Innovation capabilities for global R&D projects in subsidiaries

2019 ◽  
Vol 22 (4) ◽  
pp. 639-659 ◽  
Author(s):  
Elisangela Lazarou Tarraço ◽  
Roberto Carlos Bernardes ◽  
Felipe Mendes Borini ◽  
Dennys Eduardo Rossetto
Keyword(s):  
Emerging Markets ◽  
Multinational Corporations ◽  
Structural Equation ◽  
Emerging Market ◽  
Process Innovation ◽  
Equation Modeling ◽  
Foreign Subsidiaries ◽  
Content Type ◽  
Product And Process Innovation ◽  
Product And Process

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

The roles of external embeddedness and institutional distance in the subsidiary product/process innovation and R&D capacity

2020 ◽  
Vol 24 (10) ◽  
pp. 2513-2530
Author(s):  
Cristina Doritta Rodrigues ◽  
Felipe Mendes Borini ◽  
Muhammad Mustafa Raziq ◽  
Roberto Carlos Bernardes
Keyword(s):  
Structural Equation ◽  
Process Innovation ◽  
Institutional Distance ◽  
Equation Modeling ◽  
Content Type ◽  
Product And Process Innovation ◽  
Subsidiary Innovation ◽  
Product And Process ◽  
External Embeddedness ◽  
The Relationship

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

scholarly journals Transformational leadership and employee voice for product and process innovation in SMEs

2021 ◽  
Vol 18 (1) ◽  
pp. 69-89
Author(s):  
Muhammad Athar Rasheed ◽  
Khuram Shahzad ◽  
Sajid Nadeem
Keyword(s):  
Transformational Leadership ◽  
Product Innovation ◽  
Structural Equation ◽  
Process Innovation ◽  
Employee Voice ◽  
Equation Modeling ◽  
Content Type ◽  
Product And Process Innovation ◽  
Product And Process ◽  
The Impact

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

“Standing out” and “fitting in”: understanding inspiration value of masstige in an emerging market context

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manish Das ◽  
Victor Saha ◽  
M.S. Balaji
Keyword(s):  
Emerging Markets ◽  
Structural Equation ◽  
Emerging Market ◽  
Purchase Intentions ◽  
Equation Modeling ◽  
Content Type ◽  
Differential Effects ◽  
Mediating Role ◽  
Moderating Role

Purpose This study aims to investigate the role of middle-class consumers’ need for uniqueness (CNFU), consumer susceptibility to interpersonal influence (CSII), inspiration and behavioral intentions toward masstige products. Specifically, this study examines the differential effects of CNFU dimensions, the underlying mechanism of consumer inspiration and the moderating role of CSII in the purchase intentions toward masstige products. Design/methodology/approach Two studies were carried out to test the proposed relationships. Study 1 examines the differential effect of CNFU dimensions and the mediating role of consumer inspiration for data collected from Tier 1 cities in India. Study 2 replicated Study 1 findings for the jewelry masstige products and tested the moderating role of CSII for data collected from Tier 2 cities. Structural equation modeling was used to test the proposed hypotheses. Findings The study findings confirm the differential effects of CNFU dimensions on inspiration and its mediating role in masstige products’ purchase intentions. Furthermore, the study found that CSII moderates the effect of CNFU dimensions on inspiration toward masstige (jewelry) purchase intentions. Status does not determine masstige purchase intention. Research limitations/implications The present study was carried out in the emerging market of India. Future studies should replicate the study findings in other emerging markets. Practical implications The study findings have important implications for marketers of masstige brands in developing effective marketing strategies in the emerging markets. Originality/value The study is among the few studies to investigate the differential role of CNFU dimensions and inspiration for masstige brands in an emerging market context.

Strategic drivers for product and process innovation

2019 ◽  
Vol 27 (3) ◽  
pp. 1159-1187 ◽  
Author(s):  
Julio Cesar Ferro De Guimarães ◽  
Eliana Andréa Severo ◽  
Domingos Fernandes Campos ◽  
Walid Abbas El-Aouar ◽  
Fabiana Lucena Bezerra de Azevedo
Keyword(s):  
Organizational Performance ◽  
Structural Equation ◽  
Equation Modeling ◽  
Sustainable Competitive Advantage ◽  
Content Type ◽  
Process Innovations ◽  
Managerial Decisions ◽  
Innovation Product ◽  
Product And Process Innovation ◽  
Product And Process

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

Marketing strategies for highly volatile emerging markets: an empirical study from Pakistani cellular industry

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ammar Javed ◽  
Zia Khan
Keyword(s):  
Emerging Markets ◽  
Structural Equation ◽  
Emerging Market ◽  
Purchase Intentions ◽  
Marketing Strategies ◽  
Equation Modeling ◽  
Brand Love ◽  
Content Type ◽  
Moderating Role

PurposeThis study aims to highlight important marketing strategies within the context of a highly competitive emerging market with few points of difference because of service homogeneity. Drawing upon the social identity and self-expansion theories, this research explores the role of corporate social responsibility (CSR) and discounts and packages offers (DPO) as determinants of purchase intentions. The understudied mediating role of brand love is investigated in the CSR–purchase intentions and DPO–purchase intentions relationships, with relationship age as a moderating variable for the two relationships.Design/methodology/approachData from 359 valid responses from customers of cellular service firms in Pakistan were analyzed using partial least squares-based structural equation modeling.FindingsThe findings show that brand love partially (albeit a weaker relationship) mediates the CSR–purchase intentions relationship. Brand love also partially (albeit a stronger relationship) mediates the DPO–purchase intentions relationship. The moderating role of relationship age is not established.Practical implicationsCellular firms in emerging markets experience high volatility. Therefore, understanding of the volatile behavior alongside devising strategies is of the utmost importance. This research shows that customers continue their business with the firms they love. Interestingly, the non-significance of relationship age as a moderator for both CSR–purchase intentions and DPO–purchase intentions indicates that garnering customers' purchase intentions with respect to relationship age will be very difficult for cellular firms under fierce competition. CSR and DPO should be strategically used to increase brand love to boost purchase intentions.Originality/valueThis study makes two important contributions to the literature of emerging markets. The first contribution of this research is the proposal and validation of brand love as a mediating variable in CSR–purchase intentions and DPO–purchase intentions relationships. Evaluation of the moderating role of relationship age in CSR–purchase intentions and DPO–purchase intentions relationships is the second contribution.

Relationship between quality management, innovation and competitiveness. Evidence from Greek companies

2015 ◽  
Vol 26 (8) ◽  
pp. 1177-1200 ◽  
Author(s):  
Dimitrios Kafetzopoulos ◽  
Katerina Gotzamani ◽  
Vasiliki Gkana
Keyword(s):  
Factor Analysis ◽  
Quality Management ◽  
Competitive Advantage ◽  
Structural Equation ◽  
Process Innovation ◽  
Dimensional Structure ◽  
Sustainable Competitive Advantage ◽  
Content Type ◽  
Product And Process Innovation ◽  
Product And Process

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

scholarly journals Resource-Based Product and Process Innovation Model: Theory Development and Empirical Validation

2020 ◽  
Vol 12 (3) ◽  
pp. 913 ◽  
Author(s):  
Young Sik Cho ◽  
Kevin Linderman
Keyword(s):  
Product Life Cycle ◽  
Structural Equation ◽  
The United States ◽  
Process Innovation ◽  
Market Condition ◽  
Equation Modeling ◽  
Empirical Validation ◽  
Product And Process Innovation ◽  
Innovation Model ◽  
Product And Process

Using a resource-based approach to innovation, this study proposes an alternative innovation model to the existing market-based Product Life Cycle (PLC) model. In particular, this study explores how the attributes of corporate strategic resources affect product and process innovation patterns. This study covers the development of new theory, as well as the empirical validation of the innovation model proposed in this study. Based on survey data from 257 chief operations officers in the United States, the ‘resource-based innovation model’ was tested and validated through various analytical methods, such as clustering, discriminant, and structural equation modeling analysis. The main findings are that (1) companies relying on both knowledge-based resources (KBR) and property-based resources (PBR) tend to focus on product and process innovation at the same time, (2) companies relying heavily on KBR tend to centralize their efforts for process innovation rather than product innovation, (3) companies with low reliance on KBR and PBR tend to minimize R&D efforts in product and process innovation, and (4) in a dynamic market condition, process innovations serves as order winners, while product innovations serves as order winners in a stable market. This research contributes to the operational management literature by proposing a new resource-based innovation algorithm that helps to understand innovation phenomena that are difficult to explain through the lens of the PLC-based innovation paradigm.

A strategic mismatch: organizational politics and creative propensity

2018 ◽  
Vol 28 (2) ◽  
pp. 223-239
Author(s):  
Fatima Omer ◽  
Hamid Hassan
Keyword(s):  
Emerging Markets ◽  
Structural Equation ◽  
Positive Relationship ◽  
Emerging Market ◽  
Negative Relationship ◽  
Organizational Politics ◽  
Equation Modeling ◽  
Content Type ◽  
Foreign Companies ◽  
The Relationship

Purpose This paper aims to investigate the relationship between negatively perceived organizational politics (NPOP) on creative propensity (CP), while also studying their interplay with organizational commitment (OC) and job satisfaction (JS). Design/methodology/approach A survey technique was used in three different IT-related companies in an emerging market. Customers also included foreign companies for two of the three. In terms of age, these companies were roughly a decade old or more. Respondents were employees who were involved in IT-related jobs. Instrument was used five-point Likert scale. Data analysis involved partial least squares structural equation modeling (PLS-SEM). Findings JS appears to have a positive relationship with OC. Both factors have been shown to have a positive relationship with CP. NPOP appears to have a negative relationship with not only CP but also JS and OC. Originality/value This research aids in bridging a gap in research and contributes to literature with respect to the relationship among CP with JS, OC and NPOP. There is a need for greater research with respect to the relationship of CP with JS, OC and particularly with NPOP between these factors. This research would aid in bridging the gap by investigating relationships among these factors. Globalization and international business may increase the importance of creativity for IT-related as well as other companies. Businesses in emerging markets may require creativity for growth, survival and catching up to companies in developed markets or for competitiveness. With the prevalence of politics in organizations, it may be of strategic value for businesses in emerging markets to be able to calibrate these factors to increase their potential for creativity.

scholarly journals Effects of institutional support on innovation and performance: roles of dysfunctional competition

2017 ◽  
Vol 117 (1) ◽  
pp. 50-67 ◽  
Author(s):  
Shanshan Zhang ◽  
Zhiqiang Wang ◽  
Xiande Zhao ◽  
Min Zhang
Keyword(s):  
Firm Performance ◽  
Institutional Environment ◽  
Institutional Support ◽  
Process Innovation ◽  
Equation Modeling ◽  
Content Type ◽  
Positive Effects ◽  
Product And Process Innovation ◽  
Product And Process ◽  
The Impact

Purpose The purpose of this paper is to empirically investigate the effects of institutional support on product and process innovation and firm performance and describe how dysfunctional competition influences relevant outcomes. Design/methodology/approach This study develops a research model based on institution-based view and tests it using structural equation modeling and empirical data collected from 300 manufacturers in China. Findings The results show that institutional support positively affects product and process innovation and firm performance. Both product and process innovation improve firm performance. The findings reveal that dysfunctional competition significantly reduces the positive effects of institutional support on product and process innovation but leaves the effects of institutional support and product and process innovation on firm performance unaffected. Originality/value This study contributes to innovation literature by providing insights into the impact of China’s institutional environment on manufacturing firms’ product and process innovation decisions. The findings also contribute to institution-based view literature by providing empirical evidence on the joint effects of institutional support and dysfunctional competition on product and process innovation and firm performance. This study can help manufacturers in China take advantage of institutional environment and adjust product and process innovation decisions accordingly.

scholarly journals Market knowledge impacts on product and process innovation: Evidence from travel agencies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kuan-Yang Chen ◽  
Levent Altinay ◽  
Po-Yuan Chen ◽  
You-De Dai
Keyword(s):  
Product Innovation ◽  
Process Innovation ◽  
Equation Modeling ◽  
Market Knowledge ◽  
Content Type ◽  
Travel Agencies ◽  
Product And Process Innovation ◽  
Product And Process ◽  
Knowledge Depth ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between the attributes of market knowledge (depth/breadth) and particular types of (process/product) innovation. The mediating mechanism of ambidextrous (exploratory/exploitative) capabilities is also investigated. Design/methodology/approach Data from 153 travel agencies from two phases of data collection in Taiwan were analyzed using the structural equation modeling method. Findings Market knowledge depth directly and positively impacts product and process innovation. Market knowledge breadth indirectly and positively impacts product and process innovation. Ambidextrous capabilities affect process and product innovation and mediate the effect of market knowledge breadth on the two innovations. Research limitations/implications This study provides different theoretical views, such as dynamic capability and organizational learning, to supplement the explanation of knowledge-based theory in the relationship between market knowledge and innovation. Practical implications This study encourages firms to accumulate market knowledge depth and breadth and facilitate ambidextrous capabilities for innovation. Originality/value Seldom has research explored the relationships between the attributes of market knowledge and types of innovation simultaneously to extend the input-process-output context. This study has done so and forwards the possibility that ambidextrous capability is critical mechanism.

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