The relationship between network capabilities and innovation performance

2019 ◽  
Vol 119 (8) ◽  
pp. 1638-1654 ◽  
Author(s):  
Gang Fang ◽  
Qing Zhou ◽  
Jian Wu ◽  
Xiaoguang Qi

Purpose Innovation networks provide an efficient mechanism for organizations to realize their potential for knowledge learning and innovation improvement. Firms situated within innovation networks require specific abilities to acquire the knowledge and the complementary assets that facilitate their innovation performance. Motivated by recent research studies in the area of social network and RBV, the purpose of this paper is to improve the understanding of the precise manner in which network capability affects a firm’s innovation performance. Design/methodology/approach Based on the data obtained from Chinese high-tech firms, the hypotheses are tested by using hierarchical multiple regressions. Findings This study identifies two types of network capabilities: network structural capability and network relational capability. The findings suggest that network structural capability has a greater positive impact on innovation performance than network relational capability does within an exploration-orientated network. However, network relational capability is more positively associated with innovation performance within an exploitation-orientated network. Practical implications A firm can enhance the value of its ego network by shaping and adjusting network configurations, rather than by passively reaping the benefits from existing relationships or ties with partners. Originality/value This paper contributes to strategic management theory and social network theory by illustrating how a networked firm can enable network value and appropriate this value according to its strategic purposes and by suggesting that a firm can improve its ego network’s value through exerting its network capabilities to shape and adjust network configurations. This paper also advances the contingent approach within social network research by offering a new complementary perspective and new evidence from a Chinese context.

2017 ◽  
Vol 45 (1) ◽  
pp. 36-44 ◽  
Author(s):  
Junping Yang ◽  
Feng-Kwei Wang

Purpose Few studies investigated the influence of heterogeneous knowledge and social networks on the innovation performance of new ventures in emerging economics. Particularly, as the focus of global economic development is paying more attention to emerging economics such as China, Indonesia and India, innovation research in these countries becomes more and more important. As such, this paper aims to propose a theoretical model and designed a survey based on the Theory of Inventive Problem Solving (TRIZ). Design/methodology/approach To investigate the influence of network heterogeneity and knowledge heterogeneity on the innovation performance of new ventures, the authors designed a structured questionnaire based on the TRIZ methodology for innovative problem solving to collect data from new ventures established in the past eight years in eastern China. Findings The empirical results verify the assumptions of our theoretical model: network heterogeneity has a positive impact on the innovation performance of new ventures; knowledge heterogeneity has a positive impact on the innovation performance of new ventures; network heterogeneity has a positive impact on knowledge heterogeneity. Originality/value The main contribution of this paper is that the proposed theoretical model determining the relationship of network heterogeneity and knowledge heterogeneity with the innovation performance of new ventures was empirically tested and verified. This study also empirically verified what types and what sources of social network and knowledge are critically linked to new venture innovation.


2019 ◽  
Vol 13 (1) ◽  
pp. 2-25 ◽  
Author(s):  
Jinwei Zhu ◽  
Yangyang Wang ◽  
Changyu Wang

Purpose This paper aims to examine the different impacts of six variables on firm technological innovation performance in different high-tech industries in China. Through a comparative analysis of data about growth enterprises market board (GEM)-listed companies, this study attempts to get some conclusions, to help firms in different high-tech industries use resources more rationally and to improve technological innovation performance more effectively. Design/methodology/approach This paper constructs semi-parametric models based on the relevant data of GEM-listed companies during 2010 to 2015 for different high-tech industries. These models can ensure that the influencing factors of firm technological innovation performance are no longer restricted to a particular aspect but can provide a comprehensive comparative analysis of the effects of factors on firm technological innovation performance in different high-tech industries. Findings The empirical results show that R&D expenditures have a significant positive impact on firm technological innovation performance in most high-tech industries, but not in electronic and communication equipment manufacturing industry; R&D personnel investment and government subsidies have significant positive impacts on firm technological innovation performance in knowledge-oriented industries; technology diversity has a significant positive impact on firm technological innovation performance in technology-oriented industries; the proportion of exports shows an inverted U-shaped relationship with firm technological innovation performance in electronic and communication equipment manufacturing industry, while firm size shows an inverted U-shaped relationship with firm technological innovation performance in general equipment manufacturing industry; and the effect of semi-parametric model fit is superior to the general parameters model. Originality/value Drawing on the resource dependence perspective, this paper is the first to consider a comprehensive treatment of differential effects of internal resources (R&D personnel, R&D expenditure), external resources (government subsides) and firm characteristics (firm size, export ratio) on firm technological innovation performance in different high-tech industries in an emerging country, in particular in contrast to previous studies that have focused on a single industry or taken the type of industry as a control variable. In addition, most studies about the determinants of firm innovation performance are based on survey questionnaires, which may introduce large subjective errors. Setting the relationship between variables in advance may also introduce fit error when using a general-parameter model. Semi-parametric regression which is used in this paper is able to prevent this shortcoming effectively. When constructing a regression model, this can be exempted from the formal constraints, thus estimating data more accurately and ensuring superior fit.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Helen McGrath ◽  
Thomas O'Toole

Purpose The purpose of this paper is to identify the early stage network engagement strategies that new ventures use to gain traction in interaction in the development of network capability. Design/methodology/approach Using 24 new ventures in the micro-brewing industry in Ireland, Belgium and the USA as an empirical base, the authors use an inductive case study approach owing to the exploratory nature of the research aim and the lack of prior literature in the area. Findings The findings suggest five early stage network engagement process strategies in network capability development: business-to-business network prospecting; co-branding/co-promoting activities; from maker-mindset to adapting; social media platforming; and recognition and activation of network role. Research limitations/implications The findings are limited to the micro-brewery sector at one point in time, although in multiple country contexts. Analyzing other sectors and taking a temporal view of strategizing, analyzing the sector at another time point, would show how dynamics in engagement change as the actors acquire new experiences from interaction. Practical implications The potential to gain from network resources and the paucity of these resources in new ventures makes early stage engagement strategizing for network capability development an attractive business strategy for new firms. All firms are born within a social network that has economic importance. Identifying the five early stage network engagement strategies can mitigate the challenge for the new venture in moving from the initial social network to collaborating within wider business networks to gain access to resources, technology and customers. Originality/value Strategizing in new venture contexts is a relatively new stream of research for the industrial marketing and purchasing group. This paper adds to the growing body of literature that places interaction, relationships and networks at the heart of strategy making and provides important insights for new ventures, which may lead to earlier and greater success for the firms. The authors respond to calls for increased research addressing capability development in a new venture context and for research to take a more interactive perspective on new venture processes.


2018 ◽  
Vol 47 (2) ◽  
pp. 535-554 ◽  
Author(s):  
Erez Yaakobi ◽  
Jacob Weisberg

Purpose The purpose of this paper is to develop a framework for predicting three facets of employee performance (quality, innovation and efficiency) based on the evaluation of individual (self and occupational), group (collective) and organizational (means) efficacies. Design/methodology/approach A sample of 109 managers employed mainly in high-tech industries evaluated their employees’ quality, innovation and efficiency performance. The employees’ efficacies were also evaluated on three organizational levels. Findings Evaluation of employees’ self-efficacy accounted for most of the explained variance for all performance facets. Evaluation of group efficacy added incremental explained variance to the general performance as well as to the innovation performance and efficiency performance. Evaluation of means efficacy (provided to employees) added incremental explained variance to the general performance as well as to the innovation performance and the efficiency of performance. Male managers differed from female managers in their predictions of employees’ performance. Originality/value This is the first study to examine the concurrent effects of four types of efficacies, based on three organizational levels, in predicting performance. It also examines three facets of performance instead of only a general performance measure. It presents a model of the relative importance of these efficacies in predicting facets of performance.


2017 ◽  
Vol 18 (2) ◽  
pp. 400-418 ◽  
Author(s):  
Lara Agostini ◽  
Anna Nosella ◽  
Roberto Filippini

Purpose The purpose of this paper is to investigate the association between the strength of intellectual capital (IC) and small- and medium-sized enterprise (SME) innovation performance. Design/methodology/approach Primary data of 150 SMEs belonging to manufacturing medium-high tech industries were collected through a survey. The methodology consists of a confirmatory factor analysis and a cluster analysis, complemented by a t-test, to assess whether there is a significant difference in terms of innovation performance of SMEs characterized by a different strength of IC. Findings Overall, the findings show that SMEs of the sample can be divided into two groups characterized by a different strength of IC, and those SMEs disclosing a higher strength of IC, in terms of human capital, innovation capital and relational capital, exhibit a significantly higher radical and incremental innovation performance. Practical implications The present study provides SME entrepreneurs and managers with an empirical evidence that possessing strong IC in its three dimensions seems to help SMEs reinforce their ability to generate both radical and incremental innovation. This calls that SME entrepreneurs and managers need to identify and effectively manage IC in order to strengthen and effectively leverage their investments on IC. Originality/value This study is particularly relevant because, instead of focusing on single categories of IC as previous studies mainly do, it adopts an overarching perspective of the dimensions of IC and their impact on both radical and incremental innovation performance. Moreover, it focuses on the SME context which has been less investigated than large firms within the domain of IC.


2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Herolinda Murati-Leka ◽  
Besnik Fetai

Purpose The purpose of this paper will be on finding and analyzing the impact of government on the information and communication technology (ICT) companies’ innovation performance. The study aims to conduct in-depth research about the government as an integrated actor of the innovation ecosystem (IE), not a sole member. This would be the core finding toward doing further research about the impact of the innovation ecosystem in the ICT sector in Kosovo. Design/methodology/approach Quantitative research has been considered the most suitable data collection method. Furthermore, in this study, it is used convenience sampling as a technique of the sampling process. The sample size of this study is 106 participants. The participants are owners or representatives of ICT companies in Kosovo. Since the study is conducted using the deductive approach, the questionnaire is considered to be the most suitable instrument for gathering data. Findings This paper provides empirical insights that the company’s size and the dedicated department for research and development have no impact on how the company takes advantage of public funding from the government. Furthermore, the authors of the paper found out that government has a positive impact on companies’ introduction of new products and services, while the impact of the government on a company’s financial performance was insignificant. Research limitations/implications The future research direction should be firstly on studying other IE actors and their impact on companies’ innovation performance and secondly on measuring the IE actors as a set of actors to have a broader picture on how IE impacts the companies’ innovation performance. Practical implications The scientific contribution of this study will be on mapping, analyzing and proposing government policies in accordance with the findings of this study that would lead to a more comprehensive and sustainable IE in Kosovo. Originality/value This study tries to fulfill an identified need to study the impact of interconnected actors of an innovation ecosystem and to show how they affect each other. In this study, it is taken for research one fragment of a set of actors.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yi She ◽  
Jin Hong ◽  
Chuwei Ji

PurposeThis study examines the impact of outward foreign direct investment (OFDI) of Chinese multinational corporations (MNCs) and formal and informal institutional distances between the home and host countries on the innovation performance of parent company.Design/methodology/approachThis study uses panel data to conduct an empirical analysis on the data of 59 mature Chinese MNCs and their 872 overseas subsidiaries over the past 11 years and draws interesting results.FindingsResults show that OFDI and formal and informal institutional distances between countries exert a significant positive impact on the innovation performance of the parent company and formal and informal institutional distances negatively moderate the impact between OFDI and the parent company's innovation performance.Originality/valueAlthough international business research pays increasing attention to transnational differences in institutions and cultures, research on the relationship between technology spillover and distance is relatively limited. In addition, few studies consider the impact of FID and IFID on transnational reverse knowledge spillovers. This research fills these research gaps, and the conclusions have certain practical significance for multinational companies.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Farzana Parveen Tajudeen ◽  
Devika Nadarajah ◽  
Noor Ismawati Jaafar ◽  
Ainin Sulaiman

PurposeBased on the dynamic capability theory (DCT), this study examines the role of digitalisation vision and the impact of key information technology (IT) strategies, such as IT flexibility, IT integration and IT agility, on organisations' process innovation capability and the subsequent impact these may have on innovation performance.Design/methodology/approachData for this study were collected from 153 public listed organisations in Malaysia. The survey questionnaire method was used to collect the data from the organisations' representatives.FindingsResults showed that it is important for organisation to have a strategic digitalisation vision to improve their process innovation capabilities. IT agility and IT integration also had a significant positive relationship with the process innovation capabilities of the organisations, which in turn had a positive impact on innovation performance.Originality/valueDigital transformation and innovation are crucial for organisations to survive in the era of Industry 4.0. However previous studies have not captured the role of digitalisation vision, strategic IT components and its impact on process innovation capabilities. The current study filled up the gap and examined these relationships. The outcome of this study provides valuable insights for managers to understand the importance of digitalisation and the need to focus on key IT strategies. Such insights can be used to improve organisations' process capability which is critical for innovation and performance.


2019 ◽  
Vol 23 (9) ◽  
pp. 1729-1746 ◽  
Author(s):  
Xiongfeng Pan ◽  
Ma Lin Song ◽  
Jing Zhang ◽  
Guangyou Zhou

Purpose This paper aims to identify the influence of innovation network and technological learning on innovation performance of high-tech cluster enterprises. Design/methodology/approach Using a questionnaire, data are collected from Dalian High-tech Industrial park in China. In addition, structural equation model is used to identify the influence of innovation network and technological learning on the innovation performance of high-tech cluster enterprise. Findings The findings of this study show that the centrality of network location and the strength of the network relationship have a direct positive effect on technology acquisition, technology digestion and technology exploit of high-tech cluster enterprises. Meanwhile, technology acquisition has a direct positive effect on technology digestion, technology digestion has a direct positive effect technology exploit, and technology exploit has a direct positive effect innovation performance of high-tech cluster enterprises. Practical implications To improve innovation performance, high-tech cluster enterprises should not only nurture and optimize innovation networks but also improve technological learning ability. Originality/value This paper empirically supports the significant influence of innovation network and technological learning on innovation performance. While the results provide guidance for researchers and practitioners, it also adds value to innovation-related research.


Author(s):  
Liu Fan

Research on innovation performance has gradually moved from the industrial clusters level to network relations among enterprises inside clusters. This paper intends to explain the impacts of network strength, breadth and stability on the innovation performance of Startups. An empirical analysis of high-tech Startups from 6 provinces of central China displays that, network strength and breadth exert a significant positive impact on Startups‘ innovation performance, network stability a relatively weak one, and that environmental dynamism plays a negative role mediating between network breadth and the innovation performance.


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