scholarly journals The Intensity of Knowledge Capital Investment in Kenya: Evidence from Manufacturing and Service Sectors

2017 ◽  
Vol 9 (10) ◽  
pp. 179
Author(s):  
Simon Ndicu ◽  
Lucy Wacuka
Keyword(s):  
Capital Investment ◽  
New Product ◽  
Knowledge Capital ◽  
Firm Level ◽  
Product Innovativeness ◽  
Service Sectors ◽  
Innovation Output ◽  
And Performance ◽  
Product Output ◽  
Combined Data

The study investigates the extent to which firms in Kenya manufacturing and service sectors invest in knowledge capital leading to innovations. 534 firms were included in the analysis. This was the combined data from the first Kenya innovation survey data of 2012, which covered 158 firms, (2008-2011) and the second Kenya innovation survey of 2015 which covered 376 firms (2012-2014). The Crépon, Duguet, and Mairessec (CDM) (1998) model, which considers a system of four equations: innovation propensity, innovation investment, innovation output and performance equations, was used as the estimation technique. The results revealed that, a firm’s decision to spend on R&D was significantly influenced by firm ownership, financial turnover and product innovativeness. A firm’s R&D intensity was significantly determined by its financial turnover and ownership. A firm’s activity and financial turnover were also significant in determining whether it introduced a new product in the market or not. The results of this paper suggest that a firm’s financial turnover was significant in R&D decisions but R&D intensity did not significantly matter to a firm’s product innovativeness. Further, a firm’s level of innovativeness was a significant determinant of its productivity. In addition, the results suggest that, innovations among the Kenyan firms in the manufacturing and service sectors were heavily reliant on financial capital and were struggling to convert knowledge inputs into product output. This study thus recommends a policy that incorporates the academia and firm level innovation with national innovation systems to enhance knowledge and skill intensive innovations that are new to the world.

Assessing the Value of Information Technology Investment to Firm Performance

2002 ◽  
pp. 257-278
Author(s):  
Qing Hu ◽  
Robert T. Plant
Keyword(s):  
Information Technology ◽  
Firm Performance ◽  
Financial Performance ◽  
Capital Investment ◽  
Large Scale ◽  
Performance Data ◽  
It Investment ◽  
Firm Level ◽  
It Investments ◽  
And Performance

The promise of increased competitive advantage has been the driving force behind the large-scale investment in information technology (IT) over the last three decades. There is a continuing debate among executives and academics as to the measurable benefits of this investment. The return on investment (ROI) and other performance measures reported in the academic literature indicate conflicting empirical findings. Many previous studies have based their conclusions on the statistical correlation between IT capital investment and firm performance data of the same time period. In this study we argue that the causal relationship between IT investment and firm performance could not be reliably established through concurrent IT and performance data. We further submit that it would be more convincing to infer causality if the IT investments in the preceding years are significantly correlated with the performance of a firm in the subsequent year. Using the Granger causality models and three samples of firm-level financial data, we found no statistical evidence that IT investments have caused the improvement of financial performance of the firms in the samples. On the contrary, the causal models suggest that improved financial performance over consecutive years may have contributed to the increase of IT investment in the subsequent year. Implications of these findings as well as directions for future studies are discussed.

The Role of Existing Knowledge in New Product Innovativeness and Performance

2003 ◽  
Vol 34 (2) ◽  
pp. 385-419 ◽  
Author(s):  
Beverly K. Brockman ◽  
Robert M. Morgan
Keyword(s):  
New Product ◽  
Product Innovativeness ◽  
And Performance

The driving process of technological innovation in construction: a firm-level CDM analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zheng Gong ◽  
Nannan Wang
Keyword(s):  
Construction Industry ◽  
Influencing Factors ◽  
Technological Innovation ◽  
Firm Level ◽  
Content Type ◽  
Construction Firms ◽  
Construction Market ◽  
Innovation Output ◽  
And Performance ◽  
D Investment

Purpose Innovation has been acknowledged as the key for modern industries. However, the construction industry is criticised for being poor in innovation performance compared to other industry sectors. Large construction firms are the main contributor to technological innovation in the construction industry, but the driving process of their technological innovation has not yet been fully investigated in previous studies. The purpose of this paper is to provide quantitative analysis of the technological innovation driving process of large construction firms. Design/methodology/approach An extended crépon, duguet and mairesse (CDM) model has been developed to analyse the key influencing factors for technological innovation in construction firms. The sample data are selected from the world’s largest construction market, China, and include 129 listed construction firms. Findings The results show significant positive correlation between R&D investment and innovation output and also between innovation output and performance. The effect of influencing factors on the R&D investment, innovation output and performance are also revealed by the empirical study. The underlying reasons are discussed and suggestions are given for the construction industry to improve the technological innovation capacity of construction firms. Originality/value This research contributes to the literature of construction innovation and benefits practitioners by providing a quantitative approach to demonstrate the driving process of innovation in construction firms.

scholarly journals Digitalization as a Strategic Means of Achieving Sustainable Efficiencies in Construction Management: A Critical Review

2021 ◽  
Vol 13 (9) ◽  
pp. 5040
Author(s):  
Bahareh Nikmehr ◽  
M. Reza Hosseini ◽  
Igor Martek ◽  
Edmundas Kazimieras Zavadskas ◽  
Jurgita Antucheviciene
Keyword(s):  
Capital Investment ◽  
Significant Proportion ◽  
Complex Activity ◽  
Firm Level ◽  
Construction Firms ◽  
Business Results ◽  
Management Protocol ◽  
Construction Firm ◽  
Construction Activity ◽  
Multiple Skills

Construction is a complex activity, characterized by high levels of capital investment, relatively long delivery durations, multitudinous risks and uncertainties, as well as requiring the integration of multiple skills delivering a huge volume of tasks and processes. All of these must be coordinated carefully if time, cost, and quality constraints are to be met. At the same time, construction is renowned for performing poorly regarding sustainability metrics. Construction activity generates high volumes of waste, requires vast amounts of resources and materials, while consuming a significant proportion of total energy generated. Digitalization of the construction workplace and construction activities has the potential of improving construction performance both in terms of business results as well as sustainability outcomes. This is because, to put it simply, reduced energy usage, for example, impacts economic and “green” performance, simultaneously. Firms tinkering with digitalization, however, do not always achieve the hoped-for outcomes. The challenge faced is that a digital transition of construction firms must be carried out at a strategic level—requiring a comprehensive change management protocol. What then does a digital strategy entail? This study puts forward an argument for the combined economic and sustainability dividends to be had from digitizing construction firm activities. It outlines the requirements for achieving digitalization. The elements of a comprehensive digitalization strategy are cataloged, while the various approaches to developing a digitalization strategy are discussed. This study offers practitioners a useful framework by which to consider their own firm-level efforts at digitalization transition.

FACTORS AFFECTING ORGANISATIONAL ACCEPTANCE OF FORMAL NPD PROCESSES

2017 ◽  
Vol 21 (02) ◽  
pp. 1750011 ◽  
Author(s):  
KAI HOLZWEISSIG ◽  
JONAS RUNDQUIST
Keyword(s):  
New Media ◽  
New Product Development ◽  
New Product ◽  
Ease Of Use ◽  
Perceived Ease Of Use ◽  
Commercial Vehicles ◽  
Factors Affecting ◽  
Process Implementation ◽  
Organisational Structures ◽  
And Performance

Formal new product development (NPD) processes have become an important tool in NPD management. However, our understanding of what makes formal NPD process implementation successful in terms of acceptance and performance is still limited. This paper contributes to an improved understanding of factors affecting the acceptance and use of formal NPD processes. Our results show that acceptance of formal NPD processes is determined by several factors, such as ease of use, transparency of discourse, continuous improvement, involvement of NPD actors, and the ability to bridge differences in thinking. Furthermore, that acceptance of formal NPD processes affects NPD performance positively. These results draw on data from a survey posted to employees working for nine large manufacturers of commercial vehicles worldwide. The results should encourage managers to consider and enhance the factors affecting acceptance. This could be done through using new media for publication to increase transparency and perceived ease of use of the NPD process. Further acceptance of the formal NPD process is increased if it mirrors an operative reality and if organisational structures for improvement of the process are implemented and inclusive to employees involved in NPD.

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