ABSTRACT
While numerous studies have examined the relationship between IT and innovation, comparatively few explore IT's contribution to explorative and exploitative innovation activities. A better ...understanding of the influence of IT's strategic role on exploration and exploitation innovation is critical for tracing the complex IT–innovation relationship. To address this gap, we develop a theoretical model that describes the contingent relationship between IT's strategic role and explorative and exploitative innovation activities. By testing the model using a multisource, matched sample of data from Chinese firms, we find that the IT roles of automation, information, and transformation differentially influence exploration and exploitation, underscoring IT's multifaceted role in organizational innovation activities. Specifically, IT‐enabled transformation positively affects exploration, and IT‐enabled information positively affects both exploration and exploitation. We also evidence the moderating effect of environmental uncertainty in these relationships by uncovering that IT‐enabled automation is negatively related to exploration, whereas IT‐enabled transformation positively affects both explorative and exploitative innovation activities with high environmental uncertainty. Our article contributes to the knowledge in the field by demonstrating the value of a firm's transformative IT investments to develop explorative and exploitative innovation activities in the presence of environmental uncertainty.
Recent literature on open innovation (OI) highlights the need for studies regarding the factors that influence firms to switch from a closed to an OI strategy. At the same time, stakeholder ...literature points out the scarcity of knowledge regarding antecedent factors fostering collaboration with the firm's stakeholders and their engagement for higher value creation. To fill these gaps, we propose an analytical framework for implementing a strategic OI process through the development of stakeholder engagement. Our framework comprises 17 factors grouped in five levers: knowledge, collaboration, organizational, strategic, and financial. We empirically applied this framework to two industrial SMEs. A qualitative study was conducted based on semi-structured interviews with internal and external stakeholders of both firms. The results show that one company successfully implemented the OI process, while the other struggled to evolve from a traditionally closed innovation model to a more open model. Analyzing the results, we identified several aspects that could explain this difference. These aspects concern the OI activities performed by both firms, the combination of the five levers into a coherent OI approach, stakeholder engagement, and the characteristics of the CEOs. The current study contributes insights for theory and practice, especially as it proposes an original framework for developing a strategic OI process that integrates a stakeholder approach.
With rapid economic development through financial inclusion and its detrimental impact on the environment, economies have been driven to seek innovative and ecofriendly solutions to mitigate the ...negative effects of global warming. This study investigates the moderating role of innovation activity (researchers’ engagement in research and development) on the association between financial inclusion and environmental degradation using panel data on 27 European countries for the period of 1995–2018. This study employs a novel nonparametric econometric technique called the method of moments quantile regression. This method is robust to outliers and provides an asymmetric relationship among variables. The findings reveal that financial inclusion leads to environmental deterioration in the Eurozone. However, innovation activity significantly and negatively moderates the relationship between financial inclusion and environmental degradation in all quantile distributions. Economic growth and renewable energy consumption positively and negatively impact environmental pollution, respectively. Our findings are robust with alternative proxies of the environment (i.e., ecological footprints and CO2 emissions) and alternative methods (i.e., fully modified ordinary least squares (OLS), fixed effects OLS, and dynamic OLS). This study is beneficial for policymakers in adopting innovation activities that reduce the harmful effects of an upsurge in economic activities in the Eurozone.
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•We investigate the impact of financial inclusion on CO2 and Ecological footprint.•The moderating role of innovation activity is also analyzed.•The panel data of the Eurozone is used from 1995 to 2018.•Method of Movements Quantile Regression (MMQR) is employed.•Innovation activity negatively moderates the positive impact of financial inclusion.
Agriculture is a critical sector for the economy of any state, because it is the lifeblood of many other industries. The article provides an indicative analysis of the of the Russian economy ...readiness to enter the growth phase of the sixth technological order. The research is based on the postulate of the theory of long waves by N.D. Kondratyev, according to which the monitoring of innovation in the agricultural sector allows obtaining indicators of the phase of the economic cycle. The paper provides an assessment of the innovative development of world agriculture for compliance with global technological trends. The main indicators of innovation and economic growth in dynamics over the past few years are considered. The investment process specificity in country’s agri1cultural production due to geographical, logistic and economic factors, that leads to a high capital intensity of innovations in the industry, has been revealed. The main problem in the investment attractiveness of the industry is the low demand among farmers for research and development results due to their high cost, which forms the extensive nature of investments in the industry and their low profitability. Low efficiency of research and development financing in the industry is due to investments in basic research that is not demanded by the market. The reason for this phenomenon is explained by ageing of intellectual capital in the industry and the lack of institutional tools for its activation: low wages, lack of clear tools for managing innovation in the industry. Possible solutions to problems of the agriculture innovative development and increasing the agricultural sector attractiveness for investors are given.
A growing number of studies report findings on FDI's impacts on entrepreneurship activities in the host country, but less attention is given to the question of how FDI spills over to different types ...of entrepreneurship. This study empirically tests how FDI innovation activities influence innovative entrepreneurship entry and growth. Fixed-effect panel data analysis was applied to examine original field data from multiple official databases in China in 31 provinces from 1998 to 2007. The study shows that FDI innovation activities increase innovative entrepreneurship entry. The relationship is positively moderated by IPR protection. Moreover, FDI innovation activities also promote entrepreneurial growth. These findings contribute to a better understanding of dissimilar FDI spillovers to different entrepreneurship types. Such insights help expand the theoretical and practical research of FDI spillover on entrepreneurship from entrepreneurship as a whole to the attributes and processes of entrepreneurship.
•This study shows the impacts of heterogeneous FDI activities on both innovative entrepreneurship entry and innovative entrepreneurship growth in China.•The positive impact of FDI innovation activities on innovative entrepreneurship entry is empirically supported and this relation is positively moderated by IPR protection.•The empirical results also suggest FDI innovation activities promote entrepreneurial growth.
Background
In recent years, technological advancements have increased the importance of innovation activities. Therefore, firms invest millions of dollars in innovation activities to ensure long-term ...business sustainability. Similarly, consumer concerns have increased dramatically over the past years. Thus, brand loyalty has become a top priority for firms and consumers. In this background, this research examines how firms’ innovation activities translate into consumer brand loyalty to assure business sustainability in Asian markets, particularly China, Pakistan, and Indonesia.
Objectives
This study’s specific objectives are to comprehend the concept of firms’ innovation activities and their effect on the brand prototype. Examine the effect of the brand prototype on global brand preference, recommendation, and loyalty among Asian consumers. Find out the impact of brand preference on brand recommendations and the influence of brand recommendations on brand loyalty among Asian consumers.
Materials and methods
A total of 814 consumers from Asian countries (China, Pakistan, and Indonesia) participated in this study, and structural equation modeling was used to analyze the data.
Results
The findings indicate that firms’ innovation activities, such as processes, products, and store environment, positively influenced the brand prototype, thereby increasing consumer brand knowledge. Likewise, brand prototype contributes to developing brand preference, brand recommendation, and brand loyalty among Asian consumers. Lastly, consumer brand preference significantly influenced brand recommendation, which positively improves consumer brand loyalty in Asia.
Conclusion
This study concluded that Asian (Chinese, Pakistani, and Indonesian) consumers have favorable perceptions of firms’ innovation activities (i.e., process, product, and store environment innovation), which influences their ability to develop brand prototypes to increase consumer brand knowledge. Similarly, brand prototype fosters brand preference, recommendation, and loyalty. Likewise, favorable brand preference encourages consumers to recommend the brand to others, strengthening brand loyalty. Thus, firms should invest in innovation activities to strengthen consumer brand loyalty in Asian markets. Consequently, this study may assist multinational corporations in increasing their business volumes and market shares in Asia.
Managerial recommendations
This study provides important managerial recommendations. The findings revealed that global managers can develop and implement several branding strategies for sustaining their businesses in the Asian environment.
► This paper highlights the importance of distinguishing between two different effects of the obstacles that firms face in undertaking innovation activity. ► The first effect is related to increasing ...awareness of the difficulties involved in innovating, or the “disclosing” and “learning” content of direct experience, described here as the
revealed effect of barriers. ► The second effect is related to the perception of the impediments to innovation by firms that otherwise would be keen to engage in this activity: described here as the
deterring effect of barriers. ► We have shown that, in the cases of cost and market barriers, the relationship between assessment of the barriers and engagement in innovation activities is characterised by a non-linear relationship, indicating the presence of both deterring and revealed effects. ► That is, the assessment of barriers as important is higher at the extremes: when firms do not engage in innovation activity, and when firms are highly innovative.
Innovating firms are likely to face several challenges and experience different types of barriers. In this paper we argue that it is necessary to distinguish between two kinds of barriers to innovation. The first corresponds to what we describe as
revealed barriers and reflects the degree of difficulty of the innovation process and the learning experience consequent on the firm engaging in innovation activity. The second type of impediment, which we label
deterring barriers, encompasses the obstacles that prevent firms from committing to innovation. We use data from the 4th UK Community Innovation Survey (CIS4) to investigate the relationship between firms’ engagement in innovation and their assessment of the barriers to innovation. We show that the relationship is curvilinear in the case of costs and market barriers. These results have important implications for innovation policy and innovation management.
On the path to economic globalisation, companies are constantly facing opportunities and challenges in their pursuit of business survival and continuous improvement. Due to its strategic conception, ...innovation management seems to generate the transformations required in the current competitive environment. This article seeks to analyse the dilemma faced by small and medium sized exporting enterprises located in a developing country and regarding what to manage first: product or process innovation. The empirical analysis has been performed in the Colombian Caribbean region. The results revealed that companies focus more on process innovation than on product innovation. Similarly, it is concluded that the former precedes the latter.
We contribute to the literature on abandonment and innovation by showing the dynamic nature of the linkage between abandoned innovation activities and subsequent innovation outcomes at firm level. ...Based on a balanced panel of Spanish manufacturing firms from 2008 to 2016, we demonstrate that abandoning innovation not only leads to more successful innovation, but that there is an explicit time dimension to this. Firms which have prior experience of abandonment have stronger positive effects of more recent abandoned innovation activities on innovation output. However, these effects are largely restricted to prior experience from – and implementation in – the early (conception) phases of the innovation process. While firms systematically develop abilities to prevent failure, there is little evidence of learning from failure in terms of innovation abandonment.
•We show the dynamic and causal nature of the linkage between abandoned innovation and subsequent innovation outcomes at firms.•Firms which have prior experience of abandoned innovation activities have stronger positive effects of more recent abandoned innovation activities on innovation output.•Learning effects are largely restricted to learning from – and implementation in – the early (conceptual) phases of the innovation process•While firms systematically learn to prevent failure, there is little evidence of learning from failure in terms of innovation abandonment.
•The experience of abandoning an innovation activity can positively affect an organization's innovation performance.•The effect is contingent upon the way an organization is engaging with open ...innovation.•Openness has a negative effect on learning from the experience of abandoning an innovation activity.•Engaging with many different types of sources of innovation does not encourage the change of routines needed for learning.•Formal collaborations generate inertial forces which restrict learning from the experience of abandoning innovation activities.
Firms are encouraged to continually initiate innovation activities as part of their new product development processes and to be open to the use of external knowledge sources. Yet, many are abandoned. Openness to external knowledge sources and the experience of abandoning innovation activities are, therefore, becoming a part of an organization’s reality and innovation strategy. In this paper, we aim to explore how the experience of having abandoned an innovation activity can affect innovation performance and the role two key dimensions of openness, external search breadth and formal innovation collaboration breadth, play. Using data from the UK Innovation Survey, we find that the experience of having abandoned an innovation activity leads to improved innovation performance and that this is negatively moderated by the two dimensions of openness. When external search breadth is high, i.e. when an organization engages with a higher number of different types of knowledge sources, the link between abandoning innovation activities and innovation performance weakens. Similarly, when formal innovation collaboration breadth is high, i.e. the breadth of a firm’s formal collaboration relationships is high, the link between abandoning innovation activities and innovation performance also weakens. We conclude by discussing the theoretical and practical implications of our findings.
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