Showing papers in "European Journal of Innovation Management in 2018"

The role of innovation in building competitive advantages: an empirical investigation

Abstract: Purpose Nowadays, innovation appears as one of the main driving forces of organisational success. Despite the above fact, its impact on the propensity of an organisation to develop and sustain a competitive advantage has not yet received sufficient empirical investigation. The purpose of this paper is to enhance the existing empirical literature by focusing on the antecedents of innovation and its impact on competitive advantage. It proposes a newly developed conceptual framework that adopts a three-step approach, highlighting areas that have rarely been simultaneously examined before. Design/methodology/approach The examination of the proposed conceptual framework was performed with the use of a newly developed structured questionnaire that was distributed to a group of Greek manufacturing companies. The questionnaire has been successfully completed by chief executive officers (CEOs) from 189 different companies. CEOs were used as key respondents due to their knowledge and experience. The reliability and the validity of the questionnaire were thoroughly examined. Empirical data were analysed using the structural equation modelling technique. The study is empirical (based on primary data), explanatory (examines cause and effect relationships), deductive (tests research hypotheses) and quantitative (includes the analysis of quantitative data collected with the use of a structured questionnaire). Findings Results indicate that knowledge management, intellectual capital, organisational capabilities and organisational culture have significant direct and indirect effects on innovation, underlining the importance of their simultaneous enhancement. Finally, the positive effect of innovation on the creation of competitive advantages is empirically validated, bridging the gap in the relevant literature and offering avenues for additional future research. Originality/value The causal relationship between innovation and competitive advantage, despite its significant theoretical support, has not been empirically validated. The present paper aspires to bridge this gap, investigating the impact of innovation on the development of competitive advantages. Moreover, the present study adopts a multidimensional approach that has never been explored in the existing innovation literature, making the examination of the proposed conceptual framework an interesting research topic.

Barriers to innovation within large financial services firms: An in-depth study into disruptive and radical innovation projects at a bank

Abstract: Purpose Since the 2008 financial crisis, the financial industry is in need of innovation to increase stability and improve quality of services. The purpose of this paper is to explore internal barriers that influence the effectiveness of projects within large financial services firms focussing on potentially disruptive and radical innovations. While literature has generally focused on barriers within traditional technology and manufacturing firms, few researchers have identified barriers for these type of firms. Design/methodology/approach A framework of internal barriers was developed and validated by means of an explorative case study. Data were collected at a European bank by exploring how innovation is organized and what barriers influence effectiveness of eight innovation projects. Findings Six items were identified as key barrier for potentially disruptive and radical innovations (e.g. traditional risk-avoidance focus, and inertia caused by systems architecture). As such, in the sample these were more important than traditionally defined barriers such as sources of finance, and lacking exploration competences. Research limitations/implications Based on a small number of projects within one firm, the results highlight the need for more in-depth research on the effects of barriers and how barriers can be overcome within this industry. Originality/value The results show that there is a discrepancy between the societal demand for radical change within the financial industry and the ability of large financial services firms to innovate. The study identifies which unique internal barriers hamper potentially disruptive and radical innovation in large financial services firms.

The role of consumers in food innovation processes

Abstract: Purpose The need for consumer involvement in innovation processes has been recognised for four decades. Consumer involvement as a part of open innovation is an important strategy in the food sector, specifically for enhancing consumer acceptance and promoting successful market introduction. The purpose of this paper is to systematically analyse the concept of consumers’ role and the level of consumer integration and interaction in recent food innovation processes. Design/methodology/approach In 2016, a three-step literature search was performed to identify the state-of-the-art scientific literature on consumer-involvement approaches and methods in the food sector. These methods and approaches were qualitatively analysed based on categories in accordance with the qualitative content analysis method. Findings A key finding is that most implemented consumer-involvement approaches and methods fall under von Hippel’s manufacturer-active paradigm rather than the customer-active paradigm (CAP). However, there are practical reasons for the low diffusion of CAP. The presumed reasons include needed change of the perception of roles and of organisational structures, as well as a lack of trust among actors. Practical implications There remains a need to promote an active role for consumers, especially amid changing consumer demand and increasingly conscious consumer behaviour concerning food production and processing conditions. Originality/value This paper contributes to the theoretical and practical discussion about innovation management by reflecting on the innovation paradigm underlying an approach or method. The paper may also have practical implications for the choice and implementation of business models that consider consumers’ role.

Creativity, innovation effectiveness and productive efficiency in the UK

Abstract: Purpose Creativity is often referred to as a seedbed of innovation. As such it holds the key to better performance and the competitiveness of firms. To better understand how creativity influences birth and commercialization of innovations and productive efficiency of firms the paper investigates how hiring of employees with different creative skills impacts innovation process and productivity. The purpose of the paper is to determine the role of creativity in innovation behaviour and productive efficiency of firms. Design/Methodology/Approach Theoretical framework of the paper rests on pillars of evolutionary, Schumpeterian and endogenous growth literature contributions to the economics of innovation. The multi-stage analytical framework is applied to examine contribution of creativity to the decision of firms to innovate, investment in innovation activities, commercialization of innovations and firm efficiency. The econometric techniques of generalised tobit and simultaneous equations framework are applied to confidential data from the United Kingdom Innovation Survey in 2010-2012 period. Findings The investigation broadens our understanding of factors and forces that shape innovation process and improve productive efficiency of firms. It provides empirical evidence on an impact of the effectiveness of innovation process on the productivity of firms. The results reveal that creative skills contribute to the generation of novel ideas and investment in R&D but the ability to meet customer requirements draws from other organizational skills such as marketing or organizational innovations. Differences are revealed among economic sectors with respect to the forces driving the innovation process. Practical implications The results provide implications to managers regarding the management of innovation process. First, the study reveals how creative potential of employees can be optimally exploited in different stages of innovation process. Second, the research highlights number of other factors relevant in this process from the utilization of information, subsidies and the general management of human resources. Finally, the result suggest that sectoral heterogeneity should be taken into account in management of innovation activities of individual firms. Research limitations/implications Further research will be needed to investigate cross-country differences in management of creativity and its contribution to the innovation process and productivity. The limited availability of data on creativity and innovation activities of firms presents the most important limitation in this sense. The framework set by this paper can serve as direction for further investigations. Originality/Value While the impact of creativity on innovation has been addressed previously, this paper is one of first attempts to examine the linkages between management of creativity, effectiveness of innovation process and productive efficiency of firms within a single framework. One of reasons for this is the fact that it relies on the confidential dataset of firms not easily accessible to researchers

Do nurses display innovative work behavior when their values match with hospitals’ values?

Abstract: Purpose The purpose of this paper is to draw on organizational psychology, innovation and knowledge management literatures to investigate the impact of a nurse’s person-organization (P-O) fit on his/her innovative work behavior (IWB). Furthermore, in order to understand the psychological mechanisms surrounding this relationship, the authors examine the mediating role of psychological empowerment and the moderating role of knowledge sharing behavior. Design/methodology/approach Data were collected from 441 nurses and 73 doctors through structured questionnaires from four public sector hospitals in Thailand. Findings Results of the study indicate that nurse’s P-O fit is positively related to both self (nurse) and doctor’s ratings of innovative behaviors and that psychological empowerment mediates this relationship. These results imply that a nurse’s perception of value congruence impacts his/her perception about feeling of empowerment, which in turn helps in engaging him/her into acts of innovativeness more often. The results also show that the relationship between P-O fit and IWB is stronger among nurses who frequently share their best practices and mistakes with co-workers. Originality/value Employee involvement in innovative work is of crucial importance for organization’s competitiveness, especially in the nursing profession. The compatibility between personal and organizational values is a vital ingredient of our personal, social and professional worlds. Although research has identified some antecedents of nurses’ IWB, it is unclear how P-O fit influence nurses’ IWB. Nurses with stronger value congruence when empowered psychologically may respond more effectively to display IWBs in current dynamic and challenging public health care work environments.

Are publicly funded Czech incubators effective? The comparison of performance of supported and non-supported firms

Abstract: Even in established economies, empirical studies on the relationship between business incubation and firm performance do not show unequivocally positive results. The purpose of this paper is to contribute to this debate based on the empirical evidence from the under-researched Central and Eastern European region in which no similar study has been conducted before. Due to the shorter experience with the management of business incubators and less developed institutions, business incubators may not be so effective in supporting their tenants in this region.,The authors utilise firm-level data from incubated Czech enterprises (n=205) founded after 2003 and compare them with those that have not received support from incubators. The authors implement three matching techniques to pair incubated and non-incubated companies. The outcome variables measured sales, price-cost margin, assets turnover, value added, size of total assets and size of personnel costs.,Compared to the control group, incubated firms reported on average lower values of the above-mentioned indicators. Presented study shows that Czech incubators have not been successful in supporting growth of incubated firms.,The study suggests that there is a clear room for improvements. Incubators should improve in attracting and selecting high potentials and in providing more effective support focussed on tenants’ growth, whereas policymakers should exercise stricter control regarding the money spent and effectiveness of incubators.,The empirical analysis was conducted based on the research gap in the studies related to the impact of business incubation in the under-researched Central and Eastern European region. It also shows that positive results from similar studies done in established economies cannot be taken for granted as they depend on the quality of institutions in a particular country.

Team learning behaviours and innovative work behaviour in work teams

Abstract: The purpose of this paper is to get deeper insight into the complex nature of the relationship between team learning conditions, team learning behaviours (TLBs) and innovative work behaviour (IWB) by considering and combining different neglected aspects in research.,A questionnaire was filled out by 593 vocational educators of 117 interdisciplinary work teams in vocational colleges in Germany. Correlations were calculated and structural equation modelling at two levels was conducted.,The results indicate that TLBs, especially team reflexivity and boundary spanning, relate positively to IWB. Furthermore, team structure, task interdependence and group potency relate positively to TLBs. It means that TLBs can be fostered by establishing these team learning conditions and, thus, IWB can be fostered.,The main limitation of the study is that the data collection was cross-sectional. Longitudinal studies are required to capture the dynamic character of team learning and to identify causal relationships.,It is important to make all employees in vocational education aware of the importance of TLBs especially of team reflexivity and boundary spanning.,This study provides practical implications for organisations to foster IWB and indications for a better understanding of the relationship between team learning conditions, TLBs and IWB considering and combining different neglected aspects such as examining TLBs separated in one study.

Diffusion of innovation among Malaysian manufacturing SMEs

Abstract: The purpose of this paper is to examine the attributes of innovation adoption and its effects on the performance of Malaysian manufacturing SMEs.,Quantitative data were collected from 360 randomly selected manufacturing SMEs through structured interviews.,The findings of the study confirmed that, in Malaysian manufacturing SMEs, the degree of persuasion (i.e. relative advantages, compatibility, complexity, trialability and observability), strategic orientation (i.e. consumer, market and entrepreneurship) and firm antecedents (i.e. prior condition, knowledge and risk orientation) have significant effects on the innovation (i.e. product, process and service) adoption and performance of SMEs.,For policymakers, this study emphasizes the areas to focus on the development of an effective innovation ecosystem for an innovation-led economy. Because SMEs operate with limited resources and capacity, the programs and policies for innovation support systems must focus on providing new innovation information, cost-benefit analyses for new innovation adoption, innovation adoption processes and how new innovations affect performance.,The paper examines an important, but under-researched issue – designed and tested a model under the premises of the DOI and organizational diffusion of innovation theories which improve the knowledge and understanding about the innovation adoption by manufacturing SMEs.

A relational view of start-up firms inside an incubator: the case of the ARCA consortium

Abstract: Analyzing the entrepreneurial ecosystem related to the ARCA consortium, the purpose of this paper is to study the relationships among the start-up firms inside an incubator.,Thanks to the adoption of the relationships concentric model and the density concentric model, the paper highlights the role of relational conditions for innovative projects in partnership among the incubated firms. Reflections herein are tested via a qualitative research approach based on a single case study: the ARCA consortium.,This research found that about 32 percent of relationships inside the incubator support the emergence of short-term relationships among the incubated firms. Furthermore, about 18 percent of the relationships support the emergence of strong collaborative strategies for the implementation of long-term relationships resulting in innovative pathways: innovative projects in partnership.,The most interconnected firms inside the incubator are those that play a central role also in the innovation pathway developing the higher number of innovative project in partnership. This finding emphasizes a correlation between collaborative relationships and innovation inside an incubator ecosystem.

Creating and implementing organizational innovation: The role of professional identity and network embeddedness in healthcare organizations

Abstract: PurposeResearch on organizational innovation remains relatively scarce, particularly with respect to social structures and processes. In contrast to product innovation, organizational innovation re ...

Uncovering transfer – a cross-national comparative analysis

Abstract: Purpose Successful knowledge and technology transfer (KTT) is necessary to ensure the competitiveness and growth of national innovation systems. In this regard, technology transfer offices (TTOs) are becoming indispensable in their capacity as intermediaries between science, policy, industry, and the public. The purpose of this paper is to examine the strategies and operations of particularly productive transfer offices in five different countries in order to account for the high levels of transfer activity. Design/methodology/approach To this end, the authors interviewed 34 senior KTT managers in these offices. The collected protocols were analysed in three phases. First, the authors extracted and organised the key characteristics of the transfer practices by applying rigorous method of open-end, qualitative content analysis. The authors then enhanced the thus gathered descriptive statistics and ultimately developed a transfer office typology by building on the concept of attribute space. Findings The analysis suggests two ideal types of transfer offices, distinguishable in terms of their intertwined characteristics such as their goals, practices, sources of income, and positions within their associated organisations. While the primarily state-funded common good type would seek benefits to the public, the self-financed entrepreneurial type would pursue commercial success. The former would therefore create opportunities for disseminating knowledge and strengthening the local innovation ecosystem, while the latter would scout for promising ideas and cultivate relationships with industry. Originality/value The goal was to uncover the individual characteristics of the offices under study, and the relationships between these characteristics, that can help explain these offices’ exceptional productivity. This study is the first to propose a TTO typology, which can support interorganisational and international transfer collaboration. The findings provide empirical evidence for the theoretical Quadruple Helix model of the innovation system and have implications for research and practice.

The impact of firm resources on innovation

Abstract: The purpose of this paper is to propose that the resources that a firm owns and has full control (firm-level resources) and resources that a firm access through direct connection with other firms (network-level resources) will impact firm innovation when effectively deployed by the firm. While previous research examined these factors separately, the author takes a holistic view and looks into their effects on innovation simultaneously. The author also introduces the moderating effects, i.e. the variables that can enhance firm innovation through their interaction with internal and external resources.,The author tested the role of financial resources and slack resources in the form of cash slack and human slack at the firm level, and network size, network tie strength, and network diversity at the network level on the firm innovation. Using generalized negative binomial model with Huber-White procedure, the author analyzed 306 firms from the biotechnology industry over a span of 17 years.,The analysis suggests that cash slack impact innovation negatively. However, this link is moderated by firm size such that for large firms cash slack affects innovation positively. Network-level resources all positively impact innovation and have more economic impact on firm innovation than firm-level resources. Furthermore, although human slack negatively affects innovation, its interaction with network size enhances innovation.,The research makes important contributions to both strategic management and innovation literatures especially when, the author considers the role of firm-level slack in driving firm innovation. Previous research reported conflicting findings about the availability of slack resources and firm performance. The results showed that the relationship between slack resources and firm innovation is negative and significant, both for available slack and human slack. This finding parallels with previous research which reported that constraints such as lack of slack resources can actually facilitate innovation. The author also contributes to the literature by introducing boundary conditions which can enhance firm innovation through their interaction with firm-level internal and network-level external resources. In this respect, to the author’s knowledge, this is among the first studies to combine the slack literature focusing on firm-level resources with the literature on network-level resources.

The structural characteristics of innovation ecosystem: a fashion case

Abstract: Purpose The purpose of this paper is to provide empirical evidence of open innovation mechanism specific to aesthetic innovation. Prior research have drawn its research attention to technological innovation and focussed on the biopharmaceutical and technological sectors as the main research contexts. Thus, to gain a wider picture of the structural characteristics of innovation ecosystem, this paper aims to complement the existing technological-centred literature and provides understanding of aesthetic innovation by focussing on exploring the role of actors and intermediaries in either facilitating or inhibiting innovation in the creative sector. Design/methodology/approach This is an exploratory study and the qualitative method was employed. With aim to explore aesthetic innovation in the creative sector, this research grounded its context in the UK designer fashion sector, which is part of the creative industries. Data were collected through a series of semi-structured interviews with respondents being purposely selected so as to ensure representativeness. A wider range of participants within the designer fashion sector was covered. Such multiple-sourced data collection approach allowed this research to triangulate data so that research trustworthiness was enhanced. Findings The result suggests the role of a broker in beyond traditionally facilitating knowledge exchange. This paper provides empirical evidence regarding the critical role of a broker in shaping the open innovation mechanism when it comes to aesthetic innovation. A broker in fact occupies a strategic position that allows it to negotiate relationships among the connected organisations and thus to govern the interaction mechanism of the innovation ecosystem as a whole. Given the empowered broker in such setting, the relationship between innovation creators and innovation seekers is controlled by a broker, which leads to risk that an innovation creator may not fully appropriate the value that it creates. Research limitations/implications The main limitation of this study is its specific context, that is, the UK designer fashion industry. Such focus limits the scope of generalisation particularly its application to the entire creative sector. Thus, it is suggested that future research may consider to explore other creative industries so that the understanding of the open innovation mechanism from a structural perspective applied to aesthetic innovation can be enhanced. Originality/value This paper outlines the structural mechanism of open innovation applied to aesthetic innovation. The result contributes to the literature by complementing the findings derived from technology-centred research. Also, empirical evidence of this study is particularly of value to policy makers in the aspect of creative sector development. The suggested implications provide strategies of innovation ecosystem that could benefit individual actors involved in this open innovation setting and ensure prosper of the sector as a whole.

Stages and trigger factors in the development of academic spin-offs: An explorative study in southern Italy

Abstract: The purpose of this paper is to combine studies that describe the spin-off creation process with studies that analyze spin-off determinants to understand the phenomenon of spin-off development.,This paper proposes a theoretical framework to improve our understanding of academic spin-off development in southern Italy. Following a systematic combining approach, the framework is constructed by iteratively matching the concepts derived by the literature on spin-off processes and spin-off determinants with the empirical findings obtained through a case study of 19 spin-offs in southern Italy.,The combination of empirical results and literature analysis helps us to identify a general model for spin-off creation that could be particularly useful to explain the criticalities of their development.,This paper provides implications for policy-makers in southern Italy regarding factors for which intervention would support the creation of new spin-offs. This study also provides useful implications for policy-makers in other contexts, such as areas that may or may not be at a disadvantage.,The resulting framework represents an original contribution to the literature because it: links two aspects – the stages of spin-off creation and determinants of spin-off development – which are often considered separately in existing studies; explores factors that either impede or facilitate the different stages of spin-off development; provides a series of findings that can be successively tested in other studies; and sheds more light on the context of southern Italy, which has been investigated in only a limited number of previous studies.

The impact of R&D sourcing strategies on basic and developmental R&D in emerging economies

Abstract: The purpose of this paper is to investigate the impact of R&D sourcing strategies and their governance modes on basic and developmental R&D. Following the concept of cognitive distance, this research proposes that there are trade-offs between basic and developmental R&D when emerging economy firms engage in different R&D sourcing strategies. R&D sourcing can enable emerging economy firms to access different level of heterogeneity of knowledge inputs depending on the cognitive distance between the firm and its suppliers. Distance in cognition increases when firms obtain knowledge from abroad and independent suppliers in comparison to the acquisition of knowledge from home boundaries and affiliates.,Tobit maximum likelihood estimation approach is used.,Using data from Turkish firms, this study finds out that offshore R&D with an outsourcing governance mode affects basic R&D. In contrast, domestic R&D with an insourcing mode influences developmental R&D.,This research extends recent efforts to better understand the determinants of different R&D types by examining offshore and domestic R&D together and by taking into account different governance modes of each R&D sourcing strategy. This study becomes important because it investigates this issue from the perspective of emerging economy firms.

Brokers or platforms? A longitudinal study of how hybrid interorganizational partnerships for regional innovation deal with VUCA environments

Abstract: The purpose of this paper is to investigate the role played by turbulent environments in the evolution of hybrid (i.e. multi-party, cross-sector) partnerships for regional innovation. Although extant research suggests that organizations decide to participate in such partnerships to cope with their turbulent environments, little is known about how actual perceptions of turbulent environments influence the setup and evolution of a partnership.,The qualitative study adopts a longitudinal design to investigate the evolution of a cross-sector regional innovation partnership between ten very different organizations. With the help of the VUCA (volatility, uncertainty, complexity and ambiguity) model proposed by Bennett and Lemoine (2014a), the authors study the relation between partners’ initial perceptions of environmental turbulence and the models adopted for the partnership throughout its lifecycle (emergent, brokering and platform).,The authors show that partners’ intentions to solve perceived environmental turbulence through collaboration can have the unexpected consequence of triggering perceived turbulence inside the collaboration itself. Specifically, the authors show that perceived partnership VUCA at each stage is a result of partners’ attempts to cope with the perceived VUCA in the previous stage.,The study highlights a set of common traps that both public and private organizations engaged in hybrid partnerships might fall into precisely as they try to lower VUCA threats in their environments.,The work accounts for the relationship between external and internal perceptions of VUCA in hybrid partnerships for regional innovation, and, in particular, provides a better understanding of what happens when organizations choose to enter hybrid partnerships in order to deal with perceived threats in their environments.

The optimism-pessimism ratio as predictor of employee creativity: the promise of duality

Abstract: Purpose The purpose of this paper is to study if the employees’ optimism-pessimism ratio predicts their creativity. Design/methodology/approach In total, 134 employees reported their optimism and pessimism, and the respective supervisors described the employees’ creativity. Findings The relationship between the optimism-pessimism ratio and creativity is curvilinear (inverted U-shaped); beyond a certain level of the optimism-pessimism ratio, the positive relationship between the ratio and creativity weakens, suggesting that the possible positive effects of (high) optimism may be weakened by a very low level of pessimism. Research limitations/implications Being cross-sectional, the study examines neither the causal links between the optimism-pessimism ratio and creativity nor other plausible causal links. The study was carried out at a single moment and did not capture the dynamics that occur over the course of time involving changes in optimism/pessimism and creativity. Future studies may adopt longitudinal or quasi-experimental designs. Practical implications Managers and organizations must consider that, even though positivity promotes creativity, some level of negativity may help positivity to produce creativity. Originality/value This study suggests that scholars who want to study the antecedents of creativity (and innovation) must be cautious in focusing only on the positive or the negative sides of individuals’ characteristics, and rather they must explore the interplay between both poles. Individuals may experience both positive and negative states/traits (Smith et al., 2016), and this both/and approach may impel them to think divergently, to challenge the status quo and to propose “out the box” and useful ideas.

Market reaction to open innovation announcements

Abstract: Purpose Open innovation is of crucial importance for all companies operating in the economics of widely distributed knowledge. However, the effects of its disclosure remain largely uncharted in the case of service companies. Therefore, the purpose of this paper is to measure the impact of open innovation announcements on the market value (MV) of service enterprises. Design/methodology/approach The research covered 398 open innovation announcements released by service companies. It was conducted in the whole of the European Union in the period February 2011-December 2016. The data were analysed in the short and long term with the use of event-study and buy-and-hold methods. Findings The results indicated the significant positive effect of open innovation disclosure in both short and long term. At the same time, the market was not able to immediately fully value the information in the short run and tended to overestimate the positive effect of the innovation announced. No significant leakage and dissemination effects were observed prior to the announcement. There was no significant difference in the magnitude of positive and negative reactions to the releases. Practical implications From the point of view of business practice the research proved the benefits of information disclosure and supported the long-term planning. From the investors’ viewpoint, it signalled the small risk of significant fluctuations resulting from aggressive trading prior to the announcement and unwinding part of the acquired position afterwards. Originality/value The paper attempts to fulfil the research gap on the impact of the announcements on open innovation on the MV of companies.

Made in Vietnam: Internal, collaborative, and regional knowledge sources and product innovation in Vietnamese firms

Abstract: The purpose of this paper is to simultaneously test the association between three different sources of knowledge (internal, collaborative and regional) and innovation. This study aims to expand the insights by assessing these associations in the context of a rapidly developing and liberalizing economy; Vietnam. By conducting this study with Vietnamese data, the authors can assess whether the association between different sources of knowledge and innovation shows systematic differences to those in advanced economies.,In this study, the authors utilize data from two main sources: The World Bank Enterprise Survey and the Innovation Capabilities Survey. These firm-level surveys comprise non-agricultural formal and private sector firms. For Vietnam, 300 manufacturing firms have been included in the sample. The authors use a series of binary logistic regression models to analyze the data.,The analyses reveal that internal R&D has a strong positive association with product innovation. In contrast to findings in Western economies, not all kinds of collaborative knowledge sources have a significant association with innovation. Only collaborative knowledge gained from inside the supply chain is positively related to product innovation. Unexpectedly, negative effects from using too much external knowledge were also found.,Due to the cross-sectional nature of the data causality could not be inferred from the study. Moreover, a relatively large number of the measures were dichotomous due the large number of missing observations for more detailed measurements of the variables.,When developing their innovation strategy firms in developing countries should take into account that collaborating with partners useful, but only if they collaborate within the supply chain. As such, firms should increase their interaction with suppliers and customers and put their efforts on the development of customized solutions for them.,The Vietnamese Government could implement policies that help to enhance the quality of universities and research institutes. In most developed countries, universities and research institutes are vital sources of knowledge for innovation whereas they are not in Vietnam.,This paper contributes to the growing body of literature on firm-level innovation in developing countries. It identifies several core differences between the drivers of innovation in developed and developing contexts. Surprisingly, a feature that was expected to differ, the negative effect of over-search of external knowledge on innovation, was also found in Vietnam.

Insights from the later stage of the new product development process: findings from Turkey

Abstract: Purpose The understanding of the later stage (i.e. the exploitation phase) in the new product development (NPD) process by companies from emerging markets is underdeveloped. The purpose of this paper is to address this lack and, by drawing upon a data set from Turkish firms, explore how different factors affect the exploitation phase of the NPD process. Design/methodology/approach Multiple hierarchical regression analyses were carried out on a sample of 671 Turkish firms operating in five industries (i.e. information and communication technologies, biomedical, machinery, chemical and plastic, and food and beverage) in the Izmir region (Turkey) to test the hypotheses. Findings Results reveal major differences regarding human capital, leadership, marketing capabilities, and business and institutional networks in terms of the commercialization of newly developed products in domestic and international markets. Originality/value By focusing on the exploitation stage, this paper extents the growing research efforts to study the NPD process of companies in emerging economies other than China by using primary data from Turkey.

Reverse technology transfer from the East to the West: Evidence from R&D sites of Western multinationals in China

Abstract: Purpose The approach of Western companies to internationalise their R&D by establishing R&D sites in emerging markets (EMs) has led to a discussion about the role of R&D in home markets and host markets. The purpose of this paper is to shed light on the evolution of foreign R&D sites of Western companies in EMs and their role using China as the empirical context. Design/methodology/approach The study uses the State Intellectual Property Office database, and investigates about 2,000 patent families of the top 14 Western patent applicants in China. Findings The results indicate a gradual shift from an exploitative to an exploratory role of R&D sites in China. The study also shows evident learning effects on Western R&D from local counterparts. Research limitations/implications The paper motivates further research of R&D internationalisation approaches within EMs, and explores the changing role of local subsidiaries. While the study is only focussed on China, the applicability of the results is limited in context of other countries, due to cultural, economic and legislative differences. Practical implications This study shows the increasing importance of EMs such as China and how these markets, known for imitations and cheap resources, are gradually moving towards innovations and creating new technologies locally. Originality/value Based on the patent analysis, this study shows the growing importance of the local R&D subsidiaries of Western multinationals in China.

Managers’ silent whisper innovation involvement and role-modeling in service firms

Abstract: Purpose The task of leading innovation is predominantly pictured as a supportive role vis-a-vis employees. Motivation is a crucial aspect of this task. To better understand the practice of this change-oriented leadership task, the actual behavior and activities of managers are investigated. The purpose of this paper is to reflect through practice and self-reports how this leadership challenge is executed. Design/methodology/approach In this longitudinal multi-method investigation, the service innovation literature constitutes the main theoretical framework. The investigation draws additionally on leadership literature about how to understand leadership through practice. The methodological design facilitated the drawing of causal inferences in the dynamics of service innovation. Findings The investigation enhances our understanding of managers’ particular context of innovation, and particularly the initiation context. It provides empirically grounded descriptions of what managers identify as potential opportunities, and how they take them further in the ideation stage. The results develop the suggestion that leadership roles, and specifically change-oriented roles, are not restricted to initiating or enabling activities related to the employees. Instead the much downplayed leadership role, i.e. the active practice-based involvement in innovation, is theorized as a role that is continuously activated, but tends to be set aside for contingency reasons. Research limitations/implications Further research is needed to assess the importance of managers’ involvement in the practice of innovation, both through systematic mapping of ideas on a larger scale, and through the employee perspective. This paper provides useful insights on managers’ cognition and involvement in innovation for further investigations of innovation management. Practical implications The results provide awareness for managers regarding their diverse leadership roles related to innovation. First, the study embraces heterogeneous ideas that are useful to evaluate and constitute role-modeling. Second, it highlights how managers’ execution of innovation creates awareness about the challenges involved. Finally, but maybe most important, the results alert managers of the discontinuity, even in strategically anchored intentional innovation. Social implications In a changing innovation landscape, individual firms need to draw on other firms to achieve their innovation strategies. In pursuit of this goal, this paper enhances the understanding of the role-modeling leadership task. It is a novel way of guiding individuals that are exposed to new and uncertain innovation contexts, and rethinking how innovation eventually can be achieved. Originality/value While earlier research has identified the multifaceted leadership behavior to support innovation, this paper outlines the contextual conditions and the practice of executing the suggested powerful role of being a role-model for others.