Innovation capability configuration and its influence on the relationship between perceived innovation requirement and organizational performance

2018 ◽  
Vol 29 (8) ◽  
pp. 1316-1331 ◽  
Author(s):  
Ming-Feng Su ◽  
Kuo-Chih Cheng ◽  
Shao-Hsi Chung ◽  
Der-Fa Chen
Keyword(s):  
Organizational Performance ◽  
Product Innovation ◽  
Information Quality ◽  
Process Innovation ◽  
Innovation Strategy ◽  
Innovation Capability ◽  
Manufacturing Companies ◽  
Content Type ◽  
Innovation Capacity ◽  
The Relationship

Purpose When the management of an information technology (IT) manufacturing firm perceives a need for innovation due to any threat in the external environment, it will be prompted to use organizational resources to support innovation and improve organizational performance through the implementation of the innovation. The purpose of this paper is to explore whether an IT manufacturing firm’s budget slack, information quality of information system (IS), process innovation and product innovation would interact to collectively form an innovation capacity, which is termed “innovation capability configuration (ICC)”, and whether ICC mediates the relationship between perceived innovation requirement and organizational performance. Design/methodology/approach To answer these questions, a structural equation model was built and a questionnaire survey was conducted to collect data from research and development and production managers of IT manufacturing companies listed on the Taiwan Stock Exchange and Over-The-Counter markets. Findings The results showed that budget slack, IS information quality, process innovation and product innovation are all significantly related to ICC, in which high-quality information and low level of budget slack are the key factors that underpin the innovation capacity. In addition, ICC has a full mediation effect, that is, perceived innovation requirement positively influences ICC, which, in turn, improves organizational performance. Research limitations/implications Because all items in a questionnaire were answered by a manager, the common method variance might exist in this study. In addition, the effective recovery rate of the questionnaire was not high due to which the non-response bias might occur. Following the research limitations, several future research recommendations are proposed. Practical implications This study offers managerial implications for the development of an IT manufacturing firm’s innovation strategy and structure to smooth the implementation of innovation in the severe environment. Originality/value The study is the first attempt to integrate the four elements clearly illustrating the ICC, which is a more complete innovation strategy, thus contributing to improve the past fragmental studies and clarify some controversial points existing in the extant innovation research.

The relationship between innovation and total quality management and the innovation effects on organizational performance

2017 ◽  
Vol 34 (9) ◽  
pp. 1474-1492 ◽  
Author(s):  
Marina Godinho Antunes ◽  
Joaquín Texeira Quirós ◽  
Maria do Rosário Fernandes Justino
Keyword(s):  
Quality Management ◽  
Total Quality Management ◽  
Financial Performance ◽  
Organizational Performance ◽  
Product Innovation ◽  
Process Innovation ◽  
Total Quality ◽  
Content Type ◽  
Innovation Strategies ◽  
The Relationship

Purpose The purpose of this paper is to analyze the relationship between innovation and total quality management (TQM), and also to identify the effects of innovation on organizational performance. This research proposes a conceptual model that intends to study several research hypotheses. Design/methodology/approach The data were obtained through an online questionnaire, sent to small- and medium-sized Portuguese companies, having being conducted the study based on responses received from 287 valid questionnaires, and using a multivariate statistical analysis for statistical development. Findings The findings indicate that companies that adopt strategies of process innovation get improvements in their performance, both operationally and financially, while product innovation only provides improvements in the financial performance of organizations. It was also found that TQM practices encourage the definition of innovation strategies of products and processes. On the other hand, it was found that only companies that adopt innovation strategies of their processes promote the adoption of TQM practices, and there is a statistically significant relationship between product innovation and the implementation of TQM practices. Originality/value This research analyzed the dimensions studied in different aspects. It considered product innovation and process innovation, and with respect to performance, this dimension was analyzed through two different perspectives, namely, financial performance and operational performance. This research also provides a particular contribution to the literature with the analysis of the interdependencies between innovation and TQM in small- and medium-sized Portuguese companies.

The mediating role of product and process innovations on the relationship between knowledge management and operational performance in manufacturing companies in Jordan

2017 ◽  
Vol 23 (2) ◽  
pp. 349-376 ◽  
Author(s):  
Ahmad Fathi Al-Sa’di ◽  
Ayman Bahjat Abdallah ◽  
Samer Eid Dahiyat
Keyword(s):  
Knowledge Management ◽  
Product Innovation ◽  
Process Innovation ◽  
Operational Performance ◽  
Manufacturing Companies ◽  
Content Type ◽  
Process Innovations ◽  
Product And Process ◽  
The Relationship

Purpose The purpose of this paper is to investigate the effects of knowledge management (KM) on product and process innovations, as well as on operational performance (OP). In addition, the effects of product and process innovations on OP, as well as their mediating effects on the relationship between KM and OP, are also investigated. Design/methodology/approach A questionnaire-based survey was designed and used to collect data from 207 manufacturing companies operating in the Jordanian capital Amman. To assess construct validity, exploratory and confirmatory factor analyses were conducted. To test research hypotheses, the bootstrap re-sampling method was applied using Hayes’s SPSS multiple-mediator PROCESS macro. Findings The results indicate that KM has significant positive effects on product and process innovations, and OP. Process innovation was found to have a significant positive effect on OP, while product innovation was not. Furthermore, only process innovation was found to significantly mediate the KM-OP relationship. Practical implications The findings of this study provide useful insights about the role of KM in facilitating and enhancing product and process innovations, as well as OP in the surveyed manufacturing companies. An important implication concerns the roles of product and process innovations. Manufacturing companies seeking improvements in their OP are recommended to focus on process innovation rather than product innovation. While product innovation may affect other aspects of performance, such as market and financial ones, it was not found to significantly affect OP. Process innovation can also leverage KM’s contribution to manufacturing companies’ OP. Originality/value This is a pioneering study in that it developed an integrated model that depicts the interrelationships among KM, product innovation and process innovation and OP, in a developing country context.

Innovation mediating relationship between TQM and performance: cases of industrial certified companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Meriem Khalfallah ◽  
Anis Ben Salem ◽  
Hajer Zorgati ◽  
Lassaad Lakhal
Keyword(s):  
Financial Performance ◽  
Product Innovation ◽  
Process Innovation ◽  
Reciprocal Relationship ◽  
Mediating Effect ◽  
Operational Performance ◽  
Equation Modeling ◽  
Manufacturing Companies ◽  
Content Type ◽  
Research Studies

PurposeThe purpose of this research is to analyze the reciprocal relation between total quality management (TQM) and innovation (product innovation and process innovation) and their impact on operational and financial performance.Design/methodology/approachThe data were obtained from a survey of 205 manufacturing companies. Structural equation modeling (SEM) was performed to evaluate the research model.FindingsThe results reveal that there is a reciprocal relationship between TQM and innovation. Moreover, the findings indicate a significant positive effect of product innovation and process innovation on operational performance and insignificant direct impact of TQM on operational performance. However, this effect is significant when it is mediated through product innovation and process innovation.Research limitations/implicationsThis paper helps practitioners to understand how TQM practices support both product and process innovation and the role of the latter in promoting the implementation of TQM practices and ensuring operational performance.Originality/valueThis study presents an innovative approach since it is among the first research studies that provide empirical evidence to a reciprocal association between TQM and innovation. Additionally, this paper examines the dimensions studied in different aspects. It considered financial performance and operational performance, and with respect to innovation, this dimension was analyzed through two different perspectives, namely product innovation and process innovation. This study is also among the first and few research studies that have studied the mediating effect of innovation.

Network activities as critical sources of creating capability and competitive advantage

2019 ◽  
Vol 58 (3) ◽  
pp. 544-568 ◽  
Author(s):  
Chih-Hsing Liu ◽  
Angela Ya-Ping Chang ◽  
Yen-Po Fang
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Competitive Advantage ◽  
Organizational Performance ◽  
Innovation Capability ◽  
Content Type ◽  
Political Ties ◽  
Depth Analysis ◽  
The Relationship ◽  
Business Ties

Purpose The purpose of this paper is to propose a new integrated model that combines the concepts of network ties (e.g. political ties and business ties), the organization of internal critical attributes (such as social capital, human capital and innovation capability) and analyses of how those critical attributes influence organization performance and competitive advantage. Design/methodology/approach A structural equation model and three-way interactions in moderated multiple regressions was used to test the hypotheses on a sample of 621 cultural and creative industry (CCI) managers in Taiwan. Findings The results indicate that human capital mediates the relationship between social capital and innovation capability. Furthermore, innovation capability also plays a mediating role in connecting the relationships between human capital, competitive advantage and organizational performance. The findings indicate that business ties strengthen the relationship between social and human capital. The level of human capital is at its peak when social capital, business ties, and political ties considerably interact with one another. Research limitations/implications The present study conceptualized the topic and systematized the questionnaire design and data collection, statistical analysis, and report writing. This study performs a systematic analysis to present the research but does not employ in-depth qualitative interviews to analyse the essential attributes of the different entrepreneurial styles. In-depth interviews enable the interviewees to completely depict their feelings, experiences, motivations, emotions and attitudes. Thus, this method can provide an in-depth analysis. Studies can be conducted to analyse the complexity of the processes involved. Practical implications This study determines and emphasizes that networking with various factors to create innovation is the key to enhancing competitive advantage and organizational performance. Innovation is a unique characteristic and a basic kinetic energy that affects various strategic organizational behaviours that positively influence competitive advantage and facilitate organizational performance. Hence, CCI firms need to consider market orientation and innovation in this highly competitive environment. Originality/value To the best of the knowledge, how CCI firms use networking sources to create competitive advantage and organizational performance, thereby promoting the development of the CCIs of Taiwan, has not been analysed in the tourism-related literature. Thus, the present study provides a significant contribution to the human capital literature, in which empirical research analyses the three-way interaction and demonstrates the empirical insights that may be used to study human capital. The findings reported in this study will encourage future researchers to employ multilevel human capital perspectives.

The moderating effect of motivations on the relationship between obtaining ISO 9001 certification and organizational performance

2015 ◽  
Vol 27 (5) ◽  
pp. 503-518 ◽  
Author(s):  
Changiz Valmohammadi ◽  
Mohsen Kalantari
Keyword(s):  
Organizational Performance ◽  
Structural Equation ◽  
Iso 9000 ◽  
Equation Model ◽  
Service Industries ◽  
Iso 9001 ◽  
Manufacturing Companies ◽  
Cross Sectional ◽  
Content Type ◽  
The Relationship

Purpose – The purpose of this paper is threefold, first to investigate if ISO 9001 certified companies in an Iranian province (Kermanshah) perform better than non-certified ISO 9001. Second, what is the main motivation of the manufacturing companies of Kermanshah province on obtaining ISO 9001 certification, i.e., internal or external motivations. And finally, if ISO 9001 certified companies with high scores of internal motivations, show better levels of performance in comparison with certified companies obtaining low scores of internal motivations. Design/methodology/approach – A survey questionnaire was distributed to the 350 companies with ISO 9000 certification, and a total of 287 usable responses were returned. Using a structural equation model, this study empirically examines the relationship between ISO 9000 implementation and firm performance, and the moderating role of firm motivation on organizational performance. Findings – The results demonstrate that ISO 9001 certified companies show better organizational performance than non-certified ISO 9001 companies and internal motivations play more important role on obtaining ISO 9001 certificate than external motivations. Also ISO 9001 certified companies with high scores of internal motivations show better levels of performance than those ISO 9001 certified companies with low scores of internal motivations. Research limitations/implications – The sample is restricted to only a single region and manufacturing, so it would be strongly recommended that data be gathered from various parts of Iran including both manufacturing and service industries. As in this study the data gathered were cross-sectional, it is recommended in order to gain deeper understanding of the cause-and-effect relationship among the variables data to be gathered longitudinally. Originality/value – This study represents a first attempt to construct a conceptual framework that integrates the motivations behind implementing ISO 9000 certification, and ISO 9000 performance in the context of Iran and gives a particular focus on the Iran manufacturing companies.

When can B2B firms improve product innovation capability (PIC) through customer participation (CP)? The moderating role of inter-organizational relationships?

2019 ◽  
Vol 34 (1) ◽  
pp. 12-23 ◽  
Author(s):  
Jing Zhang ◽  
Miao Zhu
Keyword(s):  
Product Innovation ◽  
Affective Commitment ◽  
Mainland China ◽  
Customer Relationship ◽  
Customer Participation ◽  
Dependence Structure ◽  
Innovation Capability ◽  
Content Type ◽  
Improve Product ◽  
The Relationship

Purpose When can B2B firms improve product innovation capability (PIC) through customer participation (CP)? The purpose of this paper is to shed light on this interesting question by providing a framework to interpret how interorganizational relationships (IORs), including customer relationship commitments, firm’s relational capability and bilateral dependence structure moderate the relationship between CP and PIC. Design/methodology/approach A questionnaire survey is conducted among 376 business to business (B2B) firms located in mainland China. Six hypotheses on how IORs moderate the CP–PIC relationship are examined using hierarchical regression analysis technique. Findings The empirical research reveals that CP positively impacts PIC of B2B firms, which will be strengthened when either customer affective commitment, supplier’s relational capability or total interdependence is high. In addition, the relationship between CP and PIC weakens as customer’s calculative commitment or interdependence asymmetry strengthens. Originality/value This study enriches customer participation literature by highlighting the PIC outcomes of CP and examining the complex and contingent roles of the buyer–supplier relationship in moderating CP’s impact upon PIC.

Innovation strategy and performance of international technology services ventures

2015 ◽  
Vol 26 (4) ◽  
pp. 548-564 ◽  
Author(s):  
Nelson Oly Ndubisi ◽  
Celine Marie Capel ◽  
Gibson C Ndubisi
Keyword(s):  
Standard Procedure ◽  
Process Innovation ◽  
Innovation Strategy ◽  
Service Firms ◽  
Trade Off ◽  
Content Type ◽  
New Knowledge ◽  
Technology Services ◽  
And Performance ◽  
The Relationship

Purpose – The purpose of this paper is to investigate the moderating role of structural autonomy in the relationship between innovation strategy and performance of international technology services ventures (ITVs). Design/methodology/approach – Data were collected from 200 ITVs serving markets outside their country of origin. Instrumentation followed standard procedure by adapting validated and parsimonious items from existing literature. Factor and hierarchical multiple regression analyses were applied to examine the hypothesised relationships. Findings – The results indicate a significant relationship between innovation strategy (namely service products innovation, process innovation and administrative innovation) and performance of ITVs. Structural autonomy moderates the relationship between process innovation, administrative innovation and performance. There is no moderating effect of autonomy in the association of service products innovation and performance. Research limitations/implications – The study corroborates the argument that service firms have more to gain by granting autonomy. In the context of ITVs, such gains are directly linked to performance through enhanced innovation in service products, processes and administration. It adds to the growing suggestions and rebuttals in the literature of a trade-off between innovation and communication; and between exploration of new knowledge and exploitation of existing knowledge in organisations when there is autonomy. Practical implications – Management can increase innovation and performance by granting greater autonomy to employees. Managers who are concerned that autonomy’s capacity to increase innovation capability may come at the expense of intra-organisational communication can be assured that intra-organisation communications can exist in the face of autonomy, and there is no real trade-off after all. Similarly, there is no basis for any concern for potential trade-off between exploration of new knowledge and exploitation of existing knowledge in organisations. Originality/value – Research suggests that autonomy of subsidiaries, units, groups or individuals encourages innovation, and that innovation strategy can enhance organisational performance. However, there is a counter-argument that same autonomy potentially hinders exploitation and performance of innovations. The study sheds more light on these anecdotal views based on data from ITVs.

scholarly journals Do all elements of intellectual capital matter for organizational performance? Evidence from Russian context

2016 ◽  
Vol 17 (2) ◽  
pp. 397-412 ◽  
Author(s):  
Tatiana Andreeva ◽  
Tatiana Garanina
Keyword(s):  
Organizational Performance ◽  
Intellectual Capital ◽  
Cultural Context ◽  
Developed Countries ◽  
Manufacturing Companies ◽  
Managerial Implication ◽  
Content Type ◽  
Structural Capital ◽  
The Relationship ◽  
Further Development

Purpose – Intellectual capital (IC) has been argued to be the key element of value creation in contemporary economies and this argument has been widely supported by empirical research, but mainly based on data from developed markets. The question of how IC and its elements work in other contexts remains under-researched and the limited empirical evidence that exists contradicts the conclusions drawn from developed countries. The purpose of this paper is to provide empirical insight into the relationship between three main elements of IC (human, relational and structural) and organizational performance in the particular context of Russian manufacturing companies. Design/methodology/approach – The sample comprises 240 Russian manufacturing companies. The data are collected by survey using the scales already validated in the international context. The authors use a two-step analysis – factor and regression analyses – to answer the research questions. Findings – The findings demonstrate that structural and human capitals positively influence organizational performance, explaining a quarter of its variation, while relational capital does not. Practical implications – The core managerial implication of this study is that developing structural capital is of particular importance for Russian manufacturing companies. Originality/value – The paper contributes to further development of IC theory by investigating its application in the new institutional and cultural context of Russia.

Mastering innovation in the manufacturing sector

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Product Innovation ◽  
Manufacturing Sector ◽  
Service Innovation ◽  
Process Innovation ◽  
Manufacturing Companies ◽  
Content Type ◽  
Essential Condition ◽  
Digital Service ◽  
Positive Effects ◽  
Machinery Manufacturing

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper concentrates on understanding the types of innovation that can boost the profit margins of manufacturing companies in Spain. Digital service innovation can be a welcome factor that meshes with product innovation and process innovation, to enhance profits within defined manufacturing sub-sectors – namely computer manufacturing and machinery manufacturing. These processes should be introduced and pursued simultaneously, as an essential condition for producing positive effects on profitability. In other sub-sectors, the digital service innovation isn't required, since this merely adds a neutral impact to the profit-driving effects of the effective duo of process innovation and product innovation. Originality/value The briefing saves busy executives, strategists and researchers’ hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Effect of environmental management accounting practices on organizational performance: role of process innovation as a mediating variable

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ria Nelly Sari ◽  
Aura Pratadina ◽  
Rita Anugerah ◽  
Kamaliah Kamaliah ◽  
Zuraidah Mohd Sanusi
Keyword(s):  
Environmental Management ◽  
Organizational Performance ◽  
Management Accounting ◽  
Environmental Issues ◽  
Process Innovation ◽  
Mediating Effect ◽  
Manufacturing Companies ◽  
Content Type ◽  
Environmental Management Accounting

PurposeThis study aims to determine (1) the effect of environmental management accounting on organizational performance and (2) the mediating effect of process innovation on the relationship between environmental management accounting and organizational performance.Design/methodology/approachThis research uses survey methods designed for management accountants of large manufacturing companies in Indonesia. Data from 123 respondents were analyzed using the WarpPLS.FindingsThe implementation of environmental management accounting exerted a positive effect on organizational performance. It is evident that the implementation of environmental management accounting encourages companies to innovate processes which will improve how well the organization performs.Research limitations/implicationsThese findings still contained several limitations such as data were only collected from one province in Indonesia, and so the findings might not be generalizable to other provinces in Indonesia. Also, the number of variables studied only involved three. The study only focused on certain dimensions of environmental management accounting without considering other dimensions in-depth.Practical implicationsThese findings extend the literature on environmental management accounting and demonstrate, from a practical perspective, environmental management accounting (EMA), which prioritizes the environment, will encourage companies to innovate their processes so that they are more environmentally friendly; EMA recognizes the important role of accountants in managing environmental issues.Originality/valueThis study documents the importance of environmental management accounting to assist companies in getting accurate information on environmental issues and environmental costs.

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