The Effect of Organizational Slack on Innovation Performance

Author(s):  
Qiuyue Pan ◽  
Jiang Wei ◽  
Latif Al-Hakim

To compete through disruptive innovation, organisations allocate part of its resources as a buffer to support its capability of disruptiveness or to face challenges created by competitors. These resources could be in terms of human resources, technology, equipment, information and/or financial resources. Literature refers to the buffer of resources as organisational slack. This research considers high-tech industry in China and investigates the relationship between the characteristics of the organisation's governance body, organisational slack and innovation performance. Data required by our research were obtained from various national databases available in the library of Zhejiang University. Data from 233 high-tech organisations listed in Chinese stock market were analysed. The results indicate that the interaction of the organisational slack of an organisation with various characteristics of the governance body partially moderates the innovation performance.

2020 ◽  
pp. 1453-1483
Author(s):  
Qiuyue Pan ◽  
Jiang Wei ◽  
Latif Al-Hakim

To compete through disruptive innovation, organisations allocate part of its resources as a buffer to support its capability of disruptiveness or to face challenges created by competitors. These resources could be in terms of human resources, technology, equipment, information and/or financial resources. Literature refers to the buffer of resources as organisational slack. This research considers high-tech industry in China and investigates the relationship between the characteristics of the organisation's governance body, organisational slack and innovation performance. Data required by our research were obtained from various national databases available in the library of Zhejiang University. Data from 233 high-tech organisations listed in Chinese stock market were analysed. The results indicate that the interaction of the organisational slack of an organisation with various characteristics of the governance body partially moderates the innovation performance.


2018 ◽  
Vol 23 (1) ◽  
pp. 163-184 ◽  
Author(s):  
Heng Chen ◽  
Jian Hou ◽  
Wei Chen

In the process of transitioning from closed to open innovation, regions in developing countries need to understand how to choose the most effective path within the complex innovation system while considering their own innovation factors. Based on provincial panel data from China’s high-tech industry and the improved dynamic threshold model, we introduce the threshold of knowledge accumulation (KLA) into the non-linear mechanism between innovation paths and innovation performance to compare the dynamic threshold effect and its heterogeneity. This research provides interesting insights into innovation paths, showing that the relationship between the innovation path and innovation performance is significantly influenced by the threshold effect of KLA. As the level of KLA strengthens, its effects on each innovation path change. Overall, this article shows how KLA affects the relationship between the innovation path and innovation performance. The article concludes with a discussion of the implications of these insights for innovation management and policy.


2021 ◽  
Vol 13 (14) ◽  
pp. 7765
Author(s):  
Shuizheng Song ◽  
Md Altab Hossin ◽  
Xiaohua Yin ◽  
Md Sajjad Hosain

The demand for sustainable development and the advantages of industries are expediting over time with the triggering of green innovation performance (GIP). Improving a firm’s GIP, especially in manufacturing industries, can accelerate green development and mitigate the global-concerned environmental issues. Thus, to investigate GIP from its antecedent factors, we delineate the relationship between network potential, absorptive capacity, environmental turbulence, and GIP based on social network theory, organizational learning theory, and contingency theory. We tested our hypotheses based on 233 sets of questionnaire surveys from high-tech manufacturing firms in China through deploying the hierarchical regression and bootstrap method. Our empirical findings reveal that the network potential dimensions, including network position centrality (NPC), network structure richness (NSR), and network relationship closeness (NRC), significantly positively impacted the GIP. The absorptive capacity (AC) partially mediated the relationship between the network potential dimensions and GIP. Environmental turbulence (ET) as an essential mechanism not only positively moderated the relationship between AC and GIP but also enhanced the AC mediation effect. These findings indicate that manufacturing firms should continue to improve network potential and AC and respond rapidly to changes in the external environment to enhance GIP, consequently contributing to the sustainable development of the economy.


2021 ◽  
Vol 235 ◽  
pp. 02036
Author(s):  
Tian Di

Promoting supply-side structural reform is the key to China’s economic transformation and upgrading. As disruptive innovation is affecting different sectors and areas of society, numerous high-tech development zones should fully release their vitality and realize unprecedented development while contributing to this reform. This study attempted to further analyze the Research and Development (R&D) efficiency of high-tech zones in the past mode, and shed light on a more advanced and effective development pattern in the near future. This paper used Data Envelopment Analysis (DEA) model, which is a linear programming method to measure the efficiency between multiple decision-making units, and categorized three decisive factors to reach solid conclusions [1]. Our statistical results indicated that the low R&D efficiency is ubiquity among high-tech industries, and there is not yet a strong platform for advanced R&D activities. Lastly, this paper suggested strategies to maintain the sustainable development of the high-tech industry under the supply-side reform.


2020 ◽  
Vol 12 (2) ◽  
pp. 644
Author(s):  
Zhiying Zhang ◽  
Hua Cheng ◽  
Yabin Yu

The textile industry is a traditional pillar industry of the national economy in China. The strategic goal of Chinese innovation is to upgrade and transform traditional industries and make them develop in coordination with high-tech industries, so as to realize sustainable industrial development. At the core of industrial sustainable development, the innovation of the textile industry in China has become an important issue worthy of attention. Based on resource-based theory and signal transfer theory, the relationship between government funding, R&D models and the innovation performance of the Chinese textile industry is studied. The results show that government funding has a significant, direct promoting effect on the internal R&D and science-based cooperation of enterprises. Government funding indirectly promotes market-based cooperation through internal R&D. The promoting effect of internal R&D on innovation performance is greater than that of cooperative R&D. Internal R&D and cooperative R&D have more promoting effects on R&D reserve performance than those on market performance. Government funding indirectly promotes innovation performance through the mediation of internal R&D and science-based cooperation. The threshold effect of cooperative R&D indicates that only when the cooperative R&D intensity exceeds the threshold can government funding foster innovation performance more effectively. The conclusions can provide theoretical guidance for the formulation of innovation policy.


2019 ◽  
Vol 58 (5) ◽  
pp. 897-926 ◽  
Author(s):  
Fabrizia Sarto ◽  
Sara Saggese ◽  
Riccardo Viganò ◽  
Marianna Mauro

Purpose The purpose of this paper is to provide insights into the implications of board human capital heterogeneity for company innovation by focusing on the educational and the functional background of directors. Moreover, it examines the moderating effect of the CEO expertise-overlap within the innovation domain on the relationship between board human capital heterogeneity and firm innovation. Design/methodology/approach The hypotheses are tested through a set of ordinary least squares regressions on a unique dataset of 149 Italian high-tech companies observed between 2012 and 2015. Findings Findings show that the educational and the functional background heterogeneity of directors increase both the innovation input and output. However, results highlight that these relationships are negatively moderated by the CEO expertise-overlap within the innovation domain. Practical implications The paper emphasizes the importance of appointing directors with different and specific educational and functional backgrounds to foster the company innovation. Originality/value The paper fills a gap in the literature as it has devoted limited attention to the performance implications of board human capital heterogeneity in the high-tech industry where knowledge and skills are the primary sources of value. Moreover, the paper integrates the research on the CEO-board interface by shedding light on how the CEO expertise within the innovation domain affects the contribution of heterogeneous boards to company innovation.


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