Firm Size and Innovation in European Manufacturing

The paper investigates the differences between small, medium-sized and large firms regarding their performance in the introduction of new products and processes. After a review of the relevant literature, two models are proposed and tested in search for different business strategies and innovation inputs connected to product and process innovations. The empirical analysis uses innovation survey (CIS 2) data at the industry level for 22 manufacturing sectors, broken down in three firm size classes, for eight European countries. Special attention is devoted to tackling the issues of possible endogeneity of the regressors and of unobserved sectoral heterogeneity. The results – strengthening the findings of previous studies – show that product and process innovations, though having some complementarities, are associated to different innovative inputs and strategies pursued by firms. Systematic differences also emerge between the behaviour of large firms and SMEs.      

Open innovation and growth in IT sector

IT services are overrepresented among high-growth innovative enterprises. The nature of innovation in IT requires knowledge search and collaboration, which together constitute the inbound open innovation (IOI) strategy. This study analyses whether the IOI strategies in IT service firms lead to different performance effects in comparison to other service and manufacturing firms. A quantile regression on multi-country data from the Community Innovation Survey indicates that innovative IT service companies share the same benefits from increased cooperation as other innovators, while displaying a strong growth dynamic compared to others. Therefore, IT service firms’ growth differential may not be related to external cooperation and knowledge sourcing.     

How Varying Levels of Knowledge and Motivation Affect Search and Confidence during Consideration and Choice

Using a pull-down menu search technique, we study how ability (knowledge level) and motivation (accountability) interact with decision phase (consideration vs. choice) to affect consumers' search costs (amount of search), benefit (confidence) and efficiency (benefit for a given amount of search). We find that consumers adapt their search strategies across phases and that these adaptations occur in different ways and at different rates for consumers with different levels of knowledge and accountability.     

外部知识搜索策略对企业创新绩效的影响机制研究

快速创新使得企业外部知识搜索显得尤为重要,而不同的搜索策略会对企业产生不同的创新绩效。本文基于企业层面,从正式和非正式知识搜索视角出发,考察深度优先与宽度优先的知识搜索策略对企业创新绩效的影响机制,探讨关系嵌入性和知识缄默性在外部知识搜索策略影响企业创新绩效时的调节作用。以长三角地区161家企业为样本运用回归分析进行实证研究,结果表明：当关系嵌入性强时,深度优先的正式及非正式知识搜索策略对企业创新绩效的促进作用更大;当知识缄默性高时,宽度优先的正式知识搜索策略对企业创新绩效的促进作用更大。     

Innovation type and external knowledge search strategies in KIBS: evidence from Canada

Service Business - Do different types of innovation require distinct kinds of external knowledge search strategies? This paper explores this question using an original innovation survey of 385 KIBS...     

正式与非正式知识搜索、知识属性与产品创新

基于正式、非正式搜索的视角,以217家浙江中小型制造企业为样本,研究外部知识搜索对产品创新绩效的影响机制。实证结果表明：正式和非正式搜索对产品创新绩效均具有显著的正向影响,而知识缄默性正向调节正式搜索和产品创新绩效之间的正向关系,负向调节非正式搜索与产品创新绩效之间的正向关系;技术复杂性负向调节非正式搜索与产品创新之间的关系。上述发现确认了外部知识搜索在中小企业创新活动中的重要作用,同时也从知识属性角度识别了影响外部知识搜索效能的重要情境条件。     

Environmental Innovation Strategy and Organizational Performance: Enabling and Controlling Uses of Management Control Systems

This study examines the extent to which enabling and controlling uses of management control systems (MCS) moderate the relationship between environmental innovation strategy and organizational performance. Partial least squares structural equation modeling is used to analyze survey data collected from top managers in 175 manufacturing and services sectors representing multinational and local organizations operating in Sri Lanka. We find that while the enabling use of MCS positively moderates the relationship between environmental innovation strategy and organizational performance, in contrast, the controlling use of MCS negatively moderates the relationship. We compare the results for the manufacturing and services sectors. As predicted, we find a significant positive moderating impact of the enabling use of MCS in both manufacturing and services sectors. However, contrary to our expectations, we find no significant moderating impact for both sectors for the controlling use of MCS. We conclude that environmental innovation strategy per se does not lead to performance improvements; however, the extent to which organizations use enabling and controlling MCS determines the relationship. We provide theoretical insights and practical implications concerning the importance of strategic alignment between managerial controls, environmental innovation strategy, and organizational performance.     

The Impact of Knowledge Acquisition and Absorptive Capacity on Technological Innovations in Developing Countries: Evidence From Egyptian Small and Medium-Sized Enterprises

The author examines the determinants of technological innovations in Egyptian manufacturing and service small and medium-sized enterprises. Three categories of determinants are explored: (a) firms’ exposure to external knowledge and technologies, (b) firms’ absorptive capacity, and (c) financial and market barriers to innovation. A large dataset derived from the 2009 Egyptian innovation survey is used to estimate two binary logit models of factors explaining firms’ propensity to innovate in the manufacturing and service sectors. Results show that Egyptian manufacturing and service small and medium-sized enterprises follow similar paths to innovate and confirm the assumption that the catching-up reality in most developing countries makes the patterns followed by firms to innovate fundamentally different from those applied in countries at the technology frontier.     

Consumer knowledge and its consequences: an international comparison

By far the theories of consumer knowledge are mainly estimated in the western countries. It is important and necessary to assess theory generalizability and model equivalence across different culture contexts. This paper intends to gain a preliminary understanding of the relationship between two consumer knowledge components and four product‐related task performances, with a focus on the influences of two psycho‐linguistic differences in cognition. Based on the results of our empirically multi‐group comparison of Chinese and French wine consumers, we find that consumer knowledge is a multidimensional construct in both cultural contexts. It appears that psycho‐linguistic differences largely affect the consumption task performance. Consequently different consumer knowledge components play different roles in consumption tasks and lead wine consumers to employ dissimilar information processing strategies in various cultural contexts.     

Comparing sustainable consumption patterns across product sectors

In this paper, we present findings from two qualitative studies where we explored sustainable consumption practices through examining consumers' information search and decision-making processes for recent purchases of five categories of goods/services: fast moving consumer goods (such as foodstuffs and household products), white goods (such as fridges and washing machines), small electrical products (such as TVs and computers), green energy tariffs (such as electricity from renewable sources) and tourism (such as flights). This research has provided us with a set of rich data which explores the nature and extent of sustainable consumption practices across different product sectors. A comparative analysis has allowed us to draw out patterns of consumer behaviour for different product and service types. Our findings suggest that even the same green consumer will not use the same information sources or decision-making criteria, consider the same options or focus on the same industry actors, for products in different sectors. However, we have identified some degree of consistency in purchases within sectors. We present these sector-specific patterns of consumer behaviour and highlight differences in the criteria utilized and the research norms in each sector.     

An ‘Algorithmic Links with Probabilities’ Concordance for Trademarks with an Application Towards Bilateral IP Flows

Trademarks (TMs) shape the competitive landscape of markets for goods and services in all countries. As a key element of branding, they can inform consumers about the quality and content of goods and services. Yet, researchers are largely unable to conduct rigorous empirical analysis of TMs in the global economy because TM data and economic data are organised differently and cannot be analysed jointly at the industry or sector level. We propose an ‘algorithmic links with probabilities’ (ALP) approach to match TM data to economic data and enable joint analysis with these data. Specifically, we construct a NICE class‐level concordance that maps TM data into trade and industry categories forward and backward. This concordance allows researchers to analyse differences in TM usage across both economic and TM sectors. We apply this ALP concordance for TMs to characterise patterns in TM registrations across countries and industries and to investigate some key determinants of international technology flows by comparing bilateral TM registrations and bilateral patent grants. We find that international patenting and TM flows are jointly determined by trade‐related influences with significant differences in intellectual property usage across industry sectors and income levels.     

Disentangling the effects of organizational capabilities, innovation and firm size on SME sales growth

This paper focuses on certain drivers of SME sales growth related to knowledge and innovation. Building on the dynamic capabilities literature, we test whether two organizational capabilities (external sourcing and employee involvement in renewal activities) predict sales growth, and if so, whether such effects are mediated by process and/or product innovation. Based on survey data from a panel study of Dutch SMEs, and controlling for several firm characteristics (firm size, sector, age and family business), we conclude that external sourcing has direct effects on both product and process innovation, with an indirect effect (mediated by process innovation) on sales growth. In line with our hypothesis development, we also find that employee involvement, while positively affecting process innovation, has a negative effect on sales growth. Firm size moderates the effects of two of the variables (external sourcing and product innovation) on sales growth, with more positive effects found for the smallest firms, results supporting the nimbleness (versus resource-based) view.     

Organisation structure and innovation performance in different environments

This paper examines the relationship between organisation structure and innovation performance in a large sample of UK small and medium-sized enterprises. It asks whether there is an optimal structure and whether this differs between different firm environments and between young and older firms. We find that the influences on the ability to innovate differ from those on the commercialisation of innovations. We show that decentralised decision-making, supported by a formal structure and written plans, supports the ability to innovate in most circumstances and is superior to other structures. We also find some evidence that young firms operating in high technology sectors with informal structures have a greater tendency to be innovative. In addition, we find very few differences between young and older firms in terms of their optimal structures in low technology sectors.     

Online information search termination patterns across product categories and consumer demographics

While accessing information online, consumers exhibit differences in their patterns of search, that is, time spent per search episode and search frequency. The search patterns vary across both consumer characteristics and product categories. We empirically investigate consumer online information search termination patterns, and relate the differences to product categories and consumer characteristics. Findings of such an empirical study would be useful for planning communication strategies, website design, etc. The model is calibrated on empirical data collected through online surveys. We find that consumer learning occurs when consumers search across search goods, but not when they search across experience goods.     

Open Innovation in Small and Medium‐Sized Enterprises (SMEs): External Knowledge Sourcing Strategies and Internal Organizational Facilitators

In this paper we explore how small and medium‐sized enterprises (SMEs) engage in external knowledge sourcing, a form of inbound open innovation. We draw upon a sample of 1,411 SMEs and empirically conceptualize a typology of strategic types of external knowledge sourcing, namely minimal, supply‐chain, technology‐oriented, application‐oriented, and full‐scope sourcing. Each strategy reflects the nature of external interactions and is linked to a distinct mixture of four internal practices for managing innovation. Both full‐scope and application‐oriented sourcing offer performance benefits and are associated with a stronger focus on managing innovation. However, they differ in their managerial focus on strategic and operational aspects.     

Determinants of innovation performance in Spanish hospitality companies: analysis of the coexistence of innovation strategies

The present study attempts to determine the influence of different sources of technological knowledge on the innovation performance of hospitality companies in Spain (Europe) and analyze the degree of coexistence between innovation strategies in the companies. The paper considers a number of ways of incorporating technology and evaluates the impact of different innovation strategies on innovative performance in hospitality companies, in order to assess the importance of each in the Spanish hospitality industry. Employing data from the 2000 Survey on Technological Innovation, two databases were built with information on the Spanish hospitality industry. The first includes all hospitality companies and the second only companies engaged in innovation activities. With the second database, an analysis of the coexistence of innovation strategies is done by means of seven logit regressions. The results show that the innovation strategies that coexist most frequently are, first, the acquisition of external technology services and research and development cooperation, and second, the acquisition of machinery and non-material technologies. Additionally, the influence of different innovation strategies on companies' innovation performance is analyzed by means of a two-step logit model applied to both databases. The findings suggest that only the acquisition of machinery has a statistically significant impact on innovation performance. However, contrary to expectations, the influence appears to be negative.     

Innovation strategies,innovator types and openness: a study of KIBS firms in Spain

This paper studies the determinants of innovation strategies in knowledge-intensive business services, by examining the relationship between these strategies and two dimensions of innovativeness: the type of innovator (internal, collaborative or external) and the degree of openness (reliance on internal or external information sources). First, we describe the characteristics of innovator types and their degree of openness. Second, we investigate the extent to which different innovation strategies—determined by examining innovation expenditures and cooperation in innovation—are associated with different innovator types and with different degrees of openness. The data used in this paper are part of the Technological Innovation Panel carried out by the Spanish National Institute of Statistics. The results obtained show that innovation strategies do not lead in any mechanical way to a higher or lower degree of openness. The recognition of the importance that external knowledge can have for innovation is not incompatible with the existence of firms that prefer to rely mainly on their internal capacities to innovate. However, it seems that when firms decide to cooperate for innovation, they are more likely to innovate collaboratively than in isolation.     

Control,innovation and international joint venture performance: The moderating role of internal and external environments

This study aims to analyze how parent control strategies affect the degree of innovation in international joint ventures (IJVs) and how different types of innovation strategies - divided into radical and incremental innovation strategies - influence the performance of IJVs. This study uses the most widely adopted definition and operationalization of control in IJVs by Geringer and Hebert (1989), including the three dimensions: mechanisms, focus, and extent of control. These relationships are further analyzed by integrating internal and external moderating factors and their connections with IJV performance. Our theoretical analysis proposes that various control strategies differently influence an IJV’s innovation activities under various internal environmental moderating factors. These, in turn, differently influence the IJV performance. Furthermore, we suggest that the external environmental factors moderate the relationship between innovation strategies and performance of IJVs.     

Local and international knowledge search and product innovation: The moderating role of technology boundary spanning

Drawing on the external knowledge search literature and the literature on international diversification, this study examined the interactive effect of local and international search for new knowledge on product innovation and the moderating role of a firm's technology boundary spanning activities. Specifically, it proposed that extensive local and international search interact to positively predict product innovation success and this relationship is weaker for firms entering a new technology domain. The results using data on 343 Chinese manufacturing firms across 5 industries indicated the support for the predictions.     

Appropriating innovation's technical value: Examining the influence of exploration

In this study we examine how different approaches to exploratory search are used to generate an innovation influence appropriation of its technical value. Technical value is the benefit a firm derives from utilizing the underlying knowledge embedded in an innovation to stimulate and generate further innovations. Based on a sample of 772 patents from the ink jet printing field, we find that exploratory search that spans technical domains enhances appropriation of innovations’ technical value; conversely, exploratory search spanning industry domains diminishes appropriation of innovations’ technical value. These effects are further influenced by the age of the knowledge explored. In addition, we find that appropriation of innovations’ technical value enhances the market share of the innovators. We discuss the implications of these findings for both future research and for improving business practice.