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Open Access
Article
Publication date: 20 September 2022

Shoaib Abdul Basit, Thomas Kuhn and Uwe Cantner

Knowledge competencies and (R&D) activities are one of the most important sources of innovation and have been widely discussed in the literature. In comparison, the role of the…

1539

Abstract

Purpose

Knowledge competencies and (R&D) activities are one of the most important sources of innovation and have been widely discussed in the literature. In comparison, the role of the competitive environment for the innovation activities of firms is still open to debate and has not been fully understood yet. Therefore, this paper intends to provide new evidence on the interaction between knowledge competencies and R&D activities of firms on the one side and their competitiveness in the market environment on the other. In particular, the moderating function of market competition is explored. In this respect, the analysis covers the main innovation types as well as both sectors, manufacturing and services.

Design/methodology/approach

The empirical analysis is based on a three years panel dataset of German manufacturing and service firms obtained from Mannheim Innovation Panel (MIP) and Community Innovation Surveys (CISs: 2011, 2013 and 2015). For the estimation, a binary instrumental variable treatment model with Heckman selection method is used. Also, it provides a suitable approach to estimating the binary variables in order to cope with endogeneity concerns.

Findings

The estimation results show that R&D activities and knowledge competencies are positively related to innovation activities of different types conditioned on firms' specific perception of their competitive environment, in terms of outdated products/services as well as strong competition from abroad. Most importantly, the results from the moderation estimation reveal that there is a significant difference between the manufacturing and service sector. Service firms engage more in internal R&D activities on generating product innovations while the manufacturing firms conduct more external R&D on specific types of innovation. Further, the authors find that strong competition from abroad positively and significantly reinforces the effect of knowledge competencies on innovation activities for more types in services than in manufacturing. In contrast, outdated products and services tend to decline the effect of knowledge competencies for some innovation types in both sectors. The authors also observe a positive and significant reinforcement effect on knowledge competencies. However, it is found more beneficial for service firms since they can employ more innovation strategies.

Originality/value

The focus of the study is mainly on the impact of firms' competitive environment on innovation activities in various types through its interaction with knowledge competencies and R&D activities, across manufacturing and service firms.

Details

European Journal of Management Studies, vol. 27 no. 2
Type: Research Article
ISSN: 2183-4172

Keywords

Article
Publication date: 14 July 2022

Filipe A.P. Duarte, Maria José Madeira, Susana Maria Fonseca, Dulcineia Catarina Moura and Ana Teresa Bernardo Guia

The purpose of this paper is to explore the effects of R&D investment as a determinant of ongoing or abandoned innovation activities. The literature review focuses especially…

Abstract

Purpose

The purpose of this paper is to explore the effects of R&D investment as a determinant of ongoing or abandoned innovation activities. The literature review focuses especially small and medium-sized enterprises (SMEs) that deploy R&D investment as a way of developing innovation processes.

Design/methodology/approach

This study’s design used a sample of 4,229 Portuguese SMEs to analyse the effects R&D investment has on the innovation activities; the results obtained demonstrate the great importance of firms investing in R&D internal activities for the development of their innovation process.

Findings

The most important findings highlight the types of activities that emerge as relevant to innovation processes susceptible for development to avoid abandoning and maintaining ongoing innovation activities. Among them, the authors would highlight the design of products or services, the introduction of innovations to the market and the acquisition of machinery, equipment and specific software, among others.

Originality/value

In addition, other types of activities emerge as relevant to innovation processes susceptible for development to avoid abandoning and maintaining ongoing innovation activities. This research adds value to the current literature mainly showing several determinants related to R&D, which could be used by SMEs to improve and develop their activities of innovation.

Details

International Journal of Innovation Science, vol. 15 no. 3
Type: Research Article
ISSN: 1757-2223

Keywords

Open Access
Article
Publication date: 15 September 2022

Sony Mathew and Hamid Seddighi

This paper provides remarkable insight into the structural components of a firm's core competence and its development via research and development (R&D) activities for innovation…

1099

Abstract

Purpose

This paper provides remarkable insight into the structural components of a firm's core competence and its development via research and development (R&D) activities for innovation and exporting activities.

Design/methodology/approach

The authors have used a positivist design and a deductive methodology. The authors have examined the extant literature developing a theoretical framework to empirically investigate the relationships between a firm's core competence, organisational learning (OL), tacitness, dynamic capability and R&D activities. To carry out this investigation, the authors have collected stratified sample data from 330 firms operating in North East England, a peripheral region of England.

Findings

The authors have found that there are indeed significant statistical relationships between these structural components, R&D activities and a firm's core competence, and this nexus is pertinent to innovation and exporting. Furthermore, it is found that North East England is significantly constrained by the lack of finance, technological capability, experts and brain drain. Based on these findings, the authors propose a cooperative R&D framework to narrow down these constraints to assist firms in developing core competencies for innovation and exporting in peripheral regions.

Social implications

There is an urgent need to investigate the incidence of knowledge-driven activities, R&D, the extent of innovation and exporting activities of firms operating in North East England, a peripheral region of the United Kingdom (UK).

Originality/value

This study provides an original and systematic investigation of the firm's core competence and its formation via key structural components for innovation and exporting within an empirical framework.

Details

European Journal of Management Studies, vol. 27 no. 3
Type: Research Article
ISSN: 2183-4172

Keywords

Article
Publication date: 10 August 2015

Janno Reiljan and Ingra Paltser

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

Abstract

Purpose

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

Design/methodology/approach

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

Findings

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

Research limitations/implications

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

Practical implications

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

Originality/value

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

Details

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

Keywords

Article
Publication date: 21 March 2016

Eva Mulero Mendigorri, Teresa García Valderrama and Vanesa Rodríguez Cornejo

The purpose of this paper is to validate empirically a measurement scale of the effectiveness of R & D activities, starting from previous work in which the content was…

Abstract

Purpose

The purpose of this paper is to validate empirically a measurement scale of the effectiveness of R & D activities, starting from previous work in which the content was validated.

Design/methodology/approach

Following psychometric standards the authors have addressed the analysis phases of construct dimensionality, reliability and validity (convergent, discriminant and nomologic), and the scale criteria are shown to be valid in their three temporal manifestations (retrospective, concurrent and predictive). The empirical evidence was drawn from a sample of 85 companies belonging to the Spanish pharmaceutical sector.

Findings

Globally the authors provide evidence of reliability, validity of construct and validity of criterion in their diverse manifestations, for the scale designed and validated, on effectiveness in R & D. The authors divide the results into two groups: one for content of the scale and the other for relationships of the scale with other variables. With respect to the first, it is notable that, although in general the variables analyzed coincide with the previous broad and multidisciplinary theory on the success factors of R & D activities, what the authors provide is empirical evidence of the most important factors and variables for effectiveness in R & D; the authors emphasize that the results of the sample analyzed indicate that the most important factor is the close integration of the R & D activities with the corporate strategy, followed by the proper planning of these activities, and the achievement of financial results for the company. With respect to the relationship of the scale with other variables, the authors have found positive and significant relationships between the effectiveness in R & D and the following financial variables: net turnover and earnings after taxes. The authors have also found positive and significant relationships between different characteristics of the company and the achievement of success in R & D activities. Thus, being a company of larger size, the existence of an R & D department, the existence of specific incentive systems for the R & D personnel, the adoption of new management techniques in the R & D department, and the patents policy of the company are all factors that have a positive influence.

Research limitations/implications

There are three main limitations of the study: the size of the sample; the decision to use a very particular highly innovatory sector, the pharmaceutical industry; and conducting the study in only one specific country, Spain. The results should be interpreted taking into account these limitations. Another limitation is the absence of previously validated scales. This meant that the authors were unable to do any comparative analyses.

Practical implications

The authors have contributed by summarizing and testing the existing theories on the factors of success in R & D. This should give R & D managers a more comprehensive and useful picture of the variables that have been considered more important, and should enable them to choose from among the range of variables proposed those that may be considered most relevant for inclusion in their own balanced scorecard. More generally, the results should help them in the management of their activity. For researchers the authors make available an already validated scale with which to work in various different samples and settings.

Originality/value

The originality of the work resides in two aspects. First, a very wide set of variables proposed in the literature is analyzed, with the object of establishing the relationships and the ranking of these variables, which would not be clear if the variables were analyzed in isolation. Second, there is originality in the methodology employed for measuring the result of activities with a high level of uncertainty and risk, specifically R & D activities in the highly innovative companies of the pharmaceutical industry. It is original because, to date, the scale has only been validated theoretically – there is no work in the literature validating it empirically.

Details

Management Decision, vol. 54 no. 2
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 16 March 2021

Carlos M.P. Sousa, Ji Yan, Emanuel Gomes and Jorge Lengler

The paper examines the impact of export activity on productivity and how this effect is moderated by R&D investment and foreign ownership.

Abstract

Purpose

The paper examines the impact of export activity on productivity and how this effect is moderated by R&D investment and foreign ownership.

Design/methodology/approach

A time-lag effect is taken into account when examining the proposed model. Data are collected from the Annual Industrial Survey of the National Bureau of Statistics of China. A dataset containing 117,340 firms across the sample period (2001–2007) are used to test the hypotheses.

Findings

The results indicate that while R&D investment plays a significant role in strengthening the positive effect of export activity on a firm's productivity, foreign ownership surprisingly has a negative moderating role.

Originality/value

Scholarly interest in the links between export activity and productivity is on the rise. However, the bulk of research has been focused on understanding the effects of export activity on productivity at the country or industry level. Little has been done at the firm level. Another gap in the literature is that the mechanism through which the impact of export activity can be leveraged to enhance the firm's productivity has been largely ignored. To address these issues, the study adopts the learning-by-exporting theory to examine the relationship between export and productivity at the firm-level and how R&D investment and foreign ownership may explain how learning can be leveraged to enhance the firm's productivity. Finally, these relationships are examined in the context of firms from an emerging market, China, which is especially relevant for the learning-by-exporting argument used in this study.

Details

International Marketing Review, vol. 38 no. 3
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 11 May 2022

Parisa Saadat Behbahaninia and Mohadeseh Golbidi

The purpose of this study is to investigate whether research and development (R&D) activities reduce the performance damage caused by a critical situation, such as the COVID-19…

Abstract

Purpose

The purpose of this study is to investigate whether research and development (R&D) activities reduce the performance damage caused by a critical situation, such as the COVID-19 pandemic, or not. Also, this study tries to explain whether the market in its reactions pays attention to companies' R&D activities or not during the COVID-19 critical situation.

Design/methodology/approach

The official announcement of the COVID-19 disease in Iran is considered the date of the event in this study. To consider the effect of R&D activities on the performance, three similar time periods before and after the coronavirus pandemic have been considered. Due to the widespread prevalence of coronavirus in Iran, this country has been selected to answer the research questions.

Findings

The results showed that the companies that have more R&D activities performed better than other companies during this period and were able to better manage this crisis. Furthermore, companies with more R&D activities suffered lower abnormal returns during coronavirus shocks than other companies.

Research limitations/implications

Based on the research results, the issues that were discussed on the importance of R&D activities in the accounting literature is confirmed, and the results show the importance of R&D activities on the company's ability to overcome crises.

Practical implications

Based on the results of this research, it can be suggested that even in difficult and critical conditions, investment in R&D activities should not be stopped and decrease.

Originality/value

In the accounting literature, the long-term effect of R&D activities on the survival of companies has always been considered. In this study, the effect of R&D activities on market response and firm performance in a real shock is investigated, which is the innovation of this research.

Details

Journal of Applied Accounting Research, vol. 23 no. 4
Type: Research Article
ISSN: 0967-5426

Keywords

Article
Publication date: 20 July 2012

Peder Veng Søberg

The purpose of this paper is to investigate differences in the characteristics of knowledge, which is very important for the internationalization of different business activities…

Abstract

Purpose

The purpose of this paper is to investigate differences in the characteristics of knowledge, which is very important for the internationalization of different business activities. In particular, the focus is on internationalization in emerging markets such as China and India.

Design/methodology/approach

The paper presents a framework primarily based on knowledge management theory, which is illustrated in relation to interesting cases of four companies that are global leaders.

Findings

An R&D knowledge gap still exists in China and India. Differences across business activities exist in terms of the characteristics of the knowledge, which is most important for the internationalization in emerging markets within multinational corporations (MNCs). The most important knowledge for the internationalization of R&D activities is more tacit than it is for manufacturing activities and international purchasing activities. The source of the most important knowledge for the internationalization of R&D activities, as well as manufacturing activities, is more likely to be the MNC itself, than when marketing activities or purchasing activities are internationalized to emerging markets.

Originality/value

A model is developed that illustrates differences between the most important knowledge for the internationalization of key business activities within MNCs. It is proposed that the technical dimension of tacit knowledge is more easily codified than the cognitive dimension of tacit knowledge. The cognitive dimension of local tacit knowledge is crucial for the internationalization of marketing activities, whereas the technical dimension of tacit R&D knowledge from the home base is crucial for the internationalization of R&D activities.

Book part
Publication date: 8 April 2005

Petri Suomala

The essential investments in new product development (NPD) made by industrial companies entail effective management of NPD activities. In this context, performance measurement is…

Abstract

The essential investments in new product development (NPD) made by industrial companies entail effective management of NPD activities. In this context, performance measurement is one of the means that can be employed in the pursuit of effectiveness.

Details

Managing Product Innovation
Type: Book
ISBN: 978-1-84950-311-2

Abstract

Details

Patent Activity and Technical Change in US Industries
Type: Book
ISBN: 978-0-44451-858-3

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