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Article
Publication date: 25 April 2024

Xiaoyong Zheng

While previous research has demonstrated the positive effects of digital business strategies on operational efficiency, financial performance and value creation, little is known…

Abstract

Purpose

While previous research has demonstrated the positive effects of digital business strategies on operational efficiency, financial performance and value creation, little is known about how such strategies influence innovation performance. To address the gap, this paper aims to investigate the impact of a firm’s digital business strategy on its innovation performance.

Design/methodology/approach

Drawing on the dynamic capability view, this study examines the mechanism through which a digital business strategy affects innovation performance. Data were collected from 215 firms in China and analyzed using multiple regression and structural equation modeling.

Findings

The empirical analysis reveals that a firm’s digital business strategy has positive impacts on both product and process innovation performance. These impacts are partially mediated by knowledge-based dynamic capability. Additionally, a firm’s digital business strategy interacts positively with its entrepreneurial orientation in facilitating knowledge-based dynamic capability. Moreover, market turbulence enhances the strength of this interaction effect. Therefore, entrepreneurial-oriented firms operating in turbulent markets can benefit more from digital business strategies to enhance their knowledge-based dynamic capabilities and consequently improve their innovation performance.

Originality/value

This study contributes to the understanding of how a firm’s digital business strategy interacts with entrepreneurial orientation in turbulent markets to shape knowledge-based dynamic capability, which in turn enhances the firm’s innovation performance.

Details

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

Keywords

Article
Publication date: 13 April 2023

Mahmoud Abdelaziz Ahmed Abdelaziz, Jiani Wu, Changwei Yuan and Mohamed Ahmed Ghonim

In light of the current challenges in the business environment, firms, particularly those involved in supply chains, must foster innovation. In this context, the current study…

Abstract

Purpose

In light of the current challenges in the business environment, firms, particularly those involved in supply chains, must foster innovation. In this context, the current study employs the theory of dynamic organizational capabilities (DOCs) to track supply chain learning capabilities (SCLCs) and independently uncover their relationship to innovation at both the product and process levels. Similarly, the study intends to investigate the influence of technological turbulence (TT) on these relationships as a moderating variable.

Design/methodology/approach

The data were gathered using in-person interviews with 189 CEOs with some supply chain management proficiency from small and medium-sized enterprises (SMEs) in the industrial zones of eastern Egypt. The study used a survey approach to collect data, and the SEM-PLS technique was utilized to analyze the data.

Findings

Study findings revealed that SCLCs positively affect product and process innovation. In addition, TT positively moderates the relationship between SCLCs and product and process innovation, except for risk-taking capability. Further theoretical and practical implications are derived from the study findings.

Originality/value

This research adds to the knowledge of the dynamic capabilities theory (DCT), which affects how firms interact with their external environment. Studying learning capabilities are employed as essential competencies to counterbalance high levels of TT in the external environment in terms of innovative performance and vice versa if firms do not attempt to strengthen their dynamic learning capabilities in supply chains. In addition, this study contributes to the literature by studying learning capabilities from the external perspective, where SCLCs are being developed as a new variable to improve innovation.

Details

Journal of Manufacturing Technology Management, vol. 34 no. 5
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 4 July 2008

Ming‐Ji James Lin and Chih‐Jou Chen

The purpose of the study is to examine the influence of internal integration and external integration on three types of shared knowledge (shared knowledge of internal capabilities

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Abstract

Purpose

The purpose of the study is to examine the influence of internal integration and external integration on three types of shared knowledge (shared knowledge of internal capabilities, customers, and suppliers) and whether more leads to superior firm innovation capability and product competitive advantage.

Design/methodology/approach

The paper draws on results from a large‐scale survey. The empirical data used in the study comprises of 245 high technology firms in Taiwan. This study applies the confirmatory factor analysis to examine the reliability and validity of the measurement model, and the structural equation modeling (SEM) to investigate the hypotheses and research model.

Findings

The results show that internal integration and external integration significantly influence shared knowledge of internal capabilities, customers and suppliers among new product development (NPD) team members. The results also indicate that team members' shared knowledge enable the firm to improve innovation capability and new product competitive advantage.

Research limitations/implications

As the data used in the study was cross‐sectional, the causal relationships and the sustainability of firm and product innovative performance cannot be easily captured. Future research can examine how factors of individual traits, organizational characteristics, and external environmental factors may influence the shared knowledge and product competitive advantage.

Practical implications

This study emphasizes the importance of the firm's integration to utilize and share knowledge of internal capabilities, customers and suppliers effectively. Besides, the relationships among internal/external integration, shared knowledge, firm innovation capability and product competitive advantage may provide a clue regarding how firms can manage integrations and promote knowledge‐sharing culture to sustain their firm innovation capability and product competitive advantage.

Originality/value

As only little empirical research has been conducted on the impact of internal/external integration on the firm's innovative capability and product competitive advantage through shared knowledge, the empirical evidence reported here makes a valuable contribution in this highly important area.

Details

International Journal of Organizational Analysis, vol. 16 no. 1/2
Type: Research Article
ISSN: 1934-8835

Keywords

Open Access
Article
Publication date: 4 October 2019

Kehinde Medase and Laura Barasa

The purpose of this paper is to investigate how specialised capabilities including absorptive capacity and marketing capabilities influence innovation commercialisation in…

7481

Abstract

Purpose

The purpose of this paper is to investigate how specialised capabilities including absorptive capacity and marketing capabilities influence innovation commercialisation in manufacturing and service firms in Nigeria. The authors hypothesise that absorptive capacity measures including openness and formal training for innovation, and marketing capabilities encompassing new product marketing and marketing innovation are positively associated with innovation performance.

Design/methodology/approach

The authors examine commercialisation of innovation within the profiting from innovation (PFI) and dynamic capabilities (DC) framework and use data from the 2012 Nigeria Innovation Survey to test the hypothesis by means of a Heckman sample selection model.

Findings

The authors find that absorptive capacity measures comprising openness and formal training are positively associated with innovation performance. The authors also find that marketing capabilities as indicated by new product marketing and marketing innovation are positively associated with innovation performance.

Research limitations/implications

The authors acknowledge that firms undergo continuous changes and that there may be the presence of unobserved or unmeasured heterogeneity. Taking into cognisance that Nigeria is a federal state, cultural diversity and economic factors are likely to differ widely between geographical regions. Also, while the proposed conceptual framework offers a deeper understanding of innovation performance, examining how integrating activities of the R&D department, human resource department and marketing department affect innovation commercialisation is likely to provide more meaningful insights.

Practical implications

The role that inter-organisational learning and intra-organisational learning play in driving innovation performance provide managers with a basis for incorporating absorptive capacity building programs that boost employees’ ability to recognise and apply valuable external knowledge to commercial ends. Similarly, firms may benefit from offering marketing capabilities development programs. Furthermore, innovation policies in Nigeria are generally designed to focus on fostering innovation activities aimed at developing innovative output. Accordingly, government support explicitly targeting new product marketing and marketing innovation is likely to play a vital role in the successful commercialisation of innovation in Nigeria.

Originality/value

This study fuses the PFI and DC framework to examine why innovating firms may not necessarily succeed. This area of study has received scant attention in sub-Saharan Africa given that extant literature focusses on value creation as opposed to value capture.

Details

European Journal of Innovation Management, vol. 22 no. 5
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 23 March 2021

Shabahat Ali, Weiwei Wu and Sadaqat Ali

This study aims to offer and validate an integrated marketing capability-product innovations framework. Particularly, it aims to examine the role of adaptive marketing capability

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Abstract

Purpose

This study aims to offer and validate an integrated marketing capability-product innovations framework. Particularly, it aims to examine the role of adaptive marketing capability in enabling market ambidexterity and incremental as well as radical product innovation. Also it intends to investigate the moderating role of transformational leadership between adaptive marketing capability and market ambidexterity.

Design/methodology/approach

Manufacturing firms in Pakistan, an emerging economy, are taken as the context for this study. A designed survey questionnaire is used for data collection. Partial least square technique is employed to empirically validate and test the hypothesized model with a sample of 192 manufacturing firms. Particularly, the two-stage approach in SmartPLS is used to validate measurement models, and structural equation modeling technique is used to test the proposed hypothesis.

Findings

The findings not only confirm that adaptive marketing capability is instrumental to both incremental and radical product innovations but also reveal that adaptive marketing capability serves an important antecedent to market ambidexterity shedding new lights on its mediating role in the relationship of adaptive marketing capability with incremental and radical product innovations. Moreover, the results find that the effectiveness of adaptive marketing capability to support market ambidexterity may involve a possible trade-off between exploitation and exploration when the leaders exhibit a low or high level of transformational leadership behavior.

Originality/value

This study contributes to outside-in strategic perspective and contextual ambidexterity literature by revealing the role of adaptive marketing capability as an important enabler of market ambidexterity which, in turn, allows the firm to simultaneously introduce incremental and radical product innovations. In this way, this study advances the current understanding of the antecedents and consequences of contextual ambidexterity. Also, this study provides insight into the types of capabilities needed for the firm's contextual and employees' behavioral adaptation to simultaneously manage exploitation and exploration within the same business unit which was lacking in the previous literature. Further, this study also offers a novel understanding of the conditional role of transformational leadership between adaptive marketing capability and market ambidexterity.

Details

European Journal of Innovation Management, vol. 25 no. 4
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 28 December 2020

Hui Gao, Xiu-Hao Ding and Suming Wu

More enterprises adopt open innovation by breaking technological or organizational boundaries to seek internal and external knowledge when they face a fiercely competitive…

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Abstract

Purpose

More enterprises adopt open innovation by breaking technological or organizational boundaries to seek internal and external knowledge when they face a fiercely competitive environment, complex market demands, and increasingly rapid technological change. In this context, a knowledge search strategy is regarded as an effective means of obtaining inside and outside resources and an important way to break the innovation bottleneck. Moreover, information technology (IT) is deemed an important asset for sourcing knowledge, whereas absorptive capacity is seen as an indispensable ability for utilizing novel knowledge. Thus, this paper aims to test the role of knowledge search in open innovation and examine the mediating effect of absorptive capacity and the moderating effect of IT capability.

Design/methodology/approach

Using a sample of 1,088 Chinese firms’ data collected by the World Bank in 2012, this paper employs logistic regression to test the hypotheses.

Findings

This study finds that local and boundary-spanning search strategies positively influence both product and process innovation, and absorptive capacity has a mediating role in the relationships between knowledge search and product and process innovation. Moreover, IT capability has a positive moderating effect on the relationship between local search and innovation performance; however, IT capability strengthens the relationship between boundary-spanning search and process innovation while weakens that between boundary-spanning search and product innovation.

Originality/value

This study explores the impact of different knowledge search behaviors on different types of innovation and probes the role of absorptive capacity and IT capability in mediating and moderating the above relationships. By drawing on knowledge-based theory and cognitive-developmental theory, this paper provides a novel perspective to explain the mechanism between knowledge search and innovation performance.

Details

European Journal of Innovation Management, vol. 25 no. 2
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 22 July 2020

Hakan Aydin

This study aims to examine the relationship between market orientation and product innovation and the mediating role of technological capability in this relationship. It also aims…

3308

Abstract

Purpose

This study aims to examine the relationship between market orientation and product innovation and the mediating role of technological capability in this relationship. It also aims to examine the effect of market orientation on product innovation within the framework of technological intensity classification of the fields of business activity.

Design/methodology/approach

The research data were obtained from 186 senior and mid-level managers of 627 manufacturing firms that are widely considered to be innovative, and that are ranked among Turkey's largest 1,000 manufacturing firms (ISO 1000). The data were analyzed using partial least squares structural equation modeling.

Findings

Customer orientation and interfunctional coordination, two distinct dimensions of market orientation, had positive effects on product innovation. Technological capability played a mediating role in the effect of customer orientation and interfunctional coordination on product innovation. In addition, interfunctional coordination positively affected product innovation in firms with low technological intensity, whereas customer orientation positively affected product innovation in firms with medium-high technological intensity.

Practical implications

For the success of product innovations, firms should establish mechanisms to obtain information about customer needs and expectations and to disseminate and effectively use this information among organizational functions. They also need to improve their technological capabilities to effectively transform market knowledge into product innovation.

Originality/value

The relationship between market orientation and product innovation has been examined in previous studies; however, there is an insufficient number of studies on the mediating role of technological capability in this relationship. This study aimed to eliminate the gap in the literature regarding the mediating role of technological capability. In addition, innovation activities of firms vary depending on the technological intensity, but only a limited number of evaluations have been conducted on this subject. This study contributes valuable knowledge to the relevant literature by examining the impact of market orientation dimensions on product innovation according to technological intensity.

Details

European Journal of Innovation Management, vol. 24 no. 4
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 18 March 2022

Mantas Vilkas, Andrea Bikfalvi, Rimantas Rauleckas and Gediminas Marcinkevicius

The article aims to focus on the debate around the interplay between product innovation and servitization. Two conflicting approaches characterize the debate, disagreeing as to…

1358

Abstract

Purpose

The article aims to focus on the debate around the interplay between product innovation and servitization. Two conflicting approaches characterize the debate, disagreeing as to whether product innovation and servitization are complementary or not.

Design/methodology/approach

The authors examine two competing models proposing a direct effect of product innovation on servitization and an indirect effect through digitalization, using the sample of 500 manufacturing firms of a country participating in the European Manufacturing Survey, 2018 edition.

Findings

The results reveal that product innovation has no direct effect on servitization. However, the authors found that digitalization capabilities mediate the effect of product innovation and servitization. The present findings reveal that product innovation has a substantial indirect effect on servitization through digitalization capabilities, supporting the approach proposing the complementarity between product innovation and servitization.

Research limitations/implications

The data used in this paper correspond to a single country. The limited geographical sampling frame may likewise limit the generalizability of the findings. Researchers are encouraged to replicate the analysis with data from other countries, and to further enrich the analysis with complementary path options and resulting performance measures.

Practical implications

When applying a capabilities perspective, the authors find that product innovation capability is not directly related to servitization as capability. The present findings point toward the fact that if companies only have product innovation capability, this does not facilitate servitization. If companies have both product innovation capability and digitalization capability, such a situation facilitates servitization, a decision which often falls within managers’ responsibilities.

Originality/value

Existing studies focus on antecedents and/or outcomes of single issues, either product innovation, servitization or digitalization. Only some offer dual associations (product innovation and servitization, digitalization and servitization), and even less position simultaneously at the intersection of the three pillars. Herein lies the novelty of the present approach and analysis, which explains the extent to which product innovation, digitalization and servitization are related.

Details

Journal of Business & Industrial Marketing, vol. 37 no. 11
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 7 September 2020

Jorge Ferreira, Arnaldo Coelho and Luiz Moutinho

This study delves in the controversy about the nature and the sign of the effect of strategic alliances and exploration and exploitation capabilities on innovation and new product

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Abstract

Purpose

This study delves in the controversy about the nature and the sign of the effect of strategic alliances and exploration and exploitation capabilities on innovation and new product development. The paper analyses the effects of knowledge sharing and strategic alliances relationships at the firm level. Specifically, we study the influence of strategic alliances relationships in new product development and the mediating role of exploration and exploitation as dynamic capabilities.

Design/methodology/approach

This investigation proposes a theoretical model tested using structural equation modeling (SEM). The multigroup analysis was performed to understand the moderating role of. A questionnaire survey was developed to explore the relations between strategic alliances and innovation and new product development variables. For this study, 387 valid questionnaires were collected from a sample of Portugal SME' firms. A 90-item questionnaire was submitted to employees managers of a large number of Portuguese SMEs, which consists to study the relationships among all the variables.

Findings

The results show that exists a positive direct influence of strategic alliances on innovation and new product development, and mediating impact the exploration and exploitation by the moderating role of knowledge sharing.

Research limitations/implications

This study has some methodological limitations affecting its potential contributions. A cross-sectional study that captures one image in time and its ability to identify strict causality between variables is limited. Furthermore, the results are based on log collected from a key respondent, rather than broader actual data. The results are restricted to one country, Portugal. Future research should initially target different countries. Such research could then test the generalizability of the results.

Practical implications

To fill this managerial relevance gap, we propose a process model in which the main antecedents of alliance stability will be examined. We argue that an alliance's evolutionary dynamics depend on these factors and variables that the partners must assess and manage over its developmental stages. In this sense, managers have significant scope to influence the ultimate success of strategic alliances. This study highlights the need to actively manage the cooperation – competition (coopetition) tension with the alliance partner and to apply the knowledge acquired from the partner to create new knowledge to enhance innovative performance

Originality/value

This paper contributes to fill the gap between strategic alliances and new product development mediated by exploration and exploitation in the dynamic capabilities view.

Details

Management Decision, vol. 59 no. 3
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 29 December 2021

Sebastian Ion Ceptureanu and Eduard Gabriel Ceptureanu

The purpose of the study was to analyse the impact of innovation ambidexterity represented by explorative and exploitative innovation capabilities and their combined effects on…

Abstract

Purpose

The purpose of the study was to analyse the impact of innovation ambidexterity represented by explorative and exploitative innovation capabilities and their combined effects on product innovation performance and to prove the mediating effect of decentralization.

Design/methodology/approach

The study uses partial least squares for structural equation models and SmartPLS version 3.3.1 on a sample of 174 Romanian medium- and large-sized firms from the IT industry to test six research hypotheses. To measure innovation ambidexterity, the orthogonal approach was used, conceptualizing innovation ambidexterity as a multidimensional, second-order construct composed of explorative and exploitative innovation capabilities. Innovation ambidexterity was conceptualized as a multiplicative term of both explorative and exploitative innovation capabilities.

Findings

The empirical results prove that innovation ambidexterity is positively correlated with product innovation performance, while decentralization is mediating the impact of innovation ambidexterity on product innovation performance in the IT industry.

Research limitations/implications

The data was based on self-reported assessments of senior executives. While innovation ambidexterity may influence product innovation performance in the long term, such long-term effects are not assessed. Other studies found a moderating effect between centralization or decentralization and ambidexterity, while we found that it has a mediating effect.

Practical implications

In the context of innovation capability, the combination of explorative or exploitative capabilities may lead to a better synergy. Innovation ambidexterity influences product innovation performance through a synergistic effect, making the simultaneous combination of capabilities useful for firms willing to make efficient use of existing resources and make their capabilities mutually supportive. Moreover, for senior executives, the effects of decentralization as a mediator provide further incentive to include it in their development of firms' innovation capabilities.

Originality/value

This study extends findings of other studies by contributing to a deeper examination of the effects of decentralization, on innovation outcomes by focusing on a specific type of innovation, product innovation. Moreover, since innovation capability is often studied in small firms or in the manufacturing industry, this study contributes to the research on innovation capability and the consequences on innovation capability in the services sector and medium- and large-sized companies. By proving that decentralization mediates the effects of innovation ambidexterity on product innovation performance, it enables reconsideration of the organizational structure role in fostering innovation.

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