The Relationship between Innovation and Firm Performance: An Empirical Evidence from Turkish Automotive Supplier Industry
TL;DR: In this article, the authors examined the relationship between innovation and firm performance and found that technological innovation has a significant and positive impact on firm performance, but no evidence was found for a significant or positive relationship between non- technological innovation (organizational and marketing innovation) and the firm performance.
About: This article is published in Procedia - Social and Behavioral Sciences.The article was published on 2013-04-03 and is currently open access. It has received 319 citations till now. The article focuses on the topics: Innovation management & Competitive advantage.
Citations
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12 Dec 2019
TL;DR: In this article, a systemic review of the literature covering the theme of SMEs and technology in order to identify how technological progress in the SMEs, correlates with SMEs survival improvement in the global competition.
Abstract: In the era of economic globalization, small and medium enterprises (SMEs) are recognized as an engine of sustainable economic development in both the developed and developing world. In literature, three competitive challenges—the sustainability challenge, the global challenge and the technological challenge—faced by industrial entities in the current globalized economy, are categorized. Of them, this paper undertakes a systemic review of the literature covering the theme of SMEs and technology in order to identify how technological progress in the SMEs, correlates with SMEs survival improvement in the global competition. The review identified six driving forces—social capital, link with Multi-National Corporations (MNCs) and Transnational Corporations (TNCs), innovation, sharing and networking, information technology, and adoption of productivity-enhancing technology—influencing technological upgrade in the SMEs. The review also identified two conditions for successful technological adaptation in the SME sector—availability of technologically skillful workforce in the economy, and identification of opportunities of new technologies in the competition. These conditions could be viewed in the macro environment and emphasize the need for the economies’ readiness towards SMEs’ success.
97 citations
Cites background from "The Relationship between Innovation..."
...The literature also cited numerous social, economic, technological, cultural, environmental, and management-related causes that affect the failure of SMEs’ businesses within a shorter period [3,7,8]....
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...Various factors are associated with low survival chance of the SMEs, and among them, low adoption of innovative strategies in production and marketing is noted [8,32,35,36]....
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09 Oct 2021
TL;DR: In this paper, the effect of innovation types on business sustainability in the small and medium enterprises (SMEs) was investigated, and a quantitative approach was used for collecting data.
Abstract: The rationale of this study was to investigate the effect of innovation types on business sustainability in the small and medium enterprises (SMEs). Quantitative approach was used for collecting th...
93 citations
TL;DR: The results indicate that KM has significant positive effects on product and process innovations, and OP, and process innovation was found to have a significant positive effect on OP, while product innovation was not.
Abstract: Purpose
The purpose of this paper is to investigate the effects of knowledge management (KM) on product and process innovations, as well as on operational performance (OP). In addition, the effects of product and process innovations on OP, as well as their mediating effects on the relationship between KM and OP, are also investigated.
Design/methodology/approach
A questionnaire-based survey was designed and used to collect data from 207 manufacturing companies operating in the Jordanian capital Amman. To assess construct validity, exploratory and confirmatory factor analyses were conducted. To test research hypotheses, the bootstrap re-sampling method was applied using Hayes’s SPSS multiple-mediator PROCESS macro.
Findings
The results indicate that KM has significant positive effects on product and process innovations, and OP. Process innovation was found to have a significant positive effect on OP, while product innovation was not. Furthermore, only process innovation was found to significantly mediate the KM-OP relationship.
Practical implications
The findings of this study provide useful insights about the role of KM in facilitating and enhancing product and process innovations, as well as OP in the surveyed manufacturing companies. An important implication concerns the roles of product and process innovations. Manufacturing companies seeking improvements in their OP are recommended to focus on process innovation rather than product innovation. While product innovation may affect other aspects of performance, such as market and financial ones, it was not found to significantly affect OP. Process innovation can also leverage KM’s contribution to manufacturing companies’ OP.
Originality/value
This is a pioneering study in that it developed an integrated model that depicts the interrelationships among KM, product innovation and process innovation and OP, in a developing country context.
91 citations
TL;DR: The results show the importance of external knowledge from suppliers, clients, consultants and commercial laboratories in new innovation practices in firm workplace, consistent with the external search literature on technological innovation.
Abstract: Purpose
This paper aims to analyse the impact of different knowledge sources used by firms to adopt organizational innovation, in relation to organization of responsibilities and decision-making in the workplace
Design/methodology/approach
To fulfil the proposed objective, quantitative research, based on a sample of 2,591 Portuguese firms, has been undertaken Data have been obtained from the Community Innovation Survey 2012
Findings
The results show the importance of external knowledge from suppliers, clients, consultants and commercial laboratories in new innovation practices in firm workplace Knowledge from competitors, universities, the State and research institutes does not present a significant effect
Practical implications
Knowledge sources can stimulate the introduction of new management practices in the workplace, consistent with the external search literature on technological innovation, which argues that many of the ideas and implementation skills for organizational innovation come from outside sources
Originality/value
Within the innovation management literature, very few studies tried to explore organizational innovation in firm workplaces This paper is innovative and makes a novel contribution mainly to the knowledge management field by highlighting the importance of external knowledge sources in organizational innovation in firm workplaces from a knowledge-based perspective
72 citations
TL;DR: In this article, the effect of various biodiesel on engine noise and vibration has been studied on an unmodified compression ignition engine with linear and nonlinear based regression analysis based models were also developed to predict the relationship between fuel properties and noise-vibration of the engine with excellent agreement.
72 citations
References
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Book•
01 Jan 1934
TL;DR: Buku ini memberikan infmasi tentang aliran melingkar kehidupan ekonomi sebagaimana dikondisikan oleh keadaan tertentu, fenomena fundamental dari pembangunan EKonomi, kredit, laba wirausaha, bunga atas modal, and siklus bisnis as mentioned in this paper.
Abstract: Buku ini memberikan infmasi tentang aliran melingkar kehidupan ekonomi sebagaimana dikondisikan oleh keadaan tertentu, fenomena fundamental dari pembangunan ekonomi, kredit dan modal, laba wirausaha, bunga atas modal, dan siklus bisnis.
16,325 citations
TL;DR: A meta-analysis of the relationships between organizational innovation and 13 potential determinants resulted in statistically significant associations for specialization, functional differencing, and functional differences as mentioned in this paper. But, the authors did not consider the role of organizational innovation in organizational innovation.
Abstract: A meta-analysis of the relationships between organizational innovation and 13 of its potential determinants resulted in statistically significant associations for specialization, functional differe...
6,743 citations
"The Relationship between Innovation..." refers background in this paper
...Besides these types, some authors (K also proposed business model innovations, some suggested managerial innovations (Damanpour, 1991), some others emphasized organizational innovations (Huiban ve Bouhsina, 1998), and marketing innovations (Higgins, 1995)....
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TL;DR: In this paper, the authors define four components of learning orientation: commitment to learning, shared vision, open-mindedness, and intraorganizational knowledge sharing, based on interviews with senior executives and a review of the literature.
2,637 citations
"The Relationship between Innovation..." refers background or result in this paper
...Calantone et al. (2002), developed a framework for studying the relationships between learning orientation, firm innovativeness and firm performace in the U.S. manufacturing and service industries....
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...These findings are consistent with the literature on innovation and firm performance (Therrien et al., 2011; Gunday et al., 2011; Artz et al., 2010; Cho and Pucik, 2005; Calantone et al., 2002; Robert, 1999; Han et al., 1998; Geroski et al., 1993)....
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TL;DR: In recent years, a market-oriented corporate culture increasingly has been considered a key element of superior corporate performance as discussed by the authors, although organizational innovativeness is believed to be a pot...
Abstract: In recent years, a market-oriented corporate culture increasingly has been considered a key element of superior corporate performance. Although organizational innovativeness is believed to be a pot...
2,594 citations
"The Relationship between Innovation..." refers background or result in this paper
...Han et al. (1998) empirically tested the relationship between market orientation, innovation and technical innovativeness had positive impact on firm performance....
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...These findings are consistent with the literature on innovation and firm performance (Therrien et al., 2011; Gunday et al., 2011; Artz et al., 2010; Cho and Pucik, 2005; Calantone et al., 2002; Robert, 1999; Han et al., 1998; Geroski et al., 1993)....
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TL;DR: In this article, the authors empirically tested whether different models are needed to predict the adoption of technical process innovations that contain a high degree of new knowledge radical innovations and a low degree of incremental innovations.
Abstract: This paper proposes and empirically tests whether different models are needed to predict the adoption of technical process innovations that contain a high degree of new knowledge radical innovations and a low degree of new knowledge incremental innovations. Results from a sample of 40 footwear manufacturers suggest that extensive knowledge depth measured by the number of technical specialists is important for the adoption of both innovation types. Larger firms are likely to have both more technical specialists and to adopt radical innovations. The study did not find associations between the adoption of either innovation type and decentralized decision making, managerial attitudes toward change, and exposure to external information. By implication, managers trying to encourage technical process innovation adoption need not be as concerned about modifying centralization of decision making, managerial attitudes and exposure to external information as would managers trying to encourage other types of innovation adoption, e.g., innovations in social services where these factors have been found to be important. Instead, investment in human capital in the form of technical specialists appears to be a major facilitator of technical process innovation adoption.
2,389 citations
"The Relationship between Innovation..." refers background in this paper
...Innovation is also classified in two types as radical and incremental, according to its degree (Dewar and Dutton, 1986)....
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