Co-operation and co-opetition as open innovation practices in the service sector: Which influence on innovation novelty?

This study aims to identify the influence of co-operation practices and the use of internal and external information sources on the propensity of firms to introduce new to the market innovations in the service sector. Data come from the 4th Community Innovation Survey, which covers the years 2002-2004. A logistic regression model is applied with the degree of novelty of good/service innovation as dependent variable. The analysis of the parameter estimates shows that firms provided with information from market sources and from internal sources as well as firms involved in science-based collaboration for their product innovations are more likely to introduce new to the market innovations, whereas information coming from competitors seems to have a negative influence on the degree of novelty of innovation.     

Supply chain collaboration and eco‐innovations: An institutional perspective from China

This study explores the impact of supply chain collaboration on eco‐innovations in the context of 220 Chinese manufacturing supplier firms involved in global supply chain networks. It investigates how supplier and customer collaborations help firms to enhance product eco‐innovations, and/or process eco‐innovations, and how the institutional context (i.e., regulatory, market, and community pressures) influences these relationships. The structural equation modeling approach is used to analyze the data captured from medium and large manufacturing enterprises in three major sectors: automotive, electronics, and textiles. The results show that community pressure has a positive effect on supplier collaboration, which further leads to enhanced process eco‐innovation. On the other hand, the findings indicate that while market pressure enhances customer collaboration, this does not reinforce product eco‐innovation. Contrary to our expectation, regulatory pressures do not impact supplier or customer collaboration for innovation. Overall, different institutional factors indicate divergent effects on supply chain collaboration and product/process eco‐innovation. The importance of normative pressures, such as those applied through the local community and interest groups, for eco‐innovations in production processes is further discussed as a typical feature of the institutional environment of Chinese supplier firms.     

The effect of local and global linkages on the innovativeness in ICT SMEs: does location-specific context matter?

Abstract

Countries differ significantly with regard to the location-specific contexts in which they are embedded. The aim of this paper is to extend the discussion on the effects of local and global innovation collaborations on the degree of novelty of innovation by considering this context. Our main question is: Does embeddedness in the developed or emerging country context affect the likelihood of benefiting from local or global linkages for innovations with higher novelty?

The paper is based on data gathered through a survey of firms in the ICT sector in an emerging economy (India) context and from two Scandinavian countries (Sweden and Norway). The findings of this study show that global linkages do indeed impact the degree of novelty of innovation. However, country context does have a moderating effect. While the effect of global linkages is highly positive on the innovativeness of Scandinavian firms, for the Indian SMEs, the linkages that give novel innovations are the regional ones.     

About the determinants of the degree of novelty in small businesses’ product innovations

This paper explores the nature and determinants of product innovation in small businesses from a survey of more than 1,500 small firms in Spain. Two levels of factors affecting innovation are considered: (1) The personal characteristics of the entrepreneurs -their age, motivations, educational background and degree of interpersonal trust. (2) The characteristics of the organizations’ management—cooperation, risk taking, proactivity and specific innovation and growth policies. The paper shows that the factors explaining the firms’ decisions to introduce small incremental innovations -and the strength of these influences- are different, to a large extent, from those favoring substantial product innovations.     

What's in it for me? Creating and appropriating value in innovation-related coopetition

There has been a substantial increase in collaboration with external stakeholders in R&D and innovation activities in modern economies. In particular, collaborating with competitors (coopetition) has been found to be an effective way of creating both incremental and radical innovations, especially in high-tech industries. However, coopetition also includes some major risks and disadvantages, which makes it undesirable in certain cases. The focus in this study is on the factors that distinguish coopetition from collaboration. We propose that the ability of a firm to reap benefits in innovation-related coopetition is contingent on factors that enable collective value creation, and on those that facilitate the individual isolation of the innovations and any subsequent profits. Further, we suggest that the effectiveness of these factors depends on the novelty of the innovation with respect to current markets and technology. In explicitly analyzing such issues we aim to expand current understanding of how firms can create and appropriate value in collaborative R&D and innovation with competitors as specific partners.     

Innovativeness and organizational innovation in total quality oriented firms: The moderating role of market turbulence

This paper analyses the contribution of TQM implementation to the firms’ innovative culture and their overall innovation effort in the technical and administrative organizational domains. The research seeks to contribute to a further understanding, under different market turbulence conditions, of the TQM–innovation relationship and the interactions between the organization's innovativeness and the intensity and newness of the innovations adopted. The findings indicate that TQM strongly influences firm's innovative culture and higher administrative innovation levels with a greater degree of incorporated novelty, whereas the mediating role of innovativeness is required for TQM to achieve this impact on technical innovation. These relationships significantly vary under different levels of market turbulence, but results reinforce the consideration of TQM as an appropriate resource to foster innovativeness and organizational innovation. The study provides an unexpected result as innovativeness does not influence administrative innovations, which seem to be ultimately determined by TQM. Finally, the findings provide empirical support regarding the coordinated development in practice of technical and administrative innovations.     

Customer and Supplier Collaboration in Green Product Innovation: External and Internal Capabilities

Firms collaborate in green product innovation to develop products with less environmental impact. These products typically use less energy, have lower emissions and incorporate more environmentally friendly materials. In an industrial setting, firms often collaborate along the supply chain with customers and suppliers. This paper focuses on external and internal capabilities that firms need when collaborating in green product innovation. The paper builds on data from five large industrial firms in ten case studies, in which these firms collaborate with customers and suppliers to innovate green products to an industrial market. External and internal capabilities are investigated. The study points to the importance of finding a suitable partner. Partners need to have environmental expertise and contribute knowledge or technology that is new to the firm. Firms need to combine relational capabilities, such as trust, with contractual agreements in collaborative innovations. The findings point to the importance of knowledge management with the partner as well as internally in the firm. The study shows that no partner collaboration operates in isolation but is situated in a network context. Copyright © 2018 John Wiley & Sons, Ltd and ERP Environment     

Sustainability and Environmental Behaviour in Family Firms: A Longitudinal Analysis of Environment‐Related Activities,Innovation and Performance

Environmental behaviour plays an important role as concerns the public image and performance of firms, as well as for the achievement of sustainable development in society. This study investigates the behaviour of family firms regarding environment‐related activities, innovation and performance. Opposing goals are found to impact environmental behaviour of family firms, in particular the trade‐off between family firms' risk awareness and their aim of achieving socioeconomic wealth. We find that family firms initially lag regarding environment‐related activities, beneficial product, process and organizational innovations and performance. Yet, family firms catch up and show overall less volatility compared with other firms. Overall, we thus observe a convergence process between family and non‐family firms, which ultimately enables the two types of firm to achieve similar outcomes in terms of environment‐related activities, beneficial innovations and performance. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment     

Impact of changes in regulatory performance standards on innovation: A case of energy performance standards for newly-built houses

This paper explores the impact of changes in prescribed performance standards on innovation in an industry characterised by loosely coupled systems. Using a case of energy performance standards for newly-built houses, it investigates how changes to these standards have affected the innovation of houses, combining qualitative and quantitative data from the Netherlands. The key finding is that standardisation does not only increase the amount of innovation conducted in an industry while achieving societal goals, such as improving energy efficiency. It also triggers different types of innovation. While innovators in the investigated field prefer incremental innovations which can be integrated easily into existing ways of building houses, tightened requirements require systemic innovations, meaning that processes and organisations need to be changed. Additionally, we find that ambitious performance standards can also impact the organisation of an entire sector: they can force integration, the tightening of couplings between firms, in order to achieve systemic innovation.     

Market novelty, competence-seeking and innovation networking

Studies of innovation networking have frequently been concerned with the occurrence of dyadic relationships and with their apparent impact on simple measures of firm-level innovation outputs. This paper takes a more detailed look by analyzing the connection between different types of innovation and forms of networking. Based on the market novelty of innovation outcomes and the extent to which innovation activities require new competences, four types of innovation are identified. It is proposed that these types correlate with various innovation network dimensions, including the volume of networks, the strength and content of ties, and the specificity of ties. Drawing on survey data of 594 innovations realized by Dutch small firms, it is observed that the requirement to access new competences for innovation correlates positively with the number of network partners involved. We also note more subtle connections between types of innovation and networking, including that novel innovation outputs correlate with using network partners as a source of inspiration, whilst new competences associate with networking for knowledge capital. In the latter case, these activities also draw on new and intended ties relatively often, i.e. network partners which are actively sought out for the specific contributions they may make to the innovation process. Finally, innovation which is simultaneously new-to-the market and requires new competences uses strong ties relatively often. Implications for innovation policy and practice are discussed.     

Why does eco‐innovation differ in service firms? Some insights from Spain

Although environmental innovation studies have traditionally focused on manufacturing firms, the distinctive features of eco‐innovation activities carried out by service firms require special attention. Using the Spanish Commumity Innovation Survey (CIS), this paper determines which are the main drivers of undertaking eco‐innovation and investigates the similarities and differences between service and manufacturing firms within the five sub‐groups of services (supplier dominated, scale intensive physical networks, scale intensive information networks, science‐based, and others). The results confirm that the main eco‐innovation triggers are similar—technological push factor orientation (internal R&D and persistence) and firm size—while the impact of market pull factors and public environmental legislation differ within the services sub‐groups. In addition, we find a high degree of heterogeneity within service firms. In contrast to traditional service firms, those in the groups involving R&D activities, information networks, and scale‐intensive physical networks exhibit intensive eco‐innovation performance and show a high level of green indicators.     

Exploitation- and exploration-based innovations: The role of knowledge in inter-firm relationships with distributors

Learning capacity is a critical factor for a firm’s innovation and competitiveness. This study explores the issue of how knowledge in inter-firm relationships with distributors influences manufacturers’ exploitation- and exploration-based innovations and performance. The empirical model examines the effect of three different types of knowledge-related issues in inter-firm relationships: (i) the acquisition of substantial knowledge (about products, technology, or markets) from distributors; (ii) the learning about collaborating with each distributor as the relationship evolves; and (iii) the general firm’s knowledge about managing distributors. A model of learning—innovation—performance is developed and tested in a sample of 201 firms in the food and beverages sector. The results reveal that: (i) knowledge about managing distributors promotes continuous learning from them; (ii) learning to collaborate is critical, as it favours knowledge acquisition and both types of innovations (exploitation- and exploration-based); (iii) learning from distributors weakens firms’ tendency to stress one type of innovation strategy over another; and (iv) knowledge in inter-firm relationships with distributors affects performance in a completely mediated way, that is, through innovation. Theoretical and managerial implications of these findings are discussed in the conclusion of the paper.     

Investigating Collaborative R&D Using Patent Data: The Case Study of Robot Technology in Japan

The growing trend of collaborative R&D initiated by firms has been well documented. However, the evidences regarding basic questions such as the benefits of collaboration and the motives of firms are still mixed. The main novelty of this paper is to investigate these questions by using comprehensive patent data with a focus on information concerning inventors. We consider the case of robot technology in Japan since early 1990s and get the following results. First, collaboration with external research partners lead to a higher quality of the invention. Second, the determinants and motives, which encourage firms to engage in collaborative research, differ depending on the partner they are collaborating with. Copyright © 2011 John Wiley & Sons, Ltd.     

The Importance of the Diverse Drivers and Types of Environmental Innovation for Firm Performance

Today, firms are faced with a number of environmental challenges, such as global warming, pollution control and declining natural resources. While there is increasing pressure to deliver environmentally friendly products and services, little is known about what drives the many different types of environmental innovation, or how such pursuits' impact firm performance. Using a sample of 2181 firms, this paper examines the factors that drive nine different types of eco‐innovation in Ireland, and assesses how such innovations impact firm performance. We find that, while demand‐side, supply‐side and regulatory drivers impact on the likelihood of a firm engaging in eco‐innovation, the relative magnitudes of these impacts vary across the types of eco‐innovation considered. Moreover, we find that only two of the nine types of eco‐innovation positively impact firm performance. The results point to regulation and customer pressure as viable mechanisms through which firms can be encouraged to eco‐innovate. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment     

Knowledge sharing in supply chain networks: Effects of collaborative innovation activities and capability on innovation performance

Building on knowledge management and innovation capability theories, this paper aims to reveal the mechanisms of collaborative innovation processes by investigating the complex relationships among critical factors influencing firm's innovation performance in supply chain networks. Using hierarchical Multiple Regression (MR) and Moderated Multiple Regression (MMR) methods, results from a survey of 236 firms in China indicated that there are significant positive relationships between collaborative innovation activities, knowledge sharing, collaborative innovation capability, and firm's innovation performance. Moreover, it is expected that knowledge sharing plays a partial mediating role in the relationships between collaborative innovation activities and firm's innovation performance. Collaborative innovation capability exhibited a moderating effect on collaborative innovation activities - innovation performance relationship. These results contribute to collaborative innovation process management by offering a nuanced conceptualization of the collaborative innovation - performance relationship in supply chain networks.     

Competency rallying for technical innovation—The case of the Virtuelle Fabrik

Technology improves at an ever-increasing rate, but the speed at which firms can adapt their strategies and competencies to develop technological innovations and exploit market opportunities remains limited. While networks provide an option to increase agility through collaborative access to relevant external competencies, we know little about systematically managing such networks. This paper identifies a collaborative network process that we label competency rallying. We describe the set of inter-organizational routines involved in competency rallying in a case study of the interactions among the partners of the Virtuelle Fabrik, a case of an organized regional network in the manufacturing industry in Switzerland. We describe competency rallying as the (1) identification and development of competencies, (2) identification and facing of market opportunities, (3) marshalling of competencies, and (4) short-term cooperative effort for technological innovation and commercialization. The paper contributes a model that furthers the understanding of the organizational character of networks based on specific, learned network capabilities and which allows prediction of the likelihood of success of practical collaboration projects in networked organizations.     

The antecedents of SME innovativeness in an emerging transition economy

Understanding forces that contribute to the success of small and medium enterprises (SMEs) is very important, as these enterprises are vital for both developed and developing economies. Since innovativeness is among the most important means through which such businesses contribute to economic growth, numerous research studies were conducted to determine which factors positively impact SME's innovative efforts. This is an even more important issue for developing economies, where SMEs are often faced with inadequate infrastructure. Since there is a lack of studies on SME innovation in developing economies, often policy in such countries is based on findings from developed countries.In this paper, we explore factors that drive innovation activities in SMEs in a small emerging transition economy (Croatia), and compare it with findings from developed economies. In addition to factors used in most previous studies, we consider market scope, firm's market orientation and presence of strategic, managerial and marketing changes. We find that most factors that were found to be important in developed economies are important in developing economies as well. In addition to that, market scope was discovered to be a very important factor in both product and process innovation. Implementing corporate changes has positive impact on radical product innovation while implementing new organizational structures has positive effect on incremental innovation. When investigating determinants of product innovation, we distinguish new products of low novelty from new products of high novelty, and show that they need to be supported by different policies. To gain additional insight in innovation efforts, we examine obstacles to innovation. We find that firms that report facing obstacles are not less likely to innovate less, which suggests that innovators are able to work around obstacles without damaging effects to innovation. This study is based on a postal survey of 448 SMEs in Croatia, which was performed in 2004.     

Collaborative innovation in the public sector: the argument

There has been a growing interest in the question of how to spur innovation in the public sector, and recent research points to multi-actor collaboration as a superior innovation driver. This article explains why and how multi-actor collaboration may spur public innovation. It also discusses why we should expect different public and private actors to engage in demanding processes of collaborative interaction in order to produce risk-filled public innovations. Finally, it reflects on how it is possible to overcome the barriers to collaborative innovation through a combination of institutional design and the exercise of leadership and management.     

Collaborative modes with Cultural and Creative Industries and innovation performance: The moderating role of heterogeneous sources of knowledge and absorptive capacity

Organizations can no longer be isolated entities in the current dynamic competitive environment but tend to establish alliances and networks with external parties. Recently, research has suggested that organizations develop collaborative modes with Cultural and Creative Industries (CCIs) to acquire and combine Heterogeneous Sources of Knowledge (HSK) within their organizational environment. Innovation thus becomes increasingly generated by a cross-process involving a diverse set of industries. Nevertheless, few studies have assessed how knowledge from distant industries, such as CCIs, can affect firms’ innovation performance. Accordingly, this empirical research on a sample of 187 firms evaluates whether formal and informal collaboration modes with CCIs affect innovation performance. Moreover, it assesses the moderating role of both HSK and absorptive capacity. In particular, it aims to answer the following questions. What are the effects of collaboration modes with CCIs on firms’ innovation performance? What are the differences (in terms of effects) between Formal Collaboration Modes (FCMs) and Informal Collaboration Modes (ICMs) with CCIs on firms’ innovation performance? Do heterogeneity of knowledge sources and absorptive capacity increase the possibility of benefiting from FCMs and ICMs with CCIs in terms of innovation performance? The results contribute to the theory indicating that HSK are important to benefit from knowledge from CCIs, while absorptive capacity does not fulfil the same role.