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Article
Publication date: 23 November 2021

Ayman Wael Al-Khatib and Eyad Mustafa Al-ghanem

The purpose of this paper is to identify the effect of radical innovation and incremental innovation on the competitive advantage of Jordanian industrial companies and…

Abstract

Purpose

The purpose of this paper is to identify the effect of radical innovation and incremental innovation on the competitive advantage of Jordanian industrial companies and identify the moderating role of technological intensity.

Design/methodology/approach

For this study’s purposes, 303 questionnaires from employees of 30 manufacturing firms were analysed. Convergent validity and discriminant validity tests were performed through structural equation modelling in the Smart-PLS programme. Data reliability was confirmed. A bootstrapping technique was used to analyse the data. Multi-group analysis was performed to investigate the moderating role of technological intensity.

Findings

Empirical results showed that both radical innovation and incremental innovation explain 60.2% of the variance in competitive advantage and that both constructs have a statistically significant effect on competitive advantage. The results also revealed that the relationship between radical innovation and competitive advantage is modified through the high-tech industries. Meanwhile, the relationship between incremental innovation and competitive advantage is modified through the low-tech industries.

Research limitations/implications

This cross-sectional study provides a snapshot at a given moment in time, a methodological limitation that affects the generalization of its results and the results are limited to one country, Jordan.

Practical implications

This study promotes the idea of focusing on radical and incremental innovation to enhance competitive advantage in the Jordanian manufacturing sector and knowing the effect of technological intensity in this relationship.

Originality/value

This study has important implications for leaders in the Jordanian manufacturing sector in general, as the study highlights the importance of radical innovation and incremental innovation to enhance the competitive advantage, especially in light of the technological intensity in this sector, and thus, increase the innovative capabilities of this firms, which leads to an increase in the level of competitive advantage.

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European Business Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0955-534X

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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…

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

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Article
Publication date: 12 September 2016

Mona Ashok, Rajneesh Narula and Andrea Martinez-Noya

Despite the keen interest in radical and incremental innovation, few studies have tested the varying impact of firm-level factors in service sectors. This paper analyses…

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Abstract

Purpose

Despite the keen interest in radical and incremental innovation, few studies have tested the varying impact of firm-level factors in service sectors. This paper analyses how collaboration with existing and prospective users and investments in knowledge management (KM) practices can be adapted to maximise the outputs of radical and incremental process innovation in a knowledge-intensive business service industry.

Design/methodology/approach

Original survey data from 166 information technology service firms and interviews with 13 executives provide the empirical evidence. Partial least squares-structural equation modelling is used to analyse the data.

Findings

Collaboration with different types of users, and investments in KM practices affect radical versus incremental process innovation differently. Collaboration with existing users influences incremental process innovation directly, but not radical innovation; and prospective user collaboration matters for radical, but not incremental innovation. Furthermore, for radical innovation, investments in KM practices mediate the impact of prospective user collaboration on innovation.

Research limitations/implications

While collaboration with existing users for incremental process innovations does not appear to generate significant managerial challenges, to pursue radical innovations firms must engage in intensive collaboration with prospective users. Higher involvement with prospective users requires higher investment in KM practices to promote efficient intra- and inter-firm knowledge flows.

Originality/value

This study is based on a large-scale survey, together with management interviews. Radical and incremental innovations in the service industry require engagements with different kinds of users, and the use of KM tools.

Details

Journal of Knowledge Management, vol. 20 no. 5
Type: Research Article
ISSN: 1367-3270

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Article
Publication date: 6 November 2018

Duy Quoc Nguyen

The purpose of this paper is to develop a theoretical and empirical exploration of link between organization intellectual capital and knowledge flows with its incremental

Abstract

Purpose

The purpose of this paper is to develop a theoretical and empirical exploration of link between organization intellectual capital and knowledge flows with its incremental and radical innovation performance.

Design/methodology/approach

This paper adopts relevant literature of social capital and organizational learning to examine the impact of intellectual capital and knowledge flows on incremental and radical innovation based on surveying 95 firms. To test the research hypotheses, regression analysis is used.

Findings

Results of the study show that human capital and top-down knowledge flows significantly and positively influence both incremental and radical innovations. Social capital and bottom-up knowledge flows do not have any significant impact on incremental or/and radical innovation. Organizational capital has a positive impact on incremental innovation as expected.

Practical implications

The results offer several practical implications for business managers to harvest its knowledge bases resident in the firm’s different forms appropriately to make innovation successful. Particularly, knowledge resident in human capital and organizational capital is useful for making incremental innovation. Especially, new knowledge, new skills and new perspectives resident in human capital are crucial important for making radical innovation. Both incremental and radical innovations are positively influenced by dynamic managerial capabilities.

Originality/value

This study contributes to literature by providing new evidence linking organization intellectual capital and knowledge flows with its innovation performance. Especially, the missing link between top-down knowledge flows and radical innovation is empirically examined. Value of this study is that social capital and bottom-up knowledge flows are not universally beneficial for enhancing innovation and their impacts on innovation performance are context dependent and more sophisticated than it is recognized in the literature.

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Asia-Pacific Journal of Business Administration, vol. 10 no. 2/3
Type: Research Article
ISSN: 1757-4323

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Article
Publication date: 16 August 2019

Seyedeh Khadijeh Taghizadeh, Syed Abidur Rahman, Md Mosharref Hossain and Md Masudul Haque

The purpose of this paper is to examine the influence of four organizational culture traits, consistency, cooperativeness, effectiveness and innovativeness, on radical and…

Abstract

Purpose

The purpose of this paper is to examine the influence of four organizational culture traits, consistency, cooperativeness, effectiveness and innovativeness, on radical and incremental type of service innovations, which leads to new service market performance (NSMP).

Design/methodology/approach

The data are collected through a cross-sectional survey of 171 bank managers in Bangladesh and analyzed through structural equation modelling using SmartPLS software.

Findings

The results reveal no impact of “consistency” as a cultural trait on “radical” and “incremental” service innovations. “Cooperativeness” and “innovativeness” impact incremental and radical service innovations positively. “Effectiveness” impacts radical service innovations positively. Radical and incremental service innovations impact NSMP significantly.

Practical implications

These findings add to the knowledge in terms of how organizational culture can make service innovations happen in the growing banking industry in a developing market.

Originality/value

The model links organizational culture traits (internal/external and flexibility/control focussed) with radical and incremental service innovation.

Details

Marketing Intelligence & Planning, vol. 38 no. 2
Type: Research Article
ISSN: 0263-4503

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Article
Publication date: 15 February 2021

Sahar Hayaeian, Reza Hesarzadeh and Mohammad Reza Abbaszadeh

The purpose of this study is to investigate the moderating role of knowledge management (KM) strategies in developing the effect of intellectual capital (IC) on innovation

Abstract

Purpose

The purpose of this study is to investigate the moderating role of knowledge management (KM) strategies in developing the effect of intellectual capital (IC) on innovation for small- and medium-sized enterprises (SMEs). Specifically, the current study explores how different interactions between IC and KM strategies lead to more powerful innovation in SMEs.

Design/methodology/approach

This study analyzes survey responses from 170 owners/managers of SMEs in Iran. The study uses partial least square structural equation modeling methods within Smart PLS software.

Findings

This study reveals that first IC has an excellent level of engagement with both incremental and radical types of innovation, but its engagement level with radical innovation is higher than that for incremental innovation. Second, the human capital component of IC has a direct positive impact on radical innovation although it has no significant impact on incremental innovation. Third, the personalization strategy of KM positively moderates the impact of human capital on both incremental and radical innovation.

Originality/value

This paper is an empirical attempt in SMEs to combine IC and KM strategies to strengthen innovation. It presents research community for SMEs of a developing country that has been investigated in a limited way compared to large firms of developed nations and provides valuable insights into further research.

Details

Journal of Intellectual Capital, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1469-1930

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Article
Publication date: 20 February 2017

Ryo Okuyama

The purpose of this paper is to examine the role of tacit knowledge in incremental innovation, which has hitherto been neglected.

Abstract

Purpose

The purpose of this paper is to examine the role of tacit knowledge in incremental innovation, which has hitherto been neglected.

Design/methodology/approach

Qualitative case analysis was used to focus on two large Japanese pharmaceutical companies’ development of new antihypertensive drugs. The study uses interview data and documentary research materials to explore the knowledge bases of the companies’ research teams as they refined an existing drug to produce new products – a process of incremental innovation.

Findings

Explicit knowledge (chemical structure of preceding drug) was used in both successful and failed cases of drug discovery. In the two successful cases, the tacit knowledge of key researchers, based on their long-term experience of related research, provided insight into developing compounds with good in vivo efficacy, which led to successful clinical development.

Practical implications

The findings suggest that tacit knowledge may play an important role in incremental innovation processes, and that its influence on product development should be considered in such ways as team and organization structure.

Originality/value

This study addresses a gap in the literature regarding the impact of tacit knowledge on incremental innovation processes. It is often assumed that incremental innovation is based on existing technology. This study suggests that tacit knowledge may play a hitherto largely unrecognized role in incremental product development.

Details

Journal of Strategy and Management, vol. 10 no. 1
Type: Research Article
ISSN: 1755-425X

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Article
Publication date: 20 September 2021

Viktor Prokop, Jan Stejskal, Beata Mikusova Merickova and Samuel Amponsah Odei

The purpose of this study is to introduce innovative ideas into the treatment of the radical and incremental innovations and to fill the research gap by using: (1) methods…

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Abstract

Purpose

The purpose of this study is to introduce innovative ideas into the treatment of the radical and incremental innovations and to fill the research gap by using: (1) methods that can perform complicated tasks and solve complex problems leading in creation of radical and incremental innovation and (2) a broad sample of firms across countries. The authors’ ambition is to contribute to the scientific knowledge by producing evidence about the novel usage of artificial neural network techniques for measuring European firms' innovation activities appearing in black boxes of innovation processes.

Design/methodology/approach

In this study, the authors incorporate an international context into Chesbrough's open innovation (OI) theory and, on the one hand, support the hypothesis that European radical innovators benefit more from foreign cooperation than incremental innovators. On the other hand, the results of the analyses show that European incremental innovators rely on domestic cooperation supported by cooperation with foreign public research institutes. Moreover, the use of decision trees (DT) allows the authors to reveal specific patterns of successful innovators emerging within the hidden layers of neural networks.

Findings

The authors prove that radical European innovators using either internal or external R&D strategies, while the combinations of these strategies do not bring successful innovation outputs. In contrast, European incremental innovators benefit from various internal R&D processes in which engagement in design activities plays a crucial role.

Originality/value

The authors introduce innovative ideas into the treatment of hidden innovation processes and measuring the innovation performance (affected by domestic or international cooperation) of European firms. The approach places emphasis on the novelty of innovation and the issue of international cooperation in the era of OI by designing the framework using a combination of artificial neural networks and DT.

Details

European Journal of Innovation Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1460-1060

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Article
Publication date: 13 July 2020

Xiaoxiao Shi, Zuolong Zheng, Qingpu Zhang and Huakang Liang

This paper aims to analyze the extent to which the influence of external knowledge search activities on firms’ incremental innovation capability, and the moderating roles…

Abstract

Purpose

This paper aims to analyze the extent to which the influence of external knowledge search activities on firms’ incremental innovation capability, and the moderating roles of the relatedness between the partners’ technological bases and a firm’s network embeddedness in the innovation network.

Design/methodology/approach

In this empirical research, the authors collected a sample of patents in the UAV industry over the period of 2004–2018. Then the authors examined the direct role of external knowledge search on firms’ incremental innovation capability and the joint moderating effects of technological proximity and network embeddedness.

Findings

We found that external knowledge search in innovation networks positively affects firms’ incremental innovation capability. Moreover, we discovered that high technological proximity to other peers positively strengthens the impact of firms’ external knowledge search on their incremental innovation capability. Finally, the findings suggested that the relationship between a firm’s external knowledge search activities and its incremental innovation capability is stronger for high technological proximity coupled with high network centrality or poor structural holes in innovation networks.

Originality/value

This study adds value to open innovation literature by pointing out a positive relationship between external knowledge search and firm incremental innovation capability. Furthermore, this study reinforces the key joint contingent roles of technological proximity and network embeddedness. This study provides a valuable theoretical framework of incremental innovation capability determinants by connecting the different perspectives.

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Article
Publication date: 23 March 2021

Shabahat Ali, Weiwei Wu and Sadaqat Ali

This study aims to offer and validate an integrated marketing capability-product innovations framework. Particularly, it aims to examine the role of adaptive marketing…

Abstract

Purpose

This study aims to offer and validate an integrated marketing capability-product innovations framework. Particularly, it aims to examine the role of adaptive marketing capability in enabling market ambidexterity and incremental as well as radical product innovation. Also it intends to investigate the moderating role of transformational leadership between adaptive marketing capability and market ambidexterity.

Design/methodology/approach

Manufacturing firms in Pakistan, an emerging economy, are taken as the context for this study. A designed survey questionnaire is used for data collection. Partial least square technique is employed to empirically validate and test the hypothesized model with a sample of 192 manufacturing firms. Particularly, the two-stage approach in SmartPLS is used to validate measurement models, and structural equation modeling technique is used to test the proposed hypothesis.

Findings

The findings not only confirm that adaptive marketing capability is instrumental to both incremental and radical product innovations but also reveal that adaptive marketing capability serves an important antecedent to market ambidexterity shedding new lights on its mediating role in the relationship of adaptive marketing capability with incremental and radical product innovations. Moreover, the results find that the effectiveness of adaptive marketing capability to support market ambidexterity may involve a possible trade-off between exploitation and exploration when the leaders exhibit a low or high level of transformational leadership behavior.

Originality/value

This study contributes to outside-in strategic perspective and contextual ambidexterity literature by revealing the role of adaptive marketing capability as an important enabler of market ambidexterity which, in turn, allows the firm to simultaneously introduce incremental and radical product innovations. In this way, this study advances the current understanding of the antecedents and consequences of contextual ambidexterity. Also, this study provides insight into the types of capabilities needed for the firm's contextual and employees' behavioral adaptation to simultaneously manage exploitation and exploration within the same business unit which was lacking in the previous literature. Further, this study also offers a novel understanding of the conditional role of transformational leadership between adaptive marketing capability and market ambidexterity.

Details

European Journal of Innovation Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1460-1060

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