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The effects of complementarity of knowledge and capabilities on joint innovation capabilities and service innovation: The role of competitive intensity and demand uncertainty
Abstract
Service innovation has become increasingly important for the growth of developed and developing countries. Despite an extensive body of literature on the role of joint innovation capabilities in improving a firm's innovativeness, the multivariate influences of operant resources and joint innovation capabilities, as well as the interplay among these in the prediction of service innovation have not been scrutinized in the context of B2B SMEs in a developing country. This study aims to fill this gap by testing a model that shows the relationships among complementarity of knowledge and capabilities as operant resources, joint innovation capabilities, and service innovation. We derive hypotheses about these relationships and test them using data from a sample of 302 respondents from 151 firms operating in the UAE. The results show that the relationships between complementarity of knowledge and joint innovation capabilities, and between joint innovation capabilities and service innovation, are significant and positive. They also show that the mediation effect of joint innovation capabilities on the relationship between complementarity of knowledge and service innovation is positive and full. This study also tests the moderating roles of competitive intensity and demand uncertainty in the relationship between joint innovative capabilities and service innovation and finds that their connection is stronger when competitive intensity is high.
... Finally, as we only focused on the internal organizational context as an antecedent for SCA, we complement our internal view with an external view to understand under which conditions SCA might materialize in innovation for the focal firm. Prior studies have shown that the complementarity of supply partners is a key driver for performance (Cheung et al., 2010;Liao & Li, 2019;Ndubisi et al., 2020); thus we further include an external factor that helps us to better understand the interplay of internal and external contextual factors. Specifically, we seek to answer the following research questions: RQ1: What is the impact of organizational context on SCA? RQ2: What effect does SCA have on the relationship between organizational context and innovation performance? ...
... Complementarity is the degree to which supply chain partners possess distinctive assets that are valuable in an exchange relationship (Cheung et al., 2010). Complementarity in an exchange relationship allows buyers to get specialized resources and capabilities through their suppliers that they otherwise may not have been able to access (Ndubisi et al., 2020). Researchers have noted that resource complementarity is one of the key reasons to enter into an alliance and it is only valuable if the value of resources is greater after a potential pooling (Chung et al., 2000). ...
... Considerable empirical research has studied the effect of complementarity between supply chain partners in the context of innovation (e.g., Khraishi et al., 2020;Ndubisi et al., 2020). In our study, we explore the contingency role played by buyer-supplier complementarity in the relationship between SCA and innovation performance. ...
Previous literature provides ample analyses of the antecedents of supply chain agility, but the organizational context has generally been neglected. Setting up the right organizational context is important for dynamic capabilities such as supply chain agility, especially in turbulent times. In this research, we study organizational context from two aspects as antecedents of supply chain agility, i.e., a firm’s performance orientation context and its social orientation context. Based on the dynamic capabilities view, the literature on organizational context, supply chain agility, and innovation, we develop our hypotheses. We investigate the previously overlooked impact of supply chain agility on innovation performance, as we find that supply chain agility not only helps to prevent and repair short-term damage but also promotes innovation in the long term. We also consider the moderating role of the organization’s complementarity with its key suppliers in this relationship. Structural equation modeling is applied to investigate the proposed research hypotheses using lagged survey data with multiple respondents from the manufacturing sector in Pakistan.
... Few researchers have analyzed and tested empirically the effect of KS activity towards innovation and CA, in SMEs and provided inconsistent empirical results. The results of previous studies found that there was a positive and significant effect between KS and innovation (Eidizadeh et al., 2017;Wang et al., 2017;Kim & Shim, 2018;Han & Chen, 2018;Keszey, 2018;Yang et al., 2018;Ganguly et al., 2019;Lei et al., 2019;Rahmi & Indarti, 2019;Ndubisi et al., 2020;Wahyono, 2020). Similarly, the findings research indicates that KS positively and significantly affect CA (Sáenz et al., 2012;Wu et al., 2012;Abdul-Jalal et al., 2013;Eidizadeh et al., 2017;Aureli et al., 2018;Ndubisi et al., 2020;Wahyono, 2020). ...
... The results of previous studies found that there was a positive and significant effect between KS and innovation (Eidizadeh et al., 2017;Wang et al., 2017;Kim & Shim, 2018;Han & Chen, 2018;Keszey, 2018;Yang et al., 2018;Ganguly et al., 2019;Lei et al., 2019;Rahmi & Indarti, 2019;Ndubisi et al., 2020;Wahyono, 2020). Similarly, the findings research indicates that KS positively and significantly affect CA (Sáenz et al., 2012;Wu et al., 2012;Abdul-Jalal et al., 2013;Eidizadeh et al., 2017;Aureli et al., 2018;Ndubisi et al., 2020;Wahyono, 2020). However, there are differences in the results study find that KS insignificantly effect towards innovation (Taminiau et al., 2009) and CA in SMEs (Ghobadi & D'Ambra, 2012). ...
... Several studies have proven that KS is a key factor for creating innovation and gaining a sustainable competitive advantage in SMEs. For example, the results of previous studies KS have a significant contribution towards the improvement of innovation (Kumar & Rose, 2012;Sáenz et al., 2012;Dickel & Moura, 2016;Eidizadeh et al., 2017;Podrug et al., 2017;Wang et al., 2017;Han & Chen, 2018;Keszey, 2018;Kim & Shim, 2018;Yang et al., 2018;Ganguly et al., 2019;Lei et al., 2019;Rahmi & Indarti, 2019;Ndubisi et al., 2020;Wahyono, 2020). Similarly, several empirical types of research indicate that KS has positive and significant influence (Wang & Noe, 2010;Wu et al., 2012;Abdul-Jalal et al., 2013;Eidizadeh et al., 2017;Aureli et al., 2018;Ndubisi et al., 2020;Wahyono, 2020). ...
The current research aims to examine the influence of knowledge sharing (KS) and strategic locations on innovation and competitive advantage (CA) of small and medium sized enterprises (SMEs). The present research aims to analyze and empirically examine the influence of KS and strategic location on CA through the mediating role of innovation. The sample size of this study was 99 managers of SMEs in Southeast Sulawesi Province. The analytical tool used in testing the research hypotheses is SEM-PLS. These findings indicate that KS and strategic locations has a significantly positive influence on innovation. Similarly, strategic locations and innovation significantly positive effect towards CA. However, KS does not have a significant influence on CA. The main findings in this research show that of innovation has a role as mediation in the relationship between KS and strategic locations to improve CA in SMEs. The findings of this research indicate SMEs must be able to take strategic decisions in determining locations and have the ability to share knowledge through innovation to improve CA.
... Service innovation capability was the third capability that was identified as a dynamic capability in social media. New service design and development, innovation in processes, and organizational innovation may be used as a reference for service innovation [51,52]. It can be related to changes in the concept of a service, the client interface, the delivery system, or technological options [51,53,54]. ...
... New service design and development, innovation in processes, and organizational innovation may be used as a reference for service innovation [51,52]. It can be related to changes in the concept of a service, the client interface, the delivery system, or technological options [51,53,54]. It's good for business performance as well as improving behavior in people [55]. ...
... Services are immaterial, and perishable and are produced for each consumer in real-time at the point of use. Examples of service innovation include new service designs, growth, innovative processes, or operation [51]. Mbambo-Thata [60] found out the library had gone from an on-site to a digital service library. ...
Social media play a vital role in libraries today. This study aims to explore the capabilities have in social media and its effect on librarians’ efficiency. This article briefly explains the dynamic capabilities of social media that contribute to librarian efficiency. Four capabilities have been identified from the literature review: (i) information processing capability, (ii) relationship capability, (iii) service innovation capability, and (iv) tools capability. Each of the capabilities has its criteria and characteristics. All the capabilities support the libraries to fulfill their user's needs. The dynamic capabilities of social media contributed to librarians’ efficiency in many aspects such as literacy skills, reference, and user services. This article also shared the experience of academic libraries in Western Uttar Pradesh, New Zealand, Ghana, Sri Lanka, and Malaysia in using social media for librarians’ efficiency. This study will contribute to the effectiveness and efficiencies of the librarians in organizing the libraries.
... Our study takes a further step to unpack the moderating role of competitive intensity in this association in hospitality context. Competitive intensity can be defined as the strength of competition in the market concerning the number of firms and their growth potential (Auh and Menguc, 2005;Ndubisi et al., 2020). Albeit competitive intensity was reported to moderate the effect of other leadership styles, such as servant leadership (Huang et al., 2016) and transformational leadership (Yang and Yang, 2019), on innovation, research has hardly considered the moderating role of this factor on the entrepreneurial leadership-innovation linkage. ...
... Competitive intensity can be defined as the strength of competition in the market concerning the number of firms and their growth potential (Auh and Menguc, 2005;Ndubisi et al., 2020). Competitive intensity is a factor contributing to a hostile business environment, which pertains to circumstances where several strong competitors operate in the market and cause challenges to the growth of a firm (Martin and Javalgi, 2016;Ju and Zhao, 2009) argued that the competitive intensity differs for various types of firms, and as such, different firms even in the same industry face different levels of competition. ...
... For example, Huang et al. (2016) indicated that competitive intensity can play a moderating role in the impacts of servant leadership and service climate on firm performance. Furthermore, Ndubisi et al. (2020) identified that competitive intensity moderated the impact of joint innovation capabilities on service innovation. In the current study, we focus on the Entrepreneurial leadership moderation roles of competitive intensity in knowledge acquisition-service innovation and market-sensing capability-service innovation relationships, which remain a gap in the literature. ...
Purpose
This study aims to investigate the effects of entrepreneurial leadership on service innovation in the hospitality industry and examine the mediating effects of market-sensing capability and knowledge acquisition. Additionally, the study explores the moderating role of competitive intensity in the relationships between market-sensing capability, knowledge acquisition and service innovation, drawing on the dynamic capability theory and resource dependence theory.
Design/methodology/approach
The data for this study were obtained from 322 employees and 137 leaders working in 103 hotels in Vietnam, using a time-lagged approach. The collected data were analyzed using structural equation modeling in SPSS Amos 28.
Findings
The results of this study reveal a significant positive association between entrepreneurial leadership and service innovation, with mediation effects observed through both knowledge acquisition and market-sensing capability. Moreover, the findings demonstrate that competitive intensity moderates the association between knowledge acquisition and service innovation.
Practical implications
The results of this study provide implications for hospitality firms to cultivate entrepreneurial leadership through leadership training and development programs and enhance their dynamic capabilities (i.e. market-sensing capability and knowledge acquisition) to allow them to survive and develop in a competitive market.
Originality/value
This study advances entrepreneurial leadership research in the hospitality context by identifying mediating and moderating mechanisms that translate entrepreneurial leadership into hospitality firms’ service innovation.
... Thus, through the emphasis on interfirm collaboration, this study shows that an enterprise can increase the speed of obtaining external information. Furthermore, it adds value to the literature by revealing the responses to changes in the external environment and the advantages created (Ndubisi et al., 2020). In organizational learning, related research has found that firms with entrepreneurial orientations have a strong motivation to learn how to improve their competitive advantage (Wolff et al., 2015;Zhao et al., 2011). ...
... The mediating role of interfirm collaboration and organizational learning Most firms in tourism and hospitality are SMEs, most of which need to improve their competitive advantage through internal capabilities and by combining different external resources Jogaratnam, 2017). Past related research has found that interfirm collaboration between entrepreneurial orientation and competitive advantage affects a company's competitive advantage (Ndubisi et al., 2020). This is because the resource network generated by interfirm collaboration accelerates the speed of obtaining external information within the enterprise and allows the enterprise to respond to changes in the external environment through dynamic capabilities and proposes innovative performance to create advantages (Ndubisi et al., 2020). ...
... Past related research has found that interfirm collaboration between entrepreneurial orientation and competitive advantage affects a company's competitive advantage (Ndubisi et al., 2020). This is because the resource network generated by interfirm collaboration accelerates the speed of obtaining external information within the enterprise and allows the enterprise to respond to changes in the external environment through dynamic capabilities and proposes innovative performance to create advantages (Ndubisi et al., 2020). Interfirm collaboration can obtain more important external information and allow the internalization of external knowledge to improve competitiveness (Ndubisi et al., 2020;Richey and Autry, 2009;Simonin, 1997). ...
Purpose
The purpose of this study was to explore the influence of entrepreneurial attitudes, motivation and orientation on the entrepreneurial competitive advantage of innovative entrepreneurs in the tourism and hospitality industry, including those involved with bed and breakfasts, travel agencies and restaurants.
Design/methodology/approach
First, the sample for this study was selected through news media reporting on well-known new entrepreneurs, from lists of those entrepreneurs who have won innovation entrepreneurship loan subsidies from the government and from lists of those who have won innovation awards. Second, a pretest was used to confirm the feasibility of the questionnaire. The pretest survey was distributed to a total of 150 tourism and hospitality entrepreneurs. A total of 8 dimensions/facets and 36 items were confirmed. Finally, data collection took place for 9 months. A total of 1,150 questionnaires were distributed, and 606 questionnaires were recovered.
Findings
This study proposes a new multi-integration model of moderation-mediation analysis. The innovative business model explores the relationship between entrepreneurial factors and competitive advantage. Based on a survey of 606 staff members and managers of tourism and hospitality firms, entrepreneurs in the tourism and hospitality industry with entrepreneurial attitudes and motives had opportunities to increase their entrepreneurial orientation.
Practical implications
In the process of innovative entrepreneurship, whether through organizational learning or other enterprise cooperation, it is necessary to pay more attention and propose different environmental management strategies. In addition, this study also found that marketing uncertainty moderates between entrepreneurial attitudes and entrepreneurial motives. Entrepreneurial motives are more conservative than other motives, and there is increased confidence in investing in innovative entrepreneurship in stable environments.
Originality/value
This study indicates that innovative entrepreneurial tourism and hospitality firms have a mediating or moderating effect on the relationship between entrepreneurial attitudes and positional advantage. If used properly, these resources can help the new entrants in the tourism and hospitality sector avoid the limitations of environmental change, firm size or insufficient information and improve their competitive advantage.
... Rather, firms need to match their capabilities with changes in the business environment for a durable competitive advantage (Teece, 2007(Teece, , 2018. It is likely that the effectiveness of any capability depends on two dimensions of market dynamics: demand uncertainty and competitive intensity (Ndubisi et al., 2020;Wilden et al., 2013;Zhou and Li, 2010); they reflect the influence of customers and competitors in the market, respectively. Thus, demand uncertainty and competitive intensity are two important contingent conditions for the relationship between TISC and BM design. ...
... Market dynamics reflect the degree of the unpredictability of change in the environment (Dess and Beard, 1984). Several studies have suggested that market dynamics may influence a firm's capability to adapt its resources and knowledge to the requirements of the business environment (Ndubisi et al., 2020;Wilden et al., 2013;Zhou and Li, 2010). Below, we discuss how market dynamics moderate the relationship between TISC and BM design. ...
... Demand uncertainty and competitive intensity have been considered as the two most fundamental dimensions of market dynamics (Zhou and Li, 2010). They reflect the influence of the key players in the market: customers and competitors (Ndubisi et al., 2020). Demand uncertainty refers to the unpredictability and heterogeneity of customer preferences and expectations (Gatignon and Xuereb, 1997;Jaworski and Kohli, 1993). ...
Purpose
Drawing on the dynamic managerial capability perspective and the dynamic capability perspective of business model (BM) literature, this paper aims to investigate how top management team internal social capital (TISC) promotes BM design and how such effects are moderated by market dynamics (i.e. demand uncertainty and competitive intensity).
Design/methodology/approach
The proposed hypotheses were tested by a questionnaire-based survey. The empirical study was conducted on a sample of 210 firms in China. The model was tested via hierarchical regression analysis.
Findings
TISC has a positive effect on BM efficiency but an inverted U-shaped effect on BM novelty. The effects of TISC on BM efficiency and novelty are contingent on demand uncertainty and competitive intensity in different ways. Specifically, this study finds that demand uncertainty strengthens the inverted U-shaped effect of TISC on BM novelty. This study also finds that competitive intensity strengthens the positive effect of TISC on BM efficiency but weakens the inverted U-shaped effect of TISC on BM novelty.
Originality/value
The conclusion contributes to the dynamic capability perspective of BM literature in two ways. First, it offers a dynamic managerial capability perspective for understanding the antecedents of BM design. It highlights TISC, a root of dynamic managerial capability, as an important internal antecedent of BM design. Second, it provides a more nuanced understanding of the role of TISC in BM design. The findings show the distinct effects of TISC on BM efficiency and novelty. This study also discusses the contingency role market dynamics play in the TISC–BM design relationship.
... Furthermore, several authors have suggested that interpersonal dynamics influence the level of support or resistance provided by partners following a reunion (Sigala, 2018;Solomon, 2016;Solomon & Theiss, 2010). The purpose of our review is to test a central premise of the theory, which positions relational turbulence as a mechanism through which relationship parameters can influence the perceptions of any support provided by a partner (Ndubisi, Dayan, Yeniaras, & Al-hawari, 2020;Sigala, 2018;Solomon, 2016). ...
... Although collecting data from a single side of the relational turbulence model has been useful in furthering the theory of relational turbulence in the pertinent literature, the validity of any research conclusions may be limited by the fact that they are the result of attempts to capture a dyadic construct-which, in practice, is developed and shared by two parties-from the perspective of only one of them (Wagner & Bode, 2014;Whipple, Wiedmer, Boyer, & K., 2015). A dyadic idea is a collection of characteristics or events that are shared by and include several stakeholders (buyers, suppliers, etc.) (Ndubisi et al., 2020;Tatoglu et al., 2020;Whipple et al., 2015). Research focused exclusively on a buyer's partnership or relationship with a supplier may not be appropriate as the perceptions of the parties involved may differ. ...
... Research focused exclusively on a buyer's partnership or relationship with a supplier may not be appropriate as the perceptions of the parties involved may differ. Any discrepancies between the customer and supplier viewpoints on relationship turbulence may cause tension in the collaboration (Ndubisi et al., 2020;Whipple et al., 2015). In order to improve our current understanding of how and why one partner's perception of the agency may differ from that of another, future research could take a dyadic perspective approach. ...
The purpose of this paper is to present a detailed theoretical review based on the “relational turbulence model,” revealing current research gaps and demonstrating its applicability to the management of agency problems among value chain partners by using antecedents, benefits, risks, and boundary conditions. “Relational turbulence theory” proposes a communication perspective on interpersonal relationships that explains how relationship transitions polarize emotions and cognitive assessments, disrupting partner communication in the sharing economy. Relational turbulence theory has recently gained traction in value chain literature in relation to the management of agency problems between partners within the sharing economy context; however, there is a surprising lack of agreement on the antecedents, benefits, risks, and boundary conditions of such relationships. To address this gap, we reviewed 52 peer-reviewed publications published between 2011 and 2021. Furthermore, this paper reveals the current research gaps and future research topics by recommending the application of relational turbulence theory with respect to antecedents, benefits, risks, and boundary conditions in the management of agency problems among value chain partners.
... In this sense, sanctions and blockades are associated with, and contribute to, environmental hostility. Environmental hostility at both the micro and macro levels can render a firm, or even an entire industry/ sector or economy, vulnerable (Ndubisi et al., 2020). A hostile environment refers to an external dimension that poses a threat to a firm's viability and performance, and it is characterized by intense levels of competition, a precarious industry setting, a harsh business climate, and a lack of external opportunities (Covin and Slevin, 1989). ...
... Political sanctions and blockades can create a hostile environment for a tourism sector by portraying the sanctioned destination as a precarious tourism destination, thus causing a drop in tourism arrivals and revenues, which in turn creates a harsh business climate for tourism-related businesses within the sanctioned country. Organizations are open systems that are vulnerable to influences in their external environment (Scott and Davis, 2007), particularly when it is hostile (Ndubisi et al., 2020). Other scholars have considered environmental hostility in terms of risk, change, and competitive behavior (Lofsten and Lindelof, 2005), but it was Miller (1987) who first linked firm strategy to the management of environmental hostility, arguing that there should be relationships between a strategy and unfavorable environmental dimensions, which in this case, are tourism diversification strategy and environmental hostility in the form of the blockade, respectively. ...
... Nevertheless, such environments are also often associated with opportunities for firms to expand their market share and earn greater profits through diversification and service innovation (Ndubisi et al., 2015). When competition is extremely intense, organizations typically turn their attention to differentiation strategies where they leverage their unique competencies, such as service innovation (Ndubisi et al., 2020) and market diversification (TMD in the present case). By considering the theoretical ramifications of political and environmental hostility, as well as how TMD can moderate its effect on performance in the tourism sector, this study adds to the extant literature on tourism economics, environmental hostility and munificence, and their interfaces. ...
This study examines the effects of an unfavorable political event or environmental hostility, namely, a blockade affecting international tourist inflows, and how tourism market diversification (TMD) could mitigate the adverse effects in the case of Qatar. To quantify these effects, we adopted a standard tourism-demand model and augmented it with a Herfindahl index (HI) for the geographical diversification of tourism exports, a dummy variable for the blockade, and an interaction variable. We further analyzed the tourist inflows from various regions using regional dummies and their interaction terms to capture the different impacts of the blockade on Qatar’s inbound tourists from 46 source countries between 2006 and 2019. This study applied a panel-based differenced system-generalized method-of-moments estimation to reveal several interesting findings. First, there was a significant positive individual effect of TMD on inbound tourism. Second, during the blockade, Qatar witnessed growing tourist inflows from Asia and Australasia, the Americas, and Europe. However, the incident inevitably placed severe constraints on some tourist flows to Qatar, primarily from Middle Eastern and African countries. Moreover, although the HI has a positive impact on tourism growth, our study revealed that the interaction terms between the HI and the blockade are only statistically significant in some cases, implying that a diversification strategy cannot completely mitigate the harmful effects of a blockade on tourism due to the severity of blockade effect. Nevertheless, a TMD strategy appears to be successful at the individual level.
... Competitive intensity is one of the factors amplifying threats in the market environment (Feng et al. 2019;Martin and Javalgi 2016). It represents the extent of competition faced by a firm and is related to the fierce competition arising from products, competitors and the number of firms operating in the industry (Jaworski and Kohli 1993;Ndubisi et al. 2020). With the increase of competitive intensity, the market environment becomes more changeable. ...
... Thus, competitive intensity has no moderating effect. Further, for the moderating role of market turbulence, the result is partially consistent with previous research (Deng et al. 2021;Ndubisi et al. 2020). Specifically, in the high-level market turbulence, paradox cognition drives firms to obtain information and measure tensions to compensate for rapidly changing product demands and market trends (Clercq et al. 2018). ...
With the increasing frequency and impact of supply chain disruptions, firms face significant challenges in achieving supply chain resilience (SCR). Although SCR is crucial in responding to market variability and unexpected events, it is unclear how to strengthen it and its boundary conditions. Drawing upon paradox theory, this study investigates how paradox cognition enhances SCR via organizational unlearning, and the moderating role of market environment. We employ hierarchical regression analysis and bootstrapping method to examine hypothesized relationships by collecting multi-response data from 277 manufacturers in China. The findings suggest that paradox cognition enhances organizational unlearning, which further promotes proactive and reactive dimension of SCR. Organizational unlearning mediates the impacts of paradox cognition on proactive and reactive dimension of SCR. Furthermore, market turbulence strengthens the influence of paradox cognition on organizational unlearning, while the moderating influence of competitive intensity is insignificant. This research helps us comprehensive understand the theoretical framework of paradox cognition and SCR, and provides insights into how firms can benefit from different dimensions of SCR.
... Collaboration with research organizations and competitors positively affects product IC, while process IC is mainly enhanced by collaboration with research organizations and suppliers (Najafi-Tavani et al., 2018). Relationships between joint ICs and service innovation are also significant and positive (Ndubisi et al., 2020). Global service ICs require developing global customer insights, integrating global knowledge, creating global service offerings, and building global digitalization capabilities (Parida et al., 2014). ...
... This might inhibit knowledge sharing as well as the development of ICs. A lack of cooperation is also a concern because microenterprises might not be capable of developing innovative services and the joint ICs needed independently (Ndubisi et al., 2020). Our findings indicate, in accordance with Caloghirou et al. (2004), that both IC and openness towards knowledge sharing are important for fostering innovation. ...
... Since technology is used in several different ways, culture is bound to play a crucial role in the adoption and use of various innovations (Youssef, Eid and Agag, 2022 (Youssef, Eid and Agag, 2022). Continuing, UAE has become a significant market to several of the world's most dynamic companies, leading to an exponential growth in innovations and services (Ndubisi, Dayan, Yeniaras and Al-hawari, 2020). Moreover, due to its nature as the most progressive market in the entire North Africa region and Middle East, the UAE has attracted substantial foreign investments from both regional and international parties. ...
... Moreover, due to its nature as the most progressive market in the entire North Africa region and Middle East, the UAE has attracted substantial foreign investments from both regional and international parties. Based on these characteristics, UAE is an ideal context for testing this study's variables (Ndubisi et al., 2020). ...
Abstract
Purpose – Product-service innovation (i.e., servitization) is providing opportunities to small and medium-sized enterprises (SMEs) to offer services that are directly coupled to their products. Despite scholarly efforts on servitization in domestic markets, the determinants of international product-service innovation remain unclear. Therefore, this study draws insights from dynamic capability (DC) view and examines the international human capital and international product-service innovation relationship.
Specifically, we argue that the effect of international human capital on international product-service innovation is mediated by international inter-organizational marketing capability (IIMC) and moderated by international market complexity.
Design/method/approach – We test our conceptual model using structural equation modeling on a sample of 211 SMEs operating in United Arab Emirates (UAE) – an emerging market economy.
Findings – Our results show that IIMC mediates the relationship between international human capital
and international product-service innovation. We further found that the indirect relationship between
international human capital and international product-service innovation is strengthened when
international market complexity increases in magnitude.
Originality – This study advances the knowledge on international servitization by examining
international human capital and IIMC as the determinants and international market complexity as a
moderator. Data collection in the UAE contributes to empirical research on international servitization
from emerging markets.
Keywords: international servitization; International human capital, inter-organizational marketing
capabilities; international market complexity; dynamic capability; emerging markets.
... Studies have focused on firm characteristics as well as market specificities (note firms is a theme closely related to emerging, with "markets", "local", "organisations", "institutional", "social", and "traditional" as core concepts). Several studies examine the key resources firms must possess to succeed in NSD (Kumar et al. 2020;Ndubisia et al., 2020). Similarly, studies investigate the institutional uniqueness of EM and how these boundary conditions affect NSD (see (Gaurav et al., 2011). ...
... for a successful NSD (Ndubisia et al., 2020;Kumar et al., 2020) these rarely encompass external, maybe even less conventional stakeholders or the embeddedness in local communities (see also Table V, Figure 3, and Figure 4). Ghauri et al. (2014) show how important networking with NGOs is for service firm internationalisation into the BOP segment, while tentative findings among African fintechs suggest the usefulness of community inclusion for localising marketing strategies (Hammerschlag et al., 2020). ...
Purpose
The purpose of this paper is to systematically review and critically examine the international marketing and innovation management research on new service development (NSD) in the context of emerging markets (EM). Research on services in EM, a heterogenous set of countries with an increasing contribution to global economic output, is sparse. This paper attempts to underscore the academic and managerial relevance of the field.
Design/methodology/approach
A systematic review of published empirical literature from peer-reviewed journals focusing on an 11-year period, 2010–2020, was undertaken. Further, bibliometric and text mining analyses were conducted using VOSviewer and Leximancer software programmes.
Findings
This analysis of 36 journal articles reveals that NSD research is a dynamic field with an increasing number of quantitative, multi-country and multi-method studies encompassing a variety of geographical settings and industries.
Originality/value
Doing justice to this vibrant field of research and its managerial importance, the authors create an overview of existing empirical studies to serve as a repository of knowledge on NSD for both academics and practitioners. Further, the authors offer a thematic and temporal overview of the content of existing studies. Drawing upon the abovementioned, the authors suggest some promising avenues for future research.
... Our sample firms were from six industries, so we controlled for information technology, and used pharmaceutical and bioengineering, new energy, electronic, mechanical and electric equipment, and other industries as dummy variables. A previous study suggested that competitive intensity may influence innovation (Ndubisi, Dayan, Yeniaras, & Al-hawari, 2020), so we controlled this variable in the context of disruptive innovation. Competitive intensity refers to the domestic and international competitive pressure of firms in the focal product market. ...
... Finally, we empirically examined only the moderating role of technological turbulence and market turbulence when exploring the relationship between CSR and disruptive innovation. Future studies may also consider other contextual factors, such as regulations, competitive intensity, uncertainty, dynamism, and munificence as avenues of research (Bradley, Shepherd, & Wiklund, 2011;Ndubisi et al., 2020;Parry & Kawakami, 2017). ...
A growing number of firms have used disruptive innovation as a strategy to gain competitiveness, and the topic of how disruptive innovation occurs has attracted wide attention. Leveraging the extant literature on disruptive innovation, stakeholder theory, and contingency theory, this study explores how corporate social responsibility (CSR) affects disruptive innovation under various degrees of environmental turbulence. A sample of 226 firms was used, and empirical results indicate that CSR (external and internal CSR) positively affects disruptive innovation. In addition, technological turbulence positively moderates the abovementioned relationships, while the effect between external CSR and disruptive innovation was negatively moderated by market turbulence. These findings advance the knowledge of disruptive innovation, stakeholder theory, and contingency theory, and provide practical insights to guide the implementation of disruptive innovation.
The full paper can be downloaded from https://authors.elsevier.com/c/1e3l4Xj-jYG1W (before Jan 01, 2022)
... Firms also need to actively work on predicting customer needs and speed up research and development (R&D) whilst keeping abreast of major trends in the marketplace [21]. All these require a strong marketing orientation [21,47]. Ndubisi et al. (2020) pointed out that in a highly uncertain market environment, firms must actively seek innovations to survive [47]. ...
... All these require a strong marketing orientation [21,47]. Ndubisi et al. (2020) pointed out that in a highly uncertain market environment, firms must actively seek innovations to survive [47]. Consistently, Bodlaj et al. (2012) posited that a more proactive marketing emphasis facilitates the implementation of proactive marketing innovations and thus contributes to a firm's success [12]. ...
The adoption of marketing innovations can contribute to the sustainability of a firm. However, research on the types of marketing innovations and their effects is limited. The purpose of this study is to analyze the dimensions of marketing innovations, their effects on firm performance, and how market environmental factors moderate those effects. Based on an analysis of the literature, this study discovered two types of marketing innovations and established a model to explain the dynamics of marketing innovation and firm performance under different market environments. Empirical data were collected and used to validate the model. Results show that both market-driven and market-driving innovations significantly contribute to a firm’s performance. Moreover, their effects are significantly moderated by competition intensity and technological turbulence but not demand uncertainty. This study contributes to the literature because it elaborates the conceptualization of marketing innovation and presents the dynamics of marketing innovation, market environment, and firm performance. It also provides practical implications on how firms can utilize marketing innovations to achieve business sustainability.
... Understanding and knowing the main drivers of innovation very likely enables sustainable innovation capabilities to be carried out. The findings of Ndubisi et al. (2020); Aydin (2021); Wang & Hu (2020;Ghobakhloo et al., 2021) demonstrated how the growth of knowledge and the capacity for innovation influence innovation capabilities. However, Khalique et al. (2023), Tosoni (2019), and Siek (2022) asserted that high-level intellectual resources from experience, empowerment, learning, education, and training must unquestionably go hand in hand with innovation capabilities. ...
This research investigated the relationship between the digitalization of human capital, digital talent, and innovation capabilities among Business Unit employees. The mediating role of digital talent in the digital transformation of human resources and innovation capability among SMEs was examined. Business Unit employees were tested using the PLS-SEM method, and a survey was conducted on SME Business Unit employees. The purposive technique was developed with convenience sampling and chosen as a non-probability sampling technique. The primary data sources were 185 respondents who worked within the SME business unit in Indonesia. The findings indicate that the digital transformation of human resources, talent, and innovative capacity has a strong positive correlation. The link between innovative capabilities and digital transformation is mediated by digital talent. This study contributes to the human resources post-recruitment, talent management, and digital talent literature in the management function, and it underscores the crucial role of human and technological factors in the digital transformation of human resources, which is increasingly visible on the path to organizational success.
... (1998) found that enterprises can effectively manage the linkage density of incubators and network partners through network crossorganization learning ability. Ndubisi et al. (2020) suggested that the network cross-organization learning ability of incubators positively influences firms' service innovation. Based on this, the following hypothesis is proposed. ...
Introduction: In the new economic normal, technology incubators are an important support to achieve the growth of strategic emerging enterprises. On the basis of resource based theory, organizational learning theory, inter-organizational relationship theory, and network capability theory, this study constructs a theoretical framework and hypotheses of the impact of network capability within the “resource-capability-relationship” perspective, absorptive capacity on service innovation performance of technology business incubators.
Methods: This study uses 234 Chinese incubators in the incubator network as samples and applies partial least squares structural equation modeling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA) to explore the questions mentioned above.
Results: The results verify the relationship between network capacity, absorptive capacity, and service innovation performance. Furthermore, the results yield four paths that lead to high service innovation performance, such as “network capability orientation” and “high absorption orientation”, which are different combinations of network capacity and absorptive capacity.
Discussion: The research results are important for improving the innovation performance of technology incubator services and ensuring the stable and effective operation of incubated enterprises.
... Resource Base Value Theory is related to collaboration as it involves competencies, soft skills, and establishing a good relationship with external parties. Collaborating with other companies can obtain more important external information, where companies can use strategies of collaborating with other companies to internalize external knowledge to improve technology and create collaborative benefits (Ndubisi et al., 2020). Based on this description, the researchers propose the following hypothesis: H4: Collaboration has a positive effect on Competitive Advantage ...
Currently, the increase and competition of industrial development cause natural resource depletion. It is worsened by the pollution that comes from the production process of manufacturing companies with high-profile status. This study aims to analyze the effect of Green Innovation, Green Organizational Culture, Eco-Efficiency, and Collaboration on Competitive Advantage. This study employed a quantitative approach and used secondary data. Causal research was used to establish a relationship between the variables studied and the results of the research questions. Companies listed on the Indonesia Stock Exchange with high profile status in the Consumer Cyclical, Consumer Non-Cyclical, Basic Materials, Industrials, and Healthcare sectors from 2019-2021, were used as samples and taken by purposive sampling. A total of 67 companies participated, with a total of 201 research samples that lasted for three years. This study used descriptive statistical methods, panel data regression selection tests, and hypothesis testing using Eviews 12 software. The results of the model estimation test show that the selected model, namely the Random Effect Model (REM), is the regression analysis method. This study shows that partially the independent variables Green Innovation and Eco-Efficiency as well as the control variables Firm Size and Financial Performance (ROA) have a positive and significant effect on the Competitive Advantage of High-Profile Companies from 2019 to 2021. Meanwhile, the Green Organizational Culture and Collaboration variables do not affect the Competitive Advantage of High-Profile Companies from 2019 to 2021.
... Second, we add granularity to the notion of trust. Jin and Wang (2021); Ndubisi et al. (2020) for example, discuss the trust within a partnership as related to similarity and complementarity of partners' knowledge stocks. One might expect though that features of the knowledge stocks will interact differently with different types of trust. ...
https://www.sciencedirect.com/science/article/pii/S0263786323001229
Abstract:
Competitive pressures and the need for innovation are shaping strategic partnerships. These partnerships share knowledge, collaborate in project activities, and make joint decisions to achieve complex project objectives. However, achieving effective collaboration in strategic alliances is challenging due to miscommunication, missing skills, missing resources, and lack of trust. This study aims to propose a conceptual model based on hypotheses extracted from the literature review, to investigate the effect of knowledge criteria, complexity, and trust between partners on innovation and project success. We analyzed the model using a survey filled by managers of European complex projects. Partial Least Squares Structural Equation Modeling (PLS-SEM) is used to analyze the data. Our results show the significant impact of innovation on the success of the projects, the significant impacts of similarity and complementarity of knowledge on trust between partners, and also the considerable impact of project complexity and trust on innovation.
... Innovativeness of an enterprise has been defined as its capacity come up with novel ideas regarding processes, products, or organization successfully (Ndubisi et al., 2020). The significance of innovation capacity on strategy implementation in strategic change has been regarded as a vital topic in the literature (Ellonen et al., 2009). ...
This article investigates the transformation of tacit knowledge on enterprise development in family business, specifically on genera-tional change. Different generations exhibit different characteristics that will influence organization outcome and strategy management, this motivates the current work to form a conceptual framework, which determines the factors that trigger generation change in family enterprises. First, the case study of plastic family firm examines the firm's historical profiles that were attained from Malaysia's companies house (SSM) to assess the organization capabilities towards enterprise development. Second, this article examines the influence of strategy management during generational change upon innovation capacity. In this case study of plastic family firm in Malaysia, this firm focuses on the firms' ability to keep and advance their tacit knowledge, which prompted them to pick up new technology and skills to achieve innovativeness in their products and services. As the business is inherited by the later generation with a good education background, they tend to form new knowledge.
... The presence of uncertain demand has resulted in an increased emphasis on innovation with a specific focus on enhancing flexibility. According to the findings of Ndubisi et al. (2020), a survey conducted in Malaysia revealed that in situations where enterprises encountered uncertain demand conditions, the presence of complementarity between knowledge and capabilities resulted in increased levels of service innovation. Based on the above discourse, the following hypothesis is proposed. ...
The primary objective of this study is to investigate the influence
of environmental uncertainty and quality on driving both competitiveness and
innovation. Additionally, we examine the roles played by organizational learning
and firm size in this context. Employing a quantitative research approach, our
study is centred on employees within organizations in Saudi Arabia. Data analysis
was conducted using SPSS software. Our findings reveal a noteworthy impact
of Total Quality Management (TQM) and technology uncertainty on innovation.
However, it is important to note that the influence of quality improvement and
demand uncertainty was found to be statistically insignificant in this regard.
Concerning market competitiveness, we observed significant impacts from
quality improvement and technology uncertainty. On the other hand, the effects
of demand uncertainty and total quality management on market competitiveness
were not statistically significant. Additionally, our study reveals the importance
of organizational learning as a mediator and the moderating impact of firm size.
This research holds both theoretical and practical significance and provides
valuable insights for future research, acknowledging its limitations.
Keywords: Quality Practices of Top Management, Demand Uncertainty,
Technology Uncertainty, Quality Improvement, Innovation Performance, Market Competitiveness
... In response to market uncertainty, firms that are able to adopt and implement technological innovations are found to be relatively more successful (Kreye, 2022). Thus, many SMEs tend to become more resilient and are more likely to scout for innovative technologies to service their customers as that helps to improve their productivity when faced with market uncertainty (Ndubisi et al., 2020). ...
This paper introduces a new conceptual model to examine the impact of technological opportunism (technology sensing and response capabilities) on the adoption of incremental and radical technological innovation by small and medium enterprises (SMEs). We tested our hypotheses with data from 228 Indian SMEs using a symmetric method of partial least square structural equation modeling (PLS-SEM) and the asymmetric method of fuzzy-set qualitative comparative analysis (fsQCA) followed by sensitivity analysis done by an artificial neural network (ANN) modeling. PLS-SEM results highlighted the roles of technology sensing and response capabilities as key drivers of both incremental and radical product innovations and the strengthening of these relationships by market uncertainty triggered by external events and crises. Apart from this, the results of fsQCA demonstrated multiple configurations of dimensions associated with the adoption of technological innovations by SMEs. This paper extends the current literature by exploring the process by which SMEs may adopt different types of technological innovation. Our findings also have useful implications for SMEs aiming to adopt technological innovations.
... First, competitive intensity increases an organisation's ability to create a better managerial commitment (Ramaswamy, 2001). It promotes exploring and recognising external threats and opportunities (Ndubisi et al., 2020). Following the strategic choice theory, organisations must develop more sustainable strategies that empower strong managerial commitment in an unpredictable market environment (Child, 1997). ...
Organisations are increasingly determined to rebound from the global effect of the COVID-19 pandemic by considering internal and external strategies to improve performance. Anchored on strategic choice theory, the present study examines how the link between competitive intensity drives corporate performance within emerging markets in the post-COVID-19 business environment. For quantitative analysis, data are collected through the primary method from 350 hotels (3 to 5) star hotels operating in the major sub-Sahara African market-Nigeria; the study examines how competitive intensity in the post-COVID-19 business environment may affects corporate performance. The findings indicate that competitive intensity drives firms to design strategies to strengthen corporate performance. The findings further show that managerial commitment improves the path between competitive intensity and corporate performance. The effect is stronger when there is a high level of innovation input invigorating the link. These findings advance existing strategy and hospitality literature research by improving how organisations translate competitive intensity into effective means of strengthening corporate performance in the hospitality industry. 2 A.M. Ushie et al.
... Finally, this study only considers the moderating role of social media strategic capability and big data analytics capability in the relationship between CSR and innovation performance. Other contextual factors, such as competitive intensity and institutional context, may also play a crucial role (Krammer, 2022;Ndubisi et al., 2020). Thus, investigating these factors could provide another avenue for future research to enrich our understanding of CSR and innovation performance. ...
Purpose
The purpose of this study is to investigate the impact of corporate social responsibility (CSR) on innovation performance and examine the moderating role of social media strategic capability and big data analytics capability. Specifically, the authors explore the effects of both external and internal CSR on innovation performance.
Design/methodology/approach
The authors collected data from 221 senior, middle and research and development (R&D) managers of high-tech firms in China, using a questionnaire survey with a six-month interval.
Findings
The empirical results show that both external and internal CSR positively influence innovation performance. Furthermore, social media strategic capability has a positive moderating effect on the relationship between CSR and innovation performance, while big data analytics capability moderates the relationship between external CSR and innovation performance.
Research limitations/implications
The data comes from high-tech firms in China, which may limit the generalizability and external validity of the findings. Future studies should replicate this study in other industries and types of organizations.
Practical implications
The study suggests that high-tech firms should engage in both external and internal CSR activities to promote innovation performance. Moreover, leveraging social media strategic capability and big data analytics capability can enhance innovation performance.
Originality/value
This study contributes to the literature on CSR outcomes by empirically exploring the effects of external and internal CSR on innovation performance, thus extending stakeholder theory. Additionally, by revealing the contingency effects of social media strategic capability and big data analytics capability, this study enriching the research on dynamic capabilities theory in the context of digital transformation.
... The creation of new value propositions by means of developing existing or creating new practices and/or resources, or by means of integrating practices and resources in new ways." Ndubisi et al. (2020)[39] "The development of new processes, technologies, products, and services that meet market preferences."Woo et al. (2021)[4] ...
In the era of fierce competition under the evolution of advanced technologies, service innovation plays a decisive role in the survival of organizations. The service innovation evaluation problem becomes necessary for organizations to review their innovation performances for making according policies to develop innovative services to satisfy customer needs. This paper addresses the problem by developing a new methodology for evaluation of service innovation in banking organizations from the customer perspective. As service innovation is typically characterised by multiple indicators that are qualitative in nature with their performance being assessed subjectively by customers, we first formulate the evaluation problem of service innovation using customer surveys as that of multi-criteria decision making under uncertainty and then develop an evaluation model based on the Dempster–Shafer theory of evidence for solving it. We conducted an empirical study of three banks in Vietnam to illustrate the effectiveness and applicability of the proposed methodology. It has been shown that the evaluation outcome could provide banks with their competitive advantages compared with competitors in terms of service innovation.
... Trading partners can increase productivity in the value chain by making relation-specific investments and combining resources in novel ways (Asanuma, 1989;Dyer, 1996). This suggests that buyer-supplier dyads that bundle resources creatively may gain an edge over rival companies that can't or are reluctant to take this step (Asanuma, 1989;Ndubisi et al., 2020). Accordingly, in this study, we focus on relation-specific assets and examine whether SSIs lead to rents in the form of new product performance. ...
... Co-operation of and collaboration with stakeholders become more critical in the digital landscape to promote effective responses to technological change. Attention is increasingly focused on synchronised internal and external collaboration (Jagtap and Kamble, 2019) to promote innovation and value co-creation through the sharing of complementary knowledge, resources, and capabilities (Ndubisi et al, 2019). ...
The enterprise-wide scope of an organisation’s IT capability in sustainably leveraging technology for business value is well-researched, and the level of maturity of this capability is a key determinant of an organisation’s success. IT capability maturity has become more critical as technological developments continue at an accelerated pace and as whole industries are being disrupted by digital developments. Maturity in terms of IT leadership, IT processes, IT infrastructure, and a myriad of other supporting organisation-wide capabilities is required. Since the 1980s, maturity models in the literature have focused on specialist niche areas, with few adopting a holistic perspective. Across these models, a lack of consensus is evident on the key capabilities that should be matured and on what the important sub elements or building blocks of these capabilities are. How does the organisation achieve an adequate level of maturity if the required capabilities are unclear? As one of the most holistic IT capability maturity models identified, this paper undertakes a systematic analysis of the 36 IT capabilities within IT Capability Maturity Framework (IT-CMF) and the 315 sub elements (Capability Building Blocks (CBBs)) that comprise these capabilities. This research aims to identify the common sub elements or building blocks inherent across the 36 capabilities, which we will refer to as Foundational Capability Building Blocks (FCBBs), and a high-level definition of these FCBBs abstracted from the relevant sub elements and discussed in terms of their recognised importance to effecting successful digital transformations. From an academic perspective, the research provides deeper insight on common themes that are pertinent to IT capability improvement. From an industry practitioner perspective, it breaks down the complexities of IT capability maturity with a focus on a manageable number of considerations.
... La capacidad de innovación empresarial implica una administración efectiva de los elementos clave de éxito; los internos como la actitud y las actividades innovadoras, y los externos, asociados con el relacionamiento entre empresas para mejorar la organización y la competitividad (Pérez, 2019;Rodriguez y Quintero, 2022). A su vez, Ndubisi et al. (2020) argumentan que las capacidades de innovación conjunta crean una innovación de servicio superior, incluso en condiciones de competencia e incertidumbre de la demanda. De igual manera, Romero y León (2020), sostienen que la capacidad de innovación está compuesta por la presencia simultánea de cuatro procesos organizativos: Creación de conocimiento, absorción de conocimiento, integración de conocimiento y reconfiguración de conocimiento. ...
The importance of education to promote the processes inherent to innovation and entrepreneurship is currently of vital importance in professional training, which in turn links the impact it has on macroeconomic variables such as economic growth and development of an economy. In this sense, the general objective of the research is to explain the influence of education on variables such as innovation, entrepreneurship and its impact on growth and development, in this particular, in Latin American countries. From the methodological point of view, a documentary review is made regarding future projections within the framework of these variables, and a statistical analysis of cases such as America, Europe and Asia, in order to integrate the different experiences and models, taking as reference the results that in praxis are currently consonant with each one in particular. Finally, the importance of framing in education the congruence and pragmatic coherence of the objectives of public policies in terms of innovation, research, science and technology is concluded, which in turn promotes the multiplier effect in synergy with the private business sector, promoting between both variables such as growth, poverty and development.
... The contingency theory perceives that firms are highly dependent on the alignment with their environment (external fit) and the congruence of their organizational elements (internal fit) (Wilden et al., 2013;Barreto, 2009). Thus, firms must continuously reconfigure their resource base or redirect their operation models to maintain and improve their "external fit" with the environment (Ndubisi et al., 2020). The "internal fit" between strategy and structure is also required to keep maintained to achieve superior performance (Guo and Cao, 2014;Mu, 2015). ...
Purpose
Despite servitization being widely regarded as an essential catalyst to improve manufacturing firms' survival and competitiveness, how to attain servitization remains debatable. The primary objective of this research is to explore whether or not, how, and when the dynamic capabilities affect servitization in the digital economy background. This research investigates the relationships between servitization and dynamic capabilities by incorporating firm ownership, firm lifecycle stage, digital economy level and environmental uncertainty as contingency factors in the research framework.
Design/methodology/approach
This research develops and verifies a conceptual framework for manufacturing servitization by employing the fuzzy-set qualitative comparative analysis (fsQCA) in analyzing the secondary longitudinal data from 148 China-listed manufacturing firms involved in servitization from 2015 to 2020.
Findings
The analytical results of fsQCA identify several configurational solutions for the success of manufacturing servitization. Each factor can be an enabler for servitization success despite none of the factors discovered as an absolute condition. Manufacturing servitization success within the digital economy depends on the interactions between dynamic capabilities and contingency factors such as digital economy level, environmental uncertainty, firm ownership, and lifecycle stage.
Research limitations/implications
All of the construct's measurements in this research adopt secondary data, and further investigation calls for primary data (e.g. survey) for higher validity.
Originality/value
This research extends the current view of servitization by proposing an integrative conceptual framework, allowing manufacturing servitization to be examined more pertinently and comprehensively. Second, the research is an initial attempt that adopts fsQCA in servitization studies. The study sheds light on the mechanisms of attaining servitization by revealing the importance of dynamic capabilities and their interactions with the contingency factors. Third, the research extends the application scopes of dynamic capability theory, firm lifecycle theory, contingency theory, and institutional theory. Fourth, the research findings enrich the understanding of servitization in the digital economy and give business practitioners insights on leveraging dynamic capabilities in different conditions to attain successful servitization under the current circumstances.
... When a firm deals with highly demanding customers and intense competition, it should be more innovative in producing new products and services in order to succeed in the marketplace and increase its performance relative to its competitors [3]. Therefore, continuous innovation matters in today's business environment where it is the only source of sustainable competitive advantage [4]. Innovation deals with transforming, developing, and implementing new ideas to generate processes or products [5]. ...
The purpose of this study is two-fold: first is to examine the direct effect of green customer integration, green supplier integration, and new product flexibility on sustainable green product innovation (henceforth sustainable innovation), and the second is to assess the mediating role of sustainable green product innovation in the relationship of the independent variables on competitive advantage of the firm. To test these relationships, a quantitative method is used, employing a cross-sectional survey targeting the senior managers of the manufacturing sector in Jordan. Out of 750 surveys administered to respondents, 378 complete responses were obtained, yielding a response rate of 50.4%. Covariance-based structural equation modelling (CBSEM) using AMOS 28 is utilized to analyse the data. The results suggest that green customer integration, green supplier integration, and new product flexibility have a significant impact on sustainable green product innovation. The results also suggest that sustainable green product innovation has a significant mediating effect on the relationship between the three predictor variables and competitive advantage. In addition, new product flexibility partially mediates the relationship between green supplier integration and sustainable green product innovation.
... Previous studies also support this result. Ndubisi et al. (2020) argued that service production requires the information and knowledge from their partners to accelerate the value coproduction process. Thus, dynamic service innovation capabilities can enhance the service innovation process and satisfaction. ...
Along with the advancement of information technology and service innovation, service-dominated logic has become one of the most important concepts for firms to acquire a competitive advantage. According to service-dominated logic, all service innovation should be conceptualized based on the application of competencies (e.g., knowledge and skills), and firms should leverage these competencies to promote values and benefits for each exchange or transaction. This study integrates relevant theories and constructs to develop a comprehensive model of service innovation focusing on a service-dominated logic perspective. Data from 135 Vietnamese business owners or management executives were collected and analyzed, and research hypotheses were assessed by employing partial linear square structural equation modeling (PLS-SEM). The findings indicated the interrelationship between service-dominated orientation, dynamic service innovation capability, service knowledge creation, service innovation, and service satisfaction. The results could be beneficial for academicians to further validate the research model and could also be very useful for professionals to design and implement their service innovation strategies.
... Competitive intensity is another external contextual factor that might affect the relationships between managerial ties and green innovation. It refers to the strength of competition in relation to the saturation level and growth potential of a market [67]. More intense competition has been associated with greater rivalry, more aggressive price wars, and competing product offerings [68]. ...
Green innovation has significant implications for firms’ financial, environmental, and social performance. However, its externalities may inhibit the proactive involvement of firms in such initiatives. In this study, we examined the roles of two types of managerial ties (i.e., business and political) in green innovation and further investigated the moderating effects of two types of contextual factors (i.e., environmental regulations and competitive intensity). By conducting an empirical study using survey data from 218 samples, we confirm that business ties positively affect green innovation while political ties have an inverted U-shaped effect. Moreover, the relationship between managerial ties and green innovation is contingent on specific context settings. Our results show that the environmental regulations enforced by the government strengthen both the effects of business and political ties, while the competitive intensity has no effect on the relationship between business ties and green innovation; however, it sharpens the curvilinear effect of political ties.
... A purposive sampling method was adopted because of the difficulty in applying a probability sampling technique, as reported within the entrepreneurial research field, especially in the UAE (Ndubisi, Dayan, Yeniaras, & Al-hawari, 2020;Zacca, 2015). The research team selected the survey respondents from a list of enterprises maintained by a market research firm in Dubai. ...
The study examines the interaction effects of constructive politics and market turbulence on the entrepreneurial orientation–performance relationship. The proposed structural model tests the mediating role of constructive politics between the entrepreneurial orientation and performance constructs and the moderation effect of market turbulence on this mediating relationship. Data were collected from 145 small and medium-sized enterprises (SMEs) in the United Arab Emirates. The results suggest that entrepreneurial orientation indirectly affects performance through constructive politics. Furthermore, the results indicate that the relationship between constructive politics and the firm's performance was stronger during low market turbulence. Findings suggest that entrepreneurial-oriented SMEs should embrace constructive politics where influence and power can be channeled to enhance financial performance, especially in market stability.
... This is empirically shown in logistics studies that supply chain stability (i.e. volume and launch flexibility) is essential to product reactions and other marketing uncertainties (Mentzer et al., 1999a;Ndubisi et al., 2020). Environmental uncertainty can be regarded as the whole of uncertainties in the general environment, including political, regulations, legal, and economic conditions, as well as the dynamics of the market, the organization's operations, and the change in demand and supply conditions in the sector including the change in technological resources. ...
This study examined the moderating role of environmental uncertainty on the connection between logistics flexibility, relationship flexibility, and logistics service quality. This study covered large and medium- sized companies operating in the Gaziantep Organized Industrial Zone. Company lists were created based on records in the Gaziantep Chamber of Industry. A questionnaire was sent to a total of 1627 companies by e-mail and company managers were asked to fill in the online questionnaire. The managers of 356 companies fully completed the questionnaire. SPSS Process Macro V3.4 was used to calculate the moderator effects of environmental uncertainty. The macro also reported the effect level of independent variables on dependent variables. According to the results of the analysis, logistics flexibility and relationship flexibility affected logistics service quality, positively and significantly. Besides, environmental uncertainty had a moderator role in the relationship between logistics flexibility and logistics service quality. There were some limitations. A questionnaire was used as a data collection tool in the study. Thus, personal perceptions of the participants could be apparent in the information given about the company since questionnaire data was formed in accordance with statements given by the respondents. In future researches, it is recommended that measurement tools that can determine environmental uncertainty more objectively could be used on a sectoral basis to secure clearer results. It is recommended that companies take into account environmental uncertainty when determining a strategy(s) to enhance the quality of logistics services.
El desarrollo de modelos de negocio digitales está afectando a la cadena de valor tradicional de la movilidad, lo que implica nuevos retos y cambios a futuro para los fabricantes de automóviles. Además, las nuevas tecnologías de movilidad han propiciado la entrada de nuevos actores en la industria, lo que ha influido en la división espacial tradicional del trabajo y en la configuración del estatus regional de la industria.
Adoptando el enfoque de Cadena de Valor Global, la tesis analiza la evolución, orientación a corto plazo y visión de futuro de la adopción de modelos de negocio digitales de movilidad por parte de los fabricantes de automóviles. Asimismo, en esta tesis se propone un nuevo marco para definir un modelo espacial "centro-semiperiferia- periferia" de la industria automovilística. Bajo este modelo, basado principalmente en las variables clave de las empresas nacionales vinculadas a las nuevas tecnologías de la movilidad, se analiza el estatus comparativo de las regiones de la industria europea del automóvil tradicionalmente consideradas periféricas y semiperiféricas.
Sin embargo, la digitalización actual no solo ha cambiado la Cadena de Valor Global, sino que también ha redefinido el panorama empresarial, donde la gestión de datos es esencial. Herramientas como la Inteligencia Artificial y el Big Data abren nuevas posibilidades, especialmente desafiantes en entornos B2B por la incertidumbre tecnológica y la competencia. A su vez, estas circunstancias provocan que el emprendimiento sea especialmente difícil y que los emprendedores se encuentren en constante alerta. En esta línea, la tesis explora estas oportunidades de emprendimiento y proponen acciones para mejorar las perspectivas en los servicios B2B en la nueva economía digital.
Los resultados obtenidos muestran que las empresas están adoptando modelos de negocio centrados en plataformas digitales y servicios de conectividad en la industria de la movilidad. La recolección y gestión de datos, junto con la interconectividad, son aspectos clave para el desarrollo futuro tanto de la industria como de estas empresas. La digitalización está transformando las relaciones en la cadena de valor, lo que podría implicar que los fabricantes de automóviles cedan parte de su control a nuevos actores,
como son los socios tecnológicos y de servicios, lo que implicará una mayor distribución del poder a lo largo de la cadena de valor.
Además, los resultados sugieren que las empresas nacionales de las regiones analizadas no difieren en términos de poder de decisión, posicionamiento de primer nivel, valor añadido o innovación tecnológica. Por lo tanto, puede concluirse que, actualmente, comparten el mismo estatus dentro de la nueva cadena de valor de la movilidad. Esto tiene implicaciones relevantes para las políticas públicas en toda la industria europea del automóvil. Las políticas deberían centrarse en la innovación en nuevas tecnologías de movilidad y en la creación de un ecosistema adecuado para desarrollar industrias nacionales alrededor de estas, con el fin de garantizar un estatus regional más favorable en esta industria competitiva.
Los resultados también ofrecen una nueva perspectiva tanto de la oportunidad empresarial como de la alerta emprendedora, destacando que los modelos de negocio más prometedores en B2B son aquellos relacionados con la inteligencia artificial, la gestión de datos y la sostenibilidad. Por lo tanto, se recomienda que las empresas inviertan en estas áreas y limiten otras como el alquiler de vehículos o la personalización de servicios. Además, los emprendedores deben adoptar la alerta emprendedora, fomentando la innovación, la creatividad y la adaptabilidad; la gestión del riesgo, la creación de redes y el desarrollo de habilidades empresariales son competencias altamente valoradas, mientras que los entes públicos deberían actuar indirectamente a través de medidas legales y fiscales.
Purpose
This paper aims to derive a model that explores how the interplay between knowledge integration capability and innovation impacts strategic orientation, leading to the attainment of sustainable competitive advantage. The study considers the constituents of strategic orientation, namely, customer orientation, competitor orientation and technology orientation, as the basis for achieving sustainable competitive advantage. The study suggests that the firm’s capacity for integrating external and internal knowledge shapes how strategic orientation influences sustainable competitive advantage through service innovation.
Design/methodology/approach
This empirical research relies on qualitative and quantitative data gathered from telecom professionals to assess how knowledge integration and service innovation influence sustained competitive advantage. Structured equation modeling is used to examine the model and its interrelationships.
Findings
The research establishes significant relationships between strategic orientations, knowledge integration capability, service innovation and sustainable competitive advantage. Knowledge integration capability and service innovation are found to mediate the relationship between strategic orientations and the achievement of sustainable competitive advantage.
Practical implications
The study highlights the significant contribution of a firm’s knowledge integration capability in driving service innovation, especially in technology-intensive service industries facing hypercompetition. It also advocates prioritizing technology orientation and integrating knowledge from internal and external sources for competitive advantage.
Originality/value
To the best of the authors’ knowledge, this study is the first to model the effect of knowledge integration capability and service innovation on strategic orientation-led sustainable competitive advantage.
While industry conventions underscore the imperative for firms to accelerate their new product development (NPD) speed in order to maintain competitive advantage, especially when they face intense competition, extant literature has afforded relatively scant attention to the phenomenon of competitive intensity as a driver of NPD speed. Equally underexplored are the operational mechanisms and the boundary conditions of the effects of competitive intensity on NPD speed. Drawing on the knowledge‐based view, this paper reveals how competitive intensity shapes firms' NPD speed through knowledge integration and the contingency of both the direct effects and the mediating effect on market orientation. Data collected from a sample of Chinese manufacturing firms support the hypotheses of these multifaceted effects. The research findings contribute to the NPD literature in multiple ways and provide useful recommendations to managers.
Employees are essential for enterprises to carry out innovation activities to obtain a sustainable competitive advantage. However, the current empirical evidence in the wellness industry is inconclusive, especially fully capturing the complexity of new assessments by digital technology. The present study employs complexity theory to explain and better understand causal patterns in employee participation and service innovation and investigate a framework in the Chongqing wellness industry. This study employs fsQCA on a sample of 208 experienced employees. The results showed that nine configurations could explain high service innovation, and seven designs explained low. This study contributes to the literature by providing new insights into the relationship between factors influencing service innovation in the wellness industry and advancing the theory of how employee participation and the innovation environment combine to explain high-quality service innovation better. The survey results support four models: customer participation stimulates innovation model, highly dedicated innovation model of employees, digital technology-driven innovation model, and driven model of interpersonal relationship, which allow managers to respond to different levels of employee participation.
Managing business-to-business (B2B) relationships can be taxing for many boundary-spanners and lead to burnout. However, despite the widespread prevalence of burnout in the contemporary workplace, B2B marketing research has overlooked the question of what leads to boundary-spanner burnout, along with its relational consequences. This study draws from the job demands-resources model and network theory, connects these two lenses, and explains how boundary-spanner burnout mediates the link between customer participation (CP), supplier participation (SP), and customer relationship performance (CRP), and how focal firms' network centrality and network density moderate the nexus of those linkages. Using dyadic data in which we match pairs of boundary-spanners and managers, we reveal both CP and SP positively relate to boundary-spanner burnout. Nevertheless, we find that firms' network centrality positively moderates the CP–burnout and SP–burnout relationships and firms' network density, while positively moderating the CP–burnout relationship, negatively moderates the SP–burnout relationship. Our key contribution is revealing the pivotal and multifaceted role of network centrality and density in conditioning the mediating role of boundary-spanner burnout in connecting CP, SP, and CRP.
Marketing and management scholars agree that organizations should focus on their core resources and capabilities in their effort to create a competitive advantage. However, tourism researchers and practitioners need more empirical evidence from emerging tourism destinations, viz. under what conditions can core destination resources and capabilities deliver this edge more effectively. Consequently, this paper examines the effect of core destination resources, namely natural resources, heritage resources and created resources on destination image, and the moderating effects of customer value and destination satisfaction. International tourists to Qatar (an emerging tourism destination) provided the data for the study. The results show that natural resources and heritage resources are significantly related to the destination image, but created sources are not. Customer value positively and negatively moderates the association of natural resources and heritage resources respectively with destination image. Destination satisfaction positively moderates the relationship between heritage resources and destination image. The findings suggest a preponderance of inimitable endowed resources over imitable created resources in explaining destination image, thus justifying a focus on the former when crafting destination benefits proposal to international tourists. Practitioners and policymakers should also emphasize the unique value of these resources, be mindful of price in/sensitive customers when making destination resources cost/benefit decisions, and deliver delightful experience to customers to enhance destination image. Detailed managerial and theoretical implications of the study are presented.
Despite extensive research focus on the role of resource integration and combination in service innovation, the influence of decision-making logic has not been scrutinized. This study aims to examine the influence of effectuation, a distinct control-oriented decision-making logic, on small and medium-sized enterprises’ (SMEs) service innovation. Based on a survey of Chinese manufacturing SMEs, the findings show that effectuation has an inverted U-shaped relationship with incremental service innovation but a linear positive relationship with radical service innovation. Moreover, environmental uncertainty reinforces the relationship of effectuation with incremental and radical service innovation. Finally, the relationship with business customers’ value perception is positive for incremental service innovation but inverted U-shaped for radical service innovation. The findings offer unique insights into the importance of effectuation for SMEs’ service innovation in uncertain environments, as well as for customers’ value perception in the business market.
Purpose
This study aims to develop a moderated mediation model to explain the practices of supply base management and how they can achieve innovation performance, and the authors explore the boundary conditions of this implementation mechanism.
Design/methodology/approach
The authors used the bootstrap procedure to conduct empirical tests on 328 Chinese manufacturers to verify the proposed model.
Findings
The results showed that supplier innovation focus, supply-base structuring and long-term relationship focus have a positive impact on innovation performance through supplier innovativeness, and the mediation performs differently under technology and demand uncertainty.
Research limitations/implications
The authors only focused on innovation performance, and it does not explore the links between supply base management and other performance outcomes. This study involves part of the supply network which is easier to manage, i.e. supply base. The authors ignored the importance of other members in supply network. Finally, the data obtained in this study belong to the cross-sectional data during the same period but it accomplishes the research aim well.
Practical implications
The focal firm needs to improve their supply base composition, establish permeable organizational boundaries, and build long-term strategic partnerships characterized by equality and trust with suppliers to stimulate supply base members to make innovative contributions.
Originality/value
This study complements the implementation path of manufacturers around innovation, emphasizing multidimensional characteristics of supply base management. And this study clarifies the mechanism and boundary conditions between supply base management and innovation performance.
Purpose
This study recognizes service as the majority contributor to global and US gross domestic product and the importance of innovation speed to service innovation. Generating innovative products and services at a faster rate generates advantages for business-to-business (B2B) service organizations in keeping up with and moving ahead of rivals. This study aims to introduce the concept of capacity for social exchange (CSE) in buyer–supplier relationships, which reflects the degree to which individuals possess competencies that enable the exchange of information, and this study also explores how CSE affects knowledge sharing and innovation speed within a supply chain organization.
Design/methodology/approach
The sampling frame of this research consisted of service businesses in the USA. The data were collected through Zoomerang, an online survey research firm where the B2B panel of Zoomerang formed the sampling frame. The data was collected from 264 B2B service sector executives.
Findings
The key findings are as follows: CSE facilitates knowledge sharing; knowledge sharing is positively related to innovation speed; and the relationship between CSE and innovation speed is fully mediated by knowledge sharing. Additional analysis reveals that knowledge channels which are designed as boundary-spanning strategies used to transfer and create knowledge between business units, directly increase – and positively moderate – the relationship between CSE and innovation speed.
Originality/value
This study addresses the gap in literature focused on micro-level influencers on innovation. This study sets out by presenting the concept of CSE, and this study addresses limitations in prior work by examining the research questions.
At the acclaimed ‘Solvay’ conference in 1927, two Nobel Prize winners—Albert Einstein (Nobel Prize in Physics, 1921) and Niels Bohr (Nobel Prize in Physics, 1922)—went head- to- head over their differences of opinion on a field of quantum science—the nature of light. Their disagreement was about the contradictions at the heart of quantum theory. Out of this debate, the term complementarity was used to explain a situation in which two theories which were thought to be mutually exclusive were both required to explain a single phenomenon. However, quantum physics was not the only area in which complementarity theory and practice were considered. In economics and business management a range of ideas have emerged with both strategic and operational applicability. These include quantitative complementarity occurs when an increase in the quantity of one good leads to an increase in the value of another; qualitative complementarity is when an increase in the quality of one good leads to an increase in the value of quality of another good such as a suit paired with a tie. Other variations were classified as complementarities-in-performance and complementarities-in-use. The former approach tests the economic value of combining different activities and practices whilst the latter investigates the links between two sets of activities, suggesting that one practice often requires other practice. From these many interpretations have emerged a concept that has the potential to offer competitive progression to organisations in this dynamic new environment.KeywordsComplementarityQuantum physicsEconomicsBusiness practice
As automobile manufacturing firms often outsource third-party designers to produce key innovative components, the suppliers of these third-party designers must be capable of collaborative innovation through cooperative learning in today's changing technology and customers' demands. However, research has rarely investigated how suppliers' relationships - specifically, the mutual dependence among suppliers - can be leveraged to enhance cooperative learning and thus the final product quality. This research draws on social interdependence theory to examine the associations between two main types of interdependence (task and resources) and cooperative learning under different levels of technology novelty conditions. Based on data collected from automobile parts suppliers in China, the results indicate that resource and task interdependence were positively associated with cooperative learning. However, high task interdependence is unfavorable under high technological novelty; whereas, resource interdependence is a key driver of inter-organizational learning under higher levels of technological novelty. The results of this study have significant theoretical and implications for researchers and designers to nurture suppliers' cooperative learning capabilities under diverse technology novelty conditions.
Smart service innovation is the process of reconfiguring resources, structures, and value co-creation processes in service systems that result in novel data-driven service offerings. The nature of such offerings requires the involvement of multiple actors, which has been investigated by a few studies only. In particular, little is known about the multiple actors’ efforts to manage uncertainty in the process of establishing smart service systems. Empirically grounded in data from 25 interviews with industry experts, we explore how organizations act and interact in smart service innovation processes. For our data analysis, we adopt a microfoundational view to derive a theoretical model that conceptualizes actor engagement as a microfoundation for iterative uncertainty reduction in the actor-to-actor network of the smart service system. Our study contributes to information systems research on service systems engineering and digital transformation by explaining smart service innovation from both a multi-actor and a multi-level perspective, drawing on service-dominant (S-D) logic and microfoundations as well-established theoretical lenses.
Purpose
Based on the literature on disruptive innovation, this research explores how disruptive innovation directly and indirectly (via innovation speed and innovation quality) influences firm performance in relation to the contingency of market-supporting institutions.
Design/methodology/approach
A sample of 207 firms was gathered through questionnaires targeting senior managers and R&D managers from high-tech firms in China with two waves including explanatory variables and outcome variables.
Findings
This empirical results indicate that disruptive innovation positively affects firm performance, and that innovation speed and innovation quality mediate the relationship between disruptive innovation and firm performance. Meanwhile, market-supporting institutions positively moderate the relationship between innovation speed and firm performance, but negatively moderate the relationship between innovation quality and firm performance.
Research limitations/implications
This study suggests that disruptive innovation is important to firm performance, innovation speed and innovation quality play mediating roles, and market-supporting institutions acts as moderating effects. A research limitation is that the data were collected mainly through a questionnaire.
Practical implications
Firms should incorporate disruptive innovation as an important strategy and improve innovation speed and innovation quality to promote firm performance, and policymakers should improve the levels of market-supporting institutions to facilitate innovation and performance.
Originality/value
This study contributes the literature of disruptive innovation by uncovering the positive effect of disruptive innovation and firm performance and the mediating effects of innovation speed and innovation quality on the abovementioned relationship, and revealing their contingency effects of market-supporting institutions.
We propose a conceptual model of the drivers, moderators, and outcomes of a firm’s effective import strategy, anchored on the Dynamic Capabilities and Industrial Organization theories. While the former theory explains the mechanism through which dynamic capabilities facilitate import strategy effectiveness that boosts competitive advantage and ultimately enhances financial performance, the latter theory sets the foundation for explaining the contingency role of both competitive intensity and environmental uncertainty on translating effective import strategy into competitive advantage. The model was tested using a sample of 151 British importers of small-to-medium size, with results indicating that possession of high levels of certain dynamic capabilities of a generic (i.e., adaptive and entrepreneurial) and import-specific (i.e., source identification and market development) nature are conducive to import strategy effectiveness. The latter was found to generate both product-differentiation advantage and low-cost advantage, although this was contingent on the degree of competitive intensity and environmental uncertainty prevailing in the importer’s home market. Finally, it was confirmed that both product-differentiation advantage and low-cost advantage have a favorable impact on the importer’s financial performance.
SMEs still need innovation to boost their performance in the age of globalisation and fierce market rivalry. Previous studies have identified that innovation capability is an essential driver in manufacturing industries for their survival. Yet, the featuring role of innovation capability has been considered theoretically in developed economies whereas empirical studies in emerging economies are still lacking. Therefore, the purpose of this study to examines the importance of innovation capability towards SME performance and the mediating role of technology-adoption. Structured questionnaires were used to collect the data from a sample size of 611 SMEs operating in the developing market of Malaysia. Derived hypotheses were verified through Structural Equation Modelling (SEM) using AMOS 21. The findings of the study indicated that innovation capability has a significant positive impact on SME performance. Technology- adoption partially mediates the relationship between innovation capability and SME performance. SMEs are required to generate an operative innovation model to gain sustainable performance and competitive advantage in the Malaysian market.
Purpose
The main purpose of this paper is the identification of the conceptualization of trust as well as its factors and outcomes in interorganizational relations in mobile supply chains (MSCs) in which multiple stakeholders collaborate.
Design/methodology/approach
The authors first used a comprehensive literature review to extract related factors and outcomes of trust. Second, the authors conducted semi-structured interviews in chemical and pharmaceutical companies in Germany. These organizations stand out as leaders in the concept of MSCs and have developed collaborations with various stakeholders.
Findings
Based on the results, a conceptual model has been developed that elaborates on the nature of trust and its factors and outcomes for cultivating trustful stakeholder collaboration. The study identifies six factors or approaches for building trust and two outcomes resulting from mutual trust.
Practical implications
The conceptual model presented in this study can serve as a basis for developing trust in MSCs. Interorganizational collaborations in MSCs are more successful when saturated with trust. The collaboration systems must allow the innovative organizations to create value through the adaptation of advanced technologies without failure.
Originality/value
The study adds to the body of knowledge in building trust in multiple stakeholder collaboration, particularly in innovative organizations which are involved with disruptive technologies.
Various factors enable manufacturing firms to attain a competitive advantage based on service innovation – that is, to achieve service innovation performance. Starting from a dynamic capabilities perspective, this article predicts that absorptive capacity is one such critical factor, which in turn may be driven by employee collaboration and the firm’s search breadth. The findings of a survey study of small to medium-sized Dutch manufacturing firms confirm that employee collaboration and search breadth have positive effects on an organization’s potential absorptive capacity, whereas employee collaboration also reinforces its realized absorptive capacity. Thus realized absorptive capacity ultimately enhances service innovation performance. The results have implications for dynamic capabilities theory, and they provide practitioners with potential means to outperform their competitors in service innovation efforts.
Drawing on previous literature proposing that entrepreneurial orientation (EO) – performance relationship is
mediated by entrepreneurial activity, we examine the mediating role that exploratory and exploitative innovation plays in proactiveness-new product performance association. We complement the literature concerning the EO-performance relationship with the introduction of business ties and competitive intensity that the mediation effect is conditioned to. While data from 344 small-medium enterprises indicate the mediation effects, we provide empirical evidence that these mediation effects are conditional to the strategic resources and external stimuli. In this context, whereas the mediation effect of exploratory innovation in the proactiveness-new product performance relationship is not conditional to either business ties or competitive intensity, we show that exploitative innovation mediates this relationship only in the presence of business ties irrespective of competitive intensity level.
Purpose
This study aims to assess the relationship between entrepreneurial orientation (EO) and development culture and the role of willingness-to-change in this relationship and analyzes their effect on new product exploration in small enterprises.
Design/methodology/approach
A model based on structural equations with partial least squares (PLS) analysis is used to test the hypotheses. This model was tested on a sample of 250 respondents from 125 small enterprises, with less than 50 employees, located in all seven emirates of the UAE.
Findings
The results suggest that EO will induce organizational members’ willingness-to-change and will favor the advancement of a development culture in small enterprises; in addition, EO, willingness-to-change and development culture can lead to new product exploration in small enterprises.
Research limitations/implications
The study findings are subject to potential limitations. First, the research design for the quantitative study was cross-sectional and self-reported, which could cause problems of common method and inflation bias. Second, the conceptual model may not be completely representative of the perspective the authors aim to elucidate. Third, as this study is country-specific, further research investigation in other developing economies is recommended to further understand the possible influences of cultural or socioeconomic contexts on the relationships presented in the model.
Practical implications
The article includes several practical implications about the relationships between willingness-to-change and development culture. It sheds light on the controversial link between EO and new product exploration in small enterprises.
Originality/value
The present study expands current knowledge on the EO–new product exploration relationship by investigating some key mediating variables such as willingness-to-change and development culture in an under-researched context such as UAE.
Purpose
– This paper aims to analyze the impact of three types of embedded ties, namely, specialized complementary resources, idiosyncratic investments and knowledge sharing, on the innovation capacity of firms. It also examines the particularities of the machine-tool industry.
Design/methodology/approach
– The evaluation of the embedded buyer-supplier ties is based on the potential sources of relational rents proposed by Dyer and Singh (1998). It also draws on Uzzi and Lancaster (2003) and Noordhoff et al. (2011), among others, to discuss the positive and negative aspects of embedded ties. Using data from a survey of 202 European machine-tool firms acting as buyers and sellers, the study proposes and evaluates a structural equation model.
Findings
– Only knowledge-sharing routines exert a significant positive effect on product innovation performance. Neither an increase in idiosyncratic investments nor in complementary resources and capabilities enhances innovation performance. Moreover, knowledge-sharing routines mediate in the effect of idiosyncratic investments on innovation performance.
Research limitations/implications
– The machine-tool industry has unique characteristics that make generalization difficult. There is also considerable difficulty associated with testing the interrelations among these embedded ties in greater depth in the long run. It is plausible to consider that these interrelations operate within a gradual process.
Originality/value
– This research contributes to a better understanding of the role of embedded ties on innovativeness. To the best of the authors’ knowledge, no previous international empirical research has been published analyzing the mediation effects among specialized complementary resources, idiosyncratic investments and knowledge sharing, and their effects on the innovation capacity of firms.
In this article, we offer a broadened view of service innovation-one grounded in service-dominant logic-that transcends the tangible-intangible and producer-consumer divides that have plagued extant research in this area. Such a broadened conceptualization of service innovation emphasizes (1) innovation as a collaborative process occurring in an actor-to-actor (A2A) network, (2) service as the application of specialized competences for the benefit of another actor or the self and as the basis of all exchange, (3) the generativity unleashed by increasing resource liquefaction and resource density, and (4) resource integration as the fundamental way to innovate. Building on these core themes, we offer a tripartite framework of service innovation: (1) service ecosystems, as emergent A2A structures actors create and recreate through their effectual actions and which offer an organizing logic for the actors to exchange service and cocreate value; (2) service platforms, which enhance the efficiency and effectiveness of service exchange by liquefying resources and increasing resource density (facilitating easy access to appropriate resource bundles) and thereby serve as the venue for innovation; and (3) value cocreation, which views value as cocreated by the service offer(er) and the service beneficiary (e.g., customer) through resource integration and indicate the need for mechanisms to support the underlying roles and processes. In discussing these components, we consider the role of information technology-both as an operand resource and as an operant resource- and then examine the implications for research and practice in digitally enabled service innovation.
Prior research has identified two different sources of strategic imitation—through perceived organizational cluster similarity (cluster effects) and direct social connections (tied-to effects). In the research on tied-to effects, top executives’ social ties, such as outside directorships, have long been studied as a mechanism through which strategic imitation develops. However, are all ties the same? There has been little examination of whether some social ties have more influence than others. Using the attention-based view of the firm, we argue that certain social ties garner more attention by being salient to top executives. We empirically test this assertion by examining the effects of CEO outside directorships on R&D spending. Using panel data from large U.S. manufacturing firms, we find that CEOs imitate the R&D intensity of tied-to firms (i.e., a firm in which the CEO serves as an outside board member) in their own firm’s R&D decisions. Consistent with attention-based arguments, our results show evidence of selective imitation, as imitating relationships are stronger when the CEO has longer tenure as a director of a tied-to firm and the tied-to firm is performing well. In contrast to conventional institutional theory, our findings also show that CEOs imitate relatively smaller tied-to firms when they make R&D investment decisions. Not all social ties have equal influence on imitative strategic decision making; thus, they have different strategic implications.
Purpose
– The purpose of this paper is to measure the impact of network capability (NC) on small enterprise performance via knowledge creation, and two dimensions of entrepreneurial orientation (EO): competitive aggressiveness and innovativeness.
Design/methodology/approach
– The authors propose a theoretical model that was tested using a survey instrument administered to owners and managers of small-sized enterprises within the United Arab Emirates. Theory development was assisted by semi-structured interviews with an independent sample of owners and managers of small enterprises.
Findings
– The results show that NC is positively related to knowledge creation and that competitive aggressiveness and innovativeness are key mediators between knowledge creation and firm performance.
Research limitations/implications
– The study contributes to theoretical development by integrating the domains of NC and knowledge creation to EO and small business performance. The authors show that the conversion from NC to small business performance is mediated by knowledge creation and the two dimensions of EO: innovativeness and competitive aggressiveness.
Practical implications
– The study findings present interesting practical implications for small business owners seeking to shift their firm’s orientation toward being more entrepreneurial.
Originality/value
– The study highlights the crucial role innovativeness and competitive aggressiveness play as mediators when the relation between knowledge creation and small business performance is examined.
The authors examine the mediating role of competitive intensity in the relationship between
managerial racial diversity and firm performance (i.e., market share gain and average stock
return). Racial diversity relates to firm performance via firms’ capacity to compete intensively
(i.e., to introduce new competitive actions frequently). An analysis reveals that environmental
munificence moderates competitive intensity’s mediating effect: Racially diverse management
groups compete more intensively and perform better when they compete in munificent environments.
The authors also find support for a moderated mediation model that simultaneously tests all
components of their framework.
Suppose a new high growth segment opens up in your industry. Should you enter that segment? lviany other firms are likely to enter as well. Will the returns justify the costs? If too many firms enter, and commit high levels of funding, your return on investment will be mediocre at best. This would be a disappointing experience, but it is one many companies have had in races for market share and technological advantage. Of course, this does not mean that you should not chase such opportunities. If you fail to do so, you might do even worse. It does, however, inrply the following: on an even playing field, against well managed compe titors, you cannot expect superior performance. You need to look for tilted playing fields, areas where you have a competitive advantage. Where do you have an advantage? You have the advantage in markets where your resources are superior to those of the competition. In such a game you can achieve a strong market position at a lower cost than your competitors. The first step is to identify your resources. The second step involves deciding where to compete, Only then do you worry about how to compete. This shifts the focus of strategic analysis from the industry to the company itself Il]. Stratesv formulation consists in the identification, deployment and development of resources. What principles govern this process in well--managed companies? Critical Resources A list of your company's resources u,ould quickly get very long: this plant. that patent, such-and-such a brand name. a good manager here, a good R & D team there. etc. Onlv verv feu'resources are critical in the sense that JJ Il] Stt this argunrcnt lunrs irttcntitln awrr-1, {'11v6l thc industrl'lilcLrs suggcstcd l'rv Prtrtcr. thev can differentiate vou from competition. The rcsource has to be unique. If competitors can buv or develop identical resources. they will do so until the field is overcrowded. But what unique resources can a company own? Not very many, apart from patents, brand namcs. mining rights and pieces of land. But there is hope. You can profit from a resource even if you do not own it! This may happen bv trading rvith ou'ners of a unique resource if these owners have a difficult time switchinq to alternative trading partners. To see how this works, it is helpful to look at an example. Let us sav that one of your managers, Smith, is particularly good. Normally, you have to pay him a salary fully reflecting this, since competitors otherwise will hire him arva,'-. This process could conceivably continue until Smith's salary is commensurate with his skills, leaving no extra profits for the employer [2]. There arc, horuvever, two exceptions to this: Team Effects. Suppose that Smith is good in part because he works well with Jones. Now if these two can agree to market themselves as a package, they may well be able to reahze their joint value. However, if they cannot, vour company can pay them their individual values and reap their (larger) joint value. Specific Assets. Alternatively, it may be the case that Smith is more valuable to you than to other companies. Also in this case you will be able to pay him less than what he delivers.
Discriminant validity assessment has become a generally accepted prerequisite for analyzing relationships between latent variables. For variance-based structural equa-tion modeling, such as partial least squares, the Fornell-Larcker criterion and the examination of cross-loadings are the dominant approaches for evaluating discriminant validity. By means of a simulation study, we show that these ap-proaches do not reliably detect the lack of discriminant valid-ity in common research situations. We therefore propose an alternative approach, based on the multitrait-multimethod ma-trix, to assess discriminant validity: the heterotrait-monotrait ratio of correlations. We demonstrate its superior performance by means of a Monte Carlo simulation study, in which we compare the new approach to the Fornell-Larcker criterion and the assessment of (partial) cross-loadings. Finally, we provide guidelines on how to handle discriminant validity issues in variance-based structural equation modeling.
Despite increasing attention to the role of social ties in emerging economies, few studies have explicitly distinguished the differential roles of business versus political ties. Drawing on relational governance and institutional theories, this study offers a contingent view of business and political ties in China. The findings from a survey of 241 Chinese firms indicate that business ties have a stronger positive effect on performance than political ties, and both effects depend on institutional and market environments. Business ties are more beneficial when legal enforcement is inefficient and technology is changing rapidly, whereas political ties lead to greater performance when general government support is weak and technological turbulence is low. These findings indicate that firms operating in China should be cautious in their use of business and political ties and adapt their tie utilization to changing institutional and market environments.
This paper focuses on dynamic capabilities and, more generally, the resource‐based view of the firm. We argue that dynamic capabilities are a set of specific and identifiable processes such as product development, strategic decision making, and alliancing. They are neither vague nor tautological. Although dynamic capabilities are idiosyncratic in their details and path dependent in their emergence, they have significant commonalities across firms (popularly termed ‘best practice’). This suggests that they are more homogeneous, fungible, equifinal, and substitutable than is usually assumed. In moderately dynamic markets, dynamic capabilities resemble the traditional conception of routines. They are detailed, analytic, stable processes with predictable outcomes. In contrast, in high‐velocity markets, they are simple, highly experiential and fragile processes with unpredictable outcomes. Finally, well‐known learning mechanisms guide the evolution of dynamic capabilities. In moderately dynamic markets, the evolutionary emphasis is on variation. In high‐velocity markets, it is on selection. At the level of RBV, we conclude that traditional RBV misidentifies the locus of long‐term competitive advantage in dynamic markets, overemphasizes the strategic logic of leverage, and reaches a boundary condition in high‐velocity markets. Copyright © 2000 John Wiley & Sons, Ltd.
This research addresses three questions: (1) Why are some organizations more market-oriented than others? (2) What effect does a market orientation have on employees and business performance? (3) Does the linkage between a market orientation and business performance depend on the environmental context? The findings from two national samples suggest that a market orientation is related to top management emphasis on the orientation, risk aversion of top managers, interdepartmental conflict and connectedness, centralization, and reward system orientation. Furthermore, the findings suggest that a market orientation is related to overall (judgmental) business performance (but not market share), employees’ organizational commitment, and esprit de corps. Finally, the linkage between a market orientation and performance appears to be robust across environmental contexts that are characterized by varying degrees of market turbulence, competitive intensity, and technological turbulence.
To function, a marketing channel must have a certain amount of consensus and coordinated decision making among its members. Marketing channel theory has emphasized the “internal” mechanisms of achieving integrated actions. However, channels consist of exchanging organizations that are affected not only by their collective interests, but also by forces “external” to the relationship. Internal coordination mechanisms are likely to be less effective to the extent channel members are faced with uncertainties emanating from external sources. The authors examine the external or environmental factors affecting decision-making uncertainty in channels. The findings indicate that four dimensions—diversity among consumers, dynamism, concentration, and capacity—should be included in future research on the effects of environments on intrachannel variables.
Considerable progress has been made in identifying market-driven businesses, understanding what they do, and measuring the bottom-line consequences of their orientation to their markets. The next challenge is to understand how this organizational orientation can be achieved and sustained. The emerging capabilities approach to strategic management, when coupled with total quality management, offers a rich array of ways to design change programs that will enhance a market orientation. The most distinctive features of market-driven organizations are their mastery of the market sensing and customer linking capabilities. A comprehensive change program aimed at enhancing these capabilities includes: (1) the diagnosis of current capabilities, (2) anticipation of future needs for capabilities, (3) bottom-up redesign of underlying processes, (4) top-down direction and commitment, (5) creative use of information technology, and (6) continuous monitoring of progress.
Research on market orientation and organizational learning addresses how organizations adapt to their environments and develop competitive advantage. A significant void exists in current models of market orientation because none of the frameworks incorporates constructs related to innovation. The authors present a conceptual framework for incorporating constructs that pertain to innovation in market orientation research. Some of the critical relationships in this conceptual framework are tested among a sample of 9648 employees from 56 organizations in a large agency of the U.S. federal government. The results indicate that higher levels of innovativeness in the firms’ culture are associated with a greater capacity for adaptation and innovation (number of innovations successfully implemented). In addition, higher levels of innovativeness are associated with cultures that emphasize learning, development, and participative decision making. The authors make recommendations for incorporating constructs related to innovation into research on market orientation and organizational learning.
Hotel innovations and performance – the mediating role of staff related innovations
Abstract
Previous research has mostly considered separately the direct effects of innovations, and of internal and external factors, on performance. This paper assesses a model which recognizes the critical role of staff-related innovations in mediating between other types of innovations and factors and hotel performance. An exploratory factor analysis of a sample of UK hotels identifies five factors which have been utilised in a SEM model of “innovation - performance” relationships.
The findings reveal that staff innovations have the strongest direct impact on performance, along with product innovations and two external factors. Staff innovations mediate partially the effects of these factors, and fully the influence of management innovations and internal factors, on performance. Therefore, the model provides evidence of the complexity of the relationships between hotel performance factors and types of innovation, as well as insights into the key role that staff-related innovations play in realising performance improvements.
Key words: hotels, staff-related innovations, mediation, performance
In Chinese exporting, small and medium-sized companies (SMEs) need to be innovative to develop a competitive advantage. This research explored how these organizations can use two resources: 1) guanxi with customers, distributors, suppliers, and government officials; and 2) IT systems to enhance their innovation capabilities and new product performance. The moderating role of an organization's proactiveness with respect to new product development is also examined. The resource-based view provides the theoretical support for the research. A conceptual model is developed and tested using survey data gathered from 210 Chinese SMEs in manufacturing industries that were analyzed using SmartPLS 2.0. Results show that IT systems are positively related to innovation capability. The relationship between guanxi and innovation capability is significant for firms that exhibit high levels of proactiveness but not when proactiveness is low.
This study investigates the effect of project-level collaboration breadth (i.e., the number of collaboration partner types) and collaboration depth (i.e., the intensity of the interactions with these partners) on the incremental and radical innovation performance of innovation projects. The econometric analyses, based on a Community Innovation Study sample of 218 innovation projects conducted in German manufacturing companies, reveal inverted U-shaped relationships between collaboration breadth and radical innovation performance and between collaboration depth and incremental innovation performance. These curvilinear effects speak to the high sensitivity of innovation projects to the extent of collaborative activity, which implies that practitioners should exert caution in managing collaborative innovation projects. This study contributes to the understanding of project-level open innovation and to the overall understanding of the performance effects of innovation collaboration, which, following recent assertions in the literature, could be flawed by analyses conducted at the organizational level.
Although the effect of marketing-manufacturing integration on new product development (NPD) performance has been extensively studied, the question about how this integration is affected during the different stages of NPD remains unclear, especially when a firm faces a new market. In this study, we use resource dependence theory as the theoretical framework and collect survey-based data from manufacturing firms in China to investigate how market newness can affect marketing-manufacturing integration during the different stages of NPD. Our results indicate that market newness has a positive relationship with marketing-manufacturing integration during NPD's different stages, with this relationship being stronger in the early stages than in the subsequent ones. We also examine the effect of such integration during the early stages of NPD on the integration on subsequent stages of NPD. Moreover, we further investigate the moderating role of competitive intensity on the positive effect of market newness on marketing-manufacturing integration. Our findings suggest that a positive moderating effect is more prominent during the early and the final stages of NPD than during the intermediate ones. Our results provide a dynamic perspective on marketing-manufacturing integration and highlight the need for matching the appropriate level of integration with the different NPD stages.
This research explores the topics of perceived brand globalness (PBG) and perceived brand localness (PBL) in the B2B context—specifically in terms of how brand localness and globalness factor into B2B buyers' decision making. It does so by examining co-branding relationships that involve alliances between well-known global and local B2B brands with unknown B2B brands in order to tease out the specific influence of brand globalness and localness on buyers' quality evaluations of the unknown brand. In other words, it considers the potential spillover effects of well-known PBG and PBL ally brands on lesser-known focal brands in brand alliances. Notably, we analyze data collected from a sample of Brazilian and U.S. based purchase decision-makers and uncover a number of robust findings likely to benefit both academics and practitioners.
The current literature has investigated the direct relationship between collaborative innovation networks and new product performance, but the results are inconsistent. This research aims to explore the role of product and process innovation capabilities as two distinct mechanisms through which collaborative innovation networks improve new product performance. The study also examines the contingent effects of absorptive capacity on the relationship between collaborative innovation networks and the two innovation capability dimensions (i.e. product and process innovation). Survey data from 258 respondents from the Iranian high and medium technology manufacturing industries indicates the need for caution when developing collaborative innovation networks. We found that the effects of collaborative innovation networks on either product or process innovation capability are significant only in the presence of absorptive capacity. This finding suggests that the level of collaboration with different partners can enhance firms' innovation capabilities only if the focal firm's managers have developed the capacity to scan and acquire external knowledge. Our analyses further indicate that in the presence of absorptive capacity, only collaboration with research organizations and competitors have a positive effect on product innovation capability. In the case of process innovation capability, collaboration with research organizations and suppliers are the most important factors.
Although considerable research has investigated the influence of institutional pressures on environmental practices, few studies have examined its impact on innovation among third-party logistics (3PL) providers. Moreover, extant scholarship equivocates on the relationships between various institutional pressures and green innovation. Different industries develop unique responses to their contexts and 3PL providers may counter environmental issues unlike other sectors (e.g., manufacturing). Integrating the institutional theory and natural-resource-based view, this paper examines green innovations of 3PL providers as a response to their institutional pressures and to gain competitive advantages, as well as explores the contingent effect of market uncertainty. Based on survey data acquired from 165 3PL providers in China, the empirical results suggest customer pressure and competitive pressure significantly impel 3PL providers to adopt a green innovation, while to this point, regulatory pressure has not affected such innovation. Additionally, green innovation positively affects financial performance for 3PL providers in China. Moreover, market uncertainty alleviates the driving effect of customer pressure on green innovation, but amplifies its contributive effect on performance. Research implications for green innovation in the 3PL context, practical implications, and future research direction are discussed.
While innovations generated by international supply channel relationships, as opposed to individual partners, are playing an increasingly important role in the success of all international supply chain partnerships, research on how international supply chain relationships cultivate the process of such innovation generation, particularly for contracting suppliers firms, remains scant. This study explores how supplier joint learning capability can play a role in developing both incremental and radical innovations. The empirical test, which used a sample of 204 Taiwanese executives in electronic suppliers, supports most of the hypotheses in the study. The results demonstrate that different strategic orientations can drive various types of innovation through different paths by the mediating effect of joint learning capability. Specifically, we find that long-term orientation influences only incremental innovation, whereas radical innovation is driven by electronic integration and proactive customer orientation by joint learning. Furthermore, environmental uncertainties such as technological uncertainty and demand uncertainty are found to be moderating the impacts of joint learning capability on radical innovations. Some implications of the results are discussed at the end.
Dysfunctional competition (typically involving violation of intellectual property rights) is common in emerging economies, making it difficult for innovators to profit from their innovation activities. Firms operating in emerging economies must choose appropriate strategies to address the idiosyncratic challenges of dysfunctional competition and achieve competitive advantage. The utility of competitive strategies (cost leadership and differentiation) and market-based assets (customer orientation, competitor orientation, and marketing creativity) were assessed for their ability to help an innovating firm deal with dysfunctional competition and improve the returns from innovation. Data from a survey of managers in 282 Chinese high technology companies demonstrates that an emphasis on cost leadership, a customer orientation and creative marketing predicts better product innovation performance in environments with a high level of dysfunctional competition. Differentiation and a competitor orientation were found to be less effective.
Extant research argues that innovation collaboration (IC) has strong potential to create relational rents, but few scholars have investigated what capabilities can drive and enhance IC. This paper considers relational learning (RL) as a dynamic capability that strengthens IC and its contribution to firm performance through a better understanding of a firm's past collaboration and its future potential. By focusing on the timing of collaboration, the paper explains how IC is embedded in a firm's innovation activities by investigating the extent to which external partners are involved at various stages of the innovation process. The results of the study, which are based on a quantitative survey of 155 Russian firms, confirm the positive role of RL in innovation collaboration. They also highlight that the extent of the collaboration payoff varies according to its timing. The inclusion of the IC timing perspective indicates that firms should account for both the direct and indirect effects of RL on IC, and IC on firm performance when preparing for and managing their IC efforts with external partners.
Survey research in supply chain management has been and will continue to be an important methodology in advancing theory and practice. However, supply chain scholars have multiple, divergent views regarding what is acceptable in terms of survey design, especially regarding respondents. We build on insights and commentaries provided by JSCM associate editors to develop and share general guidelines we will use during our tenure as editors to consider the rigour of survey research designs. We also outline ways that survey designs for supply chain research can be strengthened. The aim of this editorial is to clearly communicate expectations to the JSCM community, so that authors and reviewers can be more successful in advancing the theory and practice of supply chain management. This article is protected by copyright. All rights reserved
This article suggests that under weak institutional arrangements, adverse economic conditions, and institutional voids in a late liberalizing economy, local firms that are part of the global value chains of multinational enterprises develop international networks as a balancing strategy to engage in exploratory innovations. We argue that local firms do so in order to counter the negative influences of local institutions on exploratory innovations. Using exploratory in-depth qualitative analysis, we study the suppliers of motorcycle parts in Pakistan that are working with leading Japanese and Chinese motorcycle assemblers. The results suggest that in adverse economic situations local institutional factors can sustain only the development of exploitative innovations. As a balancing strategy, motorcycle part suppliers develop international networks with global Tier 1 suppliers, international trade fairs, and international institutions. This strategy helps circumvent the negative influence of home institutional factors on developing exploratory innovations. Our study highlights the importance of global networks as a balancing strategy for creating exploratory innovations by firms in a late liberalizing economy.
Purpose
The purpose of this study is to investigate the impact of demand uncertainty on inventory turnover performance through empirical modeling. In particular we use the inaccuracy of quarterly sales forecasts as a proxy for demand uncertainty and study its impact on firm level inventory turnover ratios.
Design/methodology/approach
We use regression analysis to study the effect of various measures on inventory performance. We us a sample financial data for 304 publicly listed U.S. retail firms for the 25-year period from 1985 to 2009.
Findings
Controlling for the effects of retail segments and year, it is found that inventory turnover is negatively correlated with mean absolute percentage error of quarterly sales forecasts and gross margin and positively correlated with capital intensity and sales surprise. These four variables explain 73.7% of the variation across firms and over time and 93.4% of the within-firm variation in our data.
Practical implications
In addition to conducting an empirical investigation for the sources of variation in a major operational metric, the results in this study can also be used to benchmark a retailer’s inventory performance against its competitors.
Originality/value
We develop a new proxy to measure the demand uncertainty that a firm faces and show that this measure may help to explain the variation in inventory performance.
This paper focuses on dynamic capabilities and, more generally, the resource-based view of the firm. We argue that dynamic capabilities are a set of specific and identifiable processes such as product development, strategic decision making, and alliancing. They are neither vague nor tautological. Although dynamic capabilities are idiosyncratic in their details and path dependent in their emergence, they have significant commonalities across firms (popularly termed 'best practice'). This suggests that they are more homogeneous, fungible, equifinal and substitutable than is usually assumed. In moderately dynamic markets, dynamic capabilities resemble the traditional conception of routines. They are detailed, analytic stable processes with predictable outcomes. In contrast, in high-velocity markets, they are simple, highly experiential and fragile processes with unpredictable outcomes. Finally, well-known learning mechanisms guide the evolution of dynamic capabilities. In moderately dynamic markets, the evolutionary emphasis is on variation. In high-velocity markets, it is on selection. At the level of REV, we conclude that traditional REV misidentifies the locus of long-term competitive advantage in dynamic markers, overemphasizes the strategic logic of leverage, and reaches a boundary condition in high-velocity markets. Copyright (C) 2000 John Wiley & Sons, Ltd.
The scorecard of Western firms—be it performance along dimensions such as quality, cycle time and cost, or growth and new business creation—has been less than satisfactory. We need a new approach to evaluating the value added by senior management. One such approach is outlined. It is argued that strategy must be seen as “stretch” and the critical role of senior management as creating the capacity to “leverage corporate resources.” A set of concepts that enable managers to do this is outlined. Finally, the agenda for managers during this decade is seen as profitable growth—not just restructuring.
Entrepreneurs, managers, and consumers are attracted by the promise of nonownership services in the sharing economy—to enjoy benefits of assets without bearing the costs and downsides of ownership. Firms using nonownership contracts aim to transform uncertainties of clients (e.g., unpredictable changes in value of that asset, unforeseen costs such as repairs, or even black swan events) into business opportunities for providers. In many cases, the reality is that nonownership does not live up to the promised value propositions (as present in the struggle of companies such as Uber, BP, or the entire Biopharma industry) to exploit the potential of nonownership. This paper unveils the underlying paradox of nonownership, which aims at a smart allocation of uncertainty upsides and downsides between providers and clients. It identifies the potential of relational governance mechanisms to handle the uncertainty challenges apparent in nonownership. Further, it presents a pioneering case study of Rolls-Royce airplane engines, which unveils the contribution of relational governance in unfolding the economic benefits of nonownership.
The aim of the present study is to examine the role of strategic agility as a component of the acquisition process by investigating its constituent elements and effects on knowledge transfer in the context of acquisitions. The study also elaborates on the relationship between knowledge transfer and performance in acquisitions. We test our theoretical model on a quantitative data set of acquisitions conducted by Finnish companies.
The Schumpeterian opportunity cost hypothesis predicts that firms concentrate innovative activities in recessions. However, empirical evidence suggests that innovative activities are procyclical. Theory proposes that firms shift R&D investments and innovation from recessions to booms to maximize returns by capturing high-demand periods before imitators compete away rents. This paper provides the first empirical test of these predictions. Results indicate that R&D spending is more procyclical in industries with faster obsolescence, where matching invention to demand is more valuable, and innovation is more procyclical in industries with weaker IP protection, where imitation poses a greater threat.
Service innovativeness, or the propensity to introduce service innovations to satisfy customers and improve firm value at acceptable risk, has become a critical organizational capability. Service innovations are enabled primarily by the Internet or people, corresponding to two types of innovativeness: E- and p-innovativeness. The authors examine the determinants of service innovativeness and its interrelationships with firm-level customer satisfaction, firm value, and firm risk and investigate the differences between e- and p-innovativeness in these relationships. They develop a conceptual model and estimate a system of equations on a unique panel data set of 1049 innovations over five years, using zeroinflated negative binomial regression and seemingly unrelated regression approaches. The results reveal important asymmetries between e- and p-innovativeness. Whereas e-innovativeness has a positive and significant direct effect on firm value, p-innovativeness has an overall significantly positive effect on firm value through its positive effect on customer satisfaction but only in human-dominated industries. Both e- and p-innovativeness are positively associated with idiosyncratic risk, but customer satisfaction partially mediates this relationship for pinnovativeness to lower this risk in human-dominated industries. The findings suggest that firms should nurture e-innovativeness in most industries and p-innovativeness in human-dominated industries.
Relational ties between manufacturers and their suppliers serve as an important strategic resource for value creation and realization. However, conflicting evidence exists regarding their role in the acquisition of specific knowledge. This study proposes that relational ties have a nonlinear effect on specific knowledge acquisition and that this nonlinear relationship is conditional on contract specificity and competitive intensity. Results from a sample of 385 manufacturer-supplier exchanges in China demonstrate that a buyer's relational ties with its major supplier have an inverted U-shaped effect on specific knowledge acquisition from this supplier; this inverted U-shaped relationship is stronger (steeper) when contract specificity is high and competition is more intense. These findings suggest that managers should understand the benefits and downsides of relational ties in acquiring specific knowledge and avoid building highly embedded ties when they draft detailed contracts or competition is highly intensive.
Although inter-firm collaboration has become an important form of organizing and leveraging marketing resources for greater competitive advantage, and firm capabilities are recognized as marketers' major resources, research has paid little attention to the role of firm capabilities in enhancing inter-firm collaboration. This study addresses this deficiency by examining three internal capabilities (i.e., innovation, information, and relational capabilities) as critical enablers of the firm's external collaboration strategy. The findings show that these capabilities positively affect the effectiveness of external collaboration, which in turn contributes to the firm's market and financial performance. Further, the enabling effects of innovation and information capabilities are found to be positively moderated by market turbulence, while relational capability has a consistently positive effect on collaboration effectiveness regardless of the market turbulence level. Implications for marketing strategy research and practice are discussed.
The primary contribution of this research is positing and empirically supporting the proposition that learning through external networks disproportionately benefits conservative, risk-averse firms. The construct, entrepreneurial orientation (EO), is used to discriminate conservative, risk-averse firms from proactive, risk-seeking firms. Organizational learning theory and social capital theory are employed to support our hypotheses. Based on a study of 1978 U.S. firms, the paper suggests that the utilization of external networks (i.e., the process of learning from information, perspectives, and insights embedded in external networks) may act as a primary driver for innovation for those firms that are either not inclined and/or do not have the capabilities to adopt entrepreneurial culture. Specifically, weak EO firms' innovation performance benefits from utilizing external networks more than strong EO firms'. This research also tests for the moderating role of firm size and finds that the negative moderating effect of EO on the external network utilization–innovation performance relationship is more pronounced in small and medium sized enterprises (SMEs) than large firms.
The organizational lag model, which postulates that a discrepancy exists between the rates of adoption of technical and administrative innovations, is applied to study the impact of adoption of types of innovation on organizational performance. Four hypotheses were derived from this model and were tested in a sample of 85 public libraries. It was found that: (1) libraries adopt technical innovations at a faster rate than administrative innovations; (2) administrative and technical innovations have a higher correlation in high-performance organizations than in low-performance organizations; (3) the degree of organizational lag is inversely related to organizational performance; and (4) the adoption of administrative innovations tends to trigger the adoption of technical innovations more readily than the reverse.
The business press has coined the term "pie expansion" to refer to the collaborative process of creating mutually beneficial strategic outcomes between buyers and suppliers. In this research, the author provides an explanation of this process, hypothesizing that such outcomes are achieved through the use of coordination efforts across organizational boundaries and specialized investments. The author investigates the facilitating roles of various environmental, interorganizational, and interpersonal conditions in this process. The results of a longitudinal survey of more than 220 buyers and suppliers indicate that the collaboration process is worthwhile, with coordination efforts and investments leading to enhanced profit performance and the realization of competitive advantages over time. Environmental dynamism and demand motivate suppliers to form collaborative exchanges with buyers and facilitate the dyad's willingness to create idiosyncratic investments. Goal congruence and interpersonal trust facilitate coordination effort, and complementary capabilities facilitate both effort and investments.
The service sector in general has become far more important in recent decades. This development can also be seen with respect to services in the investment goods industry or in the so called provision of industrial services. This paper raises the issue that industrial services are the main growth driver of today's economies and have a major potential for companies to increase their revenues. After the introduction and a short definition of services and service systems the paper will clarify the importance of industrial services on a theoretical basis. The paper aims to enhance the service systems model to broaden the understanding of the development of service innovations in the investment goods industry. The service systems approach will be used to discuss the influences on the development of service innovations on a theoretical basis.
Drawing on the learning and market orientation literature, this study examines how responsive and proactive market orientations interact with exploitative and exploratory learning to affect new product performance. Despite advancements in understanding the distinctions between the different types of learning and market orientations, little evidence exists regarding which types of market orientation work best with exploitative or exploratory learning to improve new product performance. Using a sample of 216 high-tech Canadian firms, the authors find that new product performance is elevated only when exploratory learning is bundled with proactive market orientation. New product performance suffered when exploratory learning was complemented with responsive market orientation and when exploitative learning was complemented with proactive market orientation. Implications for marketing theory and practice are discussed.
In this study, we attempt to advance our understanding of the role of entrepreneurial creativity in the context of firms in the United Arab Emirates (UAE). Through field research accompanied by a review of the related literature, this study identifies crucial antecedents of entrepreneurial creativity. The proposed model combines variables belonging to different contextual factors such as external factors (resource access, resource possession, and alertness to opportunity) and individual factors (creative self‐efficacy, expertise and intrinsic motivation). The model is tested using data from a large‐scale survey of firms in the UAE. We find that expertise and creative self‐efficacy is significantly related to entrepreneurial creativity. The results also reveal that intrinsic motivation and alertness to opportunity are the key mediators between contextual factors and entrepreneurial creativity. The findings of this study present some interesting practical implications to entrepreneurs in order to improve their creative skills.
This study investigates the role of dynamic capabilities in the resource-based view framework, and also explores the relationships among different resources, different dynamic capabilities and firm performance. Employing samples of top 1000 Taiwanese companies, the findings show that dynamic capabilities can mediate the firm's valuable, rare, inimitable and non-substitutable (VRIN) resources to improve performance. On the contrary, non-VRIN resources have an insignificant mediating effect. Among three types of dynamic capabilities, dynamic learning capability most effectively mediates the influence of VRIN resources on performance. Furthermore, the important role of VRIN resources is addressed because of their direct effects on performance based on RBV, as well as their indirect effect via the mediation of dynamic capabilities.
To clarify the nature of the effect of firm innovativeness on business performance, this study draws on contingency theory and an interactional perspective to develop a conceptual framework to investigate how the interaction between market turbulence and competitive intensity moderates the relationship between firm innovativeness and business performance. This study used survey data from a sample of 154 high-tech manufacturing firms in Taiwan and employed hierarchical moderated regression analysis to test the hypotheses developed. The results reveal that the effect of firm innovativeness on business performance varies across the different configurations of market turbulence and competitive intensity. Specifically, the performance effect of firm innovativeness is most positive under high market turbulence and high competitive intensity; the performance effect is least positive under low market turbulence and low competitive intensity. However, the performance benefits of firm innovativeness fail to materialize under low market turbulence and high competitive intensity. Overall, these findings highlight that market turbulence and competition jointly influence the direction and strength of the performance effect of firm innovativeness. This study advances firm innovativeness research by identifying the configurational market conditions that augment or limit the value of firm innovativeness.