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11 – 20 of over 126000Delin Meng, Yanxi Li and Lan Wang
Utilizing the expectation states theory in sociology, this study probes into the influence of the board's informal hierarchy on the quality of enterprise innovation, originating…
Abstract
Purpose
Utilizing the expectation states theory in sociology, this study probes into the influence of the board's informal hierarchy on the quality of enterprise innovation, originating from the perspective of internal directorial interactions, while analyzing the boundary effects exhibited by the nature of property rights and the intensity of geo-culture.
Design/methodology/approach
The study selects China's A-share listed companies from 2008 to 2021 as the research sample, employing the Tobit regression analysis method to scrutinize the hypotheses presented in the text.
Findings
The regression results demonstrate a positive correlation between the board's informal hierarchy and the enterprise innovation quality (EIQ). Upon introducing variables specific to property rights and geographical culture, the authors found that in comparison to non-state-owned enterprises (non-SOEs), the influence of the board's informal hierarchy on the quality of corporate innovation is diminished in SOEs. Conversely, the intensity of geo-culture across Chinese provinces enhances their mutual positive influence. In the additional analysis, the authors also found that the elevation of corporate risk tolerance is a significant pathway for the positive effect of the board's informal hierarchy on EIQ. Moreover, this positive influence is more profound in high-tech enterprises, businesses implementing equity incentive plans and companies that have subscribed to director and officer liability insurance.
Originality/value
The findings not only deepen the understanding of how the board's internal status characteristics influence corporate decision-making but also enrich the application scope of expectation states theory. Furthermore, this study offers valuable guidance for optimizing innovation decision-making by adjusting the personnel structures of corporate boards.
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Umesha Sasanthi Weerapperuma, Akila Pramodh Rathnasinghe, Himal Suranga Jayasena, Chamitha Sanjani Wijewickrama and Niraj Thurairajah
A novel facet of the construction industry's (CI) digital transformation relates to the rise of smart contracts, and the contribution of blockchain technology in this domain…
Abstract
Purpose
A novel facet of the construction industry's (CI) digital transformation relates to the rise of smart contracts, and the contribution of blockchain technology in this domain appears to be nascent but rapidly gaining traction. Although the benefits of digitalisation for technologically less enthusiastic CI are irrefutable, the adoption of smart contracts has been found to be low pertaining to industry professionals' behavioural factors stimulated by technological perception. The challenge undertook by this study, therefore, is to develop a knowledge framework for blockchain-enabled smart contract adoption in the CI.
Design/methodology/approach
From a methodological perspective, this study employed a qualitative approach that involved semi-structured interviews with ten (10) highly experienced CI practitioners involved in digital innovations for data collection. Directed content analysis was performed using NVivo 12 software, which enabled the creation of preliminary open codes. Subsequently, these open codes were grouped into similar categories to develop axial codes. Finally, the study presented final themes along with their corresponding descriptions.
Findings
Notably, research findings expanded the current body of knowledge on perceived attributes and their measurement items to determine the perception of innovation adoption in CI, where a total of nine (9) perceived attributes were associated with thirty-two (32) measurement items.
Originality/value
The measurement items were seen as having an extensive impact on the CI professionals' decision to adopt blockchain-enabled smart contracts. With ensuing implications, this study represents one of the first to present a knowledge framework exclusively customised for blockchain-enabled smart contracts, laying the groundwork for effective technological adoption by CI professionals.
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Frances A. Kennedy and Lydia Schleifer
Organizations are reorganizing into collaborative subunits or teams in order to generate innovative ideas and stay ahead of the competition. Traditional control systems were…
Abstract
Organizations are reorganizing into collaborative subunits or teams in order to generate innovative ideas and stay ahead of the competition. Traditional control systems were established to direct employees and prevent control problems, such as fraud or theft, and were designed for vertically managed systems where managers and supervisors made decisions and their subordinates performed tasks. As companies evolve into a team-based structure, decisions are made at lower levels. Restructuring for teams makes information more available and decisions more transparent. Traditional controls no longer apply and can be detrimental to empowerment and the generation of innovative ideas. With increased empowerment there will be a need for different controls and maybe even more control. Innovation can thrive when collaboration takes place and collaboration can occur best when teams are empowered. This chapter presents three separate domains – models of empowerment and innovation, decision-influencing and decision-facilitating information, and management control systems – and illustrates how they interact in a holistic way to either enhance innovative culture or inhibit the generation of ideas.
This paper aims to investigate the motivation for firms to innovate their products to be socially responsible in the presence of the spillover effect. The follower of the…
Abstract
Purpose
This paper aims to investigate the motivation for firms to innovate their products to be socially responsible in the presence of the spillover effect. The follower of the innovation in corporate social responsibility (CSR) can benefit from the leader’s innovation by technological spillover. For instance, evidence can be found in the cosmetics industry (e.g. Lush Retail Ltd. and The Body Shop) and the market of hybrid electric vehicles (e.g. Toyota and Honda). Moreover, consumers may have different perceptions on the sequence of CSR innovation by firms, they may prefer more on the CSR product launched by the leader because they usually relate the desired stage to their interests when making a purchase decision. Therefore, the firms’ decision to be a leader of the CSR innovation depends on the trade-off between the loss in the spillover effect and the benefit of the first-mover advantage, which has not been considered by the existing literature. This paper explains the firms’ motivation on CSR innovation in a realistic situation where competing firms’ CSR programs are launched sequentially and sheds light on the private sector’s decision on strategy from the perspective on the social contribution, and provides some managerial implications about the competing firms’ strategies of launching the CSR innovation.
Design/methodology/approach
The authors construct a two-period Hotelling model in which consumers are divided into two groups: the altruistic and normal consumers. The altruistic consumers have more willingness to pay for the CSR product while the normal consumers only care about the product performance improved by the firms’ CSR activities. Firms have the option to innovate their basic products to be socially responsible and make their decision on such CSR innovation sequentially. Moreover, the follower of the innovation can receive a spillover effect from the leader, meaning that there may exist a second-mover advantage in terms of innovation (the authors define this as a spillover effect), but in the meanwhile, the altruistic consumers value more on the CSR product sold by the leader than that by the follower (the authors define this as a preference-reduction effect). This implies that the firm can benefit in the production process from being a second-mover of the CSR innovation but may lose its first-mover advantage in terms of the preference-reduction effect. By finding and analyzing the sub-game perfect Nash equilibrium, the authors try to figure out the firms’ decisions on CSR innovation in various situations.
Findings
The authors find that the firms’ motivation of CSR innovation crucially depends on the fraction of the altruistic consumers, as well as the spillover effect and the preference-reduction effect. A large (small) fraction of the altruistic consumers attracts (restricts) both the leader and the follower to engage in CSR innovation. More importantly, when such fraction is not too large but stays at a relatively high level, a potential leader of the CSR innovation may not wish to innovate. Hence, the potential follower may be the monopolist in the market of the socially responsible product. In addition, the authors reexamine this result in a variation model where a leader can make its decision on the CSR innovation to be more flexible by allowing it can innovate in either periods 1 or 2. The authors demonstrate that when the fraction of the altruistic consumers falls in an intermediate range, the leader may wish to delay the CSR innovation to period 2. In such a case, the leader of the CSR innovation may tend to trade its first-mover advantage for head-to-head competition with the follower and prevents the follower from benefiting from the spillover effect. Moreover, a flexible choice on the CSR innovation brings greater initiative to a firm to be the leader of the innovation.
Originality/value
Nearly all the studies about firms’ decisions on CSR innovation are conducted in an environment of simultaneous move, which is not appropriate to describe the real business world; many pieces of evidence show that many CSR programs are launched sequentially rather than simultaneously. The theory identifies a couple of important factors of the CSR innovation in a more realistic situation, i.e. sequential more on CSR innovation. Both spillover effect and preference-reduction effect crucially affect the firms’ decision on innovating their products to be socially responsible, which contributes to the existing literature in CSR and strategic decision. This paper also sheds some light on managerial implications with CSR innovation under various situations of competition.
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Jingqin Su and Haifen Lin
This paper aims to address why some managers in China pursue innovative opportunities by introducing new management practices while others do not and what characteristics of…
Abstract
Purpose
This paper aims to address why some managers in China pursue innovative opportunities by introducing new management practices while others do not and what characteristics of managers affect their decision of introducing new practices and how.
Design/methodology/approach
Three major activities of managers referring to innovation intention, knowledge acquirement, and risk perception are extracted, a three‐dimension decision figure is established by further combining relevant literature with decision practices. Data on 237 managers from different firms were collected to further examine the model by adopting structural equation modeling, with the purpose of showing affecting paths and internal mechanisms of complex decision making.
Findings
The results indicate that: innovation intention, knowledge acquirement, and risk perception directly affect management innovation decision levels; innovation intention, knowledge acquirement, and risk perception are influenced by entrepreneurial orientation, social networking, and cognitive biases of managers, respectively; besides, the three relevantly independent affecting paths, interrelations also exist across paths; and the three main factors produce both direct and indirect effects, simultaneously.
Research limitations/implications
The research does not investigate other variables that may affect innovation decision, such as contextual elements like competitive intensity, internal elements like organizational structure and culture, and top management teams.
Originality/value
The findings form a basis for further research into how to explore the black box of complex‐decision processes in the specific context of China and holds important implications for management practices.
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The purpose of this study is to establish an enhanced model of the innovation-decision process (IDP), specifically for construction. As context, innovation diffusion theory (IDT…
Abstract
Purpose
The purpose of this study is to establish an enhanced model of the innovation-decision process (IDP), specifically for construction. As context, innovation diffusion theory (IDT) is concerned with explaining how some innovations successfully stick whilst others fail to propagate. Because theoretical models provide abstracted representations of systems/phenomena, established IDT models can help decision-making units with innovation-related sense-marking and problem-solving. However, these occasionally fail or require enhancement to represent phenomena more successfully. This is apparent whenever middle-range theory seems ill-fitted to the complexity of construction.
Design/methodology/approach
Qualitative research via 13 semi-structured interviews occurred, with participants recruited via convenience and purposive sampling strategies. The study forms part of a broader mixed-method study (n = 246) informed by a research philosophy of pragmatism, investigating the applicability of classic IDT to the adoption of four-dimensional (4D) building information modelling (4D BIM) by the UK construction sector.
Findings
This diffusion study resulted in the adaptation of an existing IDP model, ensuring a better contextual fit. Classified more specifically as a modular-technological-process innovation, 4D BIM with its potential to provide construction planning improvements is used as a vehicle to show why, for construction, an existing model required theoretical extensions involving additional stages, decision-action points and outcomes.
Research limitations/implications
This model can assist construction industry actors with future adoption/rejection decisions around modular-technological-process innovations. It also aids the understanding of scholars and researchers, through its various enhancements and by reinforcing the importance of existing diffusion concepts of compatibility and trialability, for these innovation types.
Originality/value
An enhanced model of the IDP, specifically for construction, is established. This construction-centric contribution to IDT will be of interest to construction scholars and to practitioners.
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Maria Concepción Lopez-Fernandez, Ana Maria Serrano-Bedia and Raquel Gómez-López
– The purpose of this paper is to contribute to the understanding of the factors that influence small to medium-sized family enterprises (SMFEs) innovation decision.
Abstract
Purpose
The purpose of this paper is to contribute to the understanding of the factors that influence small to medium-sized family enterprises (SMFEs) innovation decision.
Design/methodology/approach
This paper utilises an original data set of 73 SMFEs employing 5-249 people to run binomial logistic regression model which considers the joint effect of both internal and external factors.
Findings
The results confirm, on the one hand, a significant and positive relationship between the long chief executive officer (CEO) tenure, the prospector and analyser strategic orientation, and the innovation decision in the Spanish family firms. On the other hand, the results confirm a significant and negative relationship between the risk taking, the cost of innovation, the lack of qualified personnel, a customer indifference towards innovation, and the innovation decision in the Spanish SMFEs.
Research limitations/implications
The results contribute to the development of theoretical and knowledge bases, as well as offering results that will be of interest to research and policy communities. The results are limited to a small sample size, single survey, using cross-sectional data.
Practical implications
The findings have a bearing on business innovation strategy for policy makers. The results suggest that policy measures that promote long CEO tenures, and the prospector and analyser strategic orientation may have the greatest impact in terms of helping to facilitate innovation decision.
Originality/value
A novel feature of the model is the consideration of the joint effect of both internal and external factors in SMFEs.
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– The aim of this paper is to address both the socio-moral climate and how teams process debate and decision comprehensiveness as pre-conditions for team innovation.
Abstract
Purpose
The aim of this paper is to address both the socio-moral climate and how teams process debate and decision comprehensiveness as pre-conditions for team innovation.
Design/methodology/approach
A total of 67 teams comprising 413 participants were surveyed. Data were analyzed with a multiple-step multiple-mediation procedure.
Findings
The socio-moral climate was positively related to innovation. The positive relation between the socio-moral climate and innovation was mediated stepwise through debate and decision comprehensiveness.
Research limitations/implications
To overcome the limitations of a cross-sectional design, future research opportunities exist in the longitudinal evaluation of participatory socio-moral climates and comparisons between organizations. Debate and decision comprehensiveness can be further studied using behavior-based methodological designs, such as observation.
Practical implications
From this study, practitioners can learn of the needs and opportunities for participative approaches when managing innovation in teams. Promoting a socio-moral climate of cooperation, communication, openness, appreciation, trust and respect and leaving open the possibility that debating can help integrative decision comprehensiveness and thus innovation.
Originality/value
This paper expands the literature on organizational climate, debate, decision comprehensiveness, and innovation. On the one hand, the results empirically linked the socio-moral climate, a theoretically well-founded climate construct, to process variables. On the other hand, the literature on debate and decision comprehensiveness was expanded by adding the socio-moral climate as a pre-condition of debate and decision comprehensiveness. Furthermore, both were linked to a crucial outcome variable, innovation.
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Susanne Engström and Erika Hedgren
Humans tend to rely on beliefs, assumptions and cognitive rules‐of‐thumb for making judgments and are biased against taking more uncertain alternatives. Such inertia has…
Abstract
Purpose
Humans tend to rely on beliefs, assumptions and cognitive rules‐of‐thumb for making judgments and are biased against taking more uncertain alternatives. Such inertia has implications for client organizations' decision making about innovations, which are inherently more uncertain than conventional alternatives. The purpose of this paper is to contribute to furthering the understanding of barriers to overcoming inertia in client decision making in new‐build.
Design/methodology/approach
A descriptive behavioural decision‐making perspective is combined with an organizational information‐processing perspective. To identify and discuss individual and organizational barriers that potentially distort clients' decision making on innovation, the analysis addresses aggregated data from four studies. The analysis focuses on inferences and interpretations made by decision makers in Swedish client organizations, their information‐processing practices and the subsequent impacts on perceived meanings and judgments about industrialized multi‐storey, timber‐framed building innovations, which are perceived by Swedish clients as new and different building alternatives.
Findings
Cognitive and organizational barriers maintain status‐quo decisions. Clients are inclined to make biased judgments about industrialized‐building alternatives because non‐applicable cognitive rules‐of‐thumb, based on their experiences of conventional‐building alternatives, are used. Furthermore, client organizations' information‐processing practices do not allow different meanings to surface, interact and potentially suggest different conclusions, at odds with established beliefs.
Originality/value
The paper's conclusions highlight how inertia is sustained in client decision making in new‐build. They illustrate the limitations of a common engineering approach, i.e. supporting decision making about innovations by focusing on providing more information to the decision maker in order to reduce uncertainty, as well as managing multiple meanings by reductionism.
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Ruihan Zhang and Bing Sun
The purpose of this paper is to determine how high-tech firms should choose between independent research and development and technology introduction as well as to ascertain the…
Abstract
Purpose
The purpose of this paper is to determine how high-tech firms should choose between independent research and development and technology introduction as well as to ascertain the effects of the three elements of competitive dynamics on the evolution of innovative behavior-based decisions and competitive results.
Design/methodology/approach
This paper describes the construction of an evolutionary game model and a multi-agent-based model of innovative behavior-based decisions by heterogeneous high-tech firms. The models are used to analyze the evolution path and evolutionarily stable strategy of innovative behavior-based decisions. In addition, multi-agent-based simulation is used to gain insight into the effects of competitive dynamics on the dynamic evolution of innovative behavior-based decisions.
Findings
This paper reveals four evolutionary equilibrium states of the innovation behavior-based decisions of high-tech firms. Based on the findings, these overall evolutionary trends are not affected by the timing of competitive market entry or the intensity of competition. In addition, simulated evidence is added that the timing of competitive market entry is an important factor affecting market-leading innovative strategies and dynamic competition results, and competition intensity is closely related to the evolutionary speed of innovation behavior-based decisions.
Originality/value
The key contribution of this paper is its new view of innovative behavior-based decisions from a competitive dynamics perspective. The new competitive dynamics-based framework for innovative behavior-based decisions of high-tech firms proposed in the paper can resolve the problem of obtaining a sustainable competitive advantage for high-tech firms in a competitive dynamics context.
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