Process and Product Innovation and the Role of the Preference Function

2016 ◽  
Vol 16 (4) ◽  
Author(s):  
Andreas Hoefele
Keyword(s):  
Product Innovation ◽  
Aggregate Demand ◽  
Process Innovation ◽  
Preference Function ◽  
Market Expansion ◽  
Product And Process Innovation ◽  
Product And Process ◽  
The Relationship ◽  
Expansion Effect

Abstract: In this paper I investigate the relationship between firms’ investment in product and process innovation, in particular how this relationship is affected by the consumer’s valuation for variety. Depending on the strength of the consumer’s value of variety, the aggregate demand increases with a higher degree of product innovation, which I call the market-expansion effect. I show that the two types of investment are positively related if the market expansion effect is strong.

Moderating role of innovation culture in the relationship between organizational learning and innovation performance

2019 ◽  
Vol 26 (3) ◽  
pp. 289-303 ◽  
Author(s):  
Peivand Ghasemzadeh ◽  
Jamal A. Nazari ◽  
Mandana Farzaneh ◽  
Gholamhossein Mehralian
Keyword(s):  
Organizational Learning ◽  
Relevant Literature ◽  
Process Innovation ◽  
Content Type ◽  
Innovation Culture ◽  
Product And Process Innovation ◽  
Product And Process ◽  
The Relationship ◽  
Moderating Role

Purpose Different studies have analyzed the relationship between organizational learning (OL) and innovation performance (IP). However, the question of how innovation culture (IC) affects the relationship between OL and IP remains unexplored. This study aims to examine the impact of IC on the relationship between OL and various dimensions of IP, including product, process and objective innovation. Design/methodology/approach A research model was developed and performed based on the relevant literature in the field of OL, IC and IP. The hypotheses are tested with the data collected from companies operating in an intensive knowledge-based industry. Findings Based on the results of 625 questionnaires completed by pharmaceutical companies, OL activities and IC can result in product and process innovation. However, this relationship was not supported for the objective innovation. Furthermore, in terms of the moderating role of IC in the relationship between OL and IP dimensions, the results were significant. Practical implications The findings help to gain a better understanding of how organizational commitment by creating a culture for innovation can help to maximize the benefits of continuous OL in product and process innovation. Originality/value Considering the three aspects of IP, it is the first survey of the contribution of OL in firms’ IP with considering the moderating role of IC. The proposed model would enrich the relevant literature and provide us with better understanding how OL contributes to the IP.

Impact of External Knowledge Inflow on Product and Process Innovation of Korean SMEs: Absorptive Capacity as a Mediator

2019 ◽  
Vol 37 (4) ◽  
pp. 219-234 ◽  
Author(s):  
So Won Jeong ◽  
Jae-Eun Chung ◽  
Jung-Sim Roh
Keyword(s):  
Absorptive Capacity ◽  
Process Innovation ◽  
Government Agencies ◽  
External Knowledge ◽  
Mediating Role ◽  
Sources Of Knowledge ◽  
Product And Process Innovation ◽  
Product And Process ◽  
The Relationship

We examine the role of external knowledge inflow in improving the product and process innovation of Korean exporting small- and medium-sized enterprises (SMEs) in the textiles, apparel, and footwear industries. Building on the resource-based view (RBV), we investigate how five sources of knowledge inflow (suppliers, customers, competitors, universities, and government agencies) contribute to product and process innovation through absorptive capacity (AC) as a mechanism to explain the link between external knowledge inflow and innovation. Conducting a path analysis, we found that knowledge inflow from customers and government agencies had a positive effect on AC, subsequently enhancing product and process innovation. Additionally, knowledge inflow from universities and government agencies also affected process innovation and product innovation, respectively. We also demonstrated the mediating role of AC in the relationship between external knowledge inflow and innovation. Korean SMEs should thus invest in developing the knowledge sources of customers, universities, and government agencies to enhance AC and innovation.

The mediating role of product and process innovations on the relationship between knowledge management and operational performance in manufacturing companies in Jordan

2017 ◽  
Vol 23 (2) ◽  
pp. 349-376 ◽  
Author(s):  
Ahmad Fathi Al-Sa’di ◽  
Ayman Bahjat Abdallah ◽  
Samer Eid Dahiyat
Keyword(s):  
Knowledge Management ◽  
Product Innovation ◽  
Process Innovation ◽  
Operational Performance ◽  
Manufacturing Companies ◽  
Content Type ◽  
Process Innovations ◽  
Product And Process ◽  
The Relationship

Purpose The purpose of this paper is to investigate the effects of knowledge management (KM) on product and process innovations, as well as on operational performance (OP). In addition, the effects of product and process innovations on OP, as well as their mediating effects on the relationship between KM and OP, are also investigated. Design/methodology/approach A questionnaire-based survey was designed and used to collect data from 207 manufacturing companies operating in the Jordanian capital Amman. To assess construct validity, exploratory and confirmatory factor analyses were conducted. To test research hypotheses, the bootstrap re-sampling method was applied using Hayes’s SPSS multiple-mediator PROCESS macro. Findings The results indicate that KM has significant positive effects on product and process innovations, and OP. Process innovation was found to have a significant positive effect on OP, while product innovation was not. Furthermore, only process innovation was found to significantly mediate the KM-OP relationship. Practical implications The findings of this study provide useful insights about the role of KM in facilitating and enhancing product and process innovations, as well as OP in the surveyed manufacturing companies. An important implication concerns the roles of product and process innovations. Manufacturing companies seeking improvements in their OP are recommended to focus on process innovation rather than product innovation. While product innovation may affect other aspects of performance, such as market and financial ones, it was not found to significantly affect OP. Process innovation can also leverage KM’s contribution to manufacturing companies’ OP. Originality/value This is a pioneering study in that it developed an integrated model that depicts the interrelationships among KM, product innovation and process innovation and OP, in a developing country context.

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 Market knowledge impacts on product and process innovation: Evidence from travel agencies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kuan-Yang Chen ◽  
Levent Altinay ◽  
Po-Yuan Chen ◽  
You-De Dai
Keyword(s):  
Product Innovation ◽  
Process Innovation ◽  
Equation Modeling ◽  
Market Knowledge ◽  
Content Type ◽  
Travel Agencies ◽  
Product And Process Innovation ◽  
Product And Process ◽  
Knowledge Depth ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between the attributes of market knowledge (depth/breadth) and particular types of (process/product) innovation. The mediating mechanism of ambidextrous (exploratory/exploitative) capabilities is also investigated. Design/methodology/approach Data from 153 travel agencies from two phases of data collection in Taiwan were analyzed using the structural equation modeling method. Findings Market knowledge depth directly and positively impacts product and process innovation. Market knowledge breadth indirectly and positively impacts product and process innovation. Ambidextrous capabilities affect process and product innovation and mediate the effect of market knowledge breadth on the two innovations. Research limitations/implications This study provides different theoretical views, such as dynamic capability and organizational learning, to supplement the explanation of knowledge-based theory in the relationship between market knowledge and innovation. Practical implications This study encourages firms to accumulate market knowledge depth and breadth and facilitate ambidextrous capabilities for innovation. Originality/value Seldom has research explored the relationships between the attributes of market knowledge and types of innovation simultaneously to extend the input-process-output context. This study has done so and forwards the possibility that ambidextrous capability is critical mechanism.

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.

PERCEIVED COMPETITION AND INNOVATIVE INTENTIONS IN DUTCH SMALL AND MEDIUM-SIZED ENTERPRISES

2011 ◽  
Vol 15 (04) ◽  
pp. 687-707 ◽  
Author(s):  
JEROEN P. J. DE JONG
Keyword(s):  
The Netherlands ◽  
Product Innovation ◽  
Bargaining Power ◽  
Process Innovation ◽  
Three Dimensions ◽  
Complex Relationship ◽  
Product And Process Innovation ◽  
Buyer Power ◽  
Product And Process ◽  
Competitive Forces

This paper explores the complex relationship between competition and innovation by analyzing survey data of 2,281 small and medium-sized enterprises (SMEs) in the Netherlands. We develop and test hypotheses on the relationships between three dimensions of perceived competition (internal rivalry, supplier power and buyer power) and firms' intentions to engage in product and process innovation. Moreover, we analyze if firms' strategic attention for innovation is a moderating variable. We find that specific innovative intentions relate to different perceptions of competitive forces. Intentions to engage in process innovation correlate with the perceived bargaining power of suppliers, while intended product innovation correlates with perceived buyer power and internal rivalry between incumbent firms in the market — but the correlation with internal rivalry is significant only when firms report no strategic attention for innovation.

The Role of External Interaction for Innovation in Irish High-Technology Businesses

2011 ◽  
Vol 12 (4) ◽  
pp. 248-256 ◽  
Author(s):  
Declan Jordan ◽  
Eoin O'Leary
Keyword(s):  
High Technology ◽  
Process Innovation ◽  
Relative Importance ◽  
Business Innovation ◽  
Negative Effect ◽  
Product And Process Innovation ◽  
Innovation Output ◽  
Product And Process ◽  
Positive Effect

There is growing empirical evidence that external interaction is an important source of knowledge for business innovation. This paper contributes to the innovation literature by using new measures of interaction to explore the relative importance of external interaction for innovation in Irish high-technology businesses. Based on survey data, the paper finds that external interaction increases the probability of product and process innovation, but the effect is inconsistent across all external interaction agents. Interaction along the supply chain has a positive effect on innovation, and interaction with competitors has an insignificant effect on innovation output. Notably, the paper finds that interaction with higher education institutions has a negative effect on the probability of product and process innovation.

Impact of knowledge search on product and process innovation: mediating role of absorptive capacity and moderating role of IT capability

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hui Gao ◽  
Xiu-Hao Ding ◽  
Suming Wu
Keyword(s):  
Absorptive Capacity ◽  
Boundary Spanning ◽  
Process Innovation ◽  
Content Type ◽  
Mediating Role ◽  
It Capability ◽  
Product And Process Innovation ◽  
Knowledge Search ◽  
Product And Process

PurposeMore enterprises adopt open innovation by breaking technological or organizational boundaries to seek internal and external knowledge when they face a fiercely competitive environment, complex market demands, and increasingly rapid technological change. In this context, a knowledge search strategy is regarded as an effective means of obtaining inside and outside resources and an important way to break the innovation bottleneck. Moreover, information technology (IT) is deemed an important asset for sourcing knowledge, whereas absorptive capacity is seen as an indispensable ability for utilizing novel knowledge. Thus, this paper aims to test the role of knowledge search in open innovation and examine the mediating effect of absorptive capacity and the moderating effect of IT capability.Design/methodology/approachUsing a sample of 1,088 Chinese firms’ data collected by the World Bank in 2012, this paper employs logistic regression to test the hypotheses.FindingsThis study finds that local and boundary-spanning search strategies positively influence both product and process innovation, and absorptive capacity has a mediating role in the relationships between knowledge search and product and process innovation. Moreover, IT capability has a positive moderating effect on the relationship between local search and innovation performance; however, IT capability strengthens the relationship between boundary-spanning search and process innovation while weakens that between boundary-spanning search and product innovation.Originality/valueThis study explores the impact of different knowledge search behaviors on different types of innovation and probes the role of absorptive capacity and IT capability in mediating and moderating the above relationships. By drawing on knowledge-based theory and cognitive-developmental theory, this paper provides a novel perspective to explain the mechanism between knowledge search and innovation performance.

Innovation as a Mediator Between Knowledge Management and Organisational Performance

2020 ◽  
pp. 46-68
Author(s):  
Lejla Turulja ◽  
Nijaz Bajgoric
Keyword(s):  
Knowledge Management ◽  
Knowledge Acquisition ◽  
Business Performance ◽  
Process Innovation ◽  
Knowledge Application ◽  
Management Processes ◽  
Individual Knowledge ◽  
Product And Process Innovation ◽  
Product And Process

This chapter provides important empirical evidence to support the role of individual knowledge management processes and separate innovation types within firms. Specifically, knowledge acquisition and knowledge application are analyzed and empirically tested in relation to product and process innovation as well as business performance. The results support the direct impact of product and process innovation on business performance. In addition, the results show the indirect effect of knowledge acquisition and knowledge application on firm business performance through product and process innovation.

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