scholarly journals Effects of institutional support on innovation and performance: roles of dysfunctional competition

2017 ◽  
Vol 117 (1) ◽  
pp. 50-67 ◽  
Author(s):  
Shanshan Zhang ◽  
Zhiqiang Wang ◽  
Xiande Zhao ◽  
Min Zhang
Keyword(s):  
Firm Performance ◽  
Institutional Environment ◽  
Institutional Support ◽  
Process Innovation ◽  
Equation Modeling ◽  
Content Type ◽  
Positive Effects ◽  
Product And Process Innovation ◽  
Product And Process ◽  
The Impact

Purpose The purpose of this paper is to empirically investigate the effects of institutional support on product and process innovation and firm performance and describe how dysfunctional competition influences relevant outcomes. Design/methodology/approach This study develops a research model based on institution-based view and tests it using structural equation modeling and empirical data collected from 300 manufacturers in China. Findings The results show that institutional support positively affects product and process innovation and firm performance. Both product and process innovation improve firm performance. The findings reveal that dysfunctional competition significantly reduces the positive effects of institutional support on product and process innovation but leaves the effects of institutional support and product and process innovation on firm performance unaffected. Originality/value This study contributes to innovation literature by providing insights into the impact of China’s institutional environment on manufacturing firms’ product and process innovation decisions. The findings also contribute to institution-based view literature by providing empirical evidence on the joint effects of institutional support and dysfunctional competition on product and process innovation and firm performance. This study can help manufacturers in China take advantage of institutional environment and adjust product and process innovation decisions accordingly.

scholarly journals Transformational leadership and employee voice for product and process innovation in SMEs

2021 ◽  
Vol 18 (1) ◽  
pp. 69-89
Author(s):  
Muhammad Athar Rasheed ◽  
Khuram Shahzad ◽  
Sajid Nadeem
Keyword(s):  
Transformational Leadership ◽  
Product Innovation ◽  
Structural Equation ◽  
Process Innovation ◽  
Employee Voice ◽  
Equation Modeling ◽  
Content Type ◽  
Product And Process Innovation ◽  
Product And Process ◽  
The Impact

Purpose This study aims to investigate the impact of transformational leadership on the innovation of small and medium enterprises (SMEs) through employee voice behaviors. Drawing from the upper echelon theory, it is hypothesized that employee voice is the mediating mechanism through which transformational leadership affects the process and product innovation in SMEs. Design/methodology/approach Data was collected from 169 SMEs of Pakistan through an online self-administered questionnaire. The proposed hypotheses were tested using partial least squares structural equation modeling (PLS-SEM). Findings Findings confirm that transformational leadership positively affects both process and product innovation in SMEs and employee voice behavior mediates between these relationships. Originality/value This research contributes to both theoretical and practical domains by providing evidence that encouraging employees to raise their voice positively impacts product and process innovation and transformational leadership is a potential organizational factor to shape employee voice and process and product innovation. To the best knowledge, this is the first study that investigates the mediating role of employee voice between transformational leadership and process and product innovation in SMEs and developing country’s context.

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.

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 A contextual analysis of the impact of strategic sourcing and E-procurement on performance

2015 ◽  
Vol 30 (1) ◽  
pp. 1-16 ◽  
Author(s):  
Minkyun Kim ◽  
Nallan C Suresh ◽  
Canan Kocabasoglu-Hillmer
Keyword(s):  
Firm Performance ◽  
Product Life Cycle ◽  
Structural Equation ◽  
Positive Impact ◽  
Equation Modeling ◽  
Content Type ◽  
Strategic Sourcing ◽  
Research Results ◽  
Positive Effects ◽  
The Impact

Purpose – The aim of this study is to investigate the relationships among strategic sourcing, e-procurement and firm performance, along with the moderating effects of business characteristics and environmental factors on these relationships. Design/methodology/approach – This empirical investigation relies on structured survey responses from 137 managers of US manufacturing firms. The partial least squares-based structural equation modeling approach is used for data analysis. Findings – The research results confirm that both strategic sourcing and e-procurement have a positive effect on firm performance. In addition, e-procurement is also found to have a positive impact on strategic sourcing. In addition, the research results suggest that business characteristics and the environment, especially the degree of competition, market turbulence, firm size and stage in product life cycle moderate these relationships significantly. The positive effects of strategic sourcing and e-procurement on firm performance are particularly enhanced under the right conditions. Originality/value – This research is the first, to the best of our knowledge, to provide insights into the joint effects of strategic sourcing and e-procurement, and how business characteristics and the environment affect their roles on firm performance. In addition, firm performance is evaluated as a multi-dimensional construct involving financial, operational and supply chain aspects, with the measurements consisting of several second-order constructs. The study makes both theoretical and practical contributions.

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.

scholarly journals Market knowledge impacts on product and process innovation: Evidence from travel agencies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kuan-Yang Chen ◽  
Levent Altinay ◽  
Po-Yuan Chen ◽  
You-De Dai
Keyword(s):  
Product Innovation ◽  
Process Innovation ◽  
Equation Modeling ◽  
Market Knowledge ◽  
Content Type ◽  
Travel Agencies ◽  
Product And Process Innovation ◽  
Product And Process ◽  
Knowledge Depth ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between the attributes of market knowledge (depth/breadth) and particular types of (process/product) innovation. The mediating mechanism of ambidextrous (exploratory/exploitative) capabilities is also investigated. Design/methodology/approach Data from 153 travel agencies from two phases of data collection in Taiwan were analyzed using the structural equation modeling method. Findings Market knowledge depth directly and positively impacts product and process innovation. Market knowledge breadth indirectly and positively impacts product and process innovation. Ambidextrous capabilities affect process and product innovation and mediate the effect of market knowledge breadth on the two innovations. Research limitations/implications This study provides different theoretical views, such as dynamic capability and organizational learning, to supplement the explanation of knowledge-based theory in the relationship between market knowledge and innovation. Practical implications This study encourages firms to accumulate market knowledge depth and breadth and facilitate ambidextrous capabilities for innovation. Originality/value Seldom has research explored the relationships between the attributes of market knowledge and types of innovation simultaneously to extend the input-process-output context. This study has done so and forwards the possibility that ambidextrous capability is critical mechanism.

Which intermediate import source is best for innovation in MNEs?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marisa Ramírez-Alesón ◽  
Marta Fernández-Olmos
Keyword(s):  
Probit Model ◽  
External Source ◽  
Process Innovation ◽  
Internal Source ◽  
Intermediate Inputs ◽  
Content Type ◽  
Recursive Bivariate Probit ◽  
Product And Process Innovation ◽  
Product And Process ◽  
The Impact

PurposeThis paper explores the importance of the importing intensity for different intermediate inputs depending on their source (internal sourcing or intra-firm trade versus external sourcing or foreign suppliers) for different types of innovation (product and process innovation) and applied to MNEs (foreign versus domestic).Design/methodology/approachThe sample contains 2,448 firm-year observations (2006–2016) of firms located in Spain that belong to an MNE group. The authors applied a conditional mixed process to a panel recursive bivariate probit model with robust standard errors.Findings The authors obtained three key results. First, intermediate imports do not always contribute to improving innovation, since their effects vary depending on their source. Second, intermediate imports from foreign suppliers (external source) are more advantageous for product innovation than those from intra-firm trade (internal source). Third, intermediate imports from intra-firm trade are more important for process innovation than those from foreign suppliers. Thus, the impact of importing intermediate inputs on innovation is contingent on the source of the imports, the ownership of the MNE and the type of innovation.Originality/valueThe paper contributes to this topic with new insights and results for MNEs. It identifies which import source is best for innovation depending on the type of innovative result expected. Moreover, it helps to uncover simultaneity and causal relationships between product and process innovation, issues which have not previously been considered in the literature.

Market orientation, innovation commercialization capability and firm performance relationships: the moderating role of supply chain influence

2017 ◽  
Vol 32 (7) ◽  
pp. 913-924 ◽  
Author(s):  
Jeen-Su Lim ◽  
William K. Darley ◽  
David Marion
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Market Orientation ◽  
Innovation Management ◽  
Strategy Formulation ◽  
Content Type ◽  
Positive Effects ◽  
The Impact ◽  
Moderating Role

Purpose The study aims to explore supply chain influence (SCI) on the linkages among market orientation, innovation capabilities and firm performance (FP), using the resource-based view as a theoretical backdrop. Design Survey data from 182 top managers who are involved in strategy formulation and innovative direction of their companies was collected and analyzed using moderated multiple regression analysis. Findings Results revealed a moderating role of the SCI in that the proactive market orientation (PMO) and FP relationship is stronger when SCI is high, and innovation commercialization capability (ICC) and FP relationship is stronger when SCI is low. Practical implications Firms pursuing high PMO strategy must collaborate with supply chain function to achieve the full effect of PMO. Additionally, as supply chain is critical to meeting customers’ needs, these firms should allow supply chain to exert greater influence to enjoy the positive effects of PMO in addition to ensuring full integration into marketing strategy implementation. Also, firms with high ICC need to limit SCI to maximize the benefit of ICC on FP, just as innovation management needs to be cognizant of other functional areas. Originality/value The study investigates the potential moderating role of SCI on the relationships among market orientation, ICC and FP. The study fills a gap in the understanding of the nature and role of supply chain in the marketing–supply chain interaction, and the impact on FP.

The consumers’ commitment and materialism on Islamic banking: the role of religiosity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Junaidi Junaidi ◽  
Ready Wicaksono ◽  
Hamka Hamka
Keyword(s):  
Structural Equation ◽  
Survey Study ◽  
Equation Modeling ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Positive Effects ◽  
Islamic Bank ◽  
Muslim People ◽  
The Impact

Purpose This paper aims to investigate whether and how religiosity (e.g. extrinsic and intrinsic) influences the mediator variables (consumers’ commitment and materialism) in the Islamic bank consumers context. It also examines how the mediators should be influence consumers’ preferences. Design/methodology/approach In total, 658 Muslim people and Islamic bank consumers were recruited for a survey study and structural equation modeling was used to test the research hypotheses. Findings The empirical results indicate that religiosity (e.g. extrinsic and intrinsic) has significant and positive effects on consumers’ commitment and materialism, whereas intrinsic religiosity has no significant effect on consumers’ commitment which subsequently influences consumers’ preference. Furthermore, mediator variables (e.g. consumers’ commitment and consumers’ materialism) have partial mediators between religiosity and consumers’ preferences. Research limitations/implications The current study was limited to Indonesian Muslim people; there is a future need to study consumers’ attitudes and engagement in religious products and services (e.g. Islamic brands). It is can help practitioners, regulators and researchers to observe the dynamic behavior to elaborate on the impact of religion and Islamic products on consumers’ preference. Practical implications The bank managers and regulators should enhance the information of products and services Islamic banks and the difference principle between conventional banks. Moreover, enlighten the consumers about the principle operation of Islamic banks from the perspective of marketing and religiosity. Originality/value This study contributes to consumers’ behavior literature and, specifically, for the decision-making process through developing and testing a model of religious determinants toward Islamic bank products, as well as offers new insights into the determinants of religion and consumers’ decision process toward Islamic banking.

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