Mastering innovation in the manufacturing sector

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper concentrates on understanding the types of innovation that can boost the profit margins of manufacturing companies in Spain. Digital service innovation can be a welcome factor that meshes with product innovation and process innovation, to enhance profits within defined manufacturing sub-sectors – namely computer manufacturing and machinery manufacturing. These processes should be introduced and pursued simultaneously, as an essential condition for producing positive effects on profitability. In other sub-sectors, the digital service innovation isn't required, since this merely adds a neutral impact to the profit-driving effects of the effective duo of process innovation and product innovation. Originality/value The briefing saves busy executives, strategists and researchers’ hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

The power of strategic knowledge management in the relationship between innovation and the performance of large manufacturing firms in Malaysia

Purpose This study aims to explore the interaction of strategic knowledge management (SKM) and innovation on the performance of large manufacturing firms (LMFs) in Malaysia. Design/methodology/approach This study used a quantitative approach in investigating this interaction. Smart partial least-squares analysis was performed to test the hypotheses. Findings It was observed that administrative innovation, process innovation and product innovation were effective drivers of LMF performance. It was also ascertained that SKM has no moderating effect on the product innovation relationship with performance, although it does moderate the relationships between LMF performance and administrative innovation and process innovation, respectively. Research limitations/implications The main limitation of this study is its focus on Malaysian LMFs. It nevertheless contributes to the literature by extending understanding of SKM and innovation dimensions from multi-faceted perspectives. As this is largely ignored in the literature, the study paves the way for additional research. Practical implications The findings may be used as guidelines for chief executive officers, particularly on the way SKM and innovation can be developed for enhanced LMF performance, in the context of South Asian countries. Originality/value To the best of the authors’ knowledge, this is the first empirical work to confirm the main drivers of SKM, including in the analysis the effect of administrative innovation, process innovation and product innovation and performance, in the context of the manufacturing sector. In support of an original conceptual model, the insights contribute to the literature on innovation, LMFs, SKM and emerging economies.

The Absorptive Capacity and Innovation in Jordanian Universities

Organizational transformation is a high-risk and difficult activity that all institutions must undertake. The objective of this article is to examine how businesses develop and utilize ACAP to aid with transformation. We examine how realized absorptive capacity in terms of transformation and exploitation capability directly affects organizational change and how process innovation practises act as an effective mechanism for connecting transformation and exploitation capability with organizational change, using a dynamic capability perspective and a’resourcing’ synergy perspective. To differentiate ourselves, we focus on both an evolving organizational structure and an emerging economy context in this research. The findings and discussion that follow on how process innovation strategies might help colleges become more entrepreneurial will interest university administrators and lawmakers.

The role of green process innovation translating green entrepreneurial orientation and proactive sustainability strategy into environmental performance

PurposeThis paper analyzes the mediating role of green process innovation in the relationships of green entrepreneurial orientation and proactive sustainability strategy with environmental performance.Design/methodology/approachThe authors analyze data from 81 Brazilian agriculture technology startups (AgTechs) using partial least squares–structural equation modeling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA).FindingsThe results show that the green process innovation assumes an important role in AgTechs, promoting full mediations between green entrepreneurial orientation and proactive sustainability strategy with environmental performance. There are two ways for AgTechs to achieve high environmental performance. In both, green process innovation is a central condition, while green entrepreneurial orientation or proactive sustainability strategy is a complementary condition.Research limitations/implicationsThis study demonstrates how internal elements (green entrepreneurial orientation, proactive sustainability strategy and green process innovation) improve environmental performance. This answers calls to explore which elements translate green entrepreneurial orientation and proactive sustainability strategies into environmental performance, by highlighting the mediating role of green process innovation.Practical implicationsThe findings are useful for founders and managers of AgTechs to find ways to manage sustainable technological advancement and cleaner production in agribusiness.Originality/valueThis study analyses the interface between sustainable entrepreneurship, strategy and innovation in promoting environmental performance of AgTechs from an emerging economy country.

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

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.

The Impact of E-Commerce Sales on Capacity Utilization

This study aims to examine the relationship between e-commerce sales and capacity utilization in China, with process innovation being the mediator and product focus being the moderator. A mediated moderation model was developed and tested using data from 804 Chinese manufacturing firms as well as two-stage least squares regression analysis. The results reveal that the relationship between e-commerce sales and capacity utilization is negative; while process innovation mediates this relationship. Furthermore, product focus not only moderates the relationship between e-commerce sales and capacity utilization, but also moderates the relationship between process innovation and capacity utilization. These findings are useful for decision-makers when formulating e-commerce sales strategies and focusing on process innovation that will help them achieve higher capacity utilization. This paper contributes to existing research by validating process innovation as mediator and product focus as moderator between e-commerce sales and capacity utilization.

Entrepreneurship and innovation in informal productive enterprises: Development of process innovation in a floral arrangement company

Purpose: reporting a process innovation in an informal productive enterprise, inserted in the field of parties, ceremonies and events décor, involving floral arrangements. Methodology: qualitative-descriptive study, with information being obtained through documentary research and case study. Originality/Relevance: this study analyzes an informal productive business, whose practice improvement was conducted based on technological resources. It is relevant because there are only few studies dedicated to technological development, and that thematize the most frequent type of productive enterprise in Brazil. Findings: the process innovation that was conducted has enabled a greater productive efficiency, as well as health, safety and hygiene in the workplace, since it has reduced costs and manufacturing time; and it has eliminated unnecessary procedures that result from the manual method. Theoretical/Methodological Implications: the innovation, developed and described heading from the theories and methodological approach used, in addition to promoting improvement in the ability of adapting to different customer demands, has added an element to the process innovation effects foreseen by Oslo Manual. Social Implications: in parallel to the operational results pointed out, the academic activity has enabled the improvement of economic enterprise that belong to settings and groups in social disadvantage.

Manufacturing Process Innovation in the Pharmaceutical Industry

Problem definition: Process innovation is commonly claimed to be a major source of competitive advantage for firms. Despite this perceived influence, it has received substantially less attention than product innovation, and much uncertainty remains about its true association with firm performance. We investigate the relationship between a pharmaceutical firm’s portfolio of manufacturing process innovations and its economic performance. Academic/practical relevance: We uniquely conduct a multidimensional evaluation of a firm’s portfolio of manufacturing process innovations at the product level. This allows a quantitative evaluation of both the relative benefit of the different dimensions of a portfolio as well as the potential complementarities between these in different technological landscapes. Methodology: Through a collaboration with expert patent attorneys, we develop a unique longitudinal data set that combines secondary data and evaluations of a firm’s portfolio of process patents along two key dimensions: novelty and scope. We conduct econometric analyses for a large-scale sample of active pharmaceutical ingredients (APIs) whose product patents have expired and for which process innovation is thus the main source of competitive advantage. Results: We find a positive association between the presence of manufacturing process innovation and firm performance. However, although portfolio’s scope appears to always be beneficial to performance, the effect of novelty alone depends on the ruggedness of the technological landscape: negative in smoother landscapes and positive in more rugged landscapes. Results further suggest that novelty and scope of a portfolio of process innovations are complementary across technological landscapes. Managerial implications: Our results provide important practical insights that can inform the organization and execution of the research and development process across high-technology industries. In particular, although process innovations can be economically beneficial, investing in high-novelty process innovations without a corresponding high scope could jeopardize payoffs, especially in technological landscapes that are relatively smooth.