The impact of network embeddedness on radical innovation performance - intermediators of innovation legitimacy and resource acquisition

Author(s):  
Lina Mao ◽  
Jinghua Li ◽  
Mingbei Li ◽  
Jisheng Huang ◽  
Ting Zhang
2018 ◽  
Vol 10 (2/3) ◽  
pp. 149-170 ◽  
Author(s):  
Duy Quoc Nguyen

PurposeThe purpose of this paper is to develop a theoretical and empirical exploration of link between organization intellectual capital and knowledge flows with its incremental and radical innovation performance.Design/methodology/approachThis paper adopts relevant literature of social capital and organizational learning to examine the impact of intellectual capital and knowledge flows on incremental and radical innovation based on surveying 95 firms. To test the research hypotheses, regression analysis is used.FindingsResults of the study show that human capital and top-down knowledge flows significantly and positively influence both incremental and radical innovations. Social capital and bottom-up knowledge flows do not have any significant impact on incremental or/and radical innovation. Organizational capital has a positive impact on incremental innovation as expected.Practical implicationsThe results offer several practical implications for business managers to harvest its knowledge bases resident in the firm’s different forms appropriately to make innovation successful. Particularly, knowledge resident in human capital and organizational capital is useful for making incremental innovation. Especially, new knowledge, new skills and new perspectives resident in human capital are crucial important for making radical innovation. Both incremental and radical innovations are positively influenced by dynamic managerial capabilities.Originality/valueThis study contributes to literature by providing new evidence linking organization intellectual capital and knowledge flows with its innovation performance. Especially, the missing link between top-down knowledge flows and radical innovation is empirically examined. Value of this study is that social capital and bottom-up knowledge flows are not universally beneficial for enhancing innovation and their impacts on innovation performance are context dependent and more sophisticated than it is recognized in the literature.


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.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Feng Zhang ◽  
Chongchong Lyu ◽  
Lei Zhu

Purpose Empirical results remain unclear as to whether organizational unlearning can improve radical innovation performance. The purpose of this study is to investigate how, and under which conditions, organizational unlearning influences firms’ radical innovation performance. Design/methodology/approach Drawing on the knowledge-based view, this study develops a theoretical model that hypothesizes a positive relationship between organizational unlearning and radical innovation performance, which is mediated by knowledge generation strategies. It also proposes that the impact of unlearning on knowledge generation strategies will be moderated by dysfunctional competition. Using survey data from 191 Chinese manufacturing firms, the hierarchical regressions were used to test the hypotheses. Findings The empirical results show that organizational unlearning not only impacts radical innovation performance directly, but also indirectly affects radical innovation performance through two distinct types of knowledge generation strategies: (internal) knowledge creation and (external) information searching. Moreover, dysfunctional competition plays a dual role, strengthening the positive relationship between organizational unlearning and information search and weakening the positive relationship between organizational unlearning and knowledge creation. Research limitations/implications The present research broadens the understanding of how to promote radical innovation performance, which has great potential to improve the performance of firms on the market. Specifically, it deepens the knowledge of how organizational unlearning facilitates radical innovation performance by focusing on two distinct types of knowledge generation strategies as the crucial links, and enriches existing literature on the effectiveness of organizational unlearning in a dysfunctional competitive environment. Practical implications Practicing organizational unlearning for firms’ long-term success requires firms to develop and implement appropriate knowledge generation strategies in accordance with the characteristics of market competition in their operating environment. Originality/value This study offers new insights into how and under what conditions organizational unlearning affects radical innovation performance, enhancing the understanding of how organizational unlearning can be implemented to drive firm radical innovation.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hongyun Tian ◽  
Shuja Iqbal ◽  
Farooq Anwar ◽  
Shamim Akhtar ◽  
Muhammad Aamir Shafique Khan ◽  
...  

PurposeThis study examines the impact of network embeddedness (NE) on innovation performance in small- and medium-sized enterprises (SMEs), and analyses absorptive capacity as mediator and openness as moderator.Design/methodology/approachData were collected from 209 employees of SMEs using a convenient sampling technique. Partial least squares structural equation modeling in SmartPLS was used to analyze the various constructs.FindingsThe results exhibit a positive and significant relationship in NE and absorptive capacity. Also, this study found a positive and significant relationship in absorptive capacity and innovation performance. Moreover, absorptive capacity has a positive and significant mediation role in the relationship between NE and innovation performance. Also, openness positively moderated the relationship of NE and absorptive capacity.Practical implicationsSMEs should try to implement the functions of NE, such as interaction with other firms in higher frequency, developing trust among all parties, clear alliance among the partners to enhance innovation performance. Similarly, SMEs should focus on absorptive capacity and openness to enrich innovation performance.Originality/valueThis study adds in the current literature of the chosen constructs and empirically contributes the effects in the manufacturing industry of Jiangsu Province, China.


2017 ◽  
Vol 40 (2) ◽  
pp. 195-217 ◽  
Author(s):  
Tino Woschke ◽  
Heiko Haase ◽  
Jan Kratzer

Purpose This study deals with the impact of resource scarcity on the innovation performance of small- and medium-sized enterprises (SMEs). The purpose of this paper is to scrutinise whether resource scarcity among SMEs has an effect on their innovation performance. Design/methodology/approach The sample was based on panel data for 302 SMEs from the mechanical and electrical engineering sectors. Firms were divided into four groups by resource scarcity: human resource scarcity, financial resource scarcity, both types of resource scarcity and no resource scarcity. To test for significant inter-group differences in innovation performance, multivariate analysis of covariance and a multiple discriminant function analysis were carried out. Findings The results indicated that resource scarcity can have a positive effect on incremental but not radical innovation performance in SMEs. However, the authors found this to be true for financial resource scarcity only. Research limitations/implications These results may not be applicable to all SMEs, as the authors only focused on the industries of mechanical and electrical engineering. Future studies should focus on analysing the internal structures of SMEs that led to this study’s results. More research should also be conducted on ways that resource-limited SMEs can appropriately conduct radical innovations. Finally, resources should be made available for both practitioners and academics, explaining why the acquisition of resources is not always be the best option in response to limited resources. Practical implications These results indicate that resource-constrained SMEs, especially those that struggle with limited finances, should concentrate their innovation activities on incremental rather than radical innovations. Originality/value This study closes the knowledge gap as to whether it is beneficial for resource-limited SMEs to focus on either incremental or radical innovation. From the theoretical viewpoint, the resource-based view provides two strategies for resource-limited SMEs: acquiring new resources or recombining available resources. The authors were able to clearly demonstrate for the first time that the recombination of resources is especially important for SMEs that specifically wish to pursue incremental innovation.


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