and IBs profitability, leverage, as well as age of Islamic banking in operation.

Competing in business-to-business sectors through pay-per-use services

2017 ◽  
Vol 28 (5) ◽  
pp. 914-935 ◽  
Author(s):  
Heiko Gebauer ◽  
Mirella Haldimann ◽  
Caroline Jennings Saul
Keyword(s):  
Sustainable Consumption ◽  
Research Process ◽  
Market Development ◽  
Future Research ◽  
Sales Growth ◽  
Content Type ◽  
Strategic Objectives ◽  
Service Portfolio ◽  
Business To Business ◽  
Business Sectors

Purpose Despite the opportunities provided by pay-per-use (PPU) services, product companies in business-to-business sectors often fail to compete systematically by using them. The purpose of this paper is to explain how companies can avoid failures when it comes to PPU services. The paper describes the “seizing” capabilities needed to achieve the strategic objectives of PPU services. Design/methodology/approach The research process is divided into a pilot and an in-depth study. Altogether, 17 companies participated in the study. Findings The findings reveal that the seizing capabilities depend on the strategic objectives of PPU services. To expand the market share with PPU services, companies need to broaden the customer portfolio for PPU services, to align individual services within the entire service portfolio and to balance profits made by PPU services and other business lines. For strategic objectives such as rapid sales growth early in the market development and new market creation other seizing capabilities are required. Research limitations/implications The findings are not generalizable, due to the use of a qualitative study. The study is restricted to product companies in the business-to-business sector. Practical implications Managers often believe that extending and modularizing the service portfolio is beneficial. When achieving sales growth during the market development phase, these capabilities are in fact sometimes counterproductive. Practitioners have to look into the costs and benefits of setting-up their own financing company and working with banks. Social implications PPU services contribute to a more sustainable consumption and make product design more resource-efficient. Originality/value The study is original by virtue of systematically studying PPU services, providing a microfoundation for seizing capabilities and developing testable propositions for future research.

The relationship between EFQM enablers and business performance

2019 ◽  
Vol 30 (4) ◽  
pp. 684-706 ◽  
Author(s):  
Dimitrios Kafetzopoulos ◽  
Katerina Gotzamani ◽  
Dimitrios Skalkos
Keyword(s):  
Factor Analysis ◽  
Quality Management ◽  
Business Performance ◽  
Innovation Performance ◽  
Equation Modeling ◽  
Future Research ◽  
Content Type ◽  
Mediating Role ◽  
Efqm Model

PurposeThe purpose of this paper is to examine the extent to which the five European Foundation for Quality Management (EFQM) model enablers, as the latent factor “enabler excellence,” are associated with business performance, taking into consideration the mediating role of innovation in this relationship.Design/methodology/approachThe analysis followed in order to investigate the relations among the various constructs of the proposed model includes an initial exploratory factor analysis, followed by confirmatory factor analysis and finally structural equation modeling.FindingsAccording to the study findings, “enabler excellence” and innovation performance directly contribute to business performance. Moreover, this paper concludes that innovation performance partially mediates the effect of excellence enablers on business performance.Research limitations/implicationsThis study does not separate between radical and incremental innovation; thus, it would be very interesting to explore this issue in future research. Moreover, it might be useful for researchers to reassess the proposed relationships examining the mediating role of organizational culture.Practical implicationsThis study offers clear implications for managers, proving that they should give higher emphasis on quality management (QM) and the four dimensions of innovation in order to achieve increased performance.Originality/valueBased on the multidimensional structure of the EFQM model, this empirical study determines the contribution of QM to business performance taking into consideration the role of innovation performance as a mediator in this relationship.

Roles of strategic orientations in radical product innovation

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chih-Wei Lin ◽  
Li Keng Cheng ◽  
Lei-Yu Wu
Keyword(s):  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Product Innovation ◽  
Life Cycles ◽  
Radical Product ◽  
Content Type ◽  
Proactive Market Orientation ◽  
Strategic Orientations ◽  
Market Feedback

PurposeBecause of relatively short product life cycles, radical product innovation has more significant influences on firms' competitive advantages in dynamic environments. Past studies identified various cultural characteristics of a firm, which are key drivers of developing radical product innovation on an ongoing basis. However, few studies have investigated the interaction between organizational culture and external market feedback in developing radical product innovation.Design/methodology/approachTo address the identified research gaps, this empirical research began by presenting conceptual foundations that lead to the hypothesized model and then analyzed survey data from 201 original equipment manufacturer suppliers in search of evidence supporting the hypotheses.FindingsThe results suggested that a supplier's entrepreneurial orientation and long-term orientation significantly and positively affected proactive market orientation, with proactive market orientation significantly and positively correlated with radical product innovation. The study confirmed that a proactive market orientation is essential in order for entrepreneurial orientation and long-term orientation to affect radical product innovation. Additionally, this study found that supplier–customer electronic integration has a moderating effect on proactive market orientation and radical product innovation.Originality/valueRadical product innovation is a topic of great interest for both academia and industry, yet a comprehensive conceptual framework for its antecedents is still lacking. To fill this theoretical gap, the present study extended the studies on radical product innovation and examined the relationship between different strategic orientation types in terms of supplier–customer strategic behaviors to determine how suppliers enhance radical product innovation.

Developing process and product innovation through internal and external knowledge sources in manufacturing Malaysian firms: the role of absorptive capacity

2020 ◽  
Vol 26 (5) ◽  
pp. 1021-1039 ◽  
Author(s):  
T. Ramayah ◽  
Pedro Soto-Acosta ◽  
Khoo Kah Kheng ◽  
Imran Mahmud
Keyword(s):  
Absorptive Capacity ◽  
Product Innovation ◽  
Manufacturing Firms ◽  
Innovation Performance ◽  
Knowledge Sources ◽  
Manufacturing Companies ◽  
Organizational Capability ◽  
Data Set ◽  
Content Type ◽  
External Knowledge

PurposeFirms' knowledge-processing capabilities have a central role in achieving innovation performance and competitive advantage. Absorptive capacity capabilities and innovation are viewed as essential for enterprise success. Absorptive capacity is deemed as a highly important organizational capability to recognize value and assimilate both external and internal knowledge in order to enhance firm innovation. The aim of this study is to determine if innovation performance can be improved through absorptive capacity (knowledge acquisition, dissemination and utilization), when it is supported by internal (firm experience) and external knowledge sources (R&D cooperation and contracted R&D).Design/methodology/approachA quantitative methodology based on employing a structured questionnaire was used for data collection. The proposed research model and its associated hypotheses are tested by using Partial Least Squares (PLS) structural equation modelling (SEM) on a data set of 248 manufacturing companies located in the Northern Region of Malaysia.FindingsResults showed that firms' experience is significantly related to absorptive capacity, while for R&D cooperation and contracted R&D findings were mixed. In addition, absorptive capacity was found as a strong predictor of innovation performance.Originality/valueOne of the defining features of competition in many industries has been the extremely rapid pace of technological change, marked by a continuous stream of innovations. Manufacturing firms, therefore, face the challenge of nurturing existing knowledge and developing novel knowledge in order to create new business opportunities. This study makes valuable contributions with regard to understanding the behavioural of manufacturing firms towards process and product innovation.

scholarly journals External supply chain flexibility and product innovation performance

2018 ◽  
Vol 52 (9/10) ◽  
pp. 1981-2004 ◽  
Author(s):  
Wai Wai Joyce Ko ◽  
Gordon Liu ◽  
Isaac K. Ngugi ◽  
Chris Chapleo
Keyword(s):  
Supply Chain ◽  
Product Innovation ◽  
Innovation Performance ◽  
Control Mechanisms ◽  
Chain Flexibility ◽  
Informal Control ◽  
Content Type ◽  
Differential Effects ◽  
The Relationship ◽  
Normative Integration

Purpose This paper aims to examine the effect of external supply chain (SC) flexibility on the product innovation performance of small- and medium-sized enterprises (SMEs) and the contingent role of informal control mechanisms in moderating such an effect. Design/methodology/approach This study conducts a cross-sectional questionnaire survey of 236 UK-based SME manufacturers. Findings Inbound supplier flexibility (ISF) has a stronger positive effect on SMEs’ product innovation performance than outbound logistics flexibility (OLF), and that the strength and direction of both effects depend on informal control mechanisms. Lead supplier influence negatively moderates the relationship between ISF and product innovation performance but positively moderates the relationship between OLF and product innovation performance. Normative integration positively moderates the relationship between ISF and product innovation performance. Research limitations/implications This study enriches SC flexibility studies by focusing on understanding the differential effects of ISF and OLF on product innovation performance, as well as the role that contingency factors play in these relationships in the SME context. Practical implications To promote product innovation performance, SME managers should focus on building good relationships with their suppliers rather than their logistics service providers. SME managers should be particularly aware of the different types of informal control mechanisms that govern their SC relationships and adjust their managerial approaches accordingly. Originality/value This study distinguishes between ISF and OLF and examines their impacts on SMEs’ product innovation performance. This study investigates the differential effects of lead supplier influence and normative integration on the relationship between external SC flexibility and SMEs’ product innovation performance.

Re-thinking and re-operationalizing product innovation capability

2018 ◽  
Vol 30 (4) ◽  
pp. 374-397 ◽  
Author(s):  
Sumeet Om Sharma ◽  
Angela Martin
Keyword(s):  
Empirical Research ◽  
Product Innovation ◽  
Dynamic Capabilities ◽  
Process Management ◽  
A Priori ◽  
Dynamic Capability ◽  
Future Research ◽  
Innovation Capability ◽  
Content Type ◽  
Measurement Models

Purpose This paper aims to enhance the understanding of the essence of product innovation capability (PIC) as a dynamic capability by systematically assessing its conceptualization and construct validity. The paper answers the call by numerous researchers to undertake research efforts to better understand and operationalize dynamic capability constructs. Design/methodology/approach A priori and scholarly contentions based on complementarities between the tenets of three prominent frameworks (Dynamic Capability View, Process Management and Organizational Ambidexterity) were utilized for conducting a theoretical triangulation, as presented in the paper. Established approaches to explication and measurement of multi-dimensional latent constructs were used for guiding this paper. Findings This paper enhances the conceptualization of dynamic capabilities and identifies a lacuna in frequently adopted PIC operationalization approaches that is pertinent to other dynamic capabilities. It presents substantive and specific prescriptions for enabling the development of superior capability (both dynamic and operational) measurement models in empirical research. Research limitations/implications The diverse implications for research and practice are discussed in the paper alongside suggestions for future research. Originality/value This paper guides future theoretical and empirical research by reviewing the conception and validity of PIC. It presents a comprehensive conception of dynamic capabilities by extending the dynamic capability definition to address the identified problems. The arguments presented have wide-ranging applications and broad generalizability across multiple research fields.

Direct and indirect effect of entrepreneurial orientation, family involvement and gender on family business performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Erny Rachmawati ◽  
Suliyanto ◽  
Agus Suroso
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Family Businesses ◽  
Future Research ◽  
Content Type ◽  
The Family ◽  
The Relationship

PurposeThis study aims to determine the direct effect of entrepreneurial orientation on family business performance. This study also discusses the role of family involvement as a mediating variable and the role of gender as a moderating variable in the relationship between entrepreneurial orientation and family business performance.Design/methodology/approachA total of 328 hotels in Yogyakarta, Indonesia, were selected as samples by the convenience sampling method. Primary data is collected through structured questionnaires that are delivered by themselves to key people in the hotel such as owners, directors and key staff (HRD, financial, relationship). Hypotheses are tested by structural equation modeling procedures using AMOS 22.0. Sobel test is used to determine the indirect effect of the mediation variable.FindingsThe results showed that entrepreneurial orientation had no significant effect on family business performance. Family involvement acts as a full mediation in the relationship between entrepreneurial orientation and family business performance. Gender acts as a moderating variable that can strengthen the relationship between entrepreneurial orientation and family business performance. The results showed support for previous research.Research limitations/implicationsThe results of the study cannot conclude the national family business because it adopts convenience sampling and the sampling area is limited in Yogyakarta. Future research can use a larger sample. This study only researches hotels managed by family businesses, so it is not feasible to conclude for family businesses in general. Future research may choose to use several types of family businesses so that more varied results can be obtained. Future research could also compare hotels managed by family businesses with non-family businesses. The results also found that in addition to gender roles, respondent heterogeneity was an important component in the study of social identity. Therefore, research examining the influence of different cultures on the relationship between entrepreneurial orientation and family business performance should be an extraordinary topic for future study. Other results from this study also indicate that there is a role for religion in improving hotel performance. Future research is needed to further explore Islamic business modeling for family businesses.Practical implicationsThis finding has significant implications that can help family businesses in developing strategies that are suitable for business management. Entrepreneurial orientation occupies a strategic position in developing sustainable competitive advantage in the family business of the tourism sector especially the hotel business in Yogyakarta for the better. Besides, the results of the study also showed that entrepreneurial orientation had no significant effect on performance. This relationship becomes significant when combined with active family involvement. This finding also shows that entrepreneurial orientation has the potential to have a more beneficial effect because of the active involvement of the family in helping with business management, alleviating business-related problems, and having a significant influence when the family also acts as management.Social implicationsResearch findings indicate the role of gender in strengthening the relationship between entrepreneurial orientation and family business performance. This provides a good position for women in the social environment to show achievement. To place women on the side of gender equality and justice in the family business in Indonesia. By opening wider access for Indonesian women in the realm of business management, expanding women's participation in a family business, increasing the role of control for women, and increasing women's knowledge and skills to increase the benefits in managing family businesses so that they have sustainable resilience in the face of global competition.Originality/valueThe results of this study provide a new model in providing an overview of the direct and indirect roles (mediating and moderating) in the assessment of family business performance. This study uses three variables which are important in performance appraisal, namely entrepreneurial orientation (independent variable), family involvement (mediating variable) and gender (moderating variable). Where research that combines these four variables, directly and indirectly, has never been done before.

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