scholarly journals Uncertainty avoidance and the exploration-exploitation trade-off

2017 ◽  
Vol 51 (11/12) ◽  
pp. 2080-2100 ◽  
Author(s):  
Thijs L.J. Broekhuizen ◽  
Marco S. Giarratana ◽  
Anna Torres
Keyword(s):  
Firm Performance ◽  
Product Innovation ◽  
Development Stage ◽  
Uncertainty Avoidance ◽  
Trade Off ◽  
Content Type ◽  
Innovation Activities ◽  
Trademark Protection ◽  
Long Term Impact ◽  
Exploration Exploitation

Purpose This study aims to investigate how a firm’s uncertainty avoidance – as indicated by the headquarters’ national culture – impacts firm performance by affecting exploratory (product innovation) and exploitative (brand trademark protection) activities. It aims to show that firms characterized by high levels of uncertainty avoidance may be less competitive in the exploratory product development stage, but may be more competitive in the exploitative commercialization stage by producing more durable brands. Design/methodology/approach The study uses data from US Software Security Industry (SSI) trademarks, registered by firms from 11 countries during 1993–2000, that provide 2,911 trademarks and a panel of 18,213 observations. It uses the SSI database to identify the number of product innovations introduced by firms. Findings Results show that uncertainty avoidance lowers the rate of product innovation, but helps firms to appropriate more value by greater protection of their brands. Uncertainty avoidance thus creates an exploration–exploitation trade-off. Practical implications This study provides useful insights for managers regarding where to locate a firm’s front-end development (product innovation) activities and commercialization (brand trademarking protection) activities. Originality/value This is the first study to demonstrate the influence of a cultural trait on both explorative and exploitative stages simultaneously. As a methodological contribution, it shows how objective, longitudinal brand trademark data can be used to analyze the long-term impact of marketing activities on firm performance.

Role of ambidexterity and learning capability in firm performance

2018 ◽  
Vol 48 (4) ◽  
pp. 517-536 ◽  
Author(s):  
Sanjay Dhir ◽  
Swati Dhir
Keyword(s):  
Firm Performance ◽  
Developed Countries ◽  
Two Dimensions ◽  
Survey Method ◽  
Learning Capability ◽  
Content Type ◽  
Multiple Resources ◽  
Managerial Implications ◽  
Managerial Positions ◽  
Exploration Exploitation

Purpose This study aims to comprehend the ambidexterity and organizational learning capability construct in the Indian E-commerce industry context. Design/methodology/approach The survey method was adopted for this study. A survey was circulated among the personnel working in E-commerce companies in India. The focus was on people working in managerial positions and had at least three years of experience in the same industry. Findings This paper investigates the link between two dimensions of ambidexterity, i.e., exploration, exploitation and learning capability in firm performance. The paper also establishes the moderating effect of the learning capability on the two dimensions of ambidexterity and firm’s performance. Research/limitations/implications Our focus was to cover most of the E-commerce companies, yet to generalize the research the analysis needs to be conducted with even more E-commerce companies. Although we took extraordinary care to gather data from multiple resources and discarded the data that was incomplete or was from lower level employees yet, we need a larger sample to establish the causal claim of our model. Practical/implications We reason that learning capability of a firm impacts the two dimensions and firms should focus both on external and internal knowledge to benefit from the ambidexterity efforts. Social/implications Learning capability influences a firm’s performance and has managerial implications. The analysis’ results on the India based ecommerce companies differs from prior research done in more developed countries and other industries. Originality/value No prior research has been done from this perspective in the Indian context, and thus our work opens up new avenues for researchers to look at.Keywords Ambidexterity, Firm performance, Learning capability

Product innovation processes and the trade-off between product innovation performance and business performance

2014 ◽  
Vol 17 (1) ◽  
pp. 61-84 ◽  
Author(s):  
Hans Löfsten
Keyword(s):  
Product Innovation ◽  
Business Performance ◽  
Life Cycles ◽  
Innovation Performance ◽  
Innovation Activity ◽  
Data Set ◽  
Trade Off ◽  
Content Type ◽  
Research Framework ◽  
Innovation Processes

Purpose – This paper is concerned with the management and organization of product innovation processes, and how innovation performance relates to business performance. The underlying rationale is that encouraging firms to innovate will lead to a better business performance. Design/methodology/approach – This study leverages a data set of 99 medium-sized technology firms in Sweden. The first part of the analysis in this study aims at finding determinants of product innovation processes, and the second part is the analysis and trade-off between innovation performance and business performance. First, a research framework is developed in which the link between strategic dimensions, process dimensions and organizational dimensions of product innovation activity and product innovation performance is tested. Second, the research framework tests the relationship between innovation performance and business performance (sales and profitability). Findings – Product innovation performance (patent) is affected by seven variables of the 14 variables that represent product innovation processes. Product innovation performance is not affected by firm size, firm age, branch and product life cycles and, in the regression model, all three innovation performance variables (patents, copyrights and licenses) have a positive effect on the firm's sales, but there were no connections to the firm's profitability. Originality/value – The main implication of the study is the idea supporting a multi-aspects approach to the product innovation processes and performance since product innovation process dimensions (variables used in the study) have only partial influence on innovation-/business performance.

scholarly journals Networking capability in supplier relationships and its impact on product innovation and firm performance

2017 ◽  
Vol 37 (5) ◽  
pp. 577-606 ◽  
Author(s):  
Maciej Mitrega ◽  
Sebastian Forkmann ◽  
Ghasem Zaefarian ◽  
Stephan C. Henneberg
Keyword(s):  
Firm Performance ◽  
Product Innovation ◽  
Relationship Development ◽  
Equation Modeling ◽  
Latent Classes ◽  
Supplier Relationships ◽  
Content Type ◽  
Relationship Initiation ◽  
Automotive Parts ◽  
Supplier Relationship

Purpose The purpose of this paper is to propose and empirically investigate the concept of networking capability (NC) for the management of supplier relationships and their dynamics in order to leverage product innovations. NC in the context of supplier relationships is conceptualized based on dynamic capabilities aimed at relationship initiation, relationship development, and relationship ending. Furthermore, the study tests the interaction of NC with relationship proclivity as an organizational feature, and analyzes latent classes of NC affecting product innovation. Design/methodology/approach This study brings together prior research on company routines related to inter-firm networking, the dynamic capability approach to strategy, and literature on inter-firm innovation. The study utilizes multiple informant survey data gathered from 156 firms operating in the automotive parts industry in Iran. Data are analyzed with partial least square structural equation modeling, as well as latent class analysis using finite mixture modeling (FIMIX-PLS). Findings This research provides evidence for the positive influence of NC with respect to supplier relationships on firm product innovation, as well as overall firm performance. Relationship proclivity is shown to amplify this effect. At the same time, the research illustrates that NC may be applied in different combinations in the context of supplier relationship portfolio management. Two mechanisms are tentatively identified: firms using “static optimization” focus mainly on supplier relationship development capabilities, while those using “dynamic optimization” utilize supplier relationship initiation and ending capabilities. Research limitations/implications This research focuses on one setting (i.e. the automotive parts industry in Iran). Further studies need to broaden these findings to other industries and countries, specifically those which show a different cultural make-up from Iran. Furthermore, this research indicates the existence of two distinct mechanisms as to how different aspects of NC impact product innovation. While it is reasonable to identify these mechanisms as networking “strategies,” this study does not clarify whether this represents intended strategies by firms or relates to emerging capability patterns. Practical implications The study contributes to managerial knowledge by illustrating the need for a dynamic approach with regard to networking-related routines in supplier relationships in the context of product innovation. This study suggests that managers should devote equal attention to strengthening existing supplier relationships as well as to initiating new supplier relationships (e.g. screening for promising partners and signaling firm’s relationship value to attract new counterparts) and managing non-performing supplier relationships (e.g. by developing routines to exit from those supplier relationships). Originality/value The paper contributes to a better understanding of dynamic approaches to networking with suppliers and their impact on product innovation from the perspective of the focal firm. It furthermore provides a fine-grained understanding of different latent classes of firms in terms of how they utilize networking capabilities.

New ventures, product innovation and business intermediaries

2014 ◽  
Vol 8 (2) ◽  
pp. 241-257 ◽  
Author(s):  
Aiqi Wu ◽  
Shengxiao Li ◽  
Huafeng Wang
Keyword(s):  
Product Innovation ◽  
New Ventures ◽  
Positive Influence ◽  
Business Services ◽  
Content Type ◽  
Innovation Activities ◽  
Innovation Product ◽  
Knowledge Intensive ◽  
The Impact ◽  
The Relationship

Purpose – The purpose of this paper is to examine the impact of knowledge-intensive business services (KIBS) intermediary ties on new ventures’ product innovation. Product innovation is a critical strategy for new ventures’ survival and growth. However, as a result of smallness and newness, new ventures usually face considerable difficulties in product innovation and require support to help their innovation search and innovation activities. Design/methodology/approach – A questionnaire survey of 145 Chinese new ventures is used to test presented hypotheses empirically. Findings – This study finds that the intensity of KIBS intermediary ties has a positive influence on innovation, while the diversity of KIBS intermediary ties has no influence on new ventures’ product innovation. Moreover, the relationship between the intensity of KIBS intermediary ties and new ventures’ product innovation is moderated by the degree of their international venturing and ties with other firms. Originality/value – This study enriches understanding of the important roles of KIBS intermediary ties on new ventures’ product innovation.

Industry innovation spending and openness to collaboration as levers for firm performance

2019 ◽  
Vol 22 (4) ◽  
pp. 617-638 ◽  
Author(s):  
Luiz Fernando de Paris Caldas ◽  
Fabio de Oliveira Paula ◽  
T. Diana L. van Aduard de Macedo-Soares
Keyword(s):  
Firm Performance ◽  
Knowledge Spillovers ◽  
Moderating Effect ◽  
Firm Innovation ◽  
Content Type ◽  
Innovation Activities ◽  
Industry Collaboration ◽  
And Performance ◽  
Italian Manufacturing Firms ◽  
The Relationship

Purpose The purpose of this paper is to analyze to what extent spending on innovation activities and collaboration at the industry level affects the relationship between firm innovation and performance. Design/methodology/approach A conceptual model was proposed and empirically tested using multiple linear regression. The data were obtained from the Community Innovation Survey 2012, composing a sample of 890 Italian manufacturing firms. Findings The results provided full support for the positive moderating effect of intra-industry innovation spending and partial support for the positive moderating effect of intra-industry collaboration, both regarding the relationship between firm innovation spending and performance. Knowledge spillovers derived from intra-industry innovation spending and intra-industry collaboration affect firm performance. While this finding corroborates other studies that have found that the intra-industry R&D spending influences firms’ innovation and performance, it also contributes to improve the understanding about the complementarity of internal innovation activities and knowledge spillovers. Originality/value This study contributes to theory by filling a gap concerning the complementarity of internal innovation activities and the effect of knowledge spillovers to improve firm performance. Our findings suggested that intra-industry openness to collaboration and innovation spending, as proxies of knowledge spillovers, plays an important role in complementing firm level innovative efforts, even in the case of firms that spend less on innovation and have a lower degree of collaboration. This is especially relevant for small and medium enterprises, which can take advantage of access to the necessary information to overcome their internal resource constraints for R&D and innovation. The originality of these findings adds value in terms of furthering the understanding of this phenomenon.

Enhancing staff motivation in “tough” periods: implications for business leaders

2014 ◽  
Vol 30 (6) ◽  
pp. 35-36
Author(s):  
Antonios Panagiotakopoulos
Keyword(s):  
Firm Performance ◽  
Organizational Performance ◽  
Employee Performance ◽  
Chief Executive ◽  
Business Leaders ◽  
Individual Development ◽  
Content Type ◽  
Long Run ◽  
Long Term Impact ◽  
The Impact

Purpose – The purpose of the paper is to present a viewpoint based on an empirical study conducted by the author, which explored the motivational techniques used by 30 chief executive officers in the context of an advancing economy like Greece that faces a severe financial crisis and evaluated the impact of such motivational tools on staff performance. Design/methodology/approach – The viewpoint is based on a quantitative survey of 30 Greek large organizations involving the leaders of the firms and 113 workers. In all, 143 responses were collected concerning the main motivational techniques used by the participant leaders and their impact on employee behavior. Findings – Overall, the findings showed that in the short-term, both motivational models (i.e. “inspirational” versus “fear”) may lead to effective organizational performance. However, the main difference appears to be related to the long-term impact of each model on firm performance. In particular, the findings indicated that “fear motivation” is more likely to lead to poor firm performance in the long-run compared to “inspirational motivation” due to increased staff absenteeism and turnover. Practical implications – The core implication of the study is that “fear motivation” should be reconsidered by business leaders, as the particular motivational approach adopted has been based on a limited understanding around its overall impact on employee performance. As the analysis revealed, a motivational model focused around empowerment, trust and individual development may lead to better organizational results. Originality/value – It informs the existing management literature about the impact of different motivational patterns on employee performance, where our knowledge is limited.

Do stakeholder relationships matter? An empirical study of exploration, exploitation and firm performance

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaoping Zhao ◽  
Feibo Shao ◽  
Chuang Wu
Keyword(s):  
Firm Performance ◽  
Customer Relationships ◽  
Economic Research ◽  
Maximum Point ◽  
Exploration And Exploitation ◽  
Content Type ◽  
Stakeholder Relationships ◽  
Employee Relationships ◽  
Curvilinear Relationships ◽  
Exploration Exploitation

Purpose The purpose of this paper is to investigate the performance implications of two major mechanisms for organizational learning (i.e. exploration and exploitation). Exploration refers to firm activities that explore new and novel knowledge, whereas exploitation reflects the extent to which a firm reuses its existing knowledge. The authors predict curvilinear (i.e. an inverted U-shape) relationships between exploration/exploitation and firm performance, respectively. That is, firm performance first increases with exploration/exploitation at a decreasing rate; then, firm performance decreases at an increasing rate after firm performance reaches a maximum point. Furthermore, the authors examine whether the curvilinear relationships are moderated by two types of firm–stakeholder relationships (i.e. firm–employee and firm–customer relationships). Design/methodology/approach Using the data from National Bureau of Economic Research, US Patent Citations Data File, KLD Research and Analytics Inc. and Compustat series, the authors construct an unbalanced panel data set of 3,070 observations in 554 firms from 1991 to 2006. To test the hypotheses, feasible generalized least squares regression is used. Findings In consistent with the prediction, the authors find inverted U-shape relationships between exploration/exploitation and firm performance. The authors also find that the curvilinear relationships are moderated by firm–employee relationships. The relationships between exploration/exploitation and firm performance become stronger when firms have better relationships with employees. Research limitations/implications The study provides empirical evidence that better firm–employee relationships can strengthen the curvilinear relationships between exploration/exploitation and firm performance. The authors argue that future studies should extend to other stakeholder relationships, using more refined measures, and incorporating the concept of ambidexterity. Practical implications The findings suggest that managers should design innovation strategy based on performance implications of exploration/exploitation and that managers should also realize that stakeholder relationships can influence the relationships between exploration/exploitation and firm performance. First, the study shows that although exploration and exploitation can improve firm performance, too much exploration or exploitation is not good for firm performance. Therefore, managers should consider seriously the maximum point of performance that exploration and exploitation can reach and avoid too much exploration or exploitation. Second, firms can invest in firm–employee relationships to gain better performance implications from exploration/exploitation. The study shows that, as firms develop better firm–employee relationship, the relationships between exploration/exploitation and firm performance are stronger and firm performance is likely to reach a higher apex. Originality/value The authors find the inverted U-shape relationships between exploration/exploitation and firm performance, moreover, the authors add two contingent factors associated with stakeholders that can help exploration and exploitation contribute more to firm performance.

Speed leaders and quality champions

2015 ◽  
Vol 53 (6) ◽  
pp. 1247-1267 ◽  
Author(s):  
Zongyang Leng ◽  
Zhiying Liu ◽  
Min Tan ◽  
Jiangang Pang
Keyword(s):  
Product Quality ◽  
Product Innovation ◽  
Market Entry ◽  
New Product ◽  
High Tech ◽  
Content Type ◽  
Innovation Activities ◽  
Strategic Orientations ◽  
And Performance ◽  
New Product Innovation

Purpose – The purpose of this paper is to develop a concept of an alignment between market and technology orientations (MTs) and investigates the difference in new product innovation activities and performance among the four groups of high-tech firms which are classified into four categories labeled as MT, technology orientation (TO), market orientation (MO) and conservative (CO) firms. Design/methodology/approach – Data were collected from 360 high-tech firms in China. MANOVA was used to identify whether or not new product innovation activities (i.e. timing of market entry and product quality) and performance vary across the four groups. Findings – The results indicate that the four groups of firms significantly differ with respect to new product performance and with new product innovation activities pertaining to timing of market-entry strategy and product quality. Further, the results show that first, MT firms have highest new product performance; second, TO firms are speed leaders which have first-to-market with new product; and third, MO firms are quality champions which are best for the perceived new product quality. Originality/value – This paper responds to call for synthetic studies of multiple orientations and cross-disciplinary research, especially in the areas of marketing and strategic management. This paper is the first to integrate MO and TO and examine the interactive effects of these two orientations on new product innovation. Against prior study believing the combination of strategic orientations play an important role in innovation management, the findings that TO firms are speed leaders and MO firms are quality champions suggest that the combination of different strategic orientations is not beneficial to all respects of new product innovation, such as timing of market-entry strategy and product quality.

The effect of political and business ties on firm performance

2019 ◽  
Vol 42 (7) ◽  
pp. 778-796 ◽  
Author(s):  
Parinaz Sami ◽  
Farajollah Rahnavard ◽  
Alireza Alavi Tabar
Keyword(s):  
Firm Performance ◽  
Product Innovation ◽  
Developing Economies ◽  
Equation Modeling ◽  
Content Type ◽  
Political Ties ◽  
Managerial Ties ◽  
The Relationship ◽  
Business Ties

Purpose The purpose of this study is to investigate the mediator role of product innovation in the relationship between political and business ties (independent variables) and firm performance (dependent variable). Design/methodology/approach In this study, research hypotheses were tested using the structural equation modeling method. Findings The findings from 267 manufacturing companies in Iran show that business ties have an effect on firm performance through product innovation, while the role of innovation is not proved as a mediating variable in the relationships between political ties and firm performance. In addition, business ties have an effect on product innovation and firm performance, whereas political ties have no such effect. Practical implications These results provide useful points for developing economies, theoretically and practically. Originality/value Despite the increasing attention to the role of managerial ties (political and business ties) in improving product innovation and firm performance, there is no study conducted on the mediating role of product innovation in the relationship between managerial ties and firm performance.

Role of managerial perception of competitive pressures in firms' product innovation success

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pankaj Kumar Medhi ◽  
Ashita Allamraju
Keyword(s):  
Product Innovation ◽  
Business Environment ◽  
Business Decisions ◽  
Content Type ◽  
Logistic Regression Models ◽  
Innovation Activities ◽  
Managerial Perception ◽  
Level Of Importance ◽  
Practical Implications

PurposeThis study explores the link between the level of importance managers assign to competitive pressures from domestic competition, foreign competition and customers as factors in the key business decisions related to innovation and the outcome of firms' product innovation efforts.Design/methodology/approachThe research sample is taken from the Business Environment and Enterprise Performance Survey by World Bank (2005). The relevant questions for the study were extracted from the survey. Logistic regression models were used for analysis using the ISLR library from R statistical software.FindingsManagers' consideration of customer pressure for innovation as important in key business decisions related to innovation has a positive and sustainable effect, distinct from that of R&D and other innovative activities, on firms' success of product innovation efforts.Research limitations/implicationsThe research acknowledges the need to verify the findings in a multicountry setting.Practical implicationsThis research can help mediate the managers' assignment of importance to certain types of competition for innovation decisions in multicompetitive environment for improved success of product innovation efforts.Originality/valueSimultaneous consideration of multiple competitive pressures by managers helps to identify the most suitable innovation activities for their respective firms and improve the chances of success of firms' innovation efforts.

Sign in / Sign up

Export Citation Format

Share Document