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The purpose of this paper is to clarify the concept of innovation capability and to show how the linkage between innovation capability and performance measurement can be formed.

The study is based on current literature of innovation capability and performance measurement and matching these two to find out how the measurement of innovation capability should be organized.

The paper describes the concept of innovation capability and presents a performance measurement framework for the measurement of innovation capability and its effects. As a result, a conceptual framework with five perspectives for measuring the relationship between innovation capability and business performance is presented. Also, the link between innovation capability and an organization's business performance is disclosed.

The paper shows a way forward of how to define measures of business performance in such a way that they are led from the development of innovation capability.

Based on the dynamic capability theory (DCT), this study examines the role of digitalisation vision and the impact of key information technology (IT) strategies, such as IT flexibility, IT integration and IT agility, on organisations' process innovation capability and the subsequent impact these may have on innovation performance.

Data for this study were collected from 153 public listed organisations in Malaysia. The survey questionnaire method was used to collect the data from the organisations' representatives.

Results showed that it is important for organisation to have a strategic digitalisation vision to improve their process innovation capabilities. IT agility and IT integration also had a significant positive relationship with the process innovation capabilities of the organisations, which in turn had a positive impact on innovation performance.

Digital transformation and innovation are crucial for organisations to survive in the era of Industry 4.0. However previous studies have not captured the role of digitalisation vision, strategic IT components and its impact on process innovation capabilities. The current study filled up the gap and examined these relationships. The outcome of this study provides valuable insights for managers to understand the importance of digitalisation and the need to focus on key IT strategies. Such insights can be used to improve organisations' process capability which is critical for innovation and performance.

In a world of ever-changing corporate environments and reduced product life cycles, most organizations cannot afford anymore to innovate on their own. Hence, they open their innovation processes to incorporate knowledge of external sources and to increase their innovation potential. As the shift toward open innovation (OI) is difficult and makes many initiatives fail, the question arises which capabilities organizations should develop to successfully implement OI. As the literature encompasses mature but isolated streams on OI capabilities, there is a need for an integrated capability framework. The paper aims to discuss these issues.

This paper proposes the open innovation capability framework (OICF) that compiles and structures capabilities relevant for implementing OI. The OICF covers the outside-in and coupled processes of OI. To integrate multiple streams of the OI literature, the OICF builds on a structured literature review. The OICF was also validated in a two-step review process with OI experts from academia and industry.

The OICF comprises 23 capability areas grouped along the factors such as strategic alignment, governance, methods, information technology, people, and culture. To analyze the existing body of knowledge on OI capabilities, the authors compare the OICF with other OI-related capability frameworks and compile a heatmap based on the results of the literature review. The authors also discuss the experts’ feedback on individual factors of the OICF as well as on interdependencies among these factors.

The OICF provides practitioners with a structured overview of the capabilities to consider when implementing OI. Based on the OICF, practitioners can define the scope of their OI initiatives. They can use the OICF as a foundation for prioritizing, selecting, and operationalizing capability areas as well as for deriving implementation roadmaps.

The OICF is the first framework to take a holistic perspective on OI capabilities. It integrates mature but isolated research streams of OI. It helps practitioners define the scope of OI initiatives and academics gain insights into the current state of the art on OI capabilities.

Four management capabilities for successfully operationalizing open innovation are: strategy and culture, ecosystem capability, internal capability and technology enablement. Surveying more than 1,000 executives on current open innovation practices and capabilities, IBM IBV was able to identify how the different operating model capabilities interact and complement each other to drive better innovation and business performance.

To help organizations build and improve their open innovation capabilities, the IBM Institute for Business Value (IBV) partnered with APQC to develop the Ecosystem-Enabled Innovation Maturity Model (EEIMM) - an open standards model encompassing four domain competencies required for successful open innovation. To assess the maturity and benchmark the performance of organizations’ open innovation capabilities, the IBV, in collaboration with Oxford Economics, used the EEIMM to survey over 1000 leaders responsible for open innovation at their organizations.

Four management capabilities for successfully operationalizing open innovation are: strategy and culture, ecosystem capability, internal capability and technology enablement. IBV analysis found that organizations that are more advanced in developing the four building blocks see significantly better performance across key financial and innovation metrics.

For every dollar of investment, the proportion of direct revenue attributed to open innovation is four times higher than for traditional innovation.

Leading organizations are embracing open innovation as a critical component of innovation strategy and investment. They recognize that adopting open innovation yields far greater returns than traditional innovation can. Recent research by the IBM Institute for Business Value (IBM IBV) reveals, for example, that as many as 84 percent of executives now view open innovation as important for their organization’s future growth.

Knowledge sharing has become an integral part of organizations’ business strategies, along with aiding organizations to grow and innovate in the market, and gain competitive advantage. This paper aims to concentrate on the role of tacit knowledge sharing in fostering innovation capability of an organization. Specifically, the study considers social capital (relational, cognitive and structural) as an important precursors to tacit knowledge sharing, which in turn, influences innovation capability of an organization. The study further discusses the role that knowledge reciprocation plays in successful tacit knowledge sharing. The relation between knowledge quality and innovation capability is also discussed in the paper.

The investigation started with a review of extant literature in the field of knowledge sharing and innovation to derive a set of constructs. A set of hypotheses was developed based on the identified constructs, which was subsequently validated through a primary survey based on a structured questionnaire on a sample size of 190 respondents from the Indian industrial domain. The survey responses were subsequently analysed using the statistical technique of structural equation modeling and conclusions were drawn from the findings. Additionally, careful attention was paid in eliminating the common method bias, which is often associated with a primary survey.

A set of six hypotheses were derived based on the identified constructs and were subsequently validated. While validating the hypotheses, it was observed that while knowledge reciprocity, relational social capital and cognitive social capital was positive associated with tacit knowledge sharing, structural social capital did not have a significant effect on the same. Additionally, it was also observed that both tacit knowledge sharing and the quality of knowledge were positively associated with innovation capability.

The present day business marked by intense competition requires firms to be more aware of their innovative capabilities. Effective sharing of knowledge or information can be deemed as a vital component in achieving this objective. Organizations that practice and nurture innovation activities can use the findings of the current study as a part of their knowledge management strategy. In addition to using the explicit knowledge, which are structured in nature, organizations can also start using tacit knowledge to harness their innovation potential – and the findings from the current study can act as a motivational tool for them to do so.

Although there is a growing body of literature concerning the role of knowledge management in innovation, there still a dearth in discussing the role of tacit knowledge sharing in exploiting the innovation capability of an organization. The main discussion of this paper brings together a set of important constructs that exhibits the significant role that tacit knowledge sharing plays in determining the innovation capability of an organization. Furthermore, it tries to marry the concepts of social capital and tacit knowledge sharing with innovation capability, therefore adding significantly to the body of literature in knowledge management as well as innovation.

The purpose of this paper is to examine different types of organization of the firm considering the innovation capabilities of manufacturing firms.

The authors carried out an innovation survey with Brazilian manufacturing firms. A sample of 1,156 firms was analyzed in this paper. Collected data were analyzed using multivariate data analysis techniques. From an innovation capabilities approach, it was possible to identify different types of organization of the firm.

Results show four different types of organization of the firm: advanced, intermediate and basic stability-oriented and change-oriented. Each type presents a different innovation capabilities arrangement. The successful strategies toward innovation are related to change-oriented organization of the firm and advanced stability-oriented organization of the firm.

This study contributes to the literature by presenting a different view on the organization of the firm, encompassing the capabilities approach and thus a higher level on the perception of firms' heterogeneity. This study contributes to narrow the literature gap on how firms internally coordinate its different capabilities into a coherent organization to sustain an innovative behavior.

These straightforward findings can serve as a guideline so that managers can conduct changes within their companies toward more innovation. Managers can reconsider its organization as a way to foment innovation, once it is identified as a key strategy for competitiveness.

This study may help managers understand that focusing on stability-driven capabilities is riskier if change-driven capabilities are not present in an adequate and aligned level of development. The outcome may be the growth of the cost structure greater than the potential return. Conversely, managers should also understand that once change-driven capabilities are in a glance, they need do follow up with stability-driven capabilities. Here, the risk is not having an adequate structure to sustain the upcoming growth, arising from innovation. In short, not only “cost and value” should be taken together, but they must be arranged following the specific situation of the company. Every company should manage costs either to sustain new added value or to allow the addition of new value.

The study is based on a unique dataset that traces a large set of companies, being able to check different types of firm organization and associate it with innovation capabilities. The study relates to an emerging economy, which has not received adequate attention until now, largely because of the lack of micro-level data. The study is based on a robust theoretical model of innovation capabilities, which is being tested through such data. Finally, results elucidate ways to improve innovation performance of firms.

This paper aims to investigate the effects of transformational leadership on individuals and organization’s innovation capability via the mediating role of employees' positive psychological capital (Psy-Cap) namely self-efficacy and optimism.

Structural equation modeling (SEM) is used to test proposal hypotheses through the empirical data collected from 330 participants at 90 firms in Vietnam.

The research findings revealed that self-efficacy and optimism significantly mediate the relationship between transformational leadership and innovation capabilities. In addition, self-efficacy has a greater impact on innovation capabilities compared with the effect of optimism.

The findings highlight the important role of practicing transformational leadership style to nurture and foster both employees' positive psychology sources and firms' innovation capability.

The paper has significantly advanced and deepened our understanding of how transformational leaders connect with employees to nurture and develop one of the most special aspects of human resource in contemporary working environment called employees' positive Psy-Cap for stimulating firm's innovation capabilities.

Several strategies and processes can help companies to enhance the success rate of new products. This study aims to identify a few strategies for that purpose represented by total quality management (TQM) practices, building knowledge and capabilities. Moreover, the current paper discusses the role of applying TQM practices and customer knowledge management in developing the marketing capabilities of the organizations.

This study is a quantitative approach where the data collected from 141 manufacturing small and medium enterprises operating in Malaysia and partial least squares technique was used to test the hypotheses.

The findings of this study highly support all the proposed hypotheses and establish marketing capabilities as a facilitator in the relationship between TQM practices, customer knowledge management and product innovation performance. However, customer knowledge management and TQM were found not to have an impact on product innovation performance.

The introduced model contributes to enhancing the understanding of the impact of customer knowledge on the success of product innovation performance. The model further includes TQM as a process that helps the organization get customer satisfaction information. The incorporation of these two processes will support the organization’s capabilities in the innovation field.

Given the decisive role of knowledge-oriented leadership (KOL) in boosting organizational innovation capacities, the research intends to investigate the effect of KOL on ambidextrous innovation with the mediating effect of knowledge management capability (KMC). Furthermore, technological turbulence (TT) is regarded as a moderator in the relationship between KMC and ambidextrous innovation.

The data obtained from 122 Pakistani manufacturing firms were used to evaluate the proposed relationships using the partial least square structural equation modeling approach.

The empirical findings demonstrate that KOL positively affects both aspects of ambidextrous innovation, namely exploitative innovation (EII) and exploratory innovation (ERI), with a higher effect on EII. Additionally, knowledge management process capability (KMPC) partially mediates the association between KOL and both dimensions of ambidextrous innovation (EII and ERI). Similarly, knowledge management infrastructure capability (KMIC) mediates the link between KOL and ERI but does not mediate the relationship between KOL and EII. The impacts of the KMPC and KMIC on EII are also significantly moderated by TT, although the link between the two components of the KMC (KMPC and KMIC) and ERI is unaffected.

The research provides useful knowledge and a novel strategy for policymakers to foster KOL and invest in KMC to improve the capabilities of Pakistani manufacturing firms in terms of innovation.

The research has contributed significantly to the resources-based view and knowledge-based view (KBV) literature by examining the various mediation moderation mechanisms and offering greater insights into the relationship between KOL and firms, KMC, and ambidextrous innovations.

The purpose of this article is to integrate organizational capabilities into the place branding process to showcase how a lead destination marketing organization (DMO) can influence a customer-based brand equity outcome. Doing so highlights the strategic, relational nature of place branding. The authors focus specifically on first- and zero-order capabilities, integrating absorptive capacity (first-order) and an innovation capability (zero-order) into a place branding framework. We define an innovation capability within a place branding context and offer absorptive capacity as a mechanism through which DMO leaders can exploit external knowledge acquisition.

The paper presents a theoretical framework of the place branding process that integrates firm capabilities. A framework based on analyzing existing place branding models and integrating organizational capabilities, which find root in strategic management literature, was developed.

Findings indicate that existing frameworks address operational and customer capabilities in some manner yet largely ignore innovation capabilities. A definition of an innovation capability for place brand managers and scholars is offered, and offer absorptive capacity as means to integrate external knowledge into the DMO. Utilizing multiple levels of capabilities allows a firm to influence customer-based brand equity. Testable propositions based on the authors' framework are offered.

Managerial implications of integrating stakeholder capabilities into place branding include appreciating a culture of innovation within DMOs, learning from external stakeholders meaningfully and regularly and encouraging creative thinking that can produce new processes, policies or services.

By integrating organizational capabilities, attention is drawn to internal aspects of the place branding process the place can control directly. Capabilities dictate how an organization sees itself; learns from its stakeholders; and then integrates that knowledge into organizational, stakeholder and innovation capabilities. Therefore, capabilities are inherently internal mechanisms through which a DMO can influence place brand outcomes, which are understood here as brand equity elements.