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Article
Publication date: 28 September 2022

Li Yue, Chenxi Huang and Yuxuan Cao

Previous studies have reached inconsistent conclusions on foreign direct investment (FDI) technology spillovers and corporate innovation. The main purpose of this paper is to…

Abstract

Purpose

Previous studies have reached inconsistent conclusions on foreign direct investment (FDI) technology spillovers and corporate innovation. The main purpose of this paper is to explore the technological spillover effects of FDI from the microperspective of firm linkages induced by geographic distance. Further analysis is conducted on the impact and mechanism of this spillover on the innovation quality of Chinese enterprises. The conclusions drawn from this paper can guide Chinese enterprises' foreign capital utilization and innovation strategy choices.

Design/methodology/approach

Using the data of China's A-share listed companies from 2009 to 2019, this paper explores the role of FDI technology spillover in enterprise innovation quality through a two-way fixed-effect model. The robustness of the results is proven by substituting variables, adding industry fixed effects and excluding high-profit groups, and further using the two-stage least squares (2SLS) method to alleviate the empirical endogeneity problem.

Findings

These findings indicate that FDI technology spillover based on geographic proximity has a positive impact on the innovation quality of Chinese enterprises. However, there are different impacts for different types of enterprises. FDI technology spillover has a positive impact on the innovation quality of non-state-owned enterprises (non-SOEs) and small- and medium-sized enterprises (SMEs), while it has no effect on state-owned enterprises (SOEs) and large enterprises. The authors also find that the degree of financing constraints and R&D investment are important transmission mechanisms between FDI technology spillover and enterprise innovation quality.

Research limitations/implications

This study ignores industry characteristics when considering foreign enterprises around Chinese enterprises. In fact, technology spillover effects differ across industries. When the authors matched microdata to regions, only the provincial level was considered. Therefore, there is still room for further research. In future research, the authors should consider industry characteristics and group foreign enterprises and Chinese enterprises in the same industry and in different industries to explore industry differences in technology spillover. In addition, when matching corporate data to regions, the authors can match to the city level and draw city-level conclusions.

Practical implications

This study is different from previous studies that focus on the quantity of enterprise innovation or innovation output. The authors focus on the role of technological spillovers in the quality of Chinese enterprise innovation, enriching research in the field of enterprise innovation quality. In addition, the current FDI technology spillover indicators are technically difficult to measure at the micro level. The authors draw inspiration from the theory of the geographical structure of financial supply and combine the creation methods of macro and micro indicators in existing articles in other fields. The authors ingeniously construct a new FDI technical spillover indicator. This indicator combines the commonly used regional FDI technology spillover with the geographic proximity of enterprises at the microlevel by constructing an interaction term between the two. This indicator not only alleviates the endogeneity problem to a certain extent but also has implications for future research in the field of FDI technology spillovers at the micro level.

Social implications

(1) FDI technology spillovers are an effective way to improve the innovation quality of local enterprises, especially for non-SOEs and SMEs. Therefore, The authors suggest that in the context of dual circulation, the Chinese government should continue to open wider to the outside world and encourage foreign enterprises to invest in China. (2) In future development, managers of SOEs and large enterprises should create an innovation incentive mechanism. Moreover, they should change their vertical management structure and make full use of their policy advantages and budget advantages to increase innovation activities. In the process of acquiring technology spillovers, enterprises need to solve their own financing constraints.

Originality/value

First, this study solves a technical problem. It is technically difficult to measure the current FDI technical spillover indicators at the micro level. This study innovatively constructs a new FDI technology spillover indicator that combines regional FDI technology spillovers with the microperspective of the geographical proximity of enterprises. This approach not only alleviates certain endogeneity problems in the empirical evidence but also enriches relevant research in the field of technology spillover. In addition, this study focuses on the impact and mechanism of this spillover, which addresses the current research gap among previous studies that mainly focus on innovation quantity and ignore innovation quality.

Details

European Journal of Innovation Management, vol. 27 no. 3
Type: Research Article
ISSN: 1460-1060

Keywords

Content available
Article
Publication date: 21 November 2023

Josef Schindler, Andreas Kallmuenzer and Marco Valeri

The aim of this paper is to improve the understanding of strategies for how established companies can respond to disruptive innovation, handle increasing complexity, facilitate…

Abstract

Purpose

The aim of this paper is to improve the understanding of strategies for how established companies can respond to disruptive innovation, handle increasing complexity, facilitate entrepreneurial culture and processes and successfully manage organizational ambidexterity.

Design/methodology/approach

A qualitative multiple-case study was conducted to explore successful practices of innovation ambidexterity (IA) and their organizational design, entrepreneurial culture and mindset, processes and leadership. Two internationally established firms that have launched and established IA programs provided deep insight, revealing their strategy and learning on the path toward effective IA.

Findings

The findings show that accepting and managing the inherent complexity increases within an ambidextrous organization strategy is a decisive factor in achieving effective IA. As a result, segmenting small organizational units and granting them extensive autonomy is proposed for managing the complexity of an organization while increasing its effectiveness. Furthermore, it is shown that this helps foster entrepreneurial culture, mindsets and processes as additional mediators for achieving effective IA. Coaching, empowerment and trust were identified as key factors of ambidextrous leadership values that encourage entrepreneurial behavior and decision-making.

Originality/value

To the best of the authors knowledge the first study connecting the research fields of complexity management, organizational ambidexterity theory and entrepreneurial culture while applying the fundamentals of systems theory to propose a practical management framework for successfully responding to disruptive innovation.

Article
Publication date: 14 March 2023

Liubin Lai and Yunsheng Zhang

The purpose of this study is to investigate whether repeated alliances between two members of a patent pool boost enterprise innovation. Furthermore, this paper intends to…

Abstract

Purpose

The purpose of this study is to investigate whether repeated alliances between two members of a patent pool boost enterprise innovation. Furthermore, this paper intends to determine whether the innovation performance becomes higher or lower based on the partnership characteristics.

Design/methodology/approach

In this empirical study, hierarchical regression is used to analyze the longitudinal data obtained from 12 patent pools managed by MPEG LA during a time period ranging from 2006 to 2018. The members of patent pools comprise research institutions, firms and universities. Research analyses are performed based on a sample of 68,400 member pairs who had established repeated alliances. The information regarding such pairs is gathered from public databases.

Findings

Repeated alliances positively correlate with enterprise innovation performance in patent pools; this performance is higher when the two enterprises have exploratory collaborations. Conversely, the performance is lower when the partners have a similar technology base and are engaged in a technological competition (competitive learning and patent litigation). Moreover, the performance is lower when one partner demonstrates higher network centrality and richer structural holes than the other partner.

Originality/value

Patent pools play an instrumental role in eliminating patent-licensing barriers, thereby allowing mutual acquisition of complementary technologies, and cooperatively strengthening technology development. From the perspective of theories of coopetition, knowledge management and social network, this study explores the impact of patent pools on enterprise innovation performance and ascertains the moderating roles of technology coopetition, technology similarity and network position, thereby expanding the scope of innovation effect in the context of patent pools.

Details

Chinese Management Studies, vol. 18 no. 2
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 9 August 2023

Paolo Barbieri, Brice Dattée and Santosh K. Mahapatra

This paper aims to examine how collaborative supplier development (SD) activities, supplier capabilities and buyer–supplier relationship interrelate in technology-based, luxury…

Abstract

Purpose

This paper aims to examine how collaborative supplier development (SD) activities, supplier capabilities and buyer–supplier relationship interrelate in technology-based, luxury product business contexts characterized by small volumes, difficult targets and resource constraints relative to those targets.

Design/methodology/approach

Using inductive case research method, the authors investigate multiple embedded cases involving six dyadic buyer–supplier relationships of two luxury product manufacturers in the motorcycle and automotive industries. Each dyad represents an important sub-system for which the buying firm committed significant SD efforts to help the supplier successfully achieve difficult targets.

Findings

The analysis reveals how paradoxical tensions might emerge as the firms engage in successful SD activities, which could lead to decreasing relationship commitment ultimately resulting in the termination of the relationship. The authors utilize the “value co-creation and value capture” paradox framework to understand the SD and relationship dynamic and characterize it as developing-leveraging paradox to explain its dualities, i.e. commitment-based SD efforts (increasing value co-creation), and unilateral leveraging of the newly acquired capabilities (increasing value capture) by both the buyer and the supplier. Overemphasis on value capture by one of the exchange partners spurs a detrimental vicious cycle leading to the decline of the relationship.

Research limitations/implications

The study explains the paradoxical dynamics that may emerge in SD activities of innovative, technologically complex, luxury product firms. The findings contribute to the SD literature by highlighting how learnings from SD activities could contribute to the dark sides of buyer–supplier relationship. The technologically complex, luxury product contextual characteristics of the study may limit the generalizability of the study findings.

Originality/value

The study provides novel insights into the emergence and management of paradoxes in buyer–supplier relationships, in terms of virtuous and vicious dynamics of developing-leveraging.

Details

International Journal of Operations & Production Management, vol. 43 no. 11
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 5 December 2023

Yi Wen and Shuhui Wen

This study examines how dynamic capabilities (DCs) impact global value chain (GVC) upgrading and assesses the mediating role of innovation.

Abstract

Purpose

This study examines how dynamic capabilities (DCs) impact global value chain (GVC) upgrading and assesses the mediating role of innovation.

Design/methodology/approach

The study uses a quantitative research method. The data are collected using an online questionnaire administered to respondents working in Chinese automobile manufacturers in China and Laos. The data are analyzed using structural equation modeling (SEM) and related software.

Findings

The results show that DCs and innovation capabilities (ICs) positively affect GVC upgrading and that ICs plays a mediating role between DC and GVC upgrading. Dynamic capabilities evolution (CE) mediates the relationship between DCs, ICs and GVC upgrading. Finally, differences exist in the effects of the three dimensions of DCs on ICs and GVC upgrading.

Practical implications

Focusing on the absorption and transformation of knowledge, enterprises could experience a clear enhancement of IC and CE and be more likely to obtain higher marginal returns. The study provides insights for emerging market firms to gain higher added value in internationalization.

Originality/value

This study demonstrates that different dimensions of DCs have different effects on GVC upgrading. In terms of theory, the impact of IC is considered in terms of the mediating effect of CE on IC. Differences are highlighted concerning the impact of learning capability, integrating and coordinating capability and sensing capability on the mediated relationships.

Details

Journal of Strategy and Management, vol. 17 no. 1
Type: Research Article
ISSN: 1755-425X

Keywords

Article
Publication date: 22 March 2024

Rongxin Chen and Tianxing Zhang

In the global context, artificial intelligence (AI) technology and environmental, social and governance (ESG) have emerged as central drivers facilitating corporate transformation…

Abstract

Purpose

In the global context, artificial intelligence (AI) technology and environmental, social and governance (ESG) have emerged as central drivers facilitating corporate transformation and the business model revolution. This paper aims to investigate whether and how the application of AI enhances the ESG performance of enterprises.

Design/methodology/approach

This study uses panel data from Chinese A-share listed companies spanning the period from 2012 to 2022. Through a multivariate regression analysis, it examines the impact of AI on the ESG performance of enterprises.

Findings

The findings suggest that the application of AI in enterprises has a positive impact on ESG performance. Internal control systems within the organization and external information environments act as mediators in the relationship between AI and corporate ESG performance. Furthermore, corporate compliance plays a moderating role in the connection between AI and corporate ESG performance.

Originality/value

This paper underscores the pivotal role played by AI in enhancing corporate ESG performance. It explores the pathways to improving corporate ESG behavior from the perspectives of internal control and information environments. This discussion holds significant implications for advancing the application of AI in enterprises and enhancing their sustainable governance capabilities.

Details

Chinese Management Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 8 January 2024

Xingong Li, Xiaokai Li and Sheng Ding

Digital transformation (DT) is among the vital factors contributing to innovation ambidexterity, especially for advanced manufacturing firms (AMFs). However, the empirical studies…

Abstract

Purpose

Digital transformation (DT) is among the vital factors contributing to innovation ambidexterity, especially for advanced manufacturing firms (AMFs). However, the empirical studies on the relationship between DT and innovation ambidexterity in AMFs from the perspective of knowledge management are inadequate. Therefore, this study aims to systematically analyze the impact of DT on innovation ambidexterity and its mechanism of action.

Design/methodology/approach

This study selects 254 listed firms within the ten key areas of “Made in China 2025,” as they occupy a key position in China’s advanced manufacturing system. Based on the knowledge-based view (KBV) and contingency theory, it constructs a model of the influence mechanism of DT on innovation ambidexterity.

Findings

The results show that the DT of AMFs positively influence innovation ambidexterity. External pressure from environmental turbulence enhances the positive relationship between DT and innovation ambidexterity, demonstrating the “resilience effect,” external knowledge search (EKS) and broadening the knowledge base mediating roles between them, highlighting the “accumulation effect.”

Originality/value

By identifying this mediation mechanism of DT and innovation ambidexterity, this study provides new ideas for path research on the KBV. Moreover, this study explores the triggering effect of market environmental turbulence on the DT of firms. It reveals the boundary conditions of DT acting on innovation ambidexterity, expands the research perspective on organizational resilience and enriches the theory of power change.

Details

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

Keywords

Open Access
Article
Publication date: 29 September 2022

Tuuli Turja

In a best-case scenario, both organisations and their employees gain from technological changes by staying up to date on developing digitalisation. However, opportunities to learn…

Abstract

Purpose

In a best-case scenario, both organisations and their employees gain from technological changes by staying up to date on developing digitalisation. However, opportunities to learn and use modern technologies may not be shared equally in the workplace. Employee groups can be divided between those with and without access to new technologies. This study aims to examine the extent to which the position of an employee may be associated with the opportunity to work with robots.

Design/methodology/approach

Health-care work was chosen as an exemplary context of emerging robotisation. To gain correlative evidence on how the position and technology orientation of an employee associate with access to care robots, the study used online survey data collected from Finnish care workers (N = 226).

Findings

Workplace hierarchies were found to play a significant part in robotisation. Management experience increased the probability for an employee to have access to care robots, but this position did not differentiate between the employees in their aspiration to use care robots. Individual interest in technology was associated with robot use only among care workers with no management experience, whereas managers’ access to robots did not depend on their personal interests.

Originality/value

This study brings new information about the equity of robot-use opportunities in workplaces. Distinctive to care robots was the significant number of motivated non-users. Thus, adding to the categories of “have-bots”, “have-nots” and “want-nots”, this study introduces an important group of “want-bots”.

Details

Journal of Workplace Learning, vol. 35 no. 9
Type: Research Article
ISSN: 1366-5626

Keywords

Article
Publication date: 19 April 2024

Xiaohong Chen, Qi Shi, Zhifang Zhou and Xu Cheng

Digital transformation misalignment refers to disparities in digital transformation levels between suppliers and buyers across the production and operation process. It has…

Abstract

Purpose

Digital transformation misalignment refers to disparities in digital transformation levels between suppliers and buyers across the production and operation process. It has negatively affected supply chain stability. However, the existing research concerning the economic consequences has not been adequately addressed. Therefore, this paper aims to investigate whether such digital transformation misalignment increases supplier financial risk and to identify the factors influencing this relationship.

Design/methodology/approach

This paper examines binary combinations of suppliers and buyers listed on China’s A-share market between 2011 and 2021. This group constitutes a sample to empirically test the influence of digital transformation misalignment on the supplier’s financial risk, as well as the moderating effect of the geographical and organizational distances.

Findings

The paper’s findings demonstrate that digital transformation misalignment has indeed a significant increase in the supplier’s financial risk. Moreover, the impact is more intense when the geographical or organizational distance between the supplier and the buyer is relatively large.

Originality/value

The existing literature rarely explores the potential risks arising from digital transformation misalignment between supply chain partners. Therefore, this paper fills a notable gap as it is the first to study the impact of digital transformation misalignment on the supplier’s financial risk and the specific applied mechanisms. The contribution significantly improves the field of corporate digital transformation, particularly, within the context of supply chain management.

Details

International Journal of Operations & Production Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 31 May 2023

Pettis Kent, Enno Siemsen and Xiaofeng Shao

This paper enhances our understanding of how national culture impacts manufacturing performance (assembly speed, consistency between teams, etc.) during a production process…

Abstract

Purpose

This paper enhances our understanding of how national culture impacts manufacturing performance (assembly speed, consistency between teams, etc.) during a production process move. The authors also investigate the efficacy of co-location as a strategy to enhance knowledge transfer from one organization to another.

Design/methodology/approach

To study the impact of national culture on production process moves, the authors develop and employ a team-based behavioral experiment within and between an individualist society (the United States) and a collectivist one (China). The authors also examine the impact of co-location on knowledge transfer effectiveness within and between these two unique cultures.

Findings

Interestingly, co-location has little impact on the performance of US recipient teams. Without co-location, Chinese recipient team performance lags significantly behind the US teams. However, firms can overcome these knowledge transfer challenges by co-locating source and recipient team members. These results suggest that firms should assess the national cultural context when considering co-location to manage their production move. There are contexts where co-location may be incredibly useful to facilitate an effective knowledge transfer (e.g. collectivist cultures like China) and contexts where this approach may not be as valuable (e.g. individualistic cultures such as the United States).

Originality/value

This research contributes to the academic literature in several ways. First, while past research demonstrates that national culture can be an essential barrier to information and knowledge sharing, this paper extends these findings showing that co-location may effectively overcome this barrier. After the authors offer and test the merits of co-location, they also establish the boundary conditions of this approach by showing that the effect of co-location on knowledge transfer is contingent on the cultural context. This contribution enhances our understanding of the relationship between national culture and knowledge sharing and has implications for managers developing approaches to transfer knowledge between cultures. Second, the authors develop and execute a novel cross-country experimental design. While cross-country experiments have been done before (e.g. Ozer et al. 2014, Kuwabara et al. 2007, etc.), it is still rare to see such experiments due to them being “technically difficult and costly” (Ozer et al. 2014, p. 2437). This research not only offer insights into how teams of people from individualist and collectivist societies send, receive and comprehend production knowledge. It also documents how these teams convert this knowledge into production results.

Details

International Journal of Operations & Production Management, vol. 44 no. 1
Type: Research Article
ISSN: 0144-3577

Keywords

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