From knowledge sourcing to firms’ productivity: investigating innovation value chain of Indonesian manufacturing firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Arif Hartono ◽  
Arif Singapurwoko

Purpose The purpose of this paper is to investigate the innovation value chain (IVC) that encompasses knowledge sourcing, transformation and exploitation activities among Indonesian manufacturing firms by using data from the Indonesia Innovation Survey. Design/methodology/approach A simple approach of single equation Probit model, Logit regression and Tobit regression are used in the first, second and third stages of IVC consecutively. Findings This study finds the existence of a synergistic relationship between internal and external sources of knowledge as well as among external sources of knowledge. In terms of the second link of the IVC, internal R&D plays an important role that positively influences knowledge transformation into all types of innovation and innovation success. External knowledge that has a similar pattern in shaping innovation mainly comes from market and open sources. Scientific institutions tend to contribute to innovation negatively, and few positive impacts on process innovation are observed from government R&D and non-profit R&D institutions. Informal knowledge is more likely to influence technological than non-technological innovation. Research limitations/implications Finally, the limitations of this study need to be acknowledged. Issues related to firms’ sectors have not been discussed in this study, and as a result, sectors’ effects on the three links of IVC cannot be detected. This study is a cross-sectional in nature, as a result, the dynamic of Indonesian manufacturing firms’ IVC is missing. Hence, future studies may address this limitation by conducting a longitudinal study. Originality/value This study is different from the previous IVC studies owing to the following reasons. Firstly, in this study, a broader source of knowledge is tested. Secondly, the wider innovation (technological and non-technological innovation) is also assessed.

2019 ◽  
Vol 23 (7) ◽  
pp. 1245-1259 ◽  
Author(s):  
Mir Dost ◽  
Munwar Hussain Pahi ◽  
Hussain Bakhsh Magsi ◽  
Waheed Ali Umrani

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.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdullah Fahad AlMulhim

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.


Author(s):  
Laura Zapata Cantú ◽  
José Luis Pineda

The overall aim and contribution of this chapter is to identify the main sources of knowledge generation in Mexican firms and the organizational elements that are relevant in this process. Knowledge generation occurs through external knowledge acquisition and internal knowledge creation. The latter process is facilitated by personal motivation and the learning opportunities it offers to the organization's employees, who play a key role as initiative and suggestion carriers. In order to evaluate the phenomenon under study, which the literature review reflects as an incipient stage, an exploratory study was conducted. Several interviews were conducted in 23 firms. The results show how knowledge generation activities differ among services and manufacturing firms in 23 Mexican organizations. Services firms emphasize course socialization, meetings, customers and outsourcing, manufacturing in customers, and employee self-directed learning.


2015 ◽  
Vol 117 (1) ◽  
pp. 412-430 ◽  
Author(s):  
Virginie Marie Lefebvre ◽  
Hans De Steur ◽  
Xavier Gellynck

Purpose – The purpose of this paper is to examine the role that different external sources of knowledge play in product, process, market and organizational innovations in food SMEs. Design/methodology/approach – This study is based on a web-survey of 214 food European SMEs. Binary logistic regression models were utilized for data analysis. Findings – The findings support the recent studies that suggest that the introduction of different types of innovation is associated with different types of source of knowledge. They indicate that collaboration with customers matter for product innovations in food SMEs while collaboration with competitors is more important for organizational innovations in this type of firm. In addition, collaboration with science base actors does not appear relevant to innovation in food SMEs, supporting previous works that highlight the predominant role of market base actors in innovation in this type of firm. Research limitations/implications – In line with previous research on innovation in SMEs, the generalization of the findings to all European food SMEs may be limited due to the low response rate and the difficulties in collecting innovation data from micro-firms. Data used in the study were gathered from single informants also which may have resulted in self-report bias. Besides, cross-sectional data were employed so no causal inferences could be drawn. Originality/value – Although the food industry is a major sector for the European economy, little attention has been given to the sources of knowledge that may be used for innovation in this industry. This paper offers interesting insights into the importance of external sources for innovation. Moreover, past research dealing with collaboration for innovation usually focus on product and process innovations. The paper adds to these by incorporating market and organizational innovations.


2014 ◽  
Vol 18 (2) ◽  
pp. 430-446 ◽  
Author(s):  
Nieves L. Díaz-Díaz ◽  
Petra de Saá Pérez

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.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marco Opazo-Basáez ◽  
Ferran Vendrell-Herrero ◽  
Oscar F. Bustinza

PurposeExisting innovation frameworks suggest that manufacturing firms have traditionally developed a complementary model of technological innovations comprising process and product innovations (e.g. Oslo Manual). This article presents digital service innovation as a novel form of technological innovation that is capable of enhancing the performance of firms in certain manufacturing industries.Design/methodology/approachDrawing on technological innovation and digital servitization fields of research, this study argues that digital service innovation, in manufacturing contexts, complements traditional sources of technological innovation, so increasing the profit margins of firms. This effect is significant in industries characterized by business-to-business contexts, high presence of link channels and long product life spans (e.g. manufacturing and computer-based industries). Predictions are tested on a unique sample of 423 Spanish manufacturing firms using parametric (t-test) and nonparametric (fuzzy-set qualitative comparative analysis, fsQCA) approaches.FindingsThe results of this analysis show that a necessary condition so that manufacturing firms can increase profits is the deployment of simultaneous process and product innovations. It also reveals that optimal configuration requires that digital service innovation be undertaken, particularly in machinery and computer-based manufacturing industries. Hence, all three sources of technological innovation are brought together in order to reach the highest levels of company performance. The evidence suggests that technological innovation and digital servitization are closely interrelated in highly innovative manufacturing contexts.Originality/valueThis study's originality and value reside in the fact that it reveals the existence of firms incorporating digital service innovation – a new, technological innovation dimension that challenges existing innovation frameworks – to complement traditional technological innovation sources, namely process and product innovation. Moreover, the study conceptualizes and empirically tests the value-adding role of digital services in firms' technological innovation portfolio.


2017 ◽  
Vol 21 (6) ◽  
pp. 1523-1539 ◽  
Author(s):  
David Doloreux ◽  
Ekaterina Turkina

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.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sarah Eyaa ◽  
Ramaswami Sridharan ◽  
Suzanne Ryan

Purpose The purpose of this paper is to propose a conceptual model investigating the impact of three constructs, environmental uncertainty, power asymmetry and information sharing on opportunism engagement in exchange relationships. Design/methodology/approach Data were collected from procurement or sales managers of 99 manufacturing firms in Kampala, Uganda’s capital using a cross-sectional survey. Hypotheses were tested in both the agricultural and non-agricultural manufacturing sectors using multiple regression runs in the SPSS software. Findings Environmental uncertainty increases opportunism in the agricultural sector whilst power asymmetry increases opportunism in the non-agricultural sector. Across both sectors, information sharing does not have a significant impact on opportunism. Originality/value This paper contributes to a deeper understanding of opportunism in a developing country context by highlighting the contextual factors within the agricultural and non-agricultural manufacturing sectors that influence opportunism engagement under conditions of environmental uncertainty, power asymmetry and information sharing. This paper presents implications for practice and policy to minimise opportunism with the goal of enhancing the participation of Ugandan manufacturing firms in global supply chains.


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