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Article
Publication date: 13 February 2019

Sumukh Hungund and Venkatesh Mani

The purpose of this paper is to investigate the factors influencing small and medium enterprises’ (SMEs) adoption of innovation approaches.

Abstract

Purpose

The purpose of this paper is to investigate the factors influencing small and medium enterprises’ (SMEs) adoption of innovation approaches.

Design/methodology/approach

The methodology involves two steps. First, all the variables relevant to the adoption of innovation in SMEs are identified. Subsequently, primary data are gathered from decision makers of 213 SMEs, and a multinomial logistic regression analysis is performed.

Findings

The results indicate that SMEs adopt both open innovation and closed innovation approaches. The firm-level factors such as firm age, firm size, education qualification, work experience and culture, and external factors such as customers, competition, technological advances and ecosystem influence adoption of open innovation approach compared to closed innovation approach. Factors such as culture among firm-level factors and competition among external factors influence the adoption of closed innovation approach.

Practical implications

The study helps the managers or the decision makers of the SMEs to know the suitable factors influencing the firm to adopt innovation which could potentially help the firms in their business strategy.

Originality/value

The study explores the adoption of innovation approaches of SMEs in emerging economies. The outcomes of this research have far-reaching implications for theory and practitioners in emerging economies.

Details

Benchmarking: An International Journal, vol. 26 no. 5
Type: Research Article
ISSN: 1463-5771

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Book part
Publication date: 29 August 2005

Michael D. Mumford and Samuel T. Hunter

Recognizing the impact of innovation on organizational performance, scholars from a number of disciplines have sought to identify the conditions that make innovation

Abstract

Recognizing the impact of innovation on organizational performance, scholars from a number of disciplines have sought to identify the conditions that make innovation possible. Although these studies have served to identify a number of key variables, the relationship between these variables and innovation is complex. In this chapter, we argue that the apparent complexity of these relationships may be attributed to cross-level differences in the requirements for innovation and the existence of complex interactions among the phenomena operating at a given level of analysis. The implications of this multi-level perspective for understanding how innovation occurs in organizational settings are discussed.

Details

Multi-Level Issues in Strategy and Methods
Type: Book
ISBN: 978-1-84950-330-3

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Book part
Publication date: 28 September 2015

Md Shah Azam

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to…

Abstract

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity).

The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEs’ performance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEs’ performance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance.

This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.

Details

E-Services Adoption: Processes by Firms in Developing Nations
Type: Book
ISBN: 978-1-78560-325-9

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Book part
Publication date: 25 March 2008

Mark D. Agars, James C. Kaufman and Tiffany R. Locke

Organizational creativity and innovation are inherently complex phenomena, and subject to a myriad of broad contextual and social influences. As the evidence grows for the…

Abstract

Organizational creativity and innovation are inherently complex phenomena, and subject to a myriad of broad contextual and social influences. As the evidence grows for the link between innovation and organizational effectiveness and, ultimately, organizational survival, there is no doubting the need for theoretical and practical advances in our understanding. The complex nature of these constructs, however, requires that such efforts utilize a multi-level lens. This chapter discusses key aspects of creativity and innovation in organizations, including fundamental construct definition issues, which underscore the need for a multi-level perspective. It also reviews extant theoretical perspectives for their contributions to a multi-level understanding, and the research in two key areas of social influence – group factors and leadership – that have received substantial attention in the organizational literature. The review and discussion of these areas reveal not only numerous advances, but also substantial limitations that must be resolved through more complex and comprehensive (i.e., multi-level) approaches. The chapter concludes with several recommendations intended to guide and inform future work in the organizational creativity and innovation field.

Details

Multi-Level Issues in Creativity and Innovation
Type: Book
ISBN: 978-1-84950-553-6

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Article
Publication date: 18 September 2017

Yang Zhao, Ruoxin Zhou and Yinping Ci

The purpose of this paper is to explore the key factors influencing the service innovation of mobile social networks (MSNs), figure out the mechanism of all factors in…

Abstract

Purpose

The purpose of this paper is to explore the key factors influencing the service innovation of mobile social networks (MSNs), figure out the mechanism of all factors in different stages of service innovation and help mobile social application developers promote better service innovation.

Design/methodology/approach

From previous research, this paper adopted nine initial factors that influence the service innovation of MSNs, and divide the service innovation process into three stages (i.e. demand analysis, service design and innovation implementation). On that basis, the authors constructed a model, and then collected data from 184 managers from 20 leading MSN corporates in China through questionnaires to examine the model. Furthermore, factor analysis was used to extract key factors influencing the service innovation of MSNs, correlation analysis was employed to discuss the relationship among factors and regression analysis was applied to explore their specific roles in different stages in the service innovation process.

Findings

The empirical results show that the service innovation of MSNs is mainly influenced by five key factors: user, developer, market environment, social environment and technology. The authors found that different factors played remarkably different roles in the three stages. In specific, all factors but technology are important in the demand analysis stage; all factors but social environment are critical to service design; and all factors but user contribute to the implementation of service innovation.

Practical implications

The results of this study can help mobile social application developers and mobile social service providers in China to better understand the driving force of service innovation and what should be emphasized in different stages, and then find the optimal path to implement service innovation, improve their service quality and user experience and facilitate the development of Chinese MSNs.

Originality/value

This is the first research that comprehensively explores factors influencing the service innovation of Chinese MSNs from multi-dimensional perspectives, which provides profound theoretical guidance to the practice of service innovation in China. Also, it contributes to the development of innovation theory of traditional web services.

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Article
Publication date: 10 August 2015

Janno Reiljan and Ingra Paltser

The purpose of this paper is to evaluate the international position of Estonia among the member states of the EU and countries closely associated with the EU, from the…

Abstract

Purpose

The purpose of this paper is to evaluate the international position of Estonia among the member states of the EU and countries closely associated with the EU, from the perspective of the effect of research and development (R & D) policy on innovation activities in the business sector.

Design/methodology/approach

Based on existing scientific research literature on the relationships between R & D policy and business sector R & D activities and innovation performance, a set of indicators describing R & D policy measures was created for the business sector. Using principal component analysis (PCA) method, independent robust dimensions of R & D policy were brought out. After eliminating the problem of multicollinearity in R & D policy indicators, robust multiple regression models were conducted to present a comprehensive empirical description of the shaping of business sector R & D and innovation activities in the sample of investigated countries.

Findings

Based on the literature, the influences of R & D policy measures on business sector R & D activities and innovation performance were systemised; public R & D policy dimensions were empirically defined; the intensity of R & D policy influence on business sector R & D activities was estimated; the differences between real and prognostic values of business sector performance indicators in Estonia were calculated in order to characterise the efficiency of Estonian R & D policy and the influence of the socioeconomic environment.

Research limitations/implications

The lack of comparable data describing R & D policy and R & D activities and innovation performance in the business sector limits the comprehensiveness of the analysis (i.e. the number of analysed indicators).

Practical implications

The assessment and comparative analysis of the influence of R & D policy components on business sector R & D activities and innovation performance in different countries makes it possible to identify directions for increasing the efficiency of R & D policy under the specific influence of the socioeconomic environment, especially in new member states of the EU.

Originality/value

Using the PCA method significantly increased the robustness of the macro-quantitative description of R & D policy dimensions. By combining the set of new synthetic R & D policy indicators created by the PCA with the multiple regression analysis method, a significant increase in the robustness of model coefficients (i.e. the assessments of influence intensity) was achieved. These robust models create the basis for reliable empirical assessment of the influence of R & D policy and a comparative analysis of the results.

Details

European Journal of Innovation Management, vol. 18 no. 3
Type: Research Article
ISSN: 1460-1060

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Article
Publication date: 31 July 2009

Sami Kristian Häggman

The purpose of this paper is to complement organizational diffusion research by illustrating influence of factors specific to collective adoption process, which has…

Abstract

Purpose

The purpose of this paper is to complement organizational diffusion research by illustrating influence of factors specific to collective adoption process, which has received limited focus in diffusion research. The research question is how do different actors perceive attributes of innovation and how does that influence the process towards initial adoption of a new technology?

Design/methodology/approach

Owing to limited prior research and need to assess multiple innovation variables, the paper employs an inductive case study. Uses Rogers' five main perceived attributes of innovation as an analysis framework and functional actors as a unit of analysis. Two cases with early stage companies commercialising new, differentiating technologies to global, established value networks. Key actors influencing the adoption of the technologies interviewed.

Findings

The paper illustrates how actor characteristics and perceptions of innovation attributes are interrelated; perceptions of different functional actors on innovation attributes differ, both gating and advancing the adoption process for innovations; and the actors' differing perceptions and the resulting interaction influence the duration and outcome of adoption process.

Research limitations/implications

Non‐traditional methodology in diffusion research leading to larger interpretation of the findings, but enabling assessment of multiple variables and their interrelations not captured with traditional approaches. Areas for further research: generalizable patterns in interrelation between actors' functional roles and perceptions of innovation attributes as well as evolution of perceptions during collective adoption process.

Practical implications

Innovation providers need to identify both the parties gating and advancing the innovation as well as their underlying motivations. They need to ensure sufficient interaction between themselves and the actors and among the actors to leverage the positive momentum to overcome the resistance towards innovation.

Originality/value

The paper addresses the organizational diffusion research critique of, e.g. Frambach, of Damanpour, and of Wejnert on insufficient attention being paid to actor level characteristics and their influence on diffusion as well as interaction of different variables. The paper empirically illustrates how factors specific to collective adoption influence the process towards adoption.

Details

European Journal of Innovation Management, vol. 12 no. 3
Type: Research Article
ISSN: 1460-1060

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Book part
Publication date: 10 December 2015

Chun Kit Lok

Smart card-based E-payment systems are receiving increasing attention as the number of implementations is witnessed on the rise globally. Understanding of user adoption…

Abstract

Smart card-based E-payment systems are receiving increasing attention as the number of implementations is witnessed on the rise globally. Understanding of user adoption behavior of E-payment systems that employ smart card technology becomes a research area that is of particular value and interest to both IS researchers and professionals. However, research interest focuses mostly on why a smart card-based E-payment system results in a failure or how the system could have grown into a success. This signals the fact that researchers have not had much opportunity to critically review a smart card-based E-payment system that has gained wide support and overcome the hurdle of critical mass adoption. The Octopus in Hong Kong has provided a rare opportunity for investigating smart card-based E-payment system because of its unprecedented success. This research seeks to thoroughly analyze the Octopus from technology adoption behavior perspectives.

Cultural impacts on adoption behavior are one of the key areas that this research posits to investigate. Since the present research is conducted in Hong Kong where a majority of population is Chinese ethnicity and yet is westernized in a number of aspects, assuming that users in Hong Kong are characterized by eastern or western culture is less useful. Explicit cultural characteristics at individual level are tapped into here instead of applying generalization of cultural beliefs to users to more accurately reflect cultural bias. In this vein, the technology acceptance model (TAM) is adapted, extended, and tested for its applicability cross-culturally in Hong Kong on the Octopus. Four cultural dimensions developed by Hofstede are included in this study, namely uncertainty avoidance, masculinity, individualism, and Confucian Dynamism (long-term orientation), to explore their influence on usage behavior through the mediation of perceived usefulness.

TAM is also integrated with the innovation diffusion theory (IDT) to borrow two constructs in relation to innovative characteristics, namely relative advantage and compatibility, in order to enhance the explanatory power of the proposed research model. Besides, the normative accountability of the research model is strengthened by embracing two social influences, namely subjective norm and image. As the last antecedent to perceived usefulness, prior experience serves to bring in the time variation factor to allow level of prior experience to exert both direct and moderating effects on perceived usefulness.

The resulting research model is analyzed by partial least squares (PLS)-based Structural Equation Modeling (SEM) approach. The research findings reveal that all cultural dimensions demonstrate direct effect on perceived usefulness though the influence of uncertainty avoidance is found marginally significant. Other constructs on innovative characteristics and social influences are validated to be significant as hypothesized. Prior experience does indeed significantly moderate the two influences that perceived usefulness receives from relative advantage and compatibility, respectively. The research model has demonstrated convincing explanatory power and so may be employed for further studies in other contexts. In particular, cultural effects play a key role in contributing to the uniqueness of the model, enabling it to be an effective tool to help critically understand increasingly internationalized IS system development and implementation efforts. This research also suggests several practical implications in view of the findings that could better inform managerial decisions for designing, implementing, or promoting smart card-based E-payment system.

Details

E-services Adoption: Processes by Firms in Developing Nations
Type: Book
ISBN: 978-1-78560-709-7

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Article
Publication date: 12 February 2018

Mercedes Segarra-Ciprés and Juan Carlos Bou-Llusar

This paper aims to analyze the extent to which the influence of external knowledge search on innovation performance is contingent on both a firm’s innovation strategy and…

Abstract

Purpose

This paper aims to analyze the extent to which the influence of external knowledge search on innovation performance is contingent on both a firm’s innovation strategy and the industry context in which it operates.

Design/methodology/approach

The paper adopts a contingent approach that centers analysis on the influence of situational factors, either exogenous or endogenous to the organization, as determinants of the external knowledge search in promoting the firm’s innovation performance. The empirical study is based on a large sample of 18,955 firms operating in 29 industries that belong to 13 European countries.

Findings

This analysis reveals that a broad knowledge search is more effective for firms that innovate in new goods, while a deeper knowledge search is more effective for firms that innovate in new services. The results of this study also indicate that external knowledge search varies across industries, with search depth being used more in industries in which the knowledge development process is cumulative and appropriable, while the external breadth search is preferred in industries with a high level of technological opportunity.

Originality/value

The current approach implies recognizing that the knowledge search strategies may not always be effective, and that firms should align the search strategy to both internal and external factors. Analyzing the influence of these factors can help managers to better choose the type of knowledge search (e.g. intensive or extensive search) that best aligns with the firm’s innovation objectives.

Details

Journal of Knowledge Management, vol. 22 no. 2
Type: Research Article
ISSN: 1367-3270

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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…

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

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