scholarly journals Influences of Organizational Factors on Organizational Capability for Innovation: An empirical Study from Vietnamese Firms

2021 ◽  
Keyword(s):  
Transformational Leadership ◽  
Product Innovation ◽  
Organizational Factors ◽  
Process Innovation ◽  
Equation Modeling ◽  
Collaborative Culture ◽  
Innovation Capability ◽  
Organizational Capability ◽  
Product And Process Innovation ◽  
Product And Process

Given the key role of organizational factors for improving firm’s innovation capability, the purpose of this study is to explore the level of influence of organizational factors namely transformational leadership (TL), human resource management (HRM) practice and collaborative culture on two aspects of organizational innovation capability namely product and process innovation. The paper has developed a proposal research model and applied Structural Equation Modeling (SEM) to test research hypotheses using data collected from 168 participants in 51 Vietnamese firms. The findings of this study confirm the significant impacts of key organizational factors on firm’s capabilities for product and process innovation. Especially, the empirical findings reveal that TL has a greater impact on process innovation. In contrast, collaborative culture has more significant influence on product innovation. The findings of this study have significantly contributed to increasing the insight of the link between key organizational factors and specific aspects of innovation capability. Moreover, it provides a specific and effective pathway for Vietnamese firms to pursuit and foster each specific aspect of organizational capability for innovation. Keywords: Transformational Leadership, HRM Practice, Collaborative Culture, Product Innovation, Process Innovation, Innovation Capability

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.

Achieving green product and process innovation through green leadership and creative engagement in manufacturing

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saira Begum ◽  
Enjun Xia ◽  
Fayaz Ali ◽  
Usama Awan ◽  
Muhammad Ashfaq
Keyword(s):  
Transformational Leadership ◽  
Creative Process ◽  
Product Innovation ◽  
Process Innovation ◽  
High Tech ◽  
Green Product ◽  
Green Process ◽  
Content Type ◽  
Product And Process Innovation ◽  
Product And Process

PurposeThe aims of this study were three-fold: to determine the impact of green transformational leadership on creative process engagement, green product innovation and green process innovation; to examine the association of creative process engagement with green product and process innovation and to identify the mediating influence of creative process engagement in the association between green transformational leadership and green process and product innovation.Design/methodology/approachData was collected through a survey questionnaire from 291 middle- and lower-level managers and employees through simple random sampling in four high-tech manufacturing industries situated in Beijing, Shanghai and Shenzhen in China. We examined the data through structural equation modeling using partial least squares to test the study hypotheses.FindingsThe findings unveiled that green transformational leadership and creative process engagement positively influence green product innovation and green process innovation. Similarly, green transformational leadership is positively linked with creative process engagement. The findings further revealed that creative process engagement mediates the impact of green transformational leadership on green process and product innovation. Hence, our findings provide strong support for the role of green transformational leadership and creative process engagement in improving green process and product innovation.Research limitations/implicationsOur sample is limited to China and collected from high-tech manufacturing industries.Practical implicationsDrawing on the componential theory of creativity, the authors suggest that organizational leaders, specifically those who practice green transformational leadership, should increase creative process engagement among subordinates, as it is a crucial intangible resource for green process and product innovation.Social implicationsWe suggest that a combination of green transformational leadership and creative process engagement improves green process and product innovation as well as the environmental performance of a business by eliminating all forms of hazardous material and waste.Originality/valueThis work is one of the earliest empirical studies to evaluate the influence of green transformational leadership on fostering green product and process innovation and the mediating impact of creative process engagement on the linkage among green transformational leadership, green product and process innovation within the manufacturing context.

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.

Influence of transformational leadership and knowledge management on radical and incremental innovation: the moderating role of collaborative culture

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tu Ngoc Nguyen ◽  
Chao Hong Shen ◽  
Phong Ba Le
Keyword(s):  
Transformational Leadership ◽  
Knowledge Management ◽  
Incremental Innovation ◽  
Equation Modeling ◽  
Collaborative Culture ◽  
Innovation Capability ◽  
Content Type ◽  
Mediating Role ◽  
Positive Effects

PurposeThe purpose of this study is to explore the influence of transformational leadership (TL) on a firm's radical and incremental innovation. It also deepens the understanding of appropriate mechanisms and conditions to improve specific aspects of innovation by examining the mediating role of knowledge management capability (KMC) and moderating mechanism of collaborative culture.Design/methodology/approachThis study utilized structural equation modeling (SEM) and cross-sectional design to test hypotheses in the proposed research model using survey data collected from 365 participants in 86 manufacturing and service firms.FindingsThe findings indicate that TL induces greater effect on radical innovation compared to its effect on incremental innovation. The mediating role of KMC between TL and aspects of innovation capability is also supported. Especially, the influences of KMC on specific aspects of innovation capability are different and depend on the degree of collaborative culture in an organization.Research limitations/implicationsFuture research should examine the mediating mechanisms of knowledge acquisition, knowledge sharing and knowledge application to provide deeper insight into specific roles of knowledge management's constituents in linking TL and innovation capability.Practical implicationsThe paper significantly contributes to increasing the understanding of the link between TL and specific aspects of innovation capability by highlighting the important role of KMC and positive effects of collaborative climate in an organization.Originality/valueThe paper is unique in the attempts to provide a prospective solution for firms to pursue and improve innovation based on the meaningful insights into the mediating role of KMC and moderating effect of collaborative culture in the relationship between TL and specific dimensions of innovation capability.

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.

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 Antecedents of Product Innovation for Vietnamese SMEs: The Roles of Transformational Leadership and Organizational Culture

2021 ◽  
pp. 1-12
Keyword(s):  
Transformational Leadership ◽  
Organizational Culture ◽  
Product Innovation ◽  
Structural Equations ◽  
Collaborative Culture ◽  
Innovation Capability ◽  
Fundamental Factor ◽  
Mediating Role ◽  
Innovation Product ◽  
The Impact

Innovation capability is regarded the fundamental factor for firms to survive and achieve competitive advantage in the context of increasing competitive pressure. The purpose of this paper is to elaborate the impacts of transformational leadership (TL) on innovation product via mediating role of a certain form of organizational culture namely collaborative culture. The paper used Structural Equations Modeling (SEM) to examine the relationship among these latent factors using survey data gathered from 215 participants of 61 medium and small-sized firms in Vietnam. The findings of this study highlight the significant impact of TL on product innovation compared to the impact of collaborative culture on product innovation. This study reveals that collaborative culture significantly serves as a crucial mediator in linking the effects of TL on product innovation. Importantly, the findings of this study have advanced the understanding and brought new initiatives on key antecedents by which CEOs and managers should follow and focus their efforts to improve product innovation capability for Vietnamese SMEs. Keywords: Transformational leadership; Organizational culture; Collaborative culture; Product innovation; Innovation capability

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.

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