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Adopting an EU policy lens, this chapter primarily addresses the proposed pivotal role of firm-level innovation capability (FLIC) in small and medium-sized enterprises (SMEs) as a stimulant of sustainable development (SD) and green growth in Ireland/Wales. The chapter specifically examines the scale and scope of the green economy (GE), and considers the importance of organizational inherent “green” innovation capabilities (GICs) to achieve it. Underpinning the study is the methodology and concept of utilizing a facilitated cross-border multi-stakeholder learning network to enable knowledge transfer and exchange practices to flourish between partners, acting as a significant predictor of the development of SME GICs structures. Specifically, against the backdrop of the Green Innovation and Future Technologies (“GIFT” hereafter) INTERREG 4A Project, the research assesses how academic–industry partner exchange and inter-group learning and cooperation facilitates the development of GICs in smaller enterprises to realize a sustainable smart green economy in Ireland.

Grounded in the resource-based view of the firm, this study aims to examine the effects of goal orientation and the mindfulness of entrepreneurs on firm innovation capability and analyzes that capability’s subsequent impact on firm performance. The authors also analyze whether mindfulness interacts with goal orientation to intensify its effect on firm innovation capability.

Simple random sampling was used to obtain the sample of Thai firms listed in the Department of Business Development database (n = 304). The data analysis was done by using partial least square structural equation modeling.

Goal orientation and mindfulness are positively associated with firm innovation capability. The analysis also supports the interaction effect of goal orientation and mindfulness on firm innovation capability. Moreover, firm innovation capability is positively associated with firm performance.

Goal orientation and mindfulness should be considered two essential soft skills that entrepreneurs must develop to build up their firms’ innovation capability. Because entrepreneurs are the key drivers of economic growth and sustainable development, the government agencies responsible for the entrepreneurship development should consider goal orientation and mindfulness as parts of their entrepreneurship training program and development policy.

The finding about the interaction effect of goal orientation and mindfulness on firm innovation capability provides new evidence that was not documented in previous research. The authors clarify that these are entrepreneurial characteristics that could supplement each other to maximize the potential of entrepreneurs and strengthen the innovation capability of their firms.

Imitative innovation, defined as applying innovation in the same way in another organization, has been adopted by many companies. This paper seeks to focus on how a competent follower of R&D capability can employ such an innovative strategy and minimize risk by using existing organizational resources to enhance innovation capabilities.

An in‐depth case study is applied of resource management experience at a Taiwanese optical storage media manufacturing outlet and then the Sirmon resource management model is extended to offer a process model for imitative innovation capability development.

The imitative innovation process is deconstructed into four phases and three main sub‐processes for effective resource management, namely, structuring, bundling and leveraging activities. The study also found that there are four modes of effective resource management for a successful imitative innovation process: identifying position and confirming innovation strategy; examining core competences and exploring gaps in imitative innovation; deploying specific resources and complementary assets; and restructuring an industry's ecological environment.

The study offers researchers and practitioners a more detailed view of applicable resource management for successful imitative innovation.

The purpose of this paper is to study the effect of total quality management (TQM) resources on strategic product innovation. It addresses the apparent tension between quality management and innovation management and seeks empirical support for the proposition that quality management resources can be used to support strategic innovation. Based on resource-based view, it defines key resources that firms develop during implementation of TQM systems: TQM culture, product design capability, and process improvement capability – and assesses the role of these resources in the success of product innovation.

A survey of 112 manufacturing firms was conducted and the resulting data were analyzed using partial least squares (PLS) to determine how TQM constructs affect strategic product innovation.

The main finding suggests that only product design capability contributes to strategic product innovation. TQM culture has a direct influence on process improvement and product design capabilities but not on product innovation. The effect of innovation capability and innovation orientation on product innovation was only supported for innovation capability. The effect of innovation orientation is mediated by the development of innovation capability.

The paper focusses on the level of maturity of capability development without taking into consideration the time since adoption. Also, the measure of product innovation is based on the degree of product newness but does not dichotomize in terms of radical vs incremental. Several arguments supporting a negative relationship between TQM and innovation often refer to radical or breakthrough innovation. It would be interesting to test the model while distinguishing between radical and incremental innovation. The use of cross-sectional data is a methodological limitation.

The results suggest that managers can leverage their quality management systems to support product innovation. In particular, the ability to design quality into products leads to higher levels of strategic production innovation. The successful deployment of TQM capabilities requires an integrative and well-structured approach, involving top leadership engagement of employees and customer orientation. While TQM culture is critical to the development of quality management capabilities, it does not directly affect the innovativeness of a firm.

The paper explores the relationship between quality management systems and strategic product innovation. Further work is needed to test whether TQM effect on strategic innovation is different for radical and incremental products, and for other innovation outcomes such as process and service innovation.

The purpose of this paper is to identify and screen continuous innovation capability enablers (CICEs) in Indonesia’s manufacturing sectors, develop a relationship among these enablers and determine their driving power and dependence power in the sector.

The initial CICEs identification process is based on a literature review, while a fuzzy Delphi method (FDM) was used for the screening process of CICEs. Total interpretive structural modelling (TISM) was used to develop contextual relationships among various CICEs. The results of the TISM are used as an input for the matrix of cross-impact multiplications applied to classification (MICMAC) to classify the driving power and dependence powers of the CICEs.

This paper selected 16 CICEs classified in seven dimensions. TISM results and MICMAC analysis show that leadership, as well as climate and culture, are enablers with the highest driving power and lowest dependence powers; followed by information technology. The results of this study indicate that efforts to continuously develop innovation capabilities in the Indonesian manufacturing industries are strongly influenced by their leadership capability, climate and culture, also information technology-related capability.

The framework assessed in this study provides business managers and policymakers to obtain a bigger picture in developing policies with evidence-based strategy and priority in regard to continuous innovation capability.

The results will be useful for business managers and policymakers to understand the relationship between CICEs and identify key CICEs in Indonesia’s manufacturing sectors, which were previously non-existent.

The purpose of this paper is to develop a comprehensive continuous innovation capability (CIC) measurement model in manufacturing sectors.

The development of this CIC model was conducted through three stages of research, i.e. identification of manufacturing continuous innovation measures (MCIMs), development of measurement model, followed by model evaluation and validation. MCIMs were identified using systematic literature review and focus group discussion. Selection process for MCIMs employed the fuzzy Delphi method. To develop measurement model, contextual relationships between MCIMs were assessed using total interpretive structural modeling, followed by measurements of MCIMs weight with the analytical network process method. Then, assessment indicators for each MCIM and criteria were determined as well as mathematical model to measure CIC scores. Model evaluation and validation were performed in two case studies: in an automotive company and an electronics company.

This research produced 50 criteria and 103 assessment indicators, as well as mathematical model to measure CIC scores. The validation process showed that currently developed model was deemed valid.

The results of this research are expected to provide a practical input for manufacturing company managers in managing their innovation activities systematically and comprehensively.

The CIC model is a new comprehensive measurement model; it integrates three fundamental elements of CI capability measurement, considering all important dimensions in a company and also able to explain contextual relationships between measured factors.

This paper aims to understand the relationship between the National Innovation Demonstration Zone policy and city innovation capability and the underlying mechanisms.

This paper collects panel data of 283 Chinese cities from 2006 to 2018 for the quasi-natural experiment of National Independent Demonstration Zone (NIDZ) policy. It applies the difference-in-difference (DID) method to study the impact of NIDZ policy on city innovation capability and its underlying mechanism to enhance it.

The empirical result indicates that the establishment of NIDZ significantly enhances the city's innovation capability, which was verified through a series of robustness tests. The mechanism analysis shows that the NIDZ promote the inflow and outflow of knowledge, which implies NIDZ enhances the innovation capability of cities by facilitating the innovation sharing impact. Heterogeneity analysis indicates that the higher degree of digitalization, the higher the government service level induce a more favourable policy effect. The policy effect is more significant in the cities with a higher marketization or the eastern developed region.

This study’s empirical findings suggest that it is essential to improve the digital infrastructure to accomplish the digital transformation and upgrading of NIDZ. The government should improve the service efficiency and reshape the city market environment to ensure the fair competition of science and technology enterprises.

The paper first proposed and empirically tested that innovation sharing is an important mechanism that can significantly enhance the city innovation capability. The authors analyse the heterogeneity of NIDZ from four aspects: digitalization level, marketization level, government service level, and regional development and expanded research boundaries.

This paper aims to focus on innovation development in enterprises with fewer than 50 employees. It explores differences in innovation capacity and in the diversity of developed innovations across the four enterprise size categories within the small manufacturing and service enterprises.

The empirical evidence is based on quantitative data gathered through an e‐mail questionnaire, which yielded 708 responses from the representatives of Finnish small enterprises. The analysis is based on non‐parametric tests.

The findings display a broad diversity of innovation patterns among small enterprises. The evidence identifies differences and similarities in innovation capacity and innovation development across the different size categories within the manufacturing and service sectors. Finally, a summary of the characteristics of small enterprises as innovators across size categories is provided.

This paper studies innovation patterns based on innovation capacity and developed innovations. There is a need to study how innovation capacity has been transformed into innovations; thus, the innovation process should be included in the examination.

At a public policy level, the results of this study give ideas for encouraging innovation development in small enterprises. The evidence suggests that there are significant discrepancies between the enterprises as innovators. It should be acknowledged that small enterprises comprise several divergent target groups for policy making.

This study makes a contribution to academic literature by crystallizing the relationship between the size of an enterprise and innovation development. Applying these results will provide more specific questions for studying the nature of innovation development in small enterprises.

Cumulative capability models are dominating frameworks explaining how manufacturing organizations gain their performance capabilities, such as quality, delivery, flexibility and cost. When innovation capabilities are excluded from the framework, the models are incapable of explaining how companies sustain substantive capabilities in a changing environment. Responding to this gap, the purpose of this paper is to propose and test a “sand cone” cumulative capability model that includes the innovation competitive performance alongside the competitive performance of quality, delivery flexibility and cost.

Two competing cumulative models were proposed. The extended cumulative capability model hypothesizes the development of innovation in sequence with other competitive performance dimensions. The affected with innovation cumulative model hypothesizes innovation performance as a predecessor of other performance dimensions. The models were tested using a multimethod approach on a representative sample of 500 manufacturing companies. An analysis of correlations among competitive performance, frequencies of plants following prescribed sequences, fit statistics of covariance-based structural equation modeling and analysis of strength and statistical significance of path coefficients enabled us to select a model that best represents the collected data.

The findings reveal that innovation competitive performance operates as a predecessor of quality, delivery, flexibility and cost and is developed in relation to these performance dimensions. The modified model also provides a theoretical explanation of how innovation performance helps to sustain reliable production systems that can perform consistently over time within a tolerable range of quality, delivery, flexibility and cost performance.

The results are significant for practitioners, especially for companies that are operating in volatile environments because the results provide insight on how to develop innovation competitive performance in relation to quality, delivery, flexibility and cost performance.

This study extends the cumulative capability models with innovation competitive performance. It advances the contingency approach on cumulative capability models.

The purpose of this paper is to propose and empirically investigate the concept of networking capability (NC) for the management of supplier relationships and their dynamics in order to leverage product innovations. NC in the context of supplier relationships is conceptualized based on dynamic capabilities aimed at relationship initiation, relationship development, and relationship ending. Furthermore, the study tests the interaction of NC with relationship proclivity as an organizational feature, and analyzes latent classes of NC affecting product innovation.

This study brings together prior research on company routines related to inter-firm networking, the dynamic capability approach to strategy, and literature on inter-firm innovation. The study utilizes multiple informant survey data gathered from 156 firms operating in the automotive parts industry in Iran. Data are analyzed with partial least square structural equation modeling, as well as latent class analysis using finite mixture modeling (FIMIX-PLS).

This research provides evidence for the positive influence of NC with respect to supplier relationships on firm product innovation, as well as overall firm performance. Relationship proclivity is shown to amplify this effect. At the same time, the research illustrates that NC may be applied in different combinations in the context of supplier relationship portfolio management. Two mechanisms are tentatively identified: firms using “static optimization” focus mainly on supplier relationship development capabilities, while those using “dynamic optimization” utilize supplier relationship initiation and ending capabilities.

This research focuses on one setting (i.e. the automotive parts industry in Iran). Further studies need to broaden these findings to other industries and countries, specifically those which show a different cultural make-up from Iran. Furthermore, this research indicates the existence of two distinct mechanisms as to how different aspects of NC impact product innovation. While it is reasonable to identify these mechanisms as networking “strategies,” this study does not clarify whether this represents intended strategies by firms or relates to emerging capability patterns.

The study contributes to managerial knowledge by illustrating the need for a dynamic approach with regard to networking-related routines in supplier relationships in the context of product innovation. This study suggests that managers should devote equal attention to strengthening existing supplier relationships as well as to initiating new supplier relationships (e.g. screening for promising partners and signaling firm’s relationship value to attract new counterparts) and managing non-performing supplier relationships (e.g. by developing routines to exit from those supplier relationships).

The paper contributes to a better understanding of dynamic approaches to networking with suppliers and their impact on product innovation from the perspective of the focal firm. It furthermore provides a fine-grained understanding of different latent classes of firms in terms of how they utilize networking capabilities.