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1 – 10 of over 8000Shoaib Abdul Basit, Thomas Kuhn and Uwe Cantner
Knowledge competencies and (R&D) activities are one of the most important sources of innovation and have been widely discussed in the literature. In comparison, the role of the…
Abstract
Purpose
Knowledge competencies and (R&D) activities are one of the most important sources of innovation and have been widely discussed in the literature. In comparison, the role of the competitive environment for the innovation activities of firms is still open to debate and has not been fully understood yet. Therefore, this paper intends to provide new evidence on the interaction between knowledge competencies and R&D activities of firms on the one side and their competitiveness in the market environment on the other. In particular, the moderating function of market competition is explored. In this respect, the analysis covers the main innovation types as well as both sectors, manufacturing and services.
Design/methodology/approach
The empirical analysis is based on a three years panel dataset of German manufacturing and service firms obtained from Mannheim Innovation Panel (MIP) and Community Innovation Surveys (CISs: 2011, 2013 and 2015). For the estimation, a binary instrumental variable treatment model with Heckman selection method is used. Also, it provides a suitable approach to estimating the binary variables in order to cope with endogeneity concerns.
Findings
The estimation results show that R&D activities and knowledge competencies are positively related to innovation activities of different types conditioned on firms' specific perception of their competitive environment, in terms of outdated products/services as well as strong competition from abroad. Most importantly, the results from the moderation estimation reveal that there is a significant difference between the manufacturing and service sector. Service firms engage more in internal R&D activities on generating product innovations while the manufacturing firms conduct more external R&D on specific types of innovation. Further, the authors find that strong competition from abroad positively and significantly reinforces the effect of knowledge competencies on innovation activities for more types in services than in manufacturing. In contrast, outdated products and services tend to decline the effect of knowledge competencies for some innovation types in both sectors. The authors also observe a positive and significant reinforcement effect on knowledge competencies. However, it is found more beneficial for service firms since they can employ more innovation strategies.
Originality/value
The focus of the study is mainly on the impact of firms' competitive environment on innovation activities in various types through its interaction with knowledge competencies and R&D activities, across manufacturing and service firms.
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Yuping Yin, Frank Crowley, Justin Doran, Jun Du and Mari O'Connor
This paper examines the innovation behavior of family-owned firms versus non-family-owned firms. The role of internal family governance and the influence of external stimuli…
Abstract
Purpose
This paper examines the innovation behavior of family-owned firms versus non-family-owned firms. The role of internal family governance and the influence of external stimuli (competition) on innovation are also considered.
Design/methodology/approach
The data of 20,995 family and non-family firms across 38 countries are derived from the World Bank Enterprise Survey during the period 2019–2020. Probit models are used to examine the impact of family ownership, family governance, and competition on innovation outcomes.
Findings
Family firms are more likely to make R&D investments, acquire external knowledge, engage in product innovation (including innovations that are new to the market) and process innovation, relative to non-family firms. However, a high propensity of family member involvement in top management positions can reduce innovation. Competition has a negative impact on innovation outcomes for both family and non-family firms, but it has a positive moderating effect on the innovation activities of family firms where a higher level of family member involvement in management is present.
Originality/value
This paper provides novel insights into family firm innovation dynamics by identifying family firms as more innovative than non-family firms for all types of indicators, debunking the idea that family firms are conservative, reluctant to change, and averse to the risks in innovation activities. However, too much family involvement in decision making may stifle some innovation activities in family firms, except in cases where the operating environment is highly competitive; this provides new insights into the ownership-management dynamic of family firms.
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Minseo Kim, Ji-eung Kim, Yeong-wha Sawng and Kwang-sun Lim
This study aims to verify the effectiveness and efficiency of corporate technology innovation activities.
Abstract
Purpose
This study aims to verify the effectiveness and efficiency of corporate technology innovation activities.
Design/methodology/approach
This study empirically analyzes the effects of research and development (R&D) capability on patent and new product development achievements on innovation-type small- and medium-sized enterprises (SMEs) by using the “Report on Korean Innovation Survey 2010: Manufacturing Sector” data released by the Science and Technology Policy Institute.
Findings
The results of the study indicate that staffing of the concentration of R&D human resource team and efforts toward open innovation are essential factors for the creation of corporate performance.The number of persons of the concentration R&D team in particular makes up essential resources for patent acquisition and new product development. In addition, in case of an SME’s with relatively poor resources, it is necessary to acquire resources, both material and immaterial, learn from the external R&D activities and internalize those into key corporate capabilities rather than step up the R&D activities on their own.
Originality/value
The results of this study indicate that innovative small enterprises need to secure the number of R&D human resource members for maintaining sustainable competitiveness and securing market share. Therefore, a strategy is needed that would enable employing and raising excellent human resource in the quantitative and qualitative aspects. However, in the circumstances that small enterprises suffer difficulty in securing professional human resource for R&D compared to large enterprises, as there is a limitation for securing human resource for R&D from only the dimension of enterprises, governmental and political support is thought to be necessary for securing good-quality human resource for R&D. Accordingly, the results of this study provide many implications for the necessity of detailed methodology on how to expand professional human resource for R&D among supporting policies for technical innovative enterprises and to establish innovative strategies of enterprises.
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Erika Raquel Badillo, Francisco Llorente Galera and Rosina Moreno Serrano
The purpose of this paper is to analyse cooperation in R&D in the automobile industry in Spain. It first examines to what extent firms cooperate with external actors in the field…
Abstract
Purpose
The purpose of this paper is to analyse cooperation in R&D in the automobile industry in Spain. It first examines to what extent firms cooperate with external actors in the field of technological innovation, and if so, with what type of cooperation partner, paying special attention to the differentiation according to the size of the firms. Second, it aims to study how the firm’s size may affect not only the decision of cooperating but also with which type of partner.
Design/methodology/approach
The data in this study came from the surveys done in 2010 and 2013 by the Technological Innovation Panel (PITEC) for firms in the automotive industry. The paper estimates a bivariate probit model that takes into account the two types of cooperation mostly present in such an industry, vertical and institutional, explicitly considering the interdependencies that may arise in their simultaneous choice.
Findings
The empirical study confirms that small firms cooperate less frequently than big firms and that giving more importance to information publicly available and having public financial support from local and national governments are important determinants of collaboration agreements, mainly in the case of customers and suppliers.
Originality/value
This paper contributes to the understanding of the motivations of the automotive industry for engaging in R&D cooperation agreements. The authors study how the firm’s size may affect not only the decision of cooperating but also with which type of partner.
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Hazem Aldabbas and Niël Oberholzer
This study provides theoretical and empirical insights into how firms can enhance their performance strategically and financially by integrating learning and transformational…
Abstract
Purpose
This study provides theoretical and empirical insights into how firms can enhance their performance strategically and financially by integrating learning and transformational capabilities into research and development (R&D) activities based on the dynamic capabilities approach. To achieve this, the authors propose that transformational capabilities in R&D mediate the relationship between learning capabilities in R&D and competitive advantage.
Design/methodology/approach
Using a purposive sampling technique and standardized questionnaires, data were collected from 118 R&D and senior managers. To analyze the data, multiple regression analysis, along with SPSS PROCESS macro (Model 4), was used.
Findings
The results support the theoretical assumption that there are direct and indirect positive and significant effects between learning capabilities in R&D and competitive advantage as mediated by transformational R&D capabilities.
Originality/value
This study explores R&D from a dynamic capabilities perspective and suggests that learning capabilities should come first to enhance businesses’ competitive advantage. Furthermore, transformational R&D capabilities can explain the relationship between learning capabilities in R&D and competitive advantage. The authors recommend that researchers should investigate the contributions of R&D to promote competitive advantage.
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Stephen Kehinde Medase and Ivan Savin
Although employees' creativity is vital for firm innovation and overall performance, little is done to examine the potential association between creativity and employment. This…
Abstract
Purpose
Although employees' creativity is vital for firm innovation and overall performance, little is done to examine the potential association between creativity and employment. This paper investigates the contribution of employees' creativity, process and product innovations to firm-level employment growth.
Design/methodology/approach
The authors use data from World Bank Enterprise Survey and Innovation Follow-up Survey on 9503 firms covering the period 2012–2015 in 11 countries from sub-Saharan Africa and Heckman's two-stage estimation model.
Findings
This study's results indicate a positive role of creativity on firm-level employment growth. In addition, the authors find evidence for a complementary effect arising from the combination of creativity with managerial experience, staff level of education and their associated skills, in contrast, combining creativity with internal or external R&D results in a substitution effect. Interestingly, these synergy effects are pronounced for SMEs but absent for large firms.
Practical implications
Policy makers in developing economies of sub-Saharan Africa should stimulate company management to use free time offered to employees to be creative in the workplace as one of their key strategies to stimulate employment growth. This strategy is expected to be particularly fruitful among SMEs having some managerial experience and skilled stuff.
Originality/value
In contribution to innovative work practices and workforce creativity, the authors demonstrate that providing employees with free time could be an alternative way to enhance the focal firms' performance.
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Kehinde Medase and Laura Barasa
The purpose of this paper is to investigate how specialised capabilities including absorptive capacity and marketing capabilities influence innovation commercialisation in…
Abstract
Purpose
The purpose of this paper is to investigate how specialised capabilities including absorptive capacity and marketing capabilities influence innovation commercialisation in manufacturing and service firms in Nigeria. The authors hypothesise that absorptive capacity measures including openness and formal training for innovation, and marketing capabilities encompassing new product marketing and marketing innovation are positively associated with innovation performance.
Design/methodology/approach
The authors examine commercialisation of innovation within the profiting from innovation (PFI) and dynamic capabilities (DC) framework and use data from the 2012 Nigeria Innovation Survey to test the hypothesis by means of a Heckman sample selection model.
Findings
The authors find that absorptive capacity measures comprising openness and formal training are positively associated with innovation performance. The authors also find that marketing capabilities as indicated by new product marketing and marketing innovation are positively associated with innovation performance.
Research limitations/implications
The authors acknowledge that firms undergo continuous changes and that there may be the presence of unobserved or unmeasured heterogeneity. Taking into cognisance that Nigeria is a federal state, cultural diversity and economic factors are likely to differ widely between geographical regions. Also, while the proposed conceptual framework offers a deeper understanding of innovation performance, examining how integrating activities of the R&D department, human resource department and marketing department affect innovation commercialisation is likely to provide more meaningful insights.
Practical implications
The role that inter-organisational learning and intra-organisational learning play in driving innovation performance provide managers with a basis for incorporating absorptive capacity building programs that boost employees’ ability to recognise and apply valuable external knowledge to commercial ends. Similarly, firms may benefit from offering marketing capabilities development programs. Furthermore, innovation policies in Nigeria are generally designed to focus on fostering innovation activities aimed at developing innovative output. Accordingly, government support explicitly targeting new product marketing and marketing innovation is likely to play a vital role in the successful commercialisation of innovation in Nigeria.
Originality/value
This study fuses the PFI and DC framework to examine why innovating firms may not necessarily succeed. This area of study has received scant attention in sub-Saharan Africa given that extant literature focusses on value creation as opposed to value capture.
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Thuy Minh Thu Phung, Dat Tho Tran, Patrick Alexander Maria Vermeulen and Joris Knoben
This paper aims to investigate the antecedents of process innovation to provide more alternates for Vietnamese firms as they are still struggling to find an appropriate innovation…
Abstract
Purpose
This paper aims to investigate the antecedents of process innovation to provide more alternates for Vietnamese firms as they are still struggling to find an appropriate innovation strategy.
Design/methodology/approach
The research analyzes the separate impacts of each innovation strategy on process innovation using logistic regression models. Data were collected using a stratified random sampling method.
Findings
The results show that having an innovation strategy is good for innovation, regardless of whether the strategy is internal or external. Internal and external strategies are proved not complements but substitutes. However, the internal strategy seems to be most beneficial. Weak institutional settings further strengthen the importance of internal strategies, whereas strong institutional settings favor external strategies.
Originality/value
This paper analyzes the impact of different innovation strategies on process innovation in Vietnamese firms using firm-level data. The findings strongly recommend that in weak institutional settings such as Vietnam, firms should focus on an internal strategy because the emphasis on external innovation strategies might be a western bias stemming from research in mostly strong institutional contexts.
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Fábio de Oliveira Paula and Jorge Ferreira da Silva
The level of R&D spending of a country tends to increase the national patent rate and, in consequence, can collaborate with its economic development. However, there are a few…
Abstract
Purpose
The level of R&D spending of a country tends to increase the national patent rate and, in consequence, can collaborate with its economic development. However, there are a few empirical studies investigating this phenomenon by comparing countries from all over the globe. The purpose of this paper is to disassemble the sources of R&D spending and identify the role of national patent applications as a mediator in the relationship between R&D spending and national development.
Design/methodology/approach
Panel data on patent applications in 35 countries of all continents (except Africa) over 15 years (from 1999 to 2013) regarding four levels of national R&D intensity (i.e. by enterprises, governments, higher education institutions and private non-profit organisations), gross domestic product (GDP) per capita, gross national income (GNI) and human development index (HDI) were collected from the OCDE. Then, two-stage panel regressions were conducted to test the hypotheses.
Findings
The empirical findings indicated that R&D spending from firms and higher education institutions (public and private) help to directly improve national patent applications, thus contributing to the national development (measured by GDP per capita, GNI per capita and HDI).
Originality/value
The importance of this study was to show that the investments in R&D made by universities and firms are more effective in leading to patent applications, which contributes to promoting national development. With these findings, governments can focus their efforts on stimulating these types of investments if they want to foster the growth of national patent rates.
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Beatriz Forés and José María Fernández-Yáñez
The purpose of this study is to identify how firms' sustainability performance is affected by external knowledge sources and absorptive capacity, accounting for the influence of…
Abstract
Purpose
The purpose of this study is to identify how firms' sustainability performance is affected by external knowledge sources and absorptive capacity, accounting for the influence of being located in a science and technology park (STP).
Design/methodology/approach
Drawing on data from the Spanish Technological Innovation Panel, the authors estimate the determinants of sustainability performance using fixed effects multiple linear regression models with robust standard errors. The analysis covers the period 2009–2016, with a total panel of 8,874 companies and a total sample of 47,870 observations.
Findings
This study highlights the heterogeneity in on-park firms’ sustainability performance, which can be explained by the different capacities of these firms when it comes to embedding themselves in STP networks and processes and effectively absorbing the knowledge from the many knowledge sources that may be on offer in the park.
Originality/value
This paper contributes to the literature by examining the influence of external sources of knowledge and absorptive capacity, and the relationship between them, on sustainability performance. This study approaches sustainability performance as an aggregate measure of firms’ competitiveness and potential for long-term survival from the triple bottom line perspective. In addition, this study examines the effect that location in an STP can have on business sustainability performance and, more specifically, the mediating effect that knowledge sources and absorptive capacity can exert on this relationship.
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