Impact of product innovativeness on technology switching in global market

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Osama Sam AL-Kwifi ◽  
Viput Ongsakul ◽  
Allam K. Abu Farha ◽  
Ahmed U. Zafar ◽  
Mahmoud Karasneh
Keyword(s):  
Product Innovation ◽  
High Technology ◽  
Switching Behavior ◽  
Innovation Strategy ◽  
Annual Conference ◽  
Product Innovativeness ◽  
Content Type ◽  
Technology Markets ◽  
Lead Users ◽  
The Relationship

PurposeThe purpose of this paper is to explore the relationship between product innovativeness and the process of technology switching. This issue is important for two reasons: (1) in mature markets, the only way to increase market share is through consumers' switching from competitor firms and (2) it is essential to determine whether the product innovation strategy can meet users' needs in high-technology markets.Design/methodology/approachResearch centers (university hospitals) specializing in magnetic resonance imaging (MRI) are the lead users of the MRI market. In this market, the technology switching process was tracked using an annual conference database. Interviews with industry experts and lead users were conducted in order to determine the relationship between product innovativeness and technology switching.FindingsThe findings reveal that in the lead users' segment, technology switching is occurring at a significant level. The interviews emphasized the influence of product innovativeness on technology switching in the global MRI market, as well as the importance of adopting an open innovation process as a strategy to enhance product innovativeness.Practical implicationsThe results can be generalized to industries with similar characteristics, such as high rates of technological change and technology heterogeneity. In high-technology markets, managers should monitor switching behavior. They should also study the influence of product innovativeness on such behavior in order to determine the correct product innovation strategy and meet users' preferences effectively.Originality/valueThe literature reports considerable research that investigates switching behavior, but most publications use data from a short time period and cover a limited geographical region. This is the first study that uses data to track the switching behavior of high-technology products on a global scale over a 22-year period.

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

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

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

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.

Sustainability excellence: the interactions of lean production, internal green practices and green product innovation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ebenezer Afum ◽  
Ran Zhang ◽  
Yaw Agyabeng-Mensah ◽  
Zhuo Sun
Keyword(s):  
Financial Performance ◽  
Product Innovation ◽  
Lean Production ◽  
Green Product ◽  
Content Type ◽  
Sustainable Performance ◽  
Green Practices ◽  
Green Product Innovation ◽  
Performance Dimensions ◽  
The Relationship

Purpose This study aims to investigate the interactions between lean production, internal green practices, green product innovation and sustainable performance metrics. The study further looks at the mediation effect of internal green practices and green product innovation between lean production and sustainable performance dimensions. Design/methodology/approach The questionnaire was used to glean data from 209 manufacturing firms. All the hypothesized relationships were processed by using partial least square-structural equation modelling. Findings The results suggest that lean production significantly leads to the implementation of internal green practices and the production of quality products with eco-oriented features that meet customers’ needs. Further, while lean production and internal green practices were found to significantly influence sustainability performance, green product innovation significantly influences only financial performance. Besides, the mediation analysis shows that internal green practices mediate the relationship between lean production and sustainable performance dimensions but green product innovation mediates the relationship between lean production and financial performance only. Research limitations/implications The study is limited to firms from Ghana, a developing country; hence, the results cannot be imported to reflect other geographical contexts. Practical implications The results of the study provide sufficient justifications for managers, (especially Ghanaian managers and those from other similar environs) to commit their financial resources towards implementing lean production and internal green practices so as to achieve sustainability excellence. Originality/value This study magnifies and provides new insight on lean and green literature by developing a comprehensive research model that concurrently tests the direct and indirect effects between lean production, internal green practices, green product innovation and sustainable performance dimensions.

Strategic human resource management and employees' intention to leave: testing the moderated mediation

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Subhash C. Kundu ◽  
Archana Mor ◽  
Neha Gahlawat
Keyword(s):  
Human Resource Management ◽  
Human Resource ◽  
Business Strategy ◽  
Intention To Leave ◽  
Strategic Human Resource Management ◽  
Business Strategies ◽  
Innovation Strategy ◽  
Quality Enhancement ◽  
Content Type ◽  
The Relationship

PurposeThe purpose of this study is to examine the relationship between business strategies (i.e. cost reduction, quality enhancement and innovation strategy) and employees' intention to leave (ITL), through the mediating role of high-performance work system (HPWS). It also attempts to study variability in the relationship between business strategies, HPWS and employees' ITL on the basis of nature and ownership forms of the firms.Design/methodology/approachPrimary data based on 573 respondents from 192 organizations operating in India were analysed using structural equation modelling and conditional process modelling.FindingsThis study has revealed that HPWS mediates the relationship between business strategy (specifically innovation and quality-enhancement strategy) and employees' ITL. Findings further indicate that the mediated relationships between quality enhancement and innovation strategy, HPWS and ITL do not vary across nature and ownership forms of the firms.Practical implicationsIn context of dynamic business environments in developing countries, the findings provide some important insights in exploring the relevance of strategic human resource management in improving employees' behavioural intentions.Originality/valueBy applying a three dimensional business strategy system (innovation, quality and cost) and by exploring the relevance of several contextual factors, this study attempts to expand the focus of turnover research.

Emanating the key factors of innovation performance: leveraging on the innovation culture among SMEs in Malaysia

2019 ◽  
Vol 13 (4) ◽  
pp. 559-587 ◽  
Author(s):  
Haniruzila Hanifah ◽  
Hasliza Abdul Halim ◽  
Noor Hazlina Ahmad ◽  
Ali Vafaei-Zadeh
Keyword(s):  
Partial Least Square ◽  
Innovation Performance ◽  
Least Square ◽  
Government Support ◽  
Innovation Strategy ◽  
Equation Modeling ◽  
Content Type ◽  
Innovation Culture ◽  
The Relationship

Purpose Innovation has become an approach to create value for the customer to remain competitive in the market. However, previous research on innovation performance particularly among Bumiputera small and medium-sized enterprises (SMEs) had received little intention. Hence, Bumiputera SMEs need to inculcate the innovation culture to generate innovation performance. As such, the purpose of this study is to examine the ambidextrous orientation and innovation strategy on innovation culture, and how innovation culture could mediate the relationship between ambidextrous orientation and innovation strategy and innovation performance. In addition, this study also examines the role of government support as the moderator between innovation culture and innovation performance. Design/methodology/approach Data were collected from 140 Bumiputera SMEs and analyzed using partial least square-structural equation modeling via Smart PLS. Findings Findings indicated that ambidextrous orientation (alignment and adaptability) and innovation strategy (proactive creativity strategy and growth risk orientation strategy) had a significant impact on innovation culture. Besides, innovation culture mediated the relationship between alignment, proactive creativity strategy, growth risk orientation strategy and innovation performance. Surprisingly, innovation culture does not significantly mediate the relationship between adaptability and innovation performance. However, government support plays an important role to support innovation culture and innovation performance in Bumiputera SMEs. Originality/value This study makes both theoretical and practical contributions, especially in identifying the significant role of Bumiputera SMEs in creating an innovation culture. Besides, it explained government support as an important role in strengthening the relationship between innovation culture and innovation performance. The findings of the study will provide great help to Bumiputera entrepreneurs in formulating innovation culture in Malaysian SMEs.

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.

The mediating role of human capital and management accounting information system in the relationship between innovation strategy and internal process performance and the impact on corporate financial performance

2020 ◽  
Vol 27 (4) ◽  
pp. 1289-1318 ◽  
Author(s):  
Benny Hutahayan
Keyword(s):  
Information System ◽  
Financial Performance ◽  
Management Accounting ◽  
Accounting Information ◽  
Innovation Strategy ◽  
Process Performance ◽  
Accounting Information System ◽  
Content Type ◽  
Business Units ◽  
The Relationship

PurposeAnalyze the importance of sustainable innovation strategy applied in manufacturing companies in Indonesia which affects the company's financial performance through several mediating variables.Design/methodology/approachThe population in this research was medium and large manufacturing company business units in East Java. Business units are part of a company considered as the profit center. The business unit as the unit of analysis in this research is part of the organization that: (1) is responsible for the production and marketing of a product or set of products; (2) is formed by product type; (3) has its own competitors which are different from competitors of other business units or divisions within a parent company; (4) has a manager who is responsible and has authority over the planning and implementation of strategies to achieve the specified profit target.FindingsInnovation strategy has a significant effect on financial performance. Human capital does not significantly mediate the relationship between innovation strategy and financial performance. Capital performance and internal performance do not mediate the relationship between innovation strategy and financial performance. Management accounting information system does not mediate the relationship between innovation strategy and financial performance. Internal process performance mediates the relationship between innovation strategy and financial performance. Management accounting information system and internal process performance mediate the relationship between innovation strategy and financial performance.Originality/valueThe difference in findings confirms that this research needs to be conducted. On the other hand, there is no research that has comprehensively tested the mediating effects of Human Capital and Management Accounting Information System in the relationship between Innovation Strategy and Internal Process Performance and the Impact on Corporate Financial Performance. The originality of this research can be seen in the use of contingency theory which narrows the gap between the industrial organization (I/O) paradigm and the resource-based view (RBV) regarding competitive advantage and performance. Specifically, this research introduces innovation strategy, human capital, management accounting information system, and internal business process performance as the contingency factors that affect financial performance. Second, empirically, this research tries to reduce the gap in empirical research by offering new research model and new research establishment at the level of strategic business units (SBU) in manufacturing companies in East Java. This research is expected to be useful for policy decision making, especially for managers who want to improve strategic business unit's financial performance.

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.

When can B2B firms improve product innovation capability (PIC) through customer participation (CP)? The moderating role of inter-organizational relationships?

2019 ◽  
Vol 34 (1) ◽  
pp. 12-23 ◽  
Author(s):  
Jing Zhang ◽  
Miao Zhu
Keyword(s):  
Product Innovation ◽  
Affective Commitment ◽  
Mainland China ◽  
Customer Relationship ◽  
Customer Participation ◽  
Dependence Structure ◽  
Innovation Capability ◽  
Content Type ◽  
Improve Product ◽  
The Relationship

Purpose When can B2B firms improve product innovation capability (PIC) through customer participation (CP)? The purpose of this paper is to shed light on this interesting question by providing a framework to interpret how interorganizational relationships (IORs), including customer relationship commitments, firm’s relational capability and bilateral dependence structure moderate the relationship between CP and PIC. Design/methodology/approach A questionnaire survey is conducted among 376 business to business (B2B) firms located in mainland China. Six hypotheses on how IORs moderate the CP–PIC relationship are examined using hierarchical regression analysis technique. Findings The empirical research reveals that CP positively impacts PIC of B2B firms, which will be strengthened when either customer affective commitment, supplier’s relational capability or total interdependence is high. In addition, the relationship between CP and PIC weakens as customer’s calculative commitment or interdependence asymmetry strengthens. Originality/value This study enriches customer participation literature by highlighting the PIC outcomes of CP and examining the complex and contingent roles of the buyer–supplier relationship in moderating CP’s impact upon PIC.

Customer involvement and NPD cost performance: the moderating role of product innovation novelty

2019 ◽  
Vol 34 (4) ◽  
pp. 711-722 ◽  
Author(s):  
Yi Li ◽  
Gang Li ◽  
Taiwen Feng ◽  
Jinpeng Xu
Keyword(s):  
Product Innovation ◽  
Positive Impact ◽  
Cost Performance ◽  
Content Type ◽  
Customer Involvement ◽  
Positive Effects ◽  
The Impact ◽  
Innovation Novelty ◽  
The Relationship

Purpose The purpose of this study is to examine the influence of product innovation novelty on the relationship between customer involvement and new product development (NPD) cost performance. Design/methodology/approach The authors use organizational information processing theory and adopt hierarchical regression and slope difference test to assess the relationships between constructs and test the hypotheses. Findings The authors evaluate the concept of product innovation novelty from the perspectives of suppliers and customers and infer that these two types of product innovation novelty exert a moderate effect on the relationship between customer involvement and NPD cost performance. First, product innovation novelty for customers strengthens the positive effects of customer involvement on the NPD cost performance. Second, product innovation novelty for suppliers weakens the positive impact of customer involvement on the NPD cost performance. The authors also find that the interaction between product innovation novelty for suppliers and product innovation novelty for customers weakens the positive impact of customer involvement on NPD cost performance. Originality/value The findings of this study explain the reasons for the controversies surrounding the impact of customer involvement on cost performance and discuss the role of product innovation novelty in customer involvement in NPD process. The results of this study can be used to establish whether customer involvement improves or weakens NPD cost performance and identify the role of product innovation novelty in NPD. The conclusions derived from this study can provide theoretical knowledge and managerial insights for both academicians and corporate professionals.

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