The double-edged sword of coopetition: differential effects of cross-functional coopetition on product and service innovations

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Man Chen ◽  
Tanya (Ya) Tang ◽  
Siting Wu ◽  
Feng Wang

Purpose Although coopetition has been studied for decades, most prior studies shed light on interfirm coopetition across firms instead of intrafirm coopetition across functional departments within a firm. To fill the research gaps, this study aims to investigate the differential effects of cross-functional coopetition on both product and service innovations and the moderating roles of environmental turbulence. Design/methodology/approach This study surveyed both senior and middle managers from 149 pharmaceutical firms in China. Findings This study discovers the opposite relationships of cross-functional coopetition on product and service innovations such that cross-functional coopetition enhances product innovation but hurts service innovation. Furthermore, market turbulence attenuates the positive effect on product innovation but strengthens the negative effect on service innovation. However, technological turbulence attenuates the negative impact of cross-functional coopetition on service innovation. Originality/value The effects of cross-functional coopetition have been ignored in the innovation literature. By identifying the double-edged sword of cross-functional coopetition, this study contributes to the literature by providing new insights into the differential effects of cross-functional coopetition on product and service innovations.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Feng Wang ◽  
Rong Cao ◽  
Siting Wu ◽  
Man Chen

PurposeThe aim of the study was to investigate the differential effects of interpersonal relationships across functions on product and service innovation, and to examine the moderating role of market competition.Design/methodology/approachThis study was based on a survey of senior and middle managers from 149 pharmaceutical firms in China.FindingsInterpersonal relationships between employees across functions (IR-E) have a stronger impact on product innovation than do interpersonal relationships between managers across functions (IR-M), but IR-M have a stronger impact on service innovation. Market competition strengthens the effects of IR-M on both product and service innovation, but it attenuates the effect of IR-E on service innovation.Originality/valueAlthough the effects of interpersonal relationships across functions are crucial to cross-functional interactions, these effects have received little attention in the literature. By identifying the potential “backfiring” effect of dual-level interpersonal relationships, this study contributes to knowledge of cross-functional relationships. It also deepens understanding of the relationship between cross-functional relationships and organizational innovation, especially in the service setting.


2019 ◽  
Vol 10 (6A) ◽  
pp. 56-63
Author(s):  
Caroline Zimuto ◽  
Maxwell Sandada ◽  
Tinashe Chuchu ◽  
Tinashe Ndoro

The purpose of the research was to examine the impact of environmental turbulence on product innovations in small to medium enterprises (SMEs). In the study environmental turbulence consisted of five dimensions namely, supplier turbulence, technological turbulence, market turbulence, regulatory turbulence and competitive intensity. A cross-sectional quantitative research design was adopted in the study. The study sample was drawn from a pool of 3,000 SMEs both unregistered and registered with the Ministry of Small and Medium Enterprises in Harare, Zimbabwe. In the study, a total of 200 completed surveys were obtained and analysed. To analyse the research data SPSS23 was utilised. Regression analysis was carried out to establish the cause-and-effect relationship between the independent and dependent variables in the study. The findings of the study showed that technology turbulence and competitive intensity had a statistically significant positive impact on product innovation. Market turbulence was noted as having a statistically significant negative impact on product innovativeness. The main implications established in the study were that SMEs should introduce mechanisms to manage and mitigate market, supplier and regulatory turbulence to ensure that their levels of product innovativeness remain positive.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Leandro Lima dos Santos ◽  
Felipe Mendes Borini ◽  
Rafael Morais Pereira

Purpose Companies need guidance on how to operate in turbulent environments to improve their innovative performance. However, few studies have been done specifically about how to market and technological turbulence affects the innovative performance in emerging markets. This paper aims to propose model with market turbulence, technological turbulence and firm’s bricolage behavior as antecedents of organizational innovativeness. Design/methodology/approach Two conceptualizations of the role of environmental turbulence are examined as follows: that market turbulence and technological turbulence are established as direct antecedents to organizational innovativeness performance; and the model has a mediating effect through the bricolage behavior. In this sense, the strengths of the paths differ depending on the presence of bricolage. Data were collected from 215 firms operating in Brazil, analyzed using the partial least squares (PLS)-structural equation modeling (SEM) technique as a quantitative method to test the hypotheses. Findings The results indicate that the mediating effect evidenced by the bricolage behavior was supported. In other words, the path from market and technological turbulence to organizational innovativeness is significantly better when permeated by bricolage behavior in the organization. Research limitations/implications It can be suggested to conduct similar research with larger sample size and applying control variables such as the size of the company, as smaller companies have less access to resources and maybe the engagement in bricolage can be even more substantial for them to keep innovating and to remain competitive in times of turbulence. Practical implications Some managerial recommendations and implications are provided. Managers should recognize the possible improvements in the organizational innovativeness development by actively including the bricolage behavior among their companies’ activities. Originality/value The theoretical contribution to the academic knowledge lies in corroborating with previous studies, which pointed out that bricolage has an influence on a firm’s innovativeness and some studies, which address perspectives in the organizational learning field.


2020 ◽  
Vol 38 (5) ◽  
pp. 653-669
Author(s):  
Feng Wang ◽  
Xinyan Li ◽  
Man Chen

PurposeThe aim of this study is to investigate the differential effects of pure and creative imitation on customer equity and the moderating roles of market contingency (i.e. competition intensity) and institutional contingency (i.e. enforcement inefficiency).Design/methodology/approachA lab experiment with 181 subjects and a survey of both senior and middle managers from 149 pharmaceutical firms in China were conducted.FindingsPure imitation decreases customer equity, but creative imitation increases it. Competition intensity attenuates the negative effect of pure imitation and the positive effect of creative imitation, whereas enforcement inefficiency only attenuates the negative effect of pure imitation.Practical implicationsThe findings have significant implications for managers seeking to implement product imitation strategies in emerging economies. They can help managers understand the effects of two kinds of imitation strategies on customer equity. Furthermore, this shows that product imitation strategies should be aligned with various market and institutional contingencies to achieve better performance.Originality/valueThe authors distinguished between pure and creative imitation. Whereas previous studies have investigated the effects of pure and creative imitation on financial and market performance, the focus was on their differential effects on customer equity and the moderating roles of environmental contingencies at the market and institutional levels.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wilert Puriwat ◽  
Danupol Hoonsopon

PurposeThis study is to compare the impact of organizational agility and flexibility on performance of each type of product innovation (radical vs incremental innovation). Additionally, the moderating effect of technological turbulence on the relationship between the two types of organization is examined.Design/methodology/approachBased on gaps in the existing literature, the survey data are collected from managers who are in charge of developing new products in three industries: food and beverage, chemical and machinery (N = 431). Confirmatory factory analysis is used to verify measurement items and regression analysis is used to test hypotheses.FindingsThe results show that organizational agility increases performance in radical innovation both in a certain situation and an environment with technological turbulence. In contrast, the impact of organizational flexibility is limited to increasing performance in both radical and incremental innovation performance in a certain situation.Originality/valueOur study extends the knowledge of organizational agility and flexibility in the domain of product innovation. Adaptation of organization to respond the technological turbulence will stimulate creativity of new product development teams to produce new useful ideas and transform these ideas to product innovation. The different types of organizing a new product development team to handle technological turbulence will provide different results in product innovation performance. In addition, the findings provide a recommendation on how the organization of a new product development team can improve performance in each type of product innovation under technological turbulence.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xianchun Zhang ◽  
Zhu Yao ◽  
Wan Qunchao ◽  
Fu-Sheng Tsai

Purpose Time pressure is the most common kind of work pressure that employees face in the workplace; the existing research results on the effect of time pressure are highly controversial (positive, negative, inverted U-shaped). Especially in the era of knowledge economy, there remains a research gap in the impact of time pressure on individual knowledge hiding. The purpose of this paper is to explore the impact of different time pressure (challenge and hindrance) on knowledge hiding and to explain why there is controversy about the effect of time pressure in the academics. Design/methodology/approach The authors collected two waves of data and surveyed 341 R&D employees in China. Moreover, they used regression analysis, bootstrapping and Johnson–Neyman statistical technique to verify research hypotheses. Findings The results show that challenge time pressure (CTP) has a significant negative effect on knowledge hiding, whereas hindrance time pressure (HTP) has a significant positive effect on knowledge hiding; job security mediates the relationship between time pressure and knowledge hiding; temporal leadership strengthen the positive impact of CTP on job security; temporal leadership can mitigate the negative impact of HTP on job security. Originality/value The findings not only respond to the academic debate about the effect of time pressure and point out the reasons for the controversy but also enhance the scholars’ attention and understanding of the internal mechanism between time pressure and knowledge hiding.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rui Wang ◽  
Liqiong Liu ◽  
Yu Feng

PurposeThe mechanism of marketing strategy style and its impact on firms are research issues received wide attention. In particular, the aggressive style of marketing strategy has been chosen by many companies, but recent studies have shown that it has a negative effect on corporate performance. This leads to the core issue of this paper – does the aggressive style of marketing strategy always had a negative impact on corporate performance? Are there any factors that can alleviate this negative impact?Design/methodology/approachBased on the resource-based theory and agency theory, this paper takes the Growth Enterprise Market (GEM) listed companies as the research objects, collects secondary data and conducts the research by regression model.FindingsThe empirical research shows that: (1) the aggressive style of marketing strategy significantly and negatively affects the performance of firm; (2) the resource constraint can moderate the main effect and resource control play a weak adjustment role.Practical implicationsIn practice, this paper confirms the adverse impact of aggressive style of marketing strategy on the performance of listed companies on GEM and inspires the industry to strengthen the control and supervision of marketing resources.Originality/valueThis paper makes up for the research gap in the field of cross-research in finance and marketing theoretically.


2019 ◽  
Vol 53 (12) ◽  
pp. 2604-2628 ◽  
Author(s):  
Manveer K. Mann ◽  
Yuping Liu-Thompkins

Purpose This study aims to examine gender differences in the impact of imagining product use on purchase decisions. The authors argue that while imagination can enhance purchase intention for female consumers, it can be detrimental to male consumers. This study explores the conditions under which imagination can be turned into a positive device for male consumers. Design/methodology/approach Three experimental studies were conducted. The first two studies illustrate the differential effects of imagination on males vs females. Given the negative effect found among males, the third study focused exclusively on male consumers to identify conditions under which the negative impact of imagination on these consumers can be alleviated. Findings Studies 1 and 2 show that while an imagination tactic has positive or no effect on female consumers, a generic imagination request lowers male consumers’ purchase intention. Focusing on potential ways of alleviating this negative effect, Study 3 shows that for males without prior brand ownership experience, imagining product use in a less-typical context can increase purchase intention. Research limitations/implications The results provide evidence that gender impacts the effectiveness of imagination in improving product evaluation. Furthermore, the context of imagination and previous brand experience can be used together to determine how male consumers respond to imagination. Practical implications The study’s findings warn against the blind use of imagination tactics. Instead, retailers need to customize imagination tactics based on gender, previous brand experience and product usage context. Originality/value To the best of the authors’ knowledge, this is one of the first papers to examine the impact of gender on the influence of imagination on product evaluation.


2019 ◽  
Vol 22 (3) ◽  
pp. 446-467 ◽  
Author(s):  
Adeel Tariq ◽  
Yuosre Badir ◽  
Supasith Chonglerttham

Purpose The purpose of this paper is to investigate the influence of green product innovation performance (GPIP) on a firm’s financial performance (i.e. a firm’s profitability and risk). In addition, it has adopted the resource-based view and contingency theory to explore how GPIP and a firm’s financial performance relationship is manifested when subject to the moderating role of a firm’s market resource intensity and certain environmental factors, such as technological turbulence and market turbulence. Design/methodology/approach Data were collected from 202 publicly listed Thai manufacturing firms. This research has used hierarchical regression analyses to empirically test the proposed research hypotheses. Findings The findings reveal that GPIP exerts a significant influence on a firm’s financial performance, i.e. higher the GPIP, higher the firm’s profitability and lower the firm’s financial risk. Moreover, findings support the theoretical assertions that the higher level of market resource intensity, market turbulence and technological turbulence further strengthens GPIP and a firm’s financial performance relationship. Originality/value By considering the independent moderating role of market resource intensity, market turbulence and technological turbulence, this research has contributed to reconcile the previously disparate findings regarding the GPIP and a firm’s financial performance relationship. Moreover, this research has highlighted the role of the essential moderators that business managers must understand and adjust to capitalize on and achieve superior financial performance.


2020 ◽  
Vol 11 (2) ◽  
pp. 299-315 ◽  
Author(s):  
Yanyu Chen ◽  
Wenzhe Zheng ◽  
Yimiao Huang

Purpose The purpose of this paper is to use difference-in-difference method (DID) to study the influences of independent directors’ political connection on firm value. Design/methodology/approach File No. 18 by the Organization Department of the Communist Party of China Central Committee requires that the leading cadres in party and government offices are not allowed to act as independent directors; this restriction applies to retired officials as well. As a result, many listed companies lose the political connections of officers as independent directors. This paper takes it as an exogenous shock to evaluate the influence of the political connection of independent directors on firm value, effectively alleviating the endogeneity problem existing in previous studies. Findings The research finds the following: under the policy of compelled resignation, the loss of political connection of independent directors has a prominent negative impact on firm value; and compared to state-owned enterprises, the firm value of private enterprises receives a greater negative impact. However, the political advantage of state-owned enterprises is not obviously influenced. In the regions with worse external market environments, due to a greater reliance on resources brought about by political connection, the policy has a much greater influence on their listed companies. Research limitations/implications The study faces several limitations, each of which represents a potential research direction. First, our analysis is based on the policy effects on the firm’s current Tobin’s Q and finds a negative effect of losing political connections. However, the long-term effects are still unclear, as some studies find a negative effect of political connections. Second, the paper focuses on one channel in which political connections may affect firm value. Other channels, such as subsidies and loans from state-owned banks, which need more granular data, should be explored in the future. Practical implications The use of DID model can better objectively evaluate the implementation effects of ban policies and alleviate endogenous problems, which is also enlightening for further perfection of the system of independent directors in the A-share market. Social implications It enriches existing researches of the value of independent directors from the perspective of political connection, which is conducive to understanding the influence and channel on the firm value after the loss of political connection and the value of independent directors in the corporate governance in a more comprehensive and accurate manner. Originality/value This paper extends the relevant research on the value of the political connection of independent directors from the perspective of political connection and enlightens the evaluation of the effect of ban policies.


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