SIMILAR, YET DIFFERENT: A COMPARATIVE ANALYSIS OF THE ROLE OF TRUST IN RADICAL AND INCREMENTAL PRODUCT INNOVATION

2015 ◽  
Vol 19 (04) ◽  
pp. 1550043 ◽  
Author(s):  
ANNA BRATTSTRÖM ◽  
HANS LÖFSTEN ◽  
ANDERS RICHTNÉR

Trust within teams is a central performance driver in product innovation. In this paper, we examine the antecedents to and performance implications of trust in firms engaged in radical innovation compared to those working towards incremental innovations. Our findings suggest that systematic processes and structures are significantly linked to trust in firms conducting radical innovation, but not so in firms conducting incremental innovation. Our findings also indicate that trust is significantly linked to business performance in radical innovation firms, although we do not find that the link between trust and performance is stronger for radical innovation firms, compared to incremental innovation firms. A central contribution of our study is therefore a better understanding of how trust operates differently in radical innovation firms, compared to incremental innovation firms. Our findings are of interest to research on radical innovation management, as well as to researchers studying the role of trust in a context of product innovation.

2016 ◽  
Vol 13 (03) ◽  
pp. 1640005 ◽  
Author(s):  
Kayhan Tajeddini

Research into product innovation and financial orientation in the small and medium enterprises (SMEs) is burgeoning, yet our understanding of the finance product innovation and performance remains unclear. Given the lack of empirical research on the role of financial orientation on innovation performance in the SMEs, especially in an Asian context, the current study addresses the relationships between financial orientation, product innovation and business performance in the Japanese SMEs, because it has a long established record on product innovation. Data were generated from 189 Japanese businesses and the results were analyzed using multiple regression. Results confirm the study hypotheses. Implications for management are discussed, along with suggestions for further research.


2019 ◽  
Vol 9 (2) ◽  
pp. 128-145 ◽  
Author(s):  
Taras Fredyna ◽  
Daniel Ruiz Palomo ◽  
Julio Dieguez Soto

In this current research it has been examined, firstly, the Entrepreneurial orientation in relation with Product innovation, Incremental innovation and Radical innovation, and, secondly, the moderating effect of Family involvement in the management of companies in the relationship between Entrepreneurial orientation and Product innovation, Incremental innovation and Radical innovation. Using a sample of 634 Spanish family firms, the results found conclude that the Entrepreneurial orientation has a positive effect on Product innovation, Incremental innovation and Radical innovation, and moreover, they reveal that the Family involvement in the management of companies has a moderating effect on these relations, witnessing that family firms with higher scale of Family involvement in the management of the companies reduces the effect of Entrepreneurial orientation on Product innovation, Incremental innovation and finally, Radical innovation.


2018 ◽  
Vol 39 (4) ◽  
pp. 34-41 ◽  
Author(s):  
Jimmi Normann Kristiansen ◽  
Paavo Ritala

Purpose Firms frequently struggle with measuring the performance of their radical innovation activities. Due to the uncertainty and ambiguity involved, key performance indicators (KPIs) used for incremental innovation projects are often not useful in this context. The purpose of this paper is to explore suitable KPIs particularly useful for radical innovation projects. Design/methodology/approach This study first reviews commonly used measures for innovation projects, which is then followed by case-study evidence from three industry-leading international firms. This study includes 13 in-depth interviews with innovation managers and directors in these firms, providing insights on how they measure the progress and performance of radical innovation projects. Findings KPIs used commonly in incremental innovation showed lackluster results in the case firms and were problematic for radical innovation context. A key finding was that radical innovation project performance should be evaluated based on the process rather than on the expected outcome. Concurrently, based on the literature review and the cases, three sets of KPIs with 13 specific KPIs useful for radical innovation projects are proposed. Originality/value The paper addresses a core challenge in using established KPIs in a radical innovation context. The paper gathers and synthesizes a range of measurement points suitable for radical innovation projects and provides specific suggestions for appropriate metrics that innovation managers can use.


2017 ◽  
Vol 18 (4) ◽  
pp. 789-806 ◽  
Author(s):  
Lara Agostini ◽  
Anna Nosella

Purpose In today’s knowledge economy the ability to innovate and develop new products is a key factor to sustain firm performance. Within this context, analysing the role of different components of intellectual capital (IC) becomes of foremost importance, as well as an under-investigated issue for small- and medium-sized enterprises (SMEs). The purpose of this paper is to investigate the impact of human, organisational and relational capital (RC) on radical innovation performance (RIP), as well as to examine whether organisational capital (OC) and RC mediate the relationship between human capital (HC) and RIP and whether OC moderates the relationship between RC and RIP. Design/methodology/approach The methodology consisted of a factor analysis and different regression models to test for mediation and moderation. The analyses are carried out on a sample of 150 micro firms and SMEs involved in the production of machinery or instruments and located in Italy. Findings Results show that HC is directly associated to RIP, as well as OC and RC that totally mediate the relationship between HC and RIP. Moreover, OC positively moderates the relationship between RC and RIP. Originality/value This study is particularly interesting because it adopts an overarching perspective on IC testing the interplay between the different components of IC. In addition, it focusses on the SME context which is under-investigated as far as IC and performance measurement is concerned.


2020 ◽  
Vol 26 (7) ◽  
pp. 1871-1892 ◽  
Author(s):  
José Pinheiro ◽  
Graça Miranda Silva ◽  
Álvaro Lopes Dias ◽  
Luis Filipe Lages ◽  
Miguel Torres Preto

PurposeThe purpose of this study is to examine the mediating role of manufacturing flexibility in the relationship between knowledge creation, technological turbulence and performance. In an increasingly competitive and changing environment, firms need to boost their technological and management know-how to adequately develop manufacturing flexibility.Design/methodology/approachThis study analyzes survey data collected from 370 manufacturing firms. Validity and reliability analyses were conducted using SPSS and Amos. The research hypotheses were tested using covariance-based structural equation modelling.FindingsThe main findings show that knowledge creation positively and significantly affects business and operational performances directly, and indirectly, through manufacturing flexibility. Moreover, technological turbulence has a positive and significant effect on it. This finding contributes to understanding why some firms get better outcomes from manufacturing flexibility than others, a disputed issue in the literature.Practical implicationsThis study highlights the need for manufacturing firms to foster cultures of knowledge creation, to better educate and train employees and to develop other instruments of knowledge creation.Originality/valueThis study makes several contributions to manufacturing flexibility literature: (1) establishing a link between technological turbulence and knowledge creation to develop manufacturing flexibility; (2) add empirical evidence on the relation between manufacturing flexibility and performance and (3) contributes to consolidating the mediation role of manufacturing flexibility in the relations between knowledge creation and business performance, as studies focussing on such a role are scarce in the literature.


2014 ◽  
Vol 7 (4) ◽  
pp. 354-375 ◽  
Author(s):  
Karl-Heinz Leitner

Purpose – The purpose of this paper is to study the nature of the strategy formation and its impact on firm performance in relation to market development and product innovation. Design/methodology/approach – The paper is based on an empirical study of 91 Austrian SMEs which covers a time period of ten years. Strategy formation was captured by an analysis of strategic intentions and corresponding actions in two surveys carried out in 1995 and 2003. Findings – The study finds no direct association between strategy formation and performance, though, emergent strategists had less often a growth orientation. Taking into account industry dynamics, shows, contrary to our expectations, that companies which employed an emergent market development strategy achieved higher sales growth in stable than in dynamic industries. Originality/value – The question of the superiority of planned vs emergent strategies has a long debate in strategy formation literature. The authors contribute to this question by investigating the role of different information sources for the formation of market and product innovation strategies and its impact on the performance in different environments over a ten-year time period.


Author(s):  
W Bergwerk

Current views on innovation management regard the prototype as just another stage in the engineering department's development work. It is more realistic, however, to view the prototype stage as a means by which all departments of a company can manage the risks associated with a new product. People judge risk in a very personal manner and different views can easily give rise to tensions which impede progress. The paper proposes methods for achieving concerted action by allowing for various risk perception problems. Particular attention is given to departments not directly responsible for the prototype to ensure that they too contribute constructively to the corporate risk assessment. An open and consistent approach to risk taking is particularly important in large companies if the spirit of innovation is not to succumb to the unavoidable bureaucracy of formal procedures.


2016 ◽  
Vol 33 (3) ◽  
pp. 361-379 ◽  
Author(s):  
Francisco J. Carmona-Márquez ◽  
Antonio G. Leal-Millán ◽  
Adolfo E. Vázquez-Sánchez ◽  
Antonio L. Leal-Rodríguez ◽  
Stephen Eldridge

Purpose – Prior studies by Salaheldin (2009) and Talib et al. (2011) have assessed the relationships between TQM critical success factors (CSF) and business results. The purpose of this paper is to build upon this research by considering the relationships between these CSFs and their sequencing during the implementation of TQM. Furthermore, the influence exerted by the maturity of TQM implementation on the link between instrumental drivers and performance is explored. Design/methodology/approach – The TQM drivers are clustered by means of three constructs: strategic enablers, tactical drivers and instrumental drivers and a model employed in which the strategic and tactical factors are treated as antecedents of the instrumental drivers. The direct effect of each cluster on business results and the indirect relationship of strategic and tactical factors via the mediating role of the instrumental drivers are assessed. These assessments use the partial least squares (PLS) approach which is a variance-based structural equation modeling technique using a sample of 113 Spanish organizations with experience of implementing a TQM program. Findings – The findings confirm the existing relationships among the CSFs and business performance identified by studies Salaheldin (2009) and Talib et al. (2011). However, the results reveal that instrumental drivers possess the highest variance explanation power over business performance outcomes and it is possible to identify a CSF implementation sequence that generates the greatest impact on business performance. Furthermore, the study was inconclusive with regard to the influence exerted by the number of years of TQM implementation on the link between the instrumental drivers and performance. Research limitations/implications – The first is related to organizational bias. It seems likely that those firms which are not satisfied with their TQM system performance would be less likely to be motivated to contribute to the development of this study. Therefore, the authors have included in the sample a higher proportion of “good” systems than is the case in the population at large. Second, although the authors provide evidence of causality, causality itself has not been proven. Third, this research relies mainly on perceptions and the authors only used a single method to elicit these perceptions. Finally, this research was carried out in a specific geographical setting (Spanish companies) and the authors must be cautious about generalizing these results in other contexts. Practical implications – This study offers a substantial number of practical implications. First firms’ managers should emphasize that continuous improvement, benchmarking and zero-defects mentality is a never-ending process. Especially, they should understand that reliable product/service design is critical to exceed the customers’ expectations, leading to improved business success. The results of this study should also lead managers to seeing a “return on investment” in their efforts to implement a TQM program by first, paying more attention on how to implement the instrumental factors, and second, avoiding the belief that the passage of time and experience-based learning will bring business performance enhancement and success on their own. Social implications – Although, the literature agrees that strategic factors are valuable assets and have a crucial role in the deployment of TQM systems, the study empirically validates this assertion. However, at the same time it shows that this impact on performance is stronger and much more significant by reconfiguring instrumental factors. This implies that strategic and tactical factors do have an effect on business success, but they do so indirectly, by reconfiguring and reinforcing instrumental factors that better fit the stakeholders’ needs and expectations. Originality/value – The results suggest the need to consider whether all the CSFs are equally relevant on the basis of their contribution to business success. For example, strategic enablers are generally considered to be of primary importance with tactical and instrumental drivers assuming a secondary position. The study challenges this view and highlights the role of instrumental drivers over strategic and tactical factors with the clear implication that managers should focus strongly on daily implementation tasks such as benchmarking, zero-defects mentality and continuous improvement processes in order to achieve good business performance outcomes.


Mathematics ◽  
2021 ◽  
Vol 9 (17) ◽  
pp. 2099
Author(s):  
Rafael Sancho-Zamora ◽  
Isidro Peña-García ◽  
Santiago Gutiérrez-Broncano ◽  
Felipe Hernández-Perlines

The purpose of this study was to understand how proactivity can affect the relationship between absorptive capacity and organisational performance. Most previous studies have ignored the role of proactivity in this relationship and have not considered the multidimensional nature of absorptive capacity. A questionnaire was sent to 800 CEOs of Spanish companies from different sectors, procuring a response rate of 38.25%. A structural equation model was applied to test the hypothesis. This study confirms the positive effect that absorptive capacity has on business performance and the moderating role of proactivity in this relationship. Companies that develop their capacity to absorb information from the environment achieve better results. Furthermore, if they engage in proactive behaviour within their company, this relationship is stronger. Future research should include more capacities that are related to knowledge and business performance (i.e., learning capability, innovation capacity, etc.). This study contributes to the understanding of how to manage a company’s knowledge in an appropriate way. It sheds new light on how knowledge management should be conducted, emphasising not only the gathering of information but also the promotion of a proactive attitude on the part of employees to achieve the goal of better performance.


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