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.

THE IMPACT OF THE HETEROGENEITY OF EMPLOYEES’ QUALIFICATIONS ON FIRM-LEVEL INNOVATION: EVIDENCE FROM NIGERIAN FIRMS

2020 ◽  
pp. 2150011
Author(s):  
STEPHEN KEHINDE MEDASE
Keyword(s):  
Product Innovation ◽  
Dynamic Capabilities ◽  
Process Innovation ◽  
Firm Level ◽  
Highly Educated ◽  
Recursive Bivariate Probit ◽  
Product And Process Innovation ◽  
Service Sectors ◽  
Product And Process ◽  
The Impact

The capacity to generate knowledge and disseminate it in a firm is considered a primary strategic competence to attaining competitive gain. Knowledge literature reveals how relevant it is to increase interest in recognising and managing knowledge inherent in workforces and other firms’ dynamic capabilities that allow them to benefit from available knowledge within the milieu. In recognising the importance of employees’ baggage of knowledge, this study uses the Nigerian Innovation Survey for two waves, 2008 and 2010 of 1359 repeated observations of firms in the manufacturing and service sectors to examine the interplay of firms’ dynamic capabilities and innovation optimisation. It uses a recursive bivariate probit and a Tobit model for the estimations. Evidence shows that PhD, BSc, and Diploma associate positively and significantly with the ability of the firms to introduce product innovation. On the moderating estimations, there are mixed results regarding the blend of employees’ qualifications, training and internal R&D. Based on this, while the share of the highly educated workforce supports the introduction of product innovation, it does not, however, substantially increase the probability of firm-level innovativeness regarding process innovation. Although the blend of BSc and HND with R&D supports the propensity to introduce process innovation, it results in a decline with Diploma and R&D. The implication of the results offers management some investment choices on the initiation of formal training and the management of internal R&D through employees’ expertise. This study contributes to the existing literature on the relevance of employees’ different degrees being reinforced by training and internal R&D being boosted by employees’ qualifications in supporting the development of product and process innovation.

scholarly journals Utilities: Innovation and Sustainability

2019 ◽  
Vol 11 (4) ◽  
pp. 1085 ◽  
Author(s):  
Enrique Loredo ◽  
Nuria Lopez-Mielgo ◽  
Gustavo Pineiro-Villaverde ◽  
María García-Álvarez
Keyword(s):  
Product Innovation ◽  
Process Innovation ◽  
Water Utilities ◽  
Firm Level ◽  
Playing Field ◽  
Process Innovations ◽  
Search Processes ◽  
Relevant Role ◽  
Product And Process Innovation ◽  
Product And Process

Pro-market reforms have disrupted the playing field and strongly affected the innovative behavior of electricity, gas and water utilities. Beyond a significant reduction in sectoral R&D investments, very little is known about how these firms accomplish their innovation strategies in this new scenario. Given this gap in the literature, the first aim of this paper is to identify the internal determinants of both the product and process innovation of utilities in a liberalized environment. Additionally, there is another external force that is also disrupting the specific landscape of utilities: the sustainability challenge. Therefore, the second aim of this paper is establishing whether sustainability-orientation is a driver of innovation in the utilities industries. The empirical study is carried out on a panel of 82 Spanish electricity, gas and water utilities over the period 2005–2012 (Technological Innovation Panel dataset (PITEC)). The main findings are: (i) the acquisition of disembodied knowledge does not play a relevant role for utilities; (ii) non-formal search processes are central to product innovation; (iii) some markets for technology –external R&D and technology embedded in equipment—are determinant factors for process innovation; (iv) sustainability orientation increases the likelihood of generating both, product and process innovations. These firm-level results are novel contributions to the field of utility management.

Bridge and redundant ties in networks: the impact on innovation in food SMEs

2015 ◽  
Vol 18 (3) ◽  
pp. 355-379 ◽  
Author(s):  
Ghasem Shiri ◽  
Loïc Sauvée ◽  
Zam-Zam Abdirahman
Keyword(s):  
Empirical Research ◽  
Positive Impact ◽  
Process Innovation ◽  
Innovation Activity ◽  
Data Set ◽  
Content Type ◽  
Wide Range ◽  
Product And Process Innovation ◽  
Product And Process ◽  
The Impact

Purpose – The purpose of this paper is to study the impact of networks diversity on innovation activity of firms. It aims to review the structural issue in innovation networks and to distinguish different structures of networks for product and process innovation through an empirical research. Design/methodology/approach – Using a data set of 348 European agri-food firms, the authors study the impact of bridge and redundant ties on product and process innovation of firms. This is an empirical research based on an online survey in five European countries. Findings – The finding shows that bridge ties (measured by the number of heterogeneous networks in which firm participate) always facilitate product innovation in firms. The authors found also that a high number of heterogeneous ties in term of partners (simultaneous presence of redundant and non-redundant ties) motivate both product and process innovation in firms. Furthermore, the authors found a positive impact of network competence on process innovation. Research limitations/implications – The measures of bridge ties and redundant ties are indirect measures. This choice is a willing choice. Direct measurement of bridge and redundant ties always requires in-depth interviews with firms managers and thereby are limited by the number of observations. Originality/value – Research on innovations networks are dominated by case studies and researches with limited number of observations. Studying the networking behaviour, particularly the tie selection, of a wide range of firms brings additional knowledge in this field of research.

scholarly journals Innovation, firm productivity, and export survival: firm-level evidence from ASEAN developing countries

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Utumporn Jitsutthiphakorn
Keyword(s):  
Developing Countries ◽  
Process Innovation ◽  
The Philippines ◽  
Export Market ◽  
Firm Productivity ◽  
Firm Level ◽  
Product And Process Innovation ◽  
Innovation Output ◽  
Product And Process ◽  
Innovation Approach

AbstractThis firm-level study investigates the importance of innovation as a determinant of firm productivity and how firm productivity could impact firm export survival. This is the first integration of the innovation approach, productivity approach, and firm survival approach to explore their linkages at the regional level in ASEAN developing countries. Using the panel database from the World Bank Enterprise Survey, which covers six developing countries in ASEAN—the Philippines, Indonesia, Vietnam, Laos, Cambodia, and Myanmar—and also covers six selected industries, we construct four equations: innovation inputs, innovation output, firm productivity, and export survival. The four equations’ findings suggest that the technology level of the sector, firm size, and exports are significant factors for R&D expenditure (innovation input). R&D expenditure is a significant driver of a firm’s product and process innovation (innovation output). Increasing firm productivity in the six ASEAN developing countries we considered is driven by process innovation rather than product innovation, and productive firms are more likely to survive in the export market.

scholarly journals Interaction effect between product and process innovation: the case of Tunisian banks

2016 ◽  
Vol 11 (1) ◽  
pp. 60-70 ◽  
Author(s):  
Mabrouk Abir ◽  
Dhouibi Raoudha ◽  
Rouetbi Emna
Keyword(s):  
Interaction Effect ◽  
Financial Services ◽  
Financial Innovation ◽  
Poor Performance ◽  
Process Innovation ◽  
Bank Performance ◽  
A Value ◽  
Product And Process Innovation ◽  
Product And Process ◽  
The Impact

The authors examine the impact of the relationship between two types of financial innovation and bank performance. The research attempts to test hypotheses that are not yet validated by previous studies focusing on the financial services industry, thus, giving the study an exploratory look. The authors try, specifically, to determine the interaction effect of both types of financial innovation on bank performance and, then, try to enrich innovation theory with new hypotheses on product and process innovation. The results show that Tunisian banks have begun, probably, to see the importance or the need for the simultaneous adoption of two types of financial innovation since 1995 to improve their poor performance. The authors also find that the interaction effect of product and process innovation reduces profitability. However, efficiency is achieved in terms of market share and value. The authors conclude that financial innovation is a value creation instrument for Tunisian banks

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.

Determinants of company innovation and market performance

2018 ◽  
Vol 30 (1) ◽  
pp. 54-73 ◽  
Author(s):  
Evangelos Psomas ◽  
Dimitrios Kafetzopoulos ◽  
Katerina Gotzamani
Keyword(s):  
Quality Management ◽  
Market Performance ◽  
Process Innovation ◽  
Future Research ◽  
Content Type ◽  
Quality Practices ◽  
Product And Process Innovation ◽  
Product And Process ◽  
The Impact ◽  
A Company

Purpose The present study focuses on two basic determinants of company innovation, namely, quality practices of top management and process quality management. The purpose of this paper is to explore the impact of these determinants on product and process innovation. Determining the impact of these dimensions of innovation on the market performance of a company is also an aim of the present study. Design/methodology/approach A research study was carried out on a sample of 433 Greek manufacturing and service companies. Data were obtained through a structured questionnaire from the chief executive officers of the companies. Exploratory and confirmatory factor analyses are applied to extract and validate all the latent factors considered in the suggested model, while their relationships are determined through structural equation modeling. Findings The analysis of the empirical data shows that both the dimensions of company innovation examined in the present study (product and process innovation) are positively influenced by the quality practices of top management and process quality management. Improving these two dimensions of company innovation, in turn, results in increased market performance. Research limitations/implications First, the sample of the responding manufacturing and service Greek companies which includes both small and medium-sized enterprises and large companies and which operate in circumstances of financial crisis; second, the subjective data collected from only one company representative; and third, the examination of only two factors influencing company innovation, are the main limitations of the present study. Based on these limitations, future research studies are recommended. Practical implications The empirically validated theoretical model of the present study can guide the policy makers of a company to select a quality management and innovation strategy through which the company can lay the foundations to increase its market performance, and thus, overcome the current economic downturn and financial crisis. Researchers can also use the suggested valid model as an assessment tool, a benchmarking tool and a tool for the design of their future research studies. Originality/value The present study contributes to the literature by determining a valid model that describes simultaneously the relationships between quality management factors, product and process innovation and market performance. This is also the first study reflecting Greek companies’ efforts to withstand the current downturn and penetrate the market through innovation.

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 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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