Product and service innovation and discontinuation in manufacturing and service firms in Europe

2017 ◽  
Vol 20 (2) ◽  
pp. 250-268 ◽  
Author(s):  
Frank Crowley
Keyword(s):  
Product Innovation ◽  
Service Innovation ◽  
Service Firms ◽  
Firm Level ◽  
Unit Of Analysis ◽  
Content Type ◽  
Factors Affecting ◽  
Product Service ◽  
Production Function Approach ◽  
The Relationship

Purpose The purpose of this paper is to explore product/service innovation and discontinuation using the firm as a unit of analysis. A key objective of the paper is to compare the results between manufacturing and service firms. Design/methodology/approach A two-step production function approach is employed to examine first, a firm’s decision to innovate and second, a firm’s decision to discontinue products/services. Findings The results indicate that the factors affecting product innovation and discontinuation are similar for manufacturing and service firms, where innovation was significant for product/service discontinuation and process innovation was found to be important for innovations. Similarly, monopoly power was important for innovation in both industry types. However, there were also some underlying differences, particularly in relation to firm age and economic geography effects. Practical implications The conclusion of the paper is that it is not appropriate to assume that the process of product innovation and discontinuation will be identical across industry types. Originality/value This study is the first study in the literature that examines product/service discontinuation at the firm level and the relationship between innovation and product/service discontinuation using the firm as a unit of analysis. This study further adds to the under-researched (relative to manufacturing studies) area of service innovation.

HR signals in the context of HRM-firm performance relationship: development of a conceptual framework

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chiradip Bandyopadhyay ◽  
Kailash B. L. Srivastava
Keyword(s):  
Firm Performance ◽  
Human Resources ◽  
Conceptual Model ◽  
Design Methodology ◽  
Relationship Development ◽  
Firm Level ◽  
Content Type ◽  
Factors Affecting ◽  
The Relationship

PurposeThe purpose of this paper is to reframe human resources' (HR) systems and practices as HR signals drawing from conceptualizations of signals. The construct of the strength of signal is developed to quantify the attributional ability of HR signals. To examine the role of HR signals in influencing employee behaviours and firm performance, human resource management (HRM)-firm performance relationship is considered as a framework to develop a firm-level conceptual model which integrates factors affecting HR signals and its consequences.Design/methodology/approachThe paper examines the existing literature on the relationship between HRM and firm performance. In the process, the paper considers the concept of HR signal and makes a case for the strength of HR signal. Finally, the paper offers a conceptual model in order to link the antecedents and consequents of HR signals.FindingsThe paper offers a conceptual model to address the gaps in the relationship between HRM and firm performance. It also brings into focus an understanding of HRM as signals and its importance in understanding firm performance.Originality/valueThe paper enriches the existing literature by examining HRM as HR signals. It adds to the literature by considering the attributional ability of HR, through the construct of the strength of HR signals.

Human capital, service innovation advantage, and business performance

2016 ◽  
Vol 36 (9) ◽  
pp. 974-994 ◽  
Author(s):  
Daniel I. Prajogo ◽  
Adegoke Oke
Keyword(s):  
Human Capital ◽  
Business Performance ◽  
Service Sector ◽  
Service Innovation ◽  
Mail Survey ◽  
Business Environment ◽  
Service Firms ◽  
Firm Level ◽  
Cross Sectional ◽  
Content Type

Purpose The purpose of this paper is to examine the effect of human capital (HC) on service innovation advantage (SIA) and business performance (BP) in service sector firms, and how external environmental factors influence these relationships. Design/methodology/approach This study utilized a cross-sectional mail survey of a random sample of Australian service firms with the unit of analysis being at the firm level. In total, 228 usable responses were received. Findings The overall findings of this study show that HC is positively related to the creation of value or SIA which in turn results in rent generation for firms. The results further show that the effect of SIA on BP is influenced by environmental dynamism and competitiveness with dynamic environments enhancing the effect while competitive environments weakening it. Research limitations/implications The findings demonstrate the complementarity between the resource based theory and contingency theory as they clearly shows that the value of innovation as a firm’s capability is enhanced or weakened within a business environment that is more dynamic or competitive. Practical implications The findings demonstrate the importance of HC, and, thus, encourage managers to seek ways to harness and leverage HC for improving innovation and BP. In addition, the study also helps managers to understand the contingency effect of business environment on the effectiveness of innovation, hence, helping them in deliberating firms’ strategy in different business environments. Originality/value To the best of the authors’ knowledge, this is the first study which examines the effectiveness of HC as organizational resource for building SIA as a source of organizational competitive advantage.

Effectuation, innovation and performance in SMEs: an empirical study

2016 ◽  
Vol 19 (2) ◽  
pp. 214-238 ◽  
Author(s):  
David C. Roach ◽  
Joel A. Ryman ◽  
Joyline Makani
Keyword(s):  
Firm Performance ◽  
Structural Model ◽  
Empirical Relationship ◽  
Service Innovation ◽  
Firm Level ◽  
Content Type ◽  
Mediating Role ◽  
Product Service ◽  
And Performance ◽  
Practical Implications

Purpose – Ever since Sarasvathy’s (2001) seminal article, scholars have sought to test effectuation’s affect on firm performance. Although recent work has begun the arduous process of testing effectuation’s effect on entrepreneurial performance, there is still much to learn about its impact on firm performance. One such area is the relationship between effectuation and innovation. The purpose of this paper is to first, propose a scale suitable to the explication of the effectuation construct relative to innovation. Second, it proposes a more parsimonious scale for the measurement of innovation. Third, these scales are tested relative to firm performance. Design/methodology/approach – This paper develops and tests a structural model, which investigates aspects of effectuation as mediators between innovation orientation and product/service innovation. This is accomplished using a sample of 169 electronic product manufacturing-based small and medium-sized enterprises (SMEs). Subjective measures of performance are used as the dependent variable. Findings – The three most widely used measures of innovativeness were found to break cleanly into two sub-constructs, namely innovation orientation and product/service innovation. Effectuation measures included means (who I know), leverage contingencies (experimentation), pre-commitments and affordable loss. Means and leverage contingencies were found to positively mediate innovation orientation and product/service innovation leading to increased firm performance. Affordable loss did not show a mediating role, but had a direct effect on firm performance. Research limitations/implications – This study establishes two distinct sub-constructs of firm-level innovation; namely innovation orientation and product/service innovation. Second, by testing an innovation-centric effectuation model, this research establishes an empirical relationship between effectuation, innovation and firm performance. Practical implications – Practical implications include establishing a relationship between means, leverage contingencies and innovation-performance, indicating that the ways through which small and medium-sized enterprises use their innovation networks may affect innovation outcomes and ultimately firm performance. Originality/value – This research establishes an empirical relationship between effectuation, innovation and firm performance, extending effectuation theory from the entrepreneurship to the innovation literature.

When more is less

2019 ◽  
Vol 39 (1) ◽  
pp. 94-115 ◽  
Author(s):  
Ana Pérez-Luño ◽  
Ana Maria Bojica ◽  
Shanthi Golapakrishnan
Keyword(s):  
Firm Performance ◽  
Product Innovation ◽  
Functional Integration ◽  
Organizational Knowledge ◽  
Firm Level ◽  
Content Type ◽  
And Performance ◽  
Functional Teams ◽  
Functional Areas ◽  
The Relationship

Purpose The purpose of this paper is to analyze the role of a specific mechanism for cross-functional integration (CFI) in the relationship between product innovation and firm performance. It takes a contingency perspective, accounting for how these relationships vary depending on the degree of organizational knowledge complexity. Design/methodology/approach Hypotheses are tested via regression analysis with interaction effects in a sample of 105 wineries from Spain, using both objective and subjective firm performance data. Findings The results obtained confirm the existence of significant triple interaction effect of CFI, knowledge complexity and product innovation on firm performance. CFI has a negative moderating effect on the relationship between product innovation and performance and this effect varies according to the degree of organizational knowledge complexity. Research limitations/implications This paper looks at variables that have been hitherto studied at the project or product level, at the firm level, in an attempt to untangle the relationship between innovation, CFI, knowledge complexity and firm performance. Study’s main limitations lie in the use of a cross-functional design and its focus on a single industry. Practical implications Firms dealing with complex organizational knowledge could use this CFI mechanism in the development of new products when their size and resources do not allow the creation of more formal temporal structures, such as cross-functional teams. However, unless the winery has to deal with a high degree of knowledge complexity, involving the oenologist in several functional areas for the purpose of coordination, may detract resources from product innovation effort and lead to a poorer performance. Originality/value This study showcases a mechanism of CFI not explored in previous research, but used in practice at many firms, i.e. the cross-pollination of ideas across different functional areas through the participation of the responsible for the product development, and tests its role in the relationship between product innovation and different types of firm performance.

The role of a firm’s innovation competence on customer adoption of service innovation

2017 ◽  
Vol 40 (4) ◽  
pp. 378-409 ◽  
Author(s):  
Navneet Bhatnagar ◽  
Arun Kumar Gopalaswamy
Keyword(s):  
Content Analysis ◽  
Conceptual Framework ◽  
Case Studies ◽  
Service Innovation ◽  
Supply Side ◽  
Service Firms ◽  
Content Type ◽  
Innovation Competence ◽  
The Relationship ◽  
Depth Interviews

Purpose This paper aims to identify the dimensions of a firm’s service innovation competence. This paper also aims to establish the relationship between a firm’s service innovation competence dimensions and customer-oriented service innovation configurations and customer adoption. This study probes the supply side of service innovation to assess the key drivers or capabilities that influence the service innovation process at the firm level. Design/methodology/approach This study uses the triangulation method using existing theoretical concept supplemented by 18 in-depth interviews of senior level managers from service firms from three sectors – hospitality, mobile telecommunication services and financial services. The interview findings were supplemented by 12 service innovation case studies (four from each sector). Content analysis of in-depth interviews was performed using three raters, and inter-rater reliability was tested. Case studies were categorized in terms of the strength of the innovation competence dimension observed. Findings Based on the content analysis of the interviews and categorization of case study observations, six distinct dimensions of the firm’s service innovation competence were identified. Four attributes of each dimension were also identified. Based on the interview insights and case observations, seven propositions are suggested, and a conceptual framework is presented to establish the relationship between the firm’s service innovation competence dimensions and service innovation configurations and customer adoption. Research limitations/implications This study was conducted in the Indian context and remains to be tested using quantitative research. Therefore, researchers are encouraged to test the proposed framework in a different geographical context to ascertain its validity. Practical implications The conceptual framework presented in the paper may help managers of service firms in building innovation capabilities that are relevant to development of customer-oriented innovations. This would lead to better customer adoption of their new services. Originality/value This paper fills an important knowledge gap regarding the dimensions of a critical supply-side component of service innovation, that is, innovation competence. Clear identification of competence dimensions and their relationship with customer adoption extends the current knowledge on service innovation.

Linking CEO relationship-focused leadership and corporate entrepreneurship: a multilevel moderated mediation model

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yueyue Liu ◽  
Meng Xi ◽  
Feifei Li ◽  
Xiulin Geng
Keyword(s):  
Indirect Effect ◽  
Organizational Identification ◽  
Identity Theory ◽  
Environmental Uncertainty ◽  
Corporate Entrepreneurship ◽  
Structural Equations ◽  
Strategic Leadership ◽  
Firm Level ◽  
Content Type ◽  
The Relationship

Purpose Corporate entrepreneurship is an important way for organizations to gain competitive advantages and achieve sustainable development. However, few studies pay attention to the influence of CEO strategic leadership on corporate entrepreneurship. Drawing on social identity theory and uncertainty-identity theory, this study aims to investigate whether CEO relationship-focused leadership impacts corporate entrepreneurship through middle managers’ (MMs’) organizational identification and whether the indirect effect is moderated by environmental uncertainty. Design/methodology/approach Using 192 Chinese samples with 192 firm-level and 716 department-level observations, this study uses multilevel structural equations modeling by Mplus 8.0 to test the theoretical model. Findings This study finds that CEO relationship-focused leadership positively predicts MMs’ organizational identification and corporate entrepreneurship, and MMs’ organizational identification mediates the relationship between CEO relationship-focused leadership and corporate entrepreneurship. In addition, environmental uncertainty moderates not only the relationship between CEO relationship-focused leadership and MMs’ organizational identification but also the indirect effect of CEO relationship-focused leadership on corporate entrepreneurship through MMs’ organizational identification. Research limitations/implications This study enriches the understanding of process and contextualization of CEO strategic leadership influencing on corporate entrepreneurship. Originality/value To the best of the authors’ knowledge, this study is among the first to explore the influence of CEO relationship-focused leadership on corporate entrepreneurship.

Innovation in SMEs: the role of employee training in German SMEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Irem Demirkan ◽  
Ravi Srinivasan ◽  
Alka Nand
Keyword(s):  
Research And Development ◽  
Boundary Conditions ◽  
Product Innovation ◽  
Employee Training ◽  
Lower Proportion ◽  
Economic Research ◽  
Content Type ◽  
The Relationship ◽  
Practical Implications

PurposeThis paper explores the role of effective resource and knowledge management capabilities on product innovation capabilities of the small and medium-sized enterprises (SMEs). Specifically, the authors research the role of the human resource investments in the form of employee training in developing firm's innovation capabilities and how SMEs manage these investments when we account for the boundary conditions such as the level of employee education, SME size and the frequency of investments in research and development (R&D).Design/methodology/approachThe authors use survey data conducted by The Centre for European Economic Research (Zentrum für Europäische Wirtschaftsforschung – ZEW). The final sample for analysis includes 983 SMEs from Germany that belong to 13 different industries. The authors use hierarchical OLS regression to test the hypotheses presented in this paper.FindingsThe authors find a positive association between increased investments in employee training and product innovation capabilities in the context of SMEs. More specifically, the authors’ findings support that (1) the relationship between employee training and innovation capabilities is weaker in industries with greater proportion of employees with university degrees, (2) the effectiveness of investments in employee training is lower among larger SMEs than smaller SMEs, and (3) continuous R&D weakens the relationship between training expenditure and innovation capabilities. While on the one hand the authors’ findings contribute to the debate of whether employee training is necessary for SMEs by affirming this notion, on the other hand the authors show that investments in employee training have differing implications for small and large SMEs within boundary conditions. Moreover, these findings have practical implications for the managers of all SMEs in terms of management of their knowledge resources.Research limitations/implicationsThe authors’ research makes important contributions to the study of innovation in SMEs. First, the authors contribute evidence to the debate whether employee training is necessary for SMEs by showing that employee training is particularly important for SMEs that are smaller in size, have lower proportion of employees with university degrees and when they invest in research and development in a targeted manner. The authors also demonstrate that investments in employee training is not a waste, rather such investments can increase the likelihood of survival for many of these firms through its positive impact on product innovation.Practical implicationsFor managers of SMEs, the authors’ findings suggest that while investments in employee training are important, the managers of particular SMEs with above-mentioned qualities should be persistent in such investments and must make deliberate efforts to reap the benefits in terms of innovative capabilities. Unlike large firms, who have the financial means to carry out investments in an abundant manner, SMEs appear to be more enterprising with their scarce resources when we also consider the role of investments in human resources.Originality/valueThe authors’ research makes important contributions to the study of innovation in SMEs. First, the authors contribute evidence to the debate whether employee training is necessary for SMEs by finding that employee training is particularly important for SMEs that are smaller in size, have lower proportion of employees with university degrees and when they do not invest in R&D continuously. The authors also demonstrate that investments in employee training is not a waste, but such investments can increase the likelihood of survival for many of these firms.

Managers’ silent whisper innovation involvement and role-modeling in service firms

2018 ◽  
Vol 21 (1) ◽  
pp. 2-19 ◽  
Author(s):  
Ingela Sölvell
Keyword(s):  
Role Model ◽  
Leadership Behavior ◽  
Innovation Management ◽  
Service Innovation ◽  
Role Modeling ◽  
Leadership Role ◽  
Service Firms ◽  
Actual Behavior ◽  
Leadership Roles ◽  
Content Type

Purpose The task of leading innovation is predominantly pictured as a supportive role vis-à-vis employees. Motivation is a crucial aspect of this task. To better understand the practice of this change-oriented leadership task, the actual behavior and activities of managers are investigated. The purpose of this paper is to reflect through practice and self-reports how this leadership challenge is executed. Design/methodology/approach In this longitudinal multi-method investigation, the service innovation literature constitutes the main theoretical framework. The investigation draws additionally on leadership literature about how to understand leadership through practice. The methodological design facilitated the drawing of causal inferences in the dynamics of service innovation. Findings The investigation enhances our understanding of managers’ particular context of innovation, and particularly the initiation context. It provides empirically grounded descriptions of what managers identify as potential opportunities, and how they take them further in the ideation stage. The results develop the suggestion that leadership roles, and specifically change-oriented roles, are not restricted to initiating or enabling activities related to the employees. Instead the much downplayed leadership role, i.e. the active practice-based involvement in innovation, is theorized as a role that is continuously activated, but tends to be set aside for contingency reasons. Research limitations/implications Further research is needed to assess the importance of managers’ involvement in the practice of innovation, both through systematic mapping of ideas on a larger scale, and through the employee perspective. This paper provides useful insights on managers’ cognition and involvement in innovation for further investigations of innovation management. Practical implications The results provide awareness for managers regarding their diverse leadership roles related to innovation. First, the study embraces heterogeneous ideas that are useful to evaluate and constitute role-modeling. Second, it highlights how managers’ execution of innovation creates awareness about the challenges involved. Finally, but maybe most important, the results alert managers of the discontinuity, even in strategically anchored intentional innovation. Social implications In a changing innovation landscape, individual firms need to draw on other firms to achieve their innovation strategies. In pursuit of this goal, this paper enhances the understanding of the role-modeling leadership task. It is a novel way of guiding individuals that are exposed to new and uncertain innovation contexts, and rethinking how innovation eventually can be achieved. Originality/value While earlier research has identified the multifaceted leadership behavior to support innovation, this paper outlines the contextual conditions and the practice of executing the suggested powerful role of being a role-model for others.

Service quality and global competitiveness: evidence from global service firms

2017 ◽  
Vol 27 (6) ◽  
pp. 1058-1080 ◽  
Author(s):  
Wenbin Sun ◽  
Jing Pang
Keyword(s):  
Service Quality ◽  
Service Industry ◽  
Situational Factors ◽  
Service Firms ◽  
Moderating Effects ◽  
Multiple Sources ◽  
Content Type ◽  
Global Competitiveness ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to explore the relationship between service quality and firms’ global competitiveness in the service industry. A set of moderating effects is formulated to further reveal how the relationship varies under different situations. Design/methodology/approach This paper tests the model with data collected from multiple sources such as World’s Most Admired Companies and COMPUSTAT. Two types of robust regressions for panel data are employed in the empirical model estimation. Findings Service quality is found to significantly drive global competitiveness. Specifically, its impact is stronger for large service firms and when the global environment is characterized as low munificence, high dynamism, or high complexity. Practical implications The paper provides a set of implications for managers of service firms regarding global expansion and quality management. It generates useful guidelines of maximizing the power of service quality when a firm’s global competitive advantage is considered. Originality/value This paper takes the first attempt to formulate service quality’s influence on firm’s global competitiveness with a consideration of specific situational factors.

Factors affecting strategic plan implementation using interpretive structural modeling (ISM)

2018 ◽  
Vol 31 (5) ◽  
pp. 406-414 ◽  
Author(s):  
Mohammadkarim Bahadori ◽  
Ehsan Teymourzadeh ◽  
Hamidreza Tajik ◽  
Ramin Ravangard ◽  
Mehdi Raadabadi ◽  
...  
Keyword(s):  
Strategic Planning ◽  
Planning Process ◽  
Strategic Plan ◽  
Structural Modeling ◽  
Interpretive Structural Modeling ◽  
Plan Implementation ◽  
Content Type ◽  
Factors Affecting ◽  
Strategic Planning Process ◽  
The Relationship

PurposeStrategic planning is the best tool for managers seeking an informed presence and participation in the market without surrendering to changes. Strategic planning enables managers to achieve their organizational goals and objectives. Hospital goals, such as improving service quality and increasing patient satisfaction cannot be achieved if agreed strategies are not implemented. The purpose of this paper is to investigate the factors affecting strategic plan implementation in one teaching hospital using interpretive structural modeling (ISM).Design/methodology/approachThe authors used a descriptive study involving experts and senior managers; 16 were selected as the study sample using a purposive sampling method. Data were collected using a questionnaire designed and prepared based on previous studies. Data were analyzed using ISM.FindingsFive main factors affected strategic plan implementation. Although all five variables and factors are top level, “senior manager awareness and participation in the strategic planning process” and “creating and maintaining team participation in the strategic planning process” had maximum drive power. “Organizational structure effects on the strategic planning process” and “Organizational culture effects on the strategic planning process” had maximum dependence power.Practical implicationsIdentifying factors affecting strategic plan implementation is a basis for healthcare quality improvement by analyzing the relationship among factors and overcoming the barriers.Originality/valueThe authors used ISM to analyze the relationship between factors affecting strategic plan implementation.

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