Effect of Coopetitive Activity on Innovation and Management Performances in the Structural Context

2019 ◽  
Vol 24 (2) ◽  
pp. 365-384 ◽  
Author(s):  
Yongrae Cho ◽  
Choonghyun Lee
Keyword(s):  
Regression Model ◽  
Structural Equation ◽  
Business Environment ◽  
Process Innovation ◽  
Equation Model ◽  
Sustainable Growth ◽  
Structural Context ◽  
Innovation Activities ◽  
Product And Process Innovation ◽  
Product And Process

This study intends to demonstrate whether firms’ cooperative activities, particularly ‘coopetition’, affect business performances. Coopetition, which is cooperation with competitors, is a strategic concept that suggests competition and cooperation between firms can exist simultaneously. More specifically, in order to investigate cooperation as a part of innovation mechanism, this study analysed the mediating effects of product and process innovation performances in between cooperative activities and management performances. For this purpose, we applied a structural equation model (SEM) by integrating a regression model and a logistic regression model. The former analysed the effects of cooperation and innovation on management performances, whereas the latter studied influence of cooperation on innovation performances. For empirical analysis, we utilised data from Korea Innovation Survey (KIS), which incorporates information on Korean firm’s innovation activities and their relevant performances. The results from this study can be applied to addressing and diagnosing issues in Korean industries by analysing relationships among cooperative activities, innovation outcomes and management performances in the structural context. The analysis showed that coopetition, compared to other types of cooperation, has enhanced the performance of process innovation. Furthermore, the analysis demonstrated that cooperation related positively to management performances. This study, however, also addresses the problem that Korean firms have limitations in linking these innovation performances to actual management performances of financial growth. The results highlight the significance of strategic openness and flexibility, even to competitors, as the business environment and technology market may change drastically. Coopetition strategy can work as a facilitator in providing windows of opportunity for sustainable growth through field-based innovation.

Technological Innovations and Market Power: A Study of Indian Pharmaceutical Industry

2020 ◽  
pp. 097639962094427
Author(s):  
Madan Dhanora ◽  
Ruchi Sharma ◽  
Walter G. Park
Keyword(s):  
Pharmaceutical Industry ◽  
Market Power ◽  
Process Innovation ◽  
Technological Innovations ◽  
Firm Level ◽  
Innovation Activities ◽  
Product And Process Innovation ◽  
Product And Process ◽  
The Impact ◽  
Indian Pharmaceutical Industry

Technological innovations are positively associated with firms’ market performance. This study aims to examine the impact of product and process innovation on the market power of 168 Indian pharmaceutical firms during 2000–2013. We generate product and process patent stock to capture firm-level innovation activities. Findings of this study suggest that both product and process innovation positively influence firms’ market power. Results also reveal that MNEs enjoy more market power in the Indian pharmaceutical industry. Further, this study also highlights that there is a differential impact of firms’ product group on market power. This study concludes that patenting is a positive source of firm performance in the Indian pharmaceutical industry.

Innovation capabilities for global R&D projects in subsidiaries

2019 ◽  
Vol 22 (4) ◽  
pp. 639-659 ◽  
Author(s):  
Elisangela Lazarou Tarraço ◽  
Roberto Carlos Bernardes ◽  
Felipe Mendes Borini ◽  
Dennys Eduardo Rossetto
Keyword(s):  
Emerging Markets ◽  
Multinational Corporations ◽  
Structural Equation ◽  
Emerging Market ◽  
Process Innovation ◽  
Equation Modeling ◽  
Foreign Subsidiaries ◽  
Content Type ◽  
Product And Process Innovation ◽  
Product And Process

Purpose Is the development of local innovation capabilities enough for foreign subsidiaries in emerging markets to be able to integrate into global R&D projects? The authors argue that it is not. The purpose of this paper is to show the central role of R&D capacities when it comes to inserting foreign subsidiaries in emerging markets into global R&D projects. Design/methodology/approach The study investigated 131 foreign multinational subsidiaries operating in Brazil. For each subsidiary, the authors surveyed two to five directors or C-level executives from innovation, R&D, engineering, product development and projects. the authors used structural equation modeling for analysis. Findings The results indicate that product and process innovations alone do not guarantee the insertion of the emerging market subsidiaries into global innovation projects. Such insertion depends on the subsidiary’s accumulation of R&D capacities. Practical implications The results reinforce the central issue of building product and process innovation capabilities as the first step toward a blueprint for global projects. However, the effort is not limited to these initiatives. Product and process innovation efforts need be reverted in headquarters’ eyes in order for subsidiaries to gain R&D center status. To achieve this, subsidiaries must align their technological innovations with multinational corporations’ innovation strategies. Originality/value In authors’ view, this study contributes to the literature in three main areas: the evolutionary process of innovation capability in subsidiaries, the reverse innovation debate and the discussion of subsidiaries’ initiatives.

The roles of external embeddedness and institutional distance in the subsidiary product/process innovation and R&D capacity

2020 ◽  
Vol 24 (10) ◽  
pp. 2513-2530
Author(s):  
Cristina Doritta Rodrigues ◽  
Felipe Mendes Borini ◽  
Muhammad Mustafa Raziq ◽  
Roberto Carlos Bernardes
Keyword(s):  
Structural Equation ◽  
Process Innovation ◽  
Institutional Distance ◽  
Equation Modeling ◽  
Content Type ◽  
Product And Process Innovation ◽  
Subsidiary Innovation ◽  
Product And Process ◽  
External Embeddedness ◽  
The Relationship

Purpose This study aims to look at the relationship of external embeddedness and institutional distance (governance aspects) with the foreign subsidiary research and development (R&D) capacity. Furthermore, it examines whether these relationships are mediated by subsidiary product and process innovation, and whether institutional distance plays a moderating role in the relationship between subsidiary innovation and R&D capacity. Design/methodology/approach The authors draw on survey data from 130 foreign subsidiaries operating in Brazil and test their model using variance-based structural equation modeling. Findings Results suggest that subsidiary (product and process) innovation fully mediates the relationships between: subsidiary external embeddedness and R&D capacity; and institutional distance and subsidiary R&D capacity, such that the relationship is positive in case of the former and negative in case of the latter. The relationship between subsidiary product and process innovation and R&D capacity is positive and stronger at lower levels of institutional distance. Originality/value The research ignores the underlying mechanisms of the external embeddedness and institutional distance relationship with subsidiary R&D capacity. Furthermore, institutional distance based on formal governance aspects and their impacts on subsidiary innovation and R&D capacity are rarely investigated. This paper contributes with regard to these aspects.

scholarly journals Impact of entrepreneur’s gender on innovation activities. The perspective of small businesses

PLoS ONE ◽  
2021 ◽  
Vol 16 (10) ◽  
pp. e0258661
Author(s):  
Maciej Zastempowski ◽  
Szymon Cyfert
Keyword(s):  
Small Businesses ◽  
Positive Impact ◽  
Innovation Management ◽  
Female Gender ◽  
Process Innovation ◽  
Small Enterprises ◽  
Female Entrepreneurs ◽  
Innovation Activities ◽  
Product And Process Innovation ◽  
Product And Process

This paper analyses the female gender as a one of the factors that may influence product and process innovativeness of small enterprises. The data discussed come from an empirical study of 1017 small enterprises from the Kujawsko-pomorskie region in central-northern Poland. The theoretical framework suggests three areas of factors that may influence small enterprises innovativeness: the entrepreneur’s gender, innovation management capability, and firm characteristics. The results of the study suggest that the female gender of the entrepreneur has a positive impact on the product and process innovativeness of small enterprises. In the group of small enterprises managed by female entrepreneurs the chances of introducing product innovation are higher by 83.7%, process innovation by 56%, and product and process innovation together by 82.1%.

scholarly journals Sustaining the development of MSEs in Indonesia: the moderating effects of the environment

2018 ◽  
Vol 74 ◽  
pp. 04006
Author(s):  
Indah Pertiwi ◽  
Ruslan Prijadi
Keyword(s):  
Self Efficacy ◽  
Structural Equation ◽  
Financial Constraints ◽  
Business Environment ◽  
Equation Model ◽  
Sustainable Growth ◽  
Environmental Aspect ◽  
Development Goals ◽  
The Government

MSEs contribute much to the Indonesian economy and play a crucial role in achieving Sustainable Development Goals (SDGs) Unfortunately, MSEs still have limited access to finance. Financing access (SDGs’ issue), support from the government (environmental aspect), and entrepreneurial traits (inside the MSEs) are central for MSEs’ sustainability. This research investigates the role of a business environment built by the government to ease financial constraints and support self-efficacy in MSEs’ sustainable growth. This research applies the Structural Equation Model method to 750 respondents. Initially the direct factors are estimated and then a moderating factor is added. The results find that financial constraints MSEs’ experience limits the their sustainability, whereas self-efficacy enhances it. Although MSEs possess strong entrepreneurial characteristics as the basis for their growth, financing access remains a burden. The research confirms that the business environment created by the government is an effective strategy to facilitate MSEs’ sustainability. However, MSEs’ sustainability cannot be improved merely by government schemes but must be supported by the financial and banking sectors.

Relationship between quality management, innovation and competitiveness. Evidence from Greek companies

2015 ◽  
Vol 26 (8) ◽  
pp. 1177-1200 ◽  
Author(s):  
Dimitrios Kafetzopoulos ◽  
Katerina Gotzamani ◽  
Vasiliki Gkana
Keyword(s):  
Factor Analysis ◽  
Quality Management ◽  
Competitive Advantage ◽  
Structural Equation ◽  
Process Innovation ◽  
Dimensional Structure ◽  
Sustainable Competitive Advantage ◽  
Content Type ◽  
Product And Process Innovation ◽  
Product And Process

Purpose – The purpose of this paper is to examine the extent to which five core dimensions of quality management, as a single factor, are associated with product innovation and process innovation; and finally how these two affect a firm’s competitive advantage in the market. Design/methodology/approach – The analysis followed in order to investigate the relations between the constructs of the proposed model, includes an initial exploratory factor analysis (EFA), followed by confirmatory factor analysis (CFA) and finally structural equation modelling (SEM) Findings – According to the study findings, quality management (QM) directly contributes to product and process innovation. Furthermore, product and process innovation have a direct impact on companies’ competitive advantage. Thus, the study proves that QM is an opportunity for a firm to improve its innovation and consequently its competitiveness. Research limitations/implications – This study relies on the perceptions of the respondents to operationalize the survey instrument. In addition, all variables are measured in the year that the survey was carried out. However, since the research exams the relationship between QM, technical innovation and competitive advantage across various organizations, it would be interesting to conduct a longitudinal study within these organizations. Practical implications – Our study offers clear implications for managers, proving that they should give higher emphasis on QM and innovation in order to prioritize their product, production and technology strategies, to achieve sustainable competitive advantage. Originality/value – Based on the multi-dimensional structure of QM, this empirical study determines the contribution of QM to specific innovation performance and overall competitiveness of companies.

scholarly journals Mediating Role of Firm R&D in Creating Product and Process Innovation: Empirical Evidence from Norway

Economies ◽  
2021 ◽  
Vol 9 (2) ◽  
pp. 56
Author(s):  
Yee Yee Sein ◽  
Viktor Prokop
Keyword(s):  
Product Innovation ◽  
Structural Equation ◽  
Triple Helix ◽  
Public Funding ◽  
Process Innovation ◽  
Government Funding ◽  
Quadruple Helix ◽  
Product And Process Innovation ◽  
Product And Process

Government funding actively engages in private R&D investment to enhance firm innovation. At the same time, firms are forced to find additional sources of competitive advantage, e.g., through cooperation based on the triple- or quadruple-helix principles. This paper analyses whether government funding and cooperation based on the triple-helix and quadruple-helix principles spur firms’ product and process innovation rather directly or indirectly, taking into account the role of firms R&D. For this purpose, we collect data from the Community Innovation Survey and analyse 5045 Norwegian firms by using partial least squares structural equation modelling. Our results confirm hypotheses that public funding and both triple-helix and quadruple-helix cooperation significantly influence firms’ research and development activities. Surprisingly, on the one hand, we showed that neither public funding nor triple- and quadruple-helix cooperation affect firms’ product innovation directly. Moreover, the results show a negative influence of government funding and triple- and quadruple-helix cooperation on Norwegian firms’ product innovation. On the other hand, process innovation is influenced positively and directly by firms’ cooperation based on the triple- and quadruple-helix principles. The results of our analyses clearly show the key role of firm’s R&D, which has proven to be a mediator of the effects of public funding and triple- and quadruple-helix cooperation on the product and process innovation activities of Norwegian firms.

scholarly journals Resource-Based Product and Process Innovation Model: Theory Development and Empirical Validation

2020 ◽  
Vol 12 (3) ◽  
pp. 913 ◽  
Author(s):  
Young Sik Cho ◽  
Kevin Linderman
Keyword(s):  
Product Life Cycle ◽  
Structural Equation ◽  
The United States ◽  
Process Innovation ◽  
Market Condition ◽  
Equation Modeling ◽  
Empirical Validation ◽  
Product And Process Innovation ◽  
Innovation Model ◽  
Product And Process

Using a resource-based approach to innovation, this study proposes an alternative innovation model to the existing market-based Product Life Cycle (PLC) model. In particular, this study explores how the attributes of corporate strategic resources affect product and process innovation patterns. This study covers the development of new theory, as well as the empirical validation of the innovation model proposed in this study. Based on survey data from 257 chief operations officers in the United States, the ‘resource-based innovation model’ was tested and validated through various analytical methods, such as clustering, discriminant, and structural equation modeling analysis. The main findings are that (1) companies relying on both knowledge-based resources (KBR) and property-based resources (PBR) tend to focus on product and process innovation at the same time, (2) companies relying heavily on KBR tend to centralize their efforts for process innovation rather than product innovation, (3) companies with low reliance on KBR and PBR tend to minimize R&D efforts in product and process innovation, and (4) in a dynamic market condition, process innovations serves as order winners, while product innovations serves as order winners in a stable market. This research contributes to the operational management literature by proposing a new resource-based innovation algorithm that helps to understand innovation phenomena that are difficult to explain through the lens of the PLC-based innovation paradigm.

scholarly journals Transformational leadership and employee voice for product and process innovation in SMEs

2021 ◽  
Vol 18 (1) ◽  
pp. 69-89
Author(s):  
Muhammad Athar Rasheed ◽  
Khuram Shahzad ◽  
Sajid Nadeem
Keyword(s):  
Transformational Leadership ◽  
Product Innovation ◽  
Structural Equation ◽  
Process Innovation ◽  
Employee Voice ◽  
Equation Modeling ◽  
Content Type ◽  
Product And Process Innovation ◽  
Product And Process ◽  
The Impact

Purpose This study aims to investigate the impact of transformational leadership on the innovation of small and medium enterprises (SMEs) through employee voice behaviors. Drawing from the upper echelon theory, it is hypothesized that employee voice is the mediating mechanism through which transformational leadership affects the process and product innovation in SMEs. Design/methodology/approach Data was collected from 169 SMEs of Pakistan through an online self-administered questionnaire. The proposed hypotheses were tested using partial least squares structural equation modeling (PLS-SEM). Findings Findings confirm that transformational leadership positively affects both process and product innovation in SMEs and employee voice behavior mediates between these relationships. Originality/value This research contributes to both theoretical and practical domains by providing evidence that encouraging employees to raise their voice positively impacts product and process innovation and transformational leadership is a potential organizational factor to shape employee voice and process and product innovation. To the best knowledge, this is the first study that investigates the mediating role of employee voice between transformational leadership and process and product innovation in SMEs and developing country’s context.

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