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Open Access
Article
Publication date: 15 September 2022

Sony Mathew and Hamid Seddighi

This paper provides remarkable insight into the structural components of a firm's core competence and its development via research and development (R&D) activities for innovation

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Abstract

Purpose

This paper provides remarkable insight into the structural components of a firm's core competence and its development via research and development (R&D) activities for innovation and exporting activities.

Design/methodology/approach

The authors have used a positivist design and a deductive methodology. The authors have examined the extant literature developing a theoretical framework to empirically investigate the relationships between a firm's core competence, organisational learning (OL), tacitness, dynamic capability and R&D activities. To carry out this investigation, the authors have collected stratified sample data from 330 firms operating in North East England, a peripheral region of England.

Findings

The authors have found that there are indeed significant statistical relationships between these structural components, R&D activities and a firm's core competence, and this nexus is pertinent to innovation and exporting. Furthermore, it is found that North East England is significantly constrained by the lack of finance, technological capability, experts and brain drain. Based on these findings, the authors propose a cooperative R&D framework to narrow down these constraints to assist firms in developing core competencies for innovation and exporting in peripheral regions.

Social implications

There is an urgent need to investigate the incidence of knowledge-driven activities, R&D, the extent of innovation and exporting activities of firms operating in North East England, a peripheral region of the United Kingdom (UK).

Originality/value

This study provides an original and systematic investigation of the firm's core competence and its formation via key structural components for innovation and exporting within an empirical framework.

Details

European Journal of Management Studies, vol. 27 no. 3
Type: Research Article
ISSN: 2183-4172

Keywords

Article
Publication date: 2 December 2021

Desmond Ng and Leonardo F. Sanchez-Aragon

The purpose of this study is to theoretically and empirically advance a concept of competitive antecedents to absorptive capacity (AC) research and to explain their relationship…

Abstract

Purpose

The purpose of this study is to theoretically and empirically advance a concept of competitive antecedents to absorptive capacity (AC) research and to explain their relationship to a firm’s innovative performance. A firm’s competitive antecedents involve a relative advantage in a firm’s ability to access external knowledge – (i.e. relative advantage in external knowledge flows) – and a relative advantage in appropriating these external knowledge flows (i.e. relative advantage in appropriability regime).

Design/methodology/approach

By drawing on network and market share explanations, hypotheses were developed in which a firm’s AC is argued to mediate the influence of these competitive antecedents on a firm’s innovations. In using linear and negative binomial estimation methods, a mediation analysis of the US biotechnology industry was conducted.

Findings

A firm’s competitive antecedents have a positive influence on a firm’s AC and that these influences indirectly impact a biotechnology firm’s product innovations.

Originality/value

While a firm’s innovation is widely attributed to its AC, this study’s concept of competitive antecedents shows that a firm’s competitive advantage lies upstream from its AC.

Details

Journal of Knowledge Management, vol. 26 no. 9
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 8 May 2017

Seungryul Ryan Shin, John Han, Klaus Marhold and Jina Kang

The purpose of this study is to investigate the effects of open innovation, especially focusing on technological M&A, on subsequent innovation and changes to the firm’s core…

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Abstract

Purpose

The purpose of this study is to investigate the effects of open innovation, especially focusing on technological M&A, on subsequent innovation and changes to the firm’s core technological portfolio.

Design/methodology/approach

The study suggests three types of core technological areas, based on prior focus and experience in technological categories. These are 1) the existing core area, in which the acquirer firm retains its knowledge and expertise, 2) the enhanced core area, where knowledge and expertise in the acquirer firm’s insufficient areas are strengthened, and 3) the new core area, i.e. new knowledge fields in which the acquirer firm ventures into. The study then analyzes the effects of two key knowledge characteristics of the target firm, similarity and complementarity, on post-M&A innovation outcomes in each of the three core technological areas.

Findings

The results confirm that while none of the investigated knowledge characteristics of the target firm is advantageous for post-M&A innovation outcomes in existing core areas, similarity of the target firm does facilitate post-M&A innovation outcomes in enhanced core areas. Moreover, the results confirm that complementarity of the target firm is beneficial for post-M&A innovation outcomes in new core areas.

Originality/value

The study explains the reconfiguration mechanism of a firm’s core technological portfolio. It also suggests an extended framework to analyze innovation outcomes in more detail. Moreover, the study helps to explain why most M&As result in failure.

Details

Journal of Knowledge Management, vol. 21 no. 3
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 6 July 2017

Mohammad Javadinia Azari, Tage Koed Madsen and Øystein Moen

The purpose of this paper is to investigate the antecedent and outcomes of different types of innovation as complementary growth strategies, which may enable exporting small- to…

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Abstract

Purpose

The purpose of this paper is to investigate the antecedent and outcomes of different types of innovation as complementary growth strategies, which may enable exporting small- to medium-sized enterprises (SMEs) to achieve success in export markets.

Design/methodology/approach

This study is based upon a quantitative survey on Norwegian exporting SMEs. A total of 380 questionnaires were received representing 16.8 per cent response rate. A structural equation modelling analysis is carried out on the sample.

Findings

The study finds positive and significant associations between the firm’s growth ambition and the pursuance of product and business model innovations. Moreover, the firm’s export degree and scope has a significant and positive association with its product innovation strategy, but the association with its business model innovation is significantly negative.

Research limitations/implications

The study’s findings indicate that future studies should incorporate different types of innovation strategies since their associations with export performance differ substantially. Treating innovation as a general construct appears to be too simplistic.

Practical implications

The study’s results indicate that focus on product innovation enhances the export performance of SMEs, but that focus on business model innovation has a negative impact. The latter may be too costly and distract focus from the firm’s core competences, whereas product innovation can be assumed to provide further competitive strength.

Originality/value

By taking a holistic approach towards innovation, this study addresses a gap in the literature on innovation and exporting in SMEs in order to investigate the association between different types of innovation-based growth strategies and the firms’ export prosperity.

Details

Journal of Small Business and Enterprise Development, vol. 24 no. 4
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 1 September 2021

Yatian Liu, Heng Xu and Xiaojie Wang

The presence of asymmetric information exists between firms and the government about the firms' green innovation; this may lead to the firm's moral hazard problem of misusing the…

Abstract

Purpose

The presence of asymmetric information exists between firms and the government about the firms' green innovation; this may lead to the firm's moral hazard problem of misusing the government subsidy on the green innovation. Such a problem is not fully considered by the existing literature. The purpose of this study is to explore how government subsidy affects green innovation when the information of firms' innovation cannot be completed observed, and figure out the mechanisms that can alleviate the negative impact of information asymmetry, which helps to explain the factors that motivate the firms to actively engage into the green innovation with the government subsidy.

Design/methodology/approach

In a theoretical model under imperfect information in which the firm's activity on green innovation may not be fully observed, the firm could be either altruistic or not; an altruistic firm has stronger incentive to engage into corporate social responsibility (CSR) activities such as green innovation. With the presence of asymmetric information, the authors analyze the possibility of a firm's moral hazard and try to find out the condition on the information quality that can avoid such problem. To examine the results of theoretical analysis, the authors use the data of Chinese listed companies in a corresponding empirical analysis. On the basis of both theoretical and empirical the authors try to figure out the effect of the government subsidy on the green innovation by enterprise and the role of firm's characteristics of social responsibility and information quality in the green innovation with the government subsidy.

Findings

The results show that the government subsidy can promote the firm's green innovation, especially for those that are more socially responsible. The asymmetric information, however, leads to inefficiency on the green innovation. This is because that the low-quality information about the firm's behavior raises the possibility of a moral hazard. Moreover, the analyst coverage could be an efficient way to improve the quality of information, alleviating the moral hazard problem of the firm's green innovation. The main contribution is to fill the gap in the study of the government subsidy on green innovation under asymmetric information and to provide the mechanism to improve the efficiency of the subsidy to motivate green innovation by enterprise.

Practical implications

A crucial implication to policymakers is to complete and improve the system of information in the market, which can form an efficient incentive compatibility between the enterprises and the public. Such incentive compatibility can attract the enterprises to better use the government subsidy into green innovation and receive a long-run return from the public's positive feedback for their contribution on the social good.

Originality/value

Existing studies are concerned about antecedents of green innovation do not completely focus on the relationship between government subsidy and green innovation. The present paper considers that information asymmetry between the government and firms may affect the impact of government subsidy on the firms' green innovation. This conjecture is studied by the theoretical model and verified by an empirical analysis using the data of Chinese listed companies. Additionally, the empirical analysis explores the moderating effect of CSR characteristics of firms, and the analyst coverage can positively affect the promotion of the government subsidy on the firms' green innovation.

Details

Kybernetes, vol. 51 no. 12
Type: Research Article
ISSN: 0368-492X

Keywords

Open Access
Article
Publication date: 2 July 2020

Igor Dukeov, Jukka-Pekka Bergman, Pia Heilmann and Andrey Nasledov

During the last decade, a firm's ability to innovate has gained substantial attention in the literature devoted to innovation and strategic management. This study aims at…

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Abstract

Purpose

During the last decade, a firm's ability to innovate has gained substantial attention in the literature devoted to innovation and strategic management. This study aims at discussing on what is the relationship of a firm's commitment to learn and its open-mindedness with its activity in introducing organizational innovations. The data collection was carried out in Russia. In order to make the research more specific, the organizational innovation is broken down into two subtypes, namely innovation in management practices and innovation in workplace organization.

Design/methodology/approach

The study is grounded on the data obtained by the surveying of 123 Russian top managers working in manufacturing firms. The structural equation modeling was approached in order to investigate the impact of a firm's commitment to learn and open-mindedness on its organizational innovation.

Findings

The results indicate that the commitment to learn and the open-mindedness have considerable impact on organizational innovation activity in a firm. The findings also provide evidence that both the investigated subtypes of organizational innovation are positively influenced by commitment to learn and open-mindedness, though the degree of that influence differs.

Originality/value

The literature traditionally focuses mostly on the technological type of innovation leaving the organizational innovation covered by scarce research. In this respect the study contributes to the theory of organizational innovation by elaborating its relations with organizational learning dimensions. Apart from the investigation on the research question at a general level, the study explores the specific context related to the manifestation of phenomenon in a transition economy of Russia.

Details

Baltic Journal of Management, vol. 15 no. 4
Type: Research Article
ISSN: 1746-5265

Keywords

Article
Publication date: 14 December 2022

Yu Zhou, Huaiqian Zhu, Li Zhu, Guangjian Liu and Yufeng Zou

Drawing from social capital theory and resource dependence theory, this paper aims to test the relationship between top management team (TMT) government social capital and firm’s

Abstract

Purpose

Drawing from social capital theory and resource dependence theory, this paper aims to test the relationship between top management team (TMT) government social capital and firm’s innovation performance via firm’s network prestige, and the moderating effect of TMT academic social capital.

Design/methodology/approach

The authors collected data from the China Stock Market and Accounting Research Database as well as A-share listed firms’ annual reports, and finally generated a sample of 922 firms and 2,464 firm-years from 2008 to 2014. UCINET 6.0 was used to analyze the data.

Findings

The authors find that the government social capital of TMT is positively related to firms’ innovation performance and firms’ network prestige plays a mediating role in this relationship. In addition, TMT academic social capital can strengthen the links between TMT government social capital and innovation performance through firms’ network prestige.

Originality/value

This paper not only contributes to literatures on the mechanism in the relationship between government social capital and firms’ innovation, but also to literatures on the effectiveness of the heterogeneity of firm’s social capital.

Details

Chinese Management Studies, vol. 17 no. 6
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 11 June 2020

Shaojie Han, Yibo Lyu, Ruonan Ji, Yuqing Zhu, Jingqin Su and Lining Bao

This study aims at developing a better understanding of the relationship between network embeddedness and incremental innovation capability and further examines the moderating…

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Abstract

Purpose

This study aims at developing a better understanding of the relationship between network embeddedness and incremental innovation capability and further examines the moderating effect of open innovation.

Design/methodology/approach

This paper adopts hierarchical regressions to validate the theoretical model and collect the patent data of the top 54 firm patentees in the smartphone industry as empirical sample. Using patent citation network data, this paper estimates the relationship between open innovation, network embeddedness and incremental innovation capability.

Findings

This paper empirically shows that structural embeddedness exerts a negative effect on incremental innovation capability, while relational embeddedness is positively related to incremental innovation capability. And open innovation strengthens the relationship between network embeddedness and incremental innovation capability.

Originality/value

This paper shifts the focus of the determinants of incremental innovation capability from internal factors to the external network features by exploring the linkage between network embeddedness and incremental innovation capability. A counterintuitive conclusion is that structural embeddedness shows a negative effect on firm's incremental innovation capability. Furthermore, in contrast to most previous studies, which only focus on the direct effect of open innovation on the firm's incremental innovation capability, our study examines the moderating effect of open innovation on the relationships between network embeddedness and incremental innovation capability. At last, the results provide practical guidance for firms to occupy the beneficial network positions and adopt appropriate open innovation strategies to improve their incremental innovation capability.

Details

Management Decision, vol. 58 no. 12
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 17 October 2016

Yi-Chun Huang, Min-Li Yang and Ying-Jiuan Wong

Little research has been conducted on the internal factors that drive green product (GP) innovation and how family influence affects firm adoption of GP innovation. This study…

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Abstract

Purpose

Little research has been conducted on the internal factors that drive green product (GP) innovation and how family influence affects firm adoption of GP innovation. This study aims to apply multiple perspectives to bridge this research gap, adopting the resource-based view (RBV) to examine what and how internal factors affect firm adoption of GP innovation, and using the behavioral theory of family firms to investigate whether family influence fosters or hinders firm adoption of GP innovation.

Design/methodology/approach

This study used a multichannel approach and adopted content analysis to collect and evaluate data on listed Taiwanese firms and used cross-sectional regression analysis to examine the effect of internal factors and family influence on firm adoption of GP innovation.

Findings

The results showed that the internal factors of green capabilities, R&D intensity and firm size significantly and positively affected firm adoption of GP innovation separately. Furthermore, the study found that family influence (ownership and control) significantly and negatively affects firm adoption of GP innovation separately.

Research limitations/implications

This study contributes to the academic research of innovation management, green management and family firms in several aspects, but also has some limitations. This study examined only the relationship between a firm’s internal factors and GP innovation. Future research might test the relationship between a firm’s internal factors and adoption of green process innovation. In addition, such research can explore how integrated internal and external factors influence firm adoption of GP innovation.

Practical implications

From the RBV, the internal factors of green capabilities, R&D intensity and firm size that can exert crucial effects on firm engage in firm’s adoption of GP innovation. This study suggests that top managers in family-influenced businesses should maintain appropriate commitment and support for fostering and facilitating firm GP innovation.

Social implications

From the RBV, this study examined how internal factors affect firm adoption of GP innovation. Moreover, based on the behavioral theory of family firms, this study further examined how family influence (ownership and control) affects firm adoption of GP innovation. This paper extended both perspectives to examine green issues.

Originality/value

From the RBV, this study examined how internal factors affect firms’ GP innovation. Moreover, based on institutional theory, this study further examines how a family firm moderates the relationship between a firm’s internal factors and GP innovation. The paper extended both perspectives to probe further the green issues.

Details

Management Research Review, vol. 39 no. 10
Type: Research Article
ISSN: 2040-8269

Keywords

Article
Publication date: 18 April 2017

Navneet Bhatnagar and Arun Kumar Gopalaswamy

This paper aims to identify the dimensions of a firm’s service innovation competence. This paper also aims to establish the relationship between a firm’s service innovation

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Abstract

Purpose

This paper aims to identify the dimensions of a firm’s service innovation competence. This paper also aims to establish the relationship between a firm’s service innovation competence dimensions and customer-oriented service innovation configurations and customer adoption. This study probes the supply side of service innovation to assess the key drivers or capabilities that influence the service innovation process at the firm level.

Design/methodology/approach

This study uses the triangulation method using existing theoretical concept supplemented by 18 in-depth interviews of senior level managers from service firms from three sectors – hospitality, mobile telecommunication services and financial services. The interview findings were supplemented by 12 service innovation case studies (four from each sector). Content analysis of in-depth interviews was performed using three raters, and inter-rater reliability was tested. Case studies were categorized in terms of the strength of the innovation competence dimension observed.

Findings

Based on the content analysis of the interviews and categorization of case study observations, six distinct dimensions of the firm’s service innovation competence were identified. Four attributes of each dimension were also identified. Based on the interview insights and case observations, seven propositions are suggested, and a conceptual framework is presented to establish the relationship between the firm’s service innovation competence dimensions and service innovation configurations and customer adoption.

Research limitations/implications

This study was conducted in the Indian context and remains to be tested using quantitative research. Therefore, researchers are encouraged to test the proposed framework in a different geographical context to ascertain its validity.

Practical implications

The conceptual framework presented in the paper may help managers of service firms in building innovation capabilities that are relevant to development of customer-oriented innovations. This would lead to better customer adoption of their new services.

Originality/value

This paper fills an important knowledge gap regarding the dimensions of a critical supply-side component of service innovation, that is, innovation competence. Clear identification of competence dimensions and their relationship with customer adoption extends the current knowledge on service innovation.

Details

Management Research Review, vol. 40 no. 4
Type: Research Article
ISSN: 2040-8269

Keywords

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