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This research aims to examine the moderating effect of strategic orientation on the effect of environmental uncertainties on business performance and the moderating effect of innovations on the effect of environmental uncertainties on performance of the business in the aviation industry in Indonesia.

Research data were collected in stages by means of interviews with corporate leaders of Indonesian airlines and branch managers of several airports, as well as with the Directorate of Civil Aviation as the regulator. A pre-test and focus group discussion (FGD) were conducted to directly determine the questionnaire aspects of the research object, following which an immediate revision was made to the questionnaire. The data from the survey used in each variable were obtained from the mail questionnaire survey. The data collected using the survey are the main data used in the present study.

The model of environment–strategy–performance (ESP) can work well in improving performance if supported by innovations. These findings deepen the ESP paradigm in the aviation industry (Miles and Snow, 1978; Segev 1987; Covin and Slevin, 1989; Miller and Shamsie, 1996) that during conditions of high environmental uncertainties, strategic orientation, rather than a single response, will be effective if supported by innovations that provide the strategy with flexibility. The initial implications of these modeling results generate the findings that the effect of environmental uncertainties in the aviation industry (classified as strictly regulated) on performance of a company is largely determined by the direction of the strategic orientation and the innovation level.

Interactions between innovations and environmental uncertainties have a significant negative effect on the achievement of business performance of the branches with a coefficient of 0.02 and a t-value of 2.00, meaning that the innovation level of a branch has an increasingly stronger influence on the business performance of the branch in the uncertain environment with limitations or underestimated by the branch manager or the innovation level of the branch is not supported with airport facilities and services, which means that the provision of airport facilities and services is inversely proportional to the needs of the airline branches. In other words, the variable “innovations” is a moderating variable for the effect of environmental uncertainties on business performance.

The results of the modeling performed in this research also show that innovations play a major role in the implementation of the ESP model (Blumentritt and Danis, 2006). The empirical phenomena and descriptive analysis results suggest that the Indonesian airlines which have been quite successful and have demonstrated an above-average performance possess higher levels of innovations. This finding corroborates that of previous studies that environmental uncertainties and direction of strategic orientation will determine the ability of a company to overcome the barriers to innovations, by maximizing innovative resources in achieving the target of innovations (Manu, 1992; O’Regan and Ghobadian, 2005; Hult et al., 2003), and more specifically, it indicates that strategic orientation that is prospective in nature leads to a high level of innovations (Salavou et al., 2004).

The research findings indicate that innovations have a central role in the ESP models and are able to offer a new concept as a modification of the ESP model which in the study is called ESIP. The role of innovations in the ESIP model puts innovations as a variable moderating the effect of environmental uncertainties on performance and the effect of strategic orientation on performance. Moreover, based on the summary of the results for the analysis of the ESIP model, the following can be explained: first, environmental uncertainties have a significant and positive effect on the innovation level or the higher the level of environmental uncertainties, the more is the number of the innovations that an Indonesian airline branch creates. External environmental conditions that are likely to be complex and dynamic found in the area of operations make the branch management more able to identify barriers to innovations and manage resources to be more creative and productive for the attainment of the targets of innovations.

Innovations in business models as a new effort in improvisation specific to the business stage of the basic model (not very valuable) become more advanced business processes to produce products that are more valuable for consumers, at a more efficient cost with better profitability (Chesbrough, 2007b). So far, research on the role of innovations in response to environmental uncertainties and implementation of strategies to improve the performance of the ESP model is still done partially, so that there is no comprehensive model to describe the role of innovations in this ESP model, or let us say that a gap exists between theories and opportunities to conduct further research on the role of innovations in the ESP model.

The purpose of this study is to examine the impact of technological diversification (TD) on enterprise innovation performance, meanwhile focusing on the moderating effects of various organizational slack (i.e. absorbed and unabsorbed slack) and ownership types (i.e. state-owned or privately-owned) in the context of Chinese listed firms.

This study formulates five hypotheses based on organization and agency theories. Our empirical analysis employs a fixed-effect regression estimator with a unique panel dataset of Chinese-listed manufacturing firms and 13,566 firm-year observations over 9 years from 2012 to 2020.

Our findings show that an inverted U-shaped relationship exists between TD and innovation performance, varying with different types of organizational slack and ownership. In state-owned enterprises (SOEs), unabsorbed slack negatively moderates the inverted U-shaped relationship; however, in privately-owned enterprises (POEs), this relationship is positively moderated. Although absorbed slack has negative moderating effects in both SOEs and POEs, its impact is only significant for POEs.

Our results imply that organizational slack has a contrasting impact on the relationship between TD and innovation performance when the type of ownership varies. Therefore, the managers that intend to achieve optimal innovation performance through TD should understand how organizational slack can be leveraged.

This study contributes to the existing literature by applying the relationship between TD and innovative performance to the transition economy, as well as examining the double-edged sword impact of state ownership on firm innovation performance.

Open innovation (OI), by now one of the major concepts for the analysis of innovation, is seen as a methodology for collaboratively designing and implementing solutions by engaging stakeholders in an iterative and inclusive service design process. This paper aims to empirically investigate OI capacities, defined as a cooperative, knowledge-sharing innovation ecosystem, and to explore how it can lead to improved performance of firms in Central and Eastern European (CEE) and Southeastern European (SEE) countries.

The study builds on the World Bank/European Bank for Reconstruction and Development (EBRD’s) Business Environment Enterprise Performance Survey (BEEPS) dataset for 2009, 2013 and 2019. Primarily, the research model was estimated using log-transformed ordinary least squares (OLS). Taking into consideration that this method might produce substantial bias, yielding misleading inferences, this study is fitting Poisson pseudo maximum likelihood estimators with robust standard errors and instrumental variable/generalized method of moments estimation (IV/GMM) approach for comparative results. Secondarily, the research model was tested using structural equation modelling (SEM) to investigate the relationship between five OI capacities and firm performance.

The findings indicate that there is a significant positive relationship between most OI capacities and firm performance, except for innovation, which did not show a statistically significant relationship with firm performance. Specifically, research and development (R&D), knowledge and coopetition are statistically significant and positively associated with firm performance, whereas transformation is statistically significant but negatively associated with firm performance. The IV/GMM estimations’ findings support the view that the firm performance is significantly affected by OI capacities, together with some control variables such as size, age, foreign ownership and year dummy to have a significant impact on firm performance.

This paper fills an identified gap in the literature by investigating the impact of OI on firm performance executed in the specific CEE and SEE country context.

Consumers and businesses are becoming increasingly conscious of sustainable business practices and are often willing to pay a premium for responsibly sourced and manufactured products. Many countries and organizations have implemented regulations and standards for sustainability and companies face penalties or are barred from exporting for not meeting the requirements. Rooted in the resource-based view theory, this study aims to test a moderated mediation model to improve the sustainability performance of exporting firms.

Textile firms generating more than 25% of export revenues were targeted for this research. The data collected from 245 middle management-level employees were tested for reliability and validity. The structural equation modelling in AMOS 26 was used to test hypotheses.

Organizational readiness for green innovation (ORGI) has a direct positive effect on sustainability performance. The mediation analysis implies that ORGI translates into sustainability performance through improvement in green innovation performance. The moderating effect of knowledge integration highlights the importance of being prepared internally and actively seeking and incorporating external knowledge to improve green innovation performance.

The findings offer a solid foundation for informed decision-making, policy development and strategies to improve sustainability performance while aligning with the global nature of the textile industry and its inherent challenges. The proposed model and practical implications guide policymakers and managers of exporting firms to foster a culture of green innovation to leverage the effect of their readiness for green innovation on sustainability performance.

Recent work in the economics of innovation in developing countries increasingly considers the formality of business as a determining factor of economic development. However, current knowledge on how formality determines both innovation and business performance remains mixed. This article examines this relationship by analyzing, on the one hand, the role of formality on innovation and, on the other hand, the moderating effect of formality on the relationship between innovation and the performance of business in francophone Sub-Saharan Africa.

Based on a sample of 1,369 Cameroonian and Senegalese small and medium-sized enterprises (SMEs) from the International Development Research Center (IDRC), the Crepon Duguet et Maraise (CDM) technique was used to reduce the endogeneity bias inherent in this type of analysis.

The results show that formal companies have a better capacity for innovation. In addition, formality positively moderates the relationship between innovation and the performance of businesses in the case of product and commercial innovations. On the other hand, it negatively moderates the relationship between innovation and the performance for process and organizational innovations.

These results show that the advantages of formalization widely relayed by national public institutions and international organizations can present a risk for business if the expected gains are not accompanied by innovations.

This paper contributes to research by taking into account the heterogeneity of firms because it is one of the first to study formality as a moderator in the relationship between innovation and firm performance in Sub-Saharan African economies.

Human resource management (HRM) practices must take an ambidextrous approach because of changing work environments and challenges. Ambidextrous practices in HRM fall in the domain of developing expertise for complex environments and reducing ambiguities in present turbulent times. Dual-oriented ambidextrous human resource practices (AHRP) can promote employee innovation performance. Drawing on social exchange theory to explore the impact of AHRP on employee innovation performance, this paper examines the mediating role of inclusive leadership style.

Data were collected through a questionnaire from employees of three Fortune 500 Chinese companies from the telecom, electronics and automotive sectors with temporal separation in two waves. The final sample constituted 276 useable responses.

Results indicate that ambidextrous HR practices have a significant impact on innovation performance, and an inclusive leadership style mediates this relationship, together explaining a 27.8% variance.

This paper examines the effect of dual-oriented AHRPs in the emerging markets context as a guide to best practices for managers to employ ambidexterity in HRM to enhance employees' innovation performance by enhancing both commitment as well as cooperation simultaneously.

This study determines whether government support for innovation (GSFI), knowledge sharing, knowledge management success (KMS) and intellectual capital (IC) strengthens the relationship between firm innovation and performance in the manufacturing industry in Vietnam.

A theoretical model and related hypotheses on manufacturers in Vietnam were developed based on the resource-based view and knowledge-based view. Data were collected from 361 respondents through a structured questionnaire and analyzed by partial least squares-structural equation modeling.

GSFI and IC significantly and positively influence firm innovation and performance. However, knowledge sharing does not affect firm innovation. Moreover, KMS fully mediates the positive relationship between knowledge sharing and firm innovation, and firm innovation partially mediates the positive relationships of IC and government support with firm performance.

The findings show how managers can utilize IC, KMS and government assistance to maximize the benefits of innovative outcomes and improve business performance.

This groundbreaking study creates a research model incorporating IC, knowledge sharing, KMS, GSFI, firm innovation and firm performance by extending two theories. Although the effects of various intangible assets on firm performance have been discussed extensively in the literature, there has been limited focus on the significance of KMS, knowledge sharing, IC and GSFI for enhancing innovative outcomes and driving business success in emerging markets such as Vietnam.

This study aims to explore the effect of collaboration networks (domestic and international collaboration networks) on the innovation performance of small and medium-sized enterprises (SMEs). It also investigates the mediating role of business model innovation, the moderating role of entrepreneurial orientation and government institutional support between them.

Hierarchical regression analysis is adopted to test the hypotheses based on survey data provided by 223 manufacturing SMEs in China.

The results reveal that domestic and international collaboration networks positively affect SMEs' innovation performance. Business model innovation mediates domestic and international collaboration networks-SMEs’ innovation performance relationships. Entrepreneurial orientation positively moderates international collaboration networks–SMEs’ innovation performance relationship, and government institutional support positively moderates domestic and international collaboration networks–SMEs’ innovation performance relationships.

The findings indicate that managers of SMEs should invest in domestic and international collaboration networks and business model innovation to enhance SMEs' innovation performance. Moreover, entrepreneurial orientation and government institutional support should be valued when SMEs try to enhance their innovation performance by embedding in domestic and international collaboration networks.

This study broadens the authors' understanding of the relationship between collaboration networks and firms' innovation performance by classifying collaboration networks into domestic and international dimensions and investigating their direct impacts on SMEs' innovation performance. Besides, this study reveals how and when domestic and international collaboration networks influence the innovation performance of SMEs.

The purpose of this research paper is to establish the impact of process and service innovation on non-financial and financial performance in the tourism sector, as well as to explain the mediating role of organizational learning.

A quantitative approach was used, based on partial least squares–structural equation modeling (PLS-SEM), Smart PLS 4.0 software. The sample consisted of 426 establishments in the tourism sector in Zone I, Ecuador. Online surveys were employed to collect data, yielding 118 responses, to assess the impact of innovation on business performance from 2020 to 2022.

Process and service innovation positively and significantly affect non-financial and financial performance, respectively. Organizational learning mediates the relationship between process innovation and disservice. The relationship between non-financial and financial performance could not be confirmed. The model explains 53.10% of non-financial performance and 26.10% of financial performance.

The relationship between innovation and performance in the tourism sector has been studied in several developed economies, while little has been studied in developing countries. This work contributes to an empirical discussion including a mediating variable in the innovation–performance relationship in the Latin American context.

El propósito de esta investigación es establecer el impacto de la innovación de procesos y servicios en el desempeño no financiero y financiero en el sector turístico, así como explicar el papel mediador del aprendizaje organizacional.

Se utilizó un enfoque cuantitativo, basado en el software PLS SE M, Smart PLS 4.0. La muestra estuvo constituida por 426 establecimientos del sector turístico de la Zona I, Ecuador. Se aplicaron encuestas en línea para recopilar datos, que arrojaron 118 respuestas, para evaluar el impacto de la innovación en el desempeño empresarial de 2020 a 2022.

La innovación de proceso y de servicio afecta positiva y significativa al desempeño no financiero y financiero, respectivamente. El aprendizaje organizacional media la relación entre innovación de proceso y des servicio. No se pudo confirmar la relación entre desempeño no financiero y financiero. El modelo explica el 53.10% del desempeño no financiero y el 26.10 del desempeño financiero.

La relación entre innovación y rendimiento en el sector turístico se ha estudiado en varias economías desarrolladas, mientras que en los países en desarrollo se ha estudiado poco. Este trabajo contribuye a una discusión empírica incluyendo una variable mediadora en la relación innovación-desempeño en contexto latinoamericano.

Although the impact of environmental, social and governance (ESG) on firms' innovation has attracted attention, the existing research findings diverge. The authors believe that failure to consider both innovation input and output is an important reason for the divergence of conclusions in the extant literature when discussing the impact of ESG and firm innovation. Thus, based on signaling theory, this study aims to reconcile these divergent findings by examining the impact of ESG performance on firms' innovation efficiency.

To seek empirical evidence to support the authors’ theoretical view, the authors conduct an empirical test based on the Tobit model using 8 years of data from Chinese listed companies.

Although ESG performance effectively improves firms' innovation efficiency, the institutional-level signaling environment (including state-owned firms and regional market development) weakens the positive effect of ESG performance on firms' innovation efficiency. Further tests suggest that financing constraints partially mediate the relationship between ESG performance and firms' innovation efficiency.

By systematically revealing whether, how and under what circumstances ESG performance improves firms' innovation advantages, this study bridges the gap in the existing literature and highlights important implications to suggest how firms can better capture the value associated with ESG.