FOREIGN TECHNOLOGY LICENSING AND FIRM INNOVATION IN ASEAN: THE MODERATING ROLE OF EMPLOYEE TRAINING AND R&D

2020 ◽  
pp. 1-28
Author(s):  
DUNG NGUYEN-VAN ◽  
CHIA-HUA CHANG
Keyword(s):  
Empirical Studies ◽  
Employee Training ◽  
Ordinal Regression ◽  
Technology Licensing ◽  
Foreign Technology ◽  
Firm Level ◽  
Firm Innovation ◽  
Ordinal Regression Model ◽  
Research Stream

The study investigates the role of foreign technology licensing and the moderating effects of employee training and research and development (R&D) on the foreign technology licensing–innovation relationship in Association of South East Asian Nations (ASEAN). This research focus is important because prior works on this research stream tend to concentrate on large economies such as China, while little has been done to examine this issue at the firm level in the ASEAN context. Moreover, no empirical studies to date have investigated the moderating effect of employee training, as a proxy for absorptive capacity, on the foreign technology licensing–firm innovation relationship. The study utilizes several novel ordinal regression models to address some popular limitations of the standard ordinal regression model. In addition, the propensity score matching (PSM) method is utilized to account for the endogeneity problem. The study is based on data from the Enterprise Surveys conducted by the World Bank in 2015–2016. The empirical results reveal that foreign technology licensing is positively associated with innovation at a higher degree of radicalness. Furthermore, both employee training and R&D positively moderate the foreign technology licensing–innovation relationship.

The effect of industry association on firm innovation in Chinese private ventures

2019 ◽  
Vol 57 (9) ◽  
pp. 2414-2435
Author(s):  
Wenge Zhang ◽  
Jun Li ◽  
Yiyuan Mai
Keyword(s):  
Moderating Effects ◽  
Firm Level ◽  
Firm Innovation ◽  
Data Set ◽  
Industry Association ◽  
Content Type ◽  
Emerging Industries ◽  
Practical Implications ◽  
Firm Learning

Purpose The purpose of this paper is to examine the relationship between industry association membership and firm innovation in Chinese private ventures. A secondary objective is to investigate potential moderating effects of firm learning practices and founder characteristics on the above relationship, and to draw out implications for policymakers and practitioners. Design/methodology/approach The paper utilizes data from a sample of 567 Chinese entrepreneurial firms operating in 9 designated emerging industries. Hierarchical regression models were employed to analyze the effect of industry association membership on firm innovation, and the potential moderating effects. A 2SLS procedure was adopted to control for potential endogeneity issue. Supplemental analyses were conducted to ensure the robustness of the findings. Findings The paper provides empirical insights about how industry association membership, along with firm learning practice and founder leadership, affect firm innovation in Chinese private ventures in emerging industries. It suggests that industry association membership positively affects firm innovation. Further, there is a three-way interaction effect of industry association membership, learning practice and founder power on innovation. Research limitations/implications Due to the design of the data set, there are some limitations. First, the study only considered whether a firm belongs to an industry association, but not the nature of such membership (length, firm status in the association, etc.). Second, the cross-sectional design may limit the power of the study to make casual implications about the tested relationships. Practical implications The paper provides important practical implications for policymakers and entrepreneurs in China. In general, the results suggest that private ventures pursuing innovation in emerging industries can benefit from industry associations, and entrepreneurs shall actively engage in firm-level and personal-level learning. For policymakers, the study suggests that to foster innovation in an emerging industry, special attention shall be paid to building necessary institutional support to develop and to strengthen the role of industry association in the industry. Originality/value This paper fulfills an important gap in the literature in that it is one of the first, which investigates the role of the industry association in firm innovation, especially in a non-western context. This paper provides new insights into the role of industry association and firm innovation in an under-researched developing economy context.

Capital Account Liberalization and Firm Innovation: Worldwide Evidence

2021 ◽  
pp. 0148558X2110594
Author(s):  
Fangfang Hou ◽  
Xinpeng Xu
Keyword(s):  
Positive Impact ◽  
Set Covering ◽  
Capital Account ◽  
Legal Environment ◽  
Firm Level ◽  
Firm Innovation ◽  
Capital Account Liberalization ◽  
Data Set ◽  
Innovation Output

This study investigates whether capital account liberalization, a leading characteristic of globalization, is associated with firms’ future innovation output. Employing a novel firm-level panel data set covering 41 countries over two decades, we show that capital account liberalization is significantly associated with higher corporate patenting activities, particularly for firms from innovation-intensive industries. Further analyses show that the effect is stronger among firms from economies in a better legal environment, signifying the important role of good institutional quality in facilitating the positive impact of liberalization. The effect is also stronger among firms with higher initial productivity, consistent with the “productivity” hypothesis, according to which bigger and more productive firms generate more innovation after liberalization. Our findings are robust to the use of various measurements, subsamples, and estimation models. This study provides global firm-level evidence of the real economic impact of financial globalization.

Information Technology Capability, Knowledge Assets and Firm Innovation

2013 ◽  
pp. 169-188
Author(s):  
Avimanyu Datta
Keyword(s):  
Knowledge Networks ◽  
Future Research ◽  
Firm Level ◽  
Firm Innovation ◽  
Innovation Development ◽  
Knowledge Assets ◽  
Mediating Role ◽  
It Capability ◽  
Information Technology Capability

In this paper, the author presents a theoretical framework that establishes an indirect link between IT capabilities and firm innovation by characterizing the mediating role of knowledge assets: knowledge networks and knowledge capabilities. Firm innovation itself is characterized as innovation development and innovation commercialization. The search on literature of IT capability and innovation revealed a very lukewarm recognition towards firm level variables in knowledge networks, knowledge capabilities, and distinction between innovation development and commercialization. Backed up by detailed reviews of literature on innovation, strategy, and entrepreneurship, the author posits propositions linking the aforementioned constructs, and proposes a framework for future research linking IT Capability with Firm Innovation.

The impact of firm resources on innovation

2018 ◽  
Vol 21 (4) ◽  
pp. 672-694 ◽  
Author(s):  
Irem Demirkan
Keyword(s):  
Negative Binomial ◽  
Network Size ◽  
Firm Level ◽  
Firm Innovation ◽  
Holistic View ◽  
Slack Resources ◽  
Content Type ◽  
External Resources ◽  
The Impact

PurposeThe purpose of this paper is to propose that the resources that a firm owns and has full control (firm-level resources) and resources that a firm access through direct connection with other firms (network-level resources) will impact firm innovation when effectively deployed by the firm. While previous research examined these factors separately, the author takes a holistic view and looks into their effects on innovation simultaneously. The author also introduces the moderating effects, i.e. the variables that can enhance firm innovation through their interaction with internal and external resources.Design/methodology/approachThe author tested the role of financial resources and slack resources in the form of cash slack and human slack at the firm level, and network size, network tie strength, and network diversity at the network level on the firm innovation. Using generalized negative binomial model with Huber-White procedure, the author analyzed 306 firms from the biotechnology industry over a span of 17 years.FindingsThe analysis suggests that cash slack impact innovation negatively. However, this link is moderated by firm size such that for large firms cash slack affects innovation positively. Network-level resources all positively impact innovation and have more economic impact on firm innovation than firm-level resources. Furthermore, although human slack negatively affects innovation, its interaction with network size enhances innovation.Originality/valueThe research makes important contributions to both strategic management and innovation literatures especially when, the author considers the role of firm-level slack in driving firm innovation. Previous research reported conflicting findings about the availability of slack resources and firm performance. The results showed that the relationship between slack resources and firm innovation is negative and significant, both for available slack and human slack. This finding parallels with previous research which reported that constraints such as lack of slack resources can actually facilitate innovation. The author also contributes to the literature by introducing boundary conditions which can enhance firm innovation through their interaction with firm-level internal and network-level external resources. In this respect, to the author’s knowledge, this is among the first studies to combine the slack literature focusing on firm-level resources with the literature on network-level resources.

Information Technology Capability, Knowledge Assets and Firm Innovation

2011 ◽  
Vol 2 (3) ◽  
pp. 9-26 ◽  
Author(s):  
Avimanyu Datta
Keyword(s):  
Knowledge Networks ◽  
Future Research ◽  
Firm Level ◽  
Firm Innovation ◽  
Innovation Development ◽  
Knowledge Assets ◽  
Mediating Role ◽  
It Capability ◽  
Information Technology Capability

In this paper, the author presents a theoretical framework that establishes an indirect link between IT capabilities and firm innovation by characterizing the mediating role of knowledge assets: knowledge networks and knowledge capabilities. Firm innovation itself is characterized as innovation development and innovation commercialization. The search on literature of IT capability and innovation revealed a very lukewarm recognition towards firm level variables in knowledge networks, knowledge capabilities, and distinction between innovation development and commercialization. Backed up by detailed reviews of literature on innovation, strategy, and entrepreneurship, the author posits propositions linking the aforementioned constructs, and proposes a framework for future research linking IT Capability with Firm Innovation.

Information Technology and Firm Innovations

2011 ◽  
Vol 2 (4) ◽  
pp. 45-63 ◽  
Author(s):  
Avimanyu Datta
Keyword(s):  
Absorptive Capacity ◽  
Research Agenda ◽  
Research Community ◽  
Firm Level ◽  
Firm Innovation ◽  
Community Inclusion ◽  
It Capability ◽  
Is Research ◽  
Role Of It

This paper provides a framework comprising of research agenda explicating the relations between IT Capability and Firm Innovation. Firm innovation is conceptualized as a combination of three constructs: networks, capabilities (absorptive capacity), and commercialization of innovations (CI). These three constructs have received a very lukewarm response from the IS research community. Inclusion of these three constructs, and examining how IT- capability affects the relationships between these constructs, is essential to examining the role of IT in innovation at the firm-level. Five research agendas are identified.

Information Technology and Firm Innovations

2013 ◽  
pp. 188-206
Author(s):  
Avimanyu Datta
Keyword(s):  
Absorptive Capacity ◽  
Research Agenda ◽  
Research Community ◽  
Firm Level ◽  
Firm Innovation ◽  
Community Inclusion ◽  
It Capability ◽  
Is Research ◽  
Role Of It

This paper provides a framework comprising of research agenda explicating the relations between IT Capability and Firm Innovation. Firm innovation is conceptualized as a combination of three constructs: networks, capabilities (absorptive capacity), and commercialization of innovations (CI). These three constructs have received a very lukewarm response from the IS research community. Inclusion of these three constructs, and examining how IT- capability affects the relationships between these constructs, is essential to examining the role of IT in innovation at the firm-level. Five research agendas are identified.

Who's in the Driver's Seat? Exploring Firm-Level vs. CEO-Level Effects on Problemistic Search

2021 ◽  
pp. 014920632110638
Author(s):  
Songcui Hu ◽  
Richard J. Gentry ◽  
Timothy J. Quigley ◽  
Steven Boivie
Keyword(s):  
Organizational Change ◽  
Performance Feedback ◽  
Empirical Studies ◽  
Relative Size ◽  
Empirical Work ◽  
Organizational Outcomes ◽  
Firm Level ◽  
Empirical Examination ◽  
Managerial Agency

The Behavioral Theory of the Firm suggests that performance below an aspiration triggers problemistic search that can lead to organizational change and risk-taking. This compelling perspective has spawned considerable empirical examination of diverse strategic outcomes as firms’ responses to performance feedback. However, empirical studies have provided inconsistent evidence of problemistic search effects on various organizational search outcomes. This empirical controversy is likely attributed to the fact that most research has considered problemistic search as a firm-level and relatively routinized process with a high degree of automaticity in firms’ responses to performance feedback while overlooking the role of managerial agency. Rather than viewing problemistic search as an automatic firm-level process, we believe that behavioral responses are shaped, at least partially, by top executives, notably CEOs. To this end, we first examine whether problemistic search effects vary across a range of organizational change and risk outcomes. We then explore whether the relative size of firm and CEO effects varies across different search outcomes. Using a multilevel approach, we show not only the heterogeneity in problemistic search effects on different organizational outcomes but also heterogeneity in the relative size of firm and CEO effects on these outcomes. While firm effects are substantial in directing some strategic decisions, as proposed by the problemistic search model, CEO effects are large for certain organizational outcomes, such as changes in resource allocation. This study serves as a jumping-off point for future theorizing and empirical work on problemistic search that incorporate the role of managerial agency.

Internationalization, Innovation, and Productivity

2018 ◽  
pp. 436-462 ◽  
Author(s):  
Bruno Cassiman ◽  
Elena Golovko
Keyword(s):  
Productivity Growth ◽  
Empirical Studies ◽  
Innovation Activity ◽  
Firm Level ◽  
Dynamic Relationship ◽  
Firm Internationalization ◽  
Internationalization Strategies ◽  
The Relationship ◽  
Economics Research

International economics research has emphasized the role of trade—imports and exports—as an important mechanism for technology flows and innovation across borders and a source of productivity growth both at the country and firm level. Empirical studies primarily have focused on understanding the relationship between exports and productivity at the firm level. Recent research has started to investigate the link between international trade and firm-level innovation activity more broadly. This chapter focuses on the complex relationship between firm internationalization strategies and their innovation behavior and links these to productivity as a measure of firm performance. In particular, it focuses on the dynamic relationship between imports, innovation, and exports, and highlights several fruitful avenues for advancing this research agenda.

Gender and firm innovation - A systematic literature review and future research agenda

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Arun TM ◽  
Rojers P. Joseph
Keyword(s):  
Literature Review ◽  
Systematic Literature Review ◽  
Emerging Market ◽  
Empirical Studies ◽  
Future Research ◽  
Firm Level ◽  
Firm Innovation ◽  
Content Type ◽  
Future Research Agenda ◽  
Quantitative Studies

PurposeThis paper presents a systematic review of 94 research articles in the domain of gender and firm innovation to map the area and infer future research avenues. The literature captured in this review includes seven theoretical, 16 qualitative and 71 quantitative studies from over 50 journals, examining the role of gender in firm innovation in over 100 countries.Design/methodology/approachThis research utilises a reproducible systematic literature review process to identify prominent theoretical and empirical studies.FindingsThe findings suggest that the area is growing and presents interesting opportunities. However, it is observed that empirical investigations are primarily influenced by literature from the Anglo-Saxon areas and give little attention to contextual intricacies of emerging market countries. Among quantitative studies, three main themes of gender are addressed unevenly. They are Top Management Team (TMT) diversity level, R&D team diversity level and individual entrepreneur level studies. Six interesting research avenues are proposed as a major outcome of the review.Originality/valueThis review is one of the first of its kind to extensively review the literature of gender and firm-level innovation. The review consolidates and widens the understanding of the relationship between gender variables and firm innovation-related variables to advance the discussion in the domain by presenting research gaps and questions gleaned from the articles. To this end, the review presents six promising research avenues in the area of gender and firm innovation.

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