The role of internal and external sources of knowledge on frugal innovation: moderating role of innovation capabilities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdullah Fahad AlMulhim
Keyword(s):  
Saudi Arabia ◽  
Knowledge Sources ◽  
Frugal Innovation ◽  
Content Type ◽  
Future Studies ◽  
Sources Of Knowledge ◽  
External Sources ◽  
External Sources Of Knowledge ◽  
Moderating Role

Purpose This study aims to analyze the effect of external and internal sources of knowledge on frugal innovation. Moreover, it investigated how this relationship is weakened/strengthened by the moderation of innovation capabilities. Design/methodology/approach This empirical study’s data were taken from 288 small and medium enterprises (SMEs) by using a questionnaire survey. To analyze this data, analysis of a moment structures software (AMOS) was used. Structural equation modeling was conducted to test the hypothesis and the slope test investigated moderation. Findings The study results showed the significant effect of internal and external sources of knowledge on frugal innovation. Moreover, the results highlighted that the moderating role of innovation capabilities strengthens this relationship. Research limitations/implications The SMEs of “Saudi Arabia” were considered for this study. Among these, this paper only focused on enterprises owned by Saudi citizens. Moreover, the data were collected from 288 SMEs. Therefore, future studies can be conducted from any other country with larger sample size. This study has used moderation of innovation capabilities and future studies can use information credibility as a moderating variable. Originality/value Previously, many studies have highlighted the importance of knowledge for innovation, but the effects of knowledge sources from the perspective of SMEs and emerging markets remain unexplained. Very limited studies have explored the relation of knowledge sources with frugal innovation. This study first examines the moderating role of innovation capabilities between “internal and external knowledge sources” and frugal innovation. Moreover, this research reveals the SMEs of Saudi Arabia and its sector of frugal products.

Effects of sources of knowledge on frugal innovation: moderating role of environmental turbulence

2019 ◽  
Vol 23 (7) ◽  
pp. 1245-1259 ◽  
Author(s):  
Mir Dost ◽  
Munwar Hussain Pahi ◽  
Hussain Bakhsh Magsi ◽  
Waheed Ali Umrani
Keyword(s):  
Social Issues ◽  
Frugal Innovation ◽  
Content Type ◽  
Technological Turbulence ◽  
Sources Of Knowledge ◽  
External Sources ◽  
Market Turbulence ◽  
External Sources Of Knowledge ◽  
Moderating Role

Purpose The purpose of this paper is to investigate the effects of internal and external sources of knowledge on frugal innovation (FI), and to what extent this relationship is strengthened/weakened, authors also analyzed the moderating role of market and technological turbulence. Design/methodology/approach This is an empirical research. Data were collected from 382 SMEs through questionnaire survey, applied SmartPLS technique to analyse the data. Findings Findings revealed the significant effects of internal and external sources of knowledge on FI. To what extent this relationship is strengthened/weakened, the moderating role of market and technological turbulence was analysed. Data revealed that the moderation of technological turbulence strengthens the effects internal and external sources of knowledge had on FI. Market turbulence strengthened the effects of external sources of knowledge but surprisingly weakens the effects of internal sources of knowledge on FI. Practical implications Findings provide valuable and timely insights for the modern managers as well. Managers who operate in SMEs will have to understand that how knowledge from internal and external sources can be gathered and utilized for producing frugal products. They also will have to weigh which source of knowledge is more important when there is market and technological turbulence. Originality/value Sustainable and social issues emerge mainly due to scarcity of available resources. Firms seek to solve such pressing issues through improvisation in resources. However, frugal products assist firms to significantly contribute in society and sustainability. Although prior research has discussed the importance of knowledge for innovation, yet the effects of sources of knowledge and role of contingencies mostly remain unexplained puzzle. This study contributes to knowledge-innovation literature by examining the missing link between different sources of knowledge and FI and how the moderation of technology and market turbulence strengthen/weaken this relationship. Authors believe that it also helps to comprehend FI’s enabling factors through which firms can capitalize upon, and solve the pressing sustainable and social issues.

The interaction between external and internal knowledge sources: an open innovation view

2014 ◽  
Vol 18 (2) ◽  
pp. 430-446 ◽  
Author(s):  
Nieves L. Díaz-Díaz ◽  
Petra de Saá Pérez
Keyword(s):  
Absorptive Capacity ◽  
Business Strategies ◽  
Knowledge Sources ◽  
Content Type ◽  
External Knowledge ◽  
Sources Of Knowledge ◽  
External Sources ◽  
Internal Sources ◽  
External Sources Of Knowledge ◽  
Internal Knowledge

Purpose – The purpose of this paper is to study the external sources of knowledge that better exploit internal knowledge in order to innovate. Design/methodology/approach – A balanced panel of 1,266 firms that respond to the Survey of Business Strategies for a five-year period was used, which represents a total of 6,330 observations. Findings – The influence of the absorptive capacity on new products is significant, with an inverted U-shaped relationship. The interaction between external sources of knowledge and firm ' s absorptive capacity has a negative effect on innovation up to a certain level (substitution effect), after which that interaction improves the innovation of firms, displaying a complementary effect. Practical implications – Firms with excess of internal sources of knowledge do not obtain better innovative results because overtime firms tend to inertia and need external sources of knowledge to obtain new knowledge. Firms must be conscious that the effect on innovation of using a strategy of external knowledge acquisition could be different depending on their internal knowledge base level. Thus, those firms that select their strategies to combine knowledge appropriately will have better results. Originality/value – This paper reveals that the positive effect of internal sources of knowledge on innovation decline after it reaches a high level because those firms with strong absorptive capacity may enter a state of organizational inertia that reduces their innovation. This research enhances the importance of identifying each of the external knowledge sources likely to be used, since their influence on innovation differs depending on the level of internal knowledge. Finally, this study is based on panel data models, which allows us to control unobservable heterogeneity improving earlier studies that had to rely on cross-sectional data.

Are winemaker consultants just another source of knowledge for innovation?

2017 ◽  
Vol 21 (6) ◽  
pp. 1523-1539 ◽  
Author(s):  
David Doloreux ◽  
Ekaterina Turkina
Keyword(s):  
Positive Influence ◽  
Wine Industry ◽  
Computer Assisted ◽  
Knowledge Sources ◽  
Content Type ◽  
External Knowledge ◽  
Telephone Interviews ◽  
External Sources ◽  
Original Survey ◽  
External Sources Of Knowledge

Purpose This paper aims to explore the effects of multiple external sources of knowledge and of the use of winemaker consultants on innovation in the Canadian wine industry. Design/methodology/approach The data for the study are taken from an original survey of wine firms in Canada covering the 2007-2009 period. The survey was carried out by computer-assisted telephone interviews, and it was addressed to winery firms that are engaged in growing grapes and producing wine. Findings The results show that the use of winemaker consultants positively affects all forms of innovation. At the same, as far as external knowledge sources are concerned, marketing sources positively affect all types of innovation, while research sources and general sources have a positive influence on particular forms of innovation. The results also show that winemaker consultants interact with other knowledge sources. Nevertheless, there are important nuances with regard to which type of knowledge sources is more compatible with the use of winemaker consultants for which type of innovation. Originality/value To date, there is no empirical evidence of the extent to which the use of external winemaker consultants and external knowledge sources interact together and what are their impacts on the introduction of different forms of innovation.

Hospital-supplier integration and hospital performance: evidence from Saudi Arabia

2018 ◽  
Vol 29 (1) ◽  
pp. 22-45 ◽  
Author(s):  
Saad Alshahrani ◽  
Shams Rahman ◽  
Caroline Chan
Keyword(s):  
Developing Countries ◽  
Saudi Arabia ◽  
Hospital Performance ◽  
Content Type ◽  
Supplier Integration ◽  
Lean Practices ◽  
Overall Performance ◽  
The Impact ◽  
Moderating Role

Purpose The purpose of this paper is to develop a comprehensive conceptual model for the impact of hospital-supplier integration on the overall performance of healthcare organisations. It also investigates the moderating role of lean practices between hospital-supplier integration and hospital performance. Design/methodology/approach Data were collected from 498 public and private hospitals in Saudi Arabia using a survey. Structural equation modelling was used for data analysis. Findings The results indicate that hospital-supplier integration has a positive impact on the hospital performance. These effects are even more notable when adopting lean practices in the hospitals. Research limitations/implications The data were collected from one developing country, namely Saudi Arabia. Thus, the findings may be relevant to the Saudi context but not those of other developing countries. Second, the data were collected from the hospitals’ end but not from the suppliers, so the latter’s perspectives on the themes covered here are not known. Future research may investigate the validity of the model in various developing countries whose healthcare systems have different characteristics, and the relationships between hospitals and their suppliers may follow different governance models. Practical implications The developed model and results will help hospitals in the Saudi health system to make better decisions on managing their logistics and supply partners. Originality/value This study extends the current research by developing a model that highlights the impact of hospital-supplier integration on the overall performance of healthcare organisations and tests this model to confirm its validity. To the authors’ knowledge, this study would be one of the first that uses both lean thinking and relational view of competitive advantage theory combined to examine the moderating role of lean practices on the inter-organisational relationships in Saudi Arabia.

Relatedness economies, absorptive capacity, and economic catch-up: firm-level evidence from China

2019 ◽  
Author(s):  
Anthony Howell
Keyword(s):  
Absorptive Capacity ◽  
Knowledge Spillovers ◽  
Policy Implications ◽  
Firm Level ◽  
Sources Of Knowledge ◽  
Market Competitiveness ◽  
External Sources ◽  
Catch Up ◽  
External Sources Of Knowledge

Abstract This paper examines the effect of agglomeration economies on firm productivity and the role of absorptive capacity in China. Taking into account the transitioning economy context, I further exploit the gradual and spatially uneven implementation of market-oriented reforms to track the relative importance of firms’ absorptive capacity for economic catch-up. The three main results are as follows. First, firms exhibit higher productivity when located in an area with a denser network of related activities, particularly for firms with higher absorptive capacity. Second, the sources of the productivity gains are driven by externalities that arise from better access to inputs, similar workers and technological-related knowledge spillovers. Third, the role of absorptive capacity becomes more important for boosting productivity following more versus less intensive market-oriented economic reforms. These findings have important policy implications for transitioning economies and suggest that market reforms promote efficiency improvements related to performing actual R&D as well as encourage firms to seek out external sources of knowledge in order to attain market competitiveness.

INFLUENCE OF RISK-TAKING AND PROACTIVITY BEHAVIOURS ON FRUGAL PRODUCT INNOVATION: THE MODERATING ROLE OF EXTERNAL SOURCES OF KNOWLEDGE

2021 ◽  
Author(s):  
MIR DOST ◽  
MOHAMMAD SAUD KHAN
Keyword(s):  
Risk Taking ◽  
Product Innovation ◽  
Cost Effective ◽  
Positive Influence ◽  
Market Growth ◽  
External Knowledge ◽  
Sources Of Knowledge ◽  
External Sources ◽  
External Sources Of Knowledge

Growing changes in the present global environment is compelling firms to seek and exploit opportunities for market growth. Among others, an innovation that is cost-effective, functional, and sustainable (frugal) is one of the important factors for such growth. To validate this link empirically, we investigate the influence of risk-taking and proactivity behaviours (dimensions of entrepreneurial orientation (EO)) on frugal innovation (FI), and moderation of external knowledge. We nested the data from Small and Medium Entreprises that were engaged in frugal product innovation in Pakistan. The findings reveal that the behaviours of taking the risk and being ahead of competitors (proactiveness) have a significantly positive influence on FI. However, moderation of external knowledge strengthens the influence of risk-taking behaviour while weakens the influence of proactivity behaviour on FI. The authors also discuss some important theoretical and managerial contributions of this research.

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