Exploring firm-level innovation and productivity in India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aswini Kumar Mishra ◽  
Abhishek Kumar Sinha ◽  
Abhijeet Khasnis ◽  
Sai Theja Vadlamani
Keyword(s):  
Process Innovation ◽  
The Other ◽  
Firm Productivity ◽  
Content Type ◽  
Organisational Innovation ◽  
Significant Contributor ◽  
Other Hand ◽  
Product And Process Innovation ◽  
Product And Process ◽  
Research Intensity

Purpose This paper aims to analyse the impact of innovation on the productivity of firms in India using the data from the World Enterprise Survey. This paper first classifies three different types of innovation measures then further analyses their relation with the productivity of the firms. Design/methodology/approach The methodology used for this study has incorporated the structural Crépon-Douget-Mairesse (CDM) model wherein productivity is measured using both the innovation inputs and the innovation outputs. Three main equations have been used to quantify this relation includes the knowledge intensity function, innovation function and the productivity equation. Findings Findings indicate that decision to invest in research and development (R&D) is influenced negatively by financial obstacles and trade obstacles and positively influenced by telecommunication obstacles, government obstacles and the size of the firm in India. Similarly, financial obstacles and the size of the firm are affecting the firm’s research expenditure per employee. Also, financial obstacles seem to hinder the research intensity and larger firms seem to have higher research intensity. The size of the firm contributes significantly to product innovation. However, R&D spending seems to be negatively related to the innovation outcome. The findings relating to productivity shows neither product nor process innovation outputs, independently are not contributing significantly to the productivity of firms. However, product and process innovation, together serve as innovation outputs is a significant contributor to firm productivity. On the other hand, organisational innovation contributes significantly to the productivity of the firms in a negative manner. Originality/value The findings relating to productivity shows neither product nor process innovation outputs, independently are not contributing significantly to the productivity of firms (which has been measured by sales per worker is impacted by the capital and the labour inputs). However, product and process innovation, together serve as innovation outputs is a significant contributor to firm productivity. On the other hand, organisational innovation contributes significantly to the productivity of the firms in a negative manner. The reason could be due to the fact that the definition of organisational innovation incorporates both dissolutions and mergers.

Cooperation and competition among subsidiaries in a business group: their impacts on innovation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Donghong Li ◽  
Zhenning Yang ◽  
Pengcheng Ma ◽  
Hang Chen
Keyword(s):  
Business Group ◽  
Ordinary Least Squares ◽  
Process Innovation ◽  
Least Squares Regression ◽  
Content Type ◽  
Cooperation And Competition ◽  
Group Cooperation ◽  
Group Competition ◽  
Product And Process Innovation ◽  
Product And Process

PurposeThe purpose of this paper is to document the relationship between intra-group coopetition and subsidiaries' innovation performance and the moderating impact of the intensity of external competition.Design/methodology/approachData were collected from 75 subsidiaries in China through a questionnaire survey of their R&D and general managers. The total number of individual respondents was 205. We tested our hypothesis by using ordinary least squares regression.FindingsIntra-group cooperation was found to promote a subsidiary's performance in product and process innovation. Intra-group competition was found to have a U-shaped relationship with product and process innovation. Intra-group cooperation strengthens the U-shaped relationship between intra-group competition and process innovation.Research limitations/implicationsThis study involved firms from more than one industry. Studies of specific industries might reach more specific conclusions. And all of the data were self-reported by the managers of the firms concerned. Future studies would be well-advised to consider more objective data describing pairs of parent firms and subsidiaries.Practical implicationsSubsidiaries ought to build their internal networks to cooperate with each other. That can bring significant advantages in terms of information and synergy in innovation. Subsidiaries are also suggested to take full advantage of the opportunities that intra-group competition brings.Originality/valueThis study is the first one to explore coopetition phenomenon in the context of business group. By taking Chinese business group subsidiaries as the research samples, this research not only extends the coopetition research but also reveals that cooperation and competition are co-existed and exert influence in subsidiaries.

Bridge and redundant ties in networks: the impact on innovation in food SMEs

2015 ◽  
Vol 18 (3) ◽  
pp. 355-379 ◽  
Author(s):  
Ghasem Shiri ◽  
Loïc Sauvée ◽  
Zam-Zam Abdirahman
Keyword(s):  
Empirical Research ◽  
Positive Impact ◽  
Process Innovation ◽  
Innovation Activity ◽  
Data Set ◽  
Content Type ◽  
Wide Range ◽  
Product And Process Innovation ◽  
Product And Process ◽  
The Impact

Purpose – The purpose of this paper is to study the impact of networks diversity on innovation activity of firms. It aims to review the structural issue in innovation networks and to distinguish different structures of networks for product and process innovation through an empirical research. Design/methodology/approach – Using a data set of 348 European agri-food firms, the authors study the impact of bridge and redundant ties on product and process innovation of firms. This is an empirical research based on an online survey in five European countries. Findings – The finding shows that bridge ties (measured by the number of heterogeneous networks in which firm participate) always facilitate product innovation in firms. The authors found also that a high number of heterogeneous ties in term of partners (simultaneous presence of redundant and non-redundant ties) motivate both product and process innovation in firms. Furthermore, the authors found a positive impact of network competence on process innovation. Research limitations/implications – The measures of bridge ties and redundant ties are indirect measures. This choice is a willing choice. Direct measurement of bridge and redundant ties always requires in-depth interviews with firms managers and thereby are limited by the number of observations. Originality/value – Research on innovations networks are dominated by case studies and researches with limited number of observations. Studying the networking behaviour, particularly the tie selection, of a wide range of firms brings additional knowledge in this field of research.

Moderating role of innovation culture in the relationship between organizational learning and innovation performance

2019 ◽  
Vol 26 (3) ◽  
pp. 289-303 ◽  
Author(s):  
Peivand Ghasemzadeh ◽  
Jamal A. Nazari ◽  
Mandana Farzaneh ◽  
Gholamhossein Mehralian
Keyword(s):  
Organizational Learning ◽  
Relevant Literature ◽  
Process Innovation ◽  
Content Type ◽  
Innovation Culture ◽  
Product And Process Innovation ◽  
Product And Process ◽  
The Relationship ◽  
Moderating Role

Purpose Different studies have analyzed the relationship between organizational learning (OL) and innovation performance (IP). However, the question of how innovation culture (IC) affects the relationship between OL and IP remains unexplored. This study aims to examine the impact of IC on the relationship between OL and various dimensions of IP, including product, process and objective innovation. Design/methodology/approach A research model was developed and performed based on the relevant literature in the field of OL, IC and IP. The hypotheses are tested with the data collected from companies operating in an intensive knowledge-based industry. Findings Based on the results of 625 questionnaires completed by pharmaceutical companies, OL activities and IC can result in product and process innovation. However, this relationship was not supported for the objective innovation. Furthermore, in terms of the moderating role of IC in the relationship between OL and IP dimensions, the results were significant. Practical implications The findings help to gain a better understanding of how organizational commitment by creating a culture for innovation can help to maximize the benefits of continuous OL in product and process innovation. Originality/value Considering the three aspects of IP, it is the first survey of the contribution of OL in firms’ IP with considering the moderating role of IC. The proposed model would enrich the relevant literature and provide us with better understanding how OL contributes to the IP.

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.

scholarly journals Innovation, firm productivity, and export survival: firm-level evidence from ASEAN developing countries

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Utumporn Jitsutthiphakorn
Keyword(s):  
Developing Countries ◽  
Process Innovation ◽  
The Philippines ◽  
Export Market ◽  
Firm Productivity ◽  
Firm Level ◽  
Product And Process Innovation ◽  
Innovation Output ◽  
Product And Process ◽  
Innovation Approach

AbstractThis firm-level study investigates the importance of innovation as a determinant of firm productivity and how firm productivity could impact firm export survival. This is the first integration of the innovation approach, productivity approach, and firm survival approach to explore their linkages at the regional level in ASEAN developing countries. Using the panel database from the World Bank Enterprise Survey, which covers six developing countries in ASEAN—the Philippines, Indonesia, Vietnam, Laos, Cambodia, and Myanmar—and also covers six selected industries, we construct four equations: innovation inputs, innovation output, firm productivity, and export survival. The four equations’ findings suggest that the technology level of the sector, firm size, and exports are significant factors for R&D expenditure (innovation input). R&D expenditure is a significant driver of a firm’s product and process innovation (innovation output). Increasing firm productivity in the six ASEAN developing countries we considered is driven by process innovation rather than product innovation, and productive firms are more likely to survive in the export market.

Impact of knowledge search on product and process innovation: mediating role of absorptive capacity and moderating role of IT capability

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hui Gao ◽  
Xiu-Hao Ding ◽  
Suming Wu
Keyword(s):  
Absorptive Capacity ◽  
Boundary Spanning ◽  
Process Innovation ◽  
Content Type ◽  
Mediating Role ◽  
It Capability ◽  
Product And Process Innovation ◽  
Knowledge Search ◽  
Product And Process

PurposeMore enterprises adopt open innovation by breaking technological or organizational boundaries to seek internal and external knowledge when they face a fiercely competitive environment, complex market demands, and increasingly rapid technological change. In this context, a knowledge search strategy is regarded as an effective means of obtaining inside and outside resources and an important way to break the innovation bottleneck. Moreover, information technology (IT) is deemed an important asset for sourcing knowledge, whereas absorptive capacity is seen as an indispensable ability for utilizing novel knowledge. Thus, this paper aims to test the role of knowledge search in open innovation and examine the mediating effect of absorptive capacity and the moderating effect of IT capability.Design/methodology/approachUsing a sample of 1,088 Chinese firms’ data collected by the World Bank in 2012, this paper employs logistic regression to test the hypotheses.FindingsThis study finds that local and boundary-spanning search strategies positively influence both product and process innovation, and absorptive capacity has a mediating role in the relationships between knowledge search and product and process innovation. Moreover, IT capability has a positive moderating effect on the relationship between local search and innovation performance; however, IT capability strengthens the relationship between boundary-spanning search and process innovation while weakens that between boundary-spanning search and product innovation.Originality/valueThis study explores the impact of different knowledge search behaviors on different types of innovation and probes the role of absorptive capacity and IT capability in mediating and moderating the above relationships. By drawing on knowledge-based theory and cognitive-developmental theory, this paper provides a novel perspective to explain the mechanism between knowledge search and innovation performance.

Achieving green product and process innovation through green leadership and creative engagement in manufacturing

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saira Begum ◽  
Enjun Xia ◽  
Fayaz Ali ◽  
Usama Awan ◽  
Muhammad Ashfaq
Keyword(s):  
Transformational Leadership ◽  
Creative Process ◽  
Product Innovation ◽  
Process Innovation ◽  
High Tech ◽  
Green Product ◽  
Green Process ◽  
Content Type ◽  
Product And Process Innovation ◽  
Product And Process

PurposeThe aims of this study were three-fold: to determine the impact of green transformational leadership on creative process engagement, green product innovation and green process innovation; to examine the association of creative process engagement with green product and process innovation and to identify the mediating influence of creative process engagement in the association between green transformational leadership and green process and product innovation.Design/methodology/approachData was collected through a survey questionnaire from 291 middle- and lower-level managers and employees through simple random sampling in four high-tech manufacturing industries situated in Beijing, Shanghai and Shenzhen in China. We examined the data through structural equation modeling using partial least squares to test the study hypotheses.FindingsThe findings unveiled that green transformational leadership and creative process engagement positively influence green product innovation and green process innovation. Similarly, green transformational leadership is positively linked with creative process engagement. The findings further revealed that creative process engagement mediates the impact of green transformational leadership on green process and product innovation. Hence, our findings provide strong support for the role of green transformational leadership and creative process engagement in improving green process and product innovation.Research limitations/implicationsOur sample is limited to China and collected from high-tech manufacturing industries.Practical implicationsDrawing on the componential theory of creativity, the authors suggest that organizational leaders, specifically those who practice green transformational leadership, should increase creative process engagement among subordinates, as it is a crucial intangible resource for green process and product innovation.Social implicationsWe suggest that a combination of green transformational leadership and creative process engagement improves green process and product innovation as well as the environmental performance of a business by eliminating all forms of hazardous material and waste.Originality/valueThis work is one of the earliest empirical studies to evaluate the influence of green transformational leadership on fostering green product and process innovation and the mediating impact of creative process engagement on the linkage among green transformational leadership, green product and process innovation within the manufacturing context.

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.

Determinants of company innovation and market performance

2018 ◽  
Vol 30 (1) ◽  
pp. 54-73 ◽  
Author(s):  
Evangelos Psomas ◽  
Dimitrios Kafetzopoulos ◽  
Katerina Gotzamani
Keyword(s):  
Quality Management ◽  
Market Performance ◽  
Process Innovation ◽  
Future Research ◽  
Content Type ◽  
Quality Practices ◽  
Product And Process Innovation ◽  
Product And Process ◽  
The Impact ◽  
A Company

Purpose The present study focuses on two basic determinants of company innovation, namely, quality practices of top management and process quality management. The purpose of this paper is to explore the impact of these determinants on product and process innovation. Determining the impact of these dimensions of innovation on the market performance of a company is also an aim of the present study. Design/methodology/approach A research study was carried out on a sample of 433 Greek manufacturing and service companies. Data were obtained through a structured questionnaire from the chief executive officers of the companies. Exploratory and confirmatory factor analyses are applied to extract and validate all the latent factors considered in the suggested model, while their relationships are determined through structural equation modeling. Findings The analysis of the empirical data shows that both the dimensions of company innovation examined in the present study (product and process innovation) are positively influenced by the quality practices of top management and process quality management. Improving these two dimensions of company innovation, in turn, results in increased market performance. Research limitations/implications First, the sample of the responding manufacturing and service Greek companies which includes both small and medium-sized enterprises and large companies and which operate in circumstances of financial crisis; second, the subjective data collected from only one company representative; and third, the examination of only two factors influencing company innovation, are the main limitations of the present study. Based on these limitations, future research studies are recommended. Practical implications The empirically validated theoretical model of the present study can guide the policy makers of a company to select a quality management and innovation strategy through which the company can lay the foundations to increase its market performance, and thus, overcome the current economic downturn and financial crisis. Researchers can also use the suggested valid model as an assessment tool, a benchmarking tool and a tool for the design of their future research studies. Originality/value The present study contributes to the literature by determining a valid model that describes simultaneously the relationships between quality management factors, product and process innovation and market performance. This is also the first study reflecting Greek companies’ efforts to withstand the current downturn and penetrate the market through innovation.

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.

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