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1 – 5 of 5Paavo Ritala, Aino Kianto, Mika Vanhala and Henri Hussinki
Firms need to constantly renew themselves to keep up with the pace of competition and proactively establish innovations to the markets. This requires capabilities in learning and…
Abstract
Purpose
Firms need to constantly renew themselves to keep up with the pace of competition and proactively establish innovations to the markets. This requires capabilities in learning and renewing of the firm’s knowledge base, conceptualized as renewal capital of the firm. On the other hand, firms that acquire high levels of competitiveness by renewing their knowledge base also need to protect that knowledge from unwanted spillovers. This study aims to examine how renewal capital affects incremental and radical innovation performance of the firm, moderated by the firm’s protection of its strategic knowledge.
Design/methodology/approach
The study is based on a multi-industry survey study with a time-lagged data set, with independent variables collected in the first wave, followed by a second wave four years later for the dependent variables. The authors test the hypotheses using partial least squares structural equation modeling.
Findings
The authors find that firms’ renewal capital is positively associated with the level of incremental and radical innovation. Furthermore, the authors find that knowledge protection negatively moderates the relationship between renewal capital and incremental innovation performance of the firm. In case of radical innovation performance, similar moderating effect is not statistically supported.
Originality/value
With a time-lagged research design, this study study reveals the interdependent roles of renewal capital and knowledge protection for firm’s innovation performance, and provides insights of when (and when not) it would be beneficial for a firm to seek renewal and protective oriented approaches.
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Anna-Maija Nisula, Mika Vanhala, Henri Hussinki and Aino Kianto
Successful firms are important sources of productivity, employment and economic stability in societies. As the micro-level origins of firm innovations are increasingly attracting…
Abstract
Purpose
Successful firms are important sources of productivity, employment and economic stability in societies. As the micro-level origins of firm innovations are increasingly attracting attention amongst innovation scholars, the purpose of this study is to investigate the role of managerial innovativeness, i.e. small firm managers' innovative behaviour for firm performance. Specifically, the present study investigates managerial innovativeness as a predictor of small firms' product innovativeness and market performance.
Design/methodology/approach
This research model suggests that managerial innovativeness is positively linked to firms' market performance and that product innovativeness partially mediates the relationship between managerial innovativeness and market performance. The model was tested using partial least squares structural equation modelling (PLS-SEM) with a dataset (N = 93) collected from small logistics firms in South-Eastern Finland.
Findings
The findings support the authors' hypotheses and show that managerial innovativeness had a direct effect on firms' product innovativeness and market performance. The authors also found that firms' product innovativeness mediated the relationship between managerial innovativeness and firms' market performance.
Originality/value
This is one of the few studies that shed light on and show that managerial innovativeness is significantly and positively related with small firms' product innovativeness and market performance, whereas earlier research tended to focus on managers' personalities, traits, characteristics or managerial actions, leaving managerial innovativeness unexplored.
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Johanna Orjatsalo, Henri Hussinki and Jan Stoklasa
Firms seek to improve their decision-making and enable more “fact-based” decisions by using business analytics. While the benefits of using business analytics to monitor, develop…
Abstract
Purpose
Firms seek to improve their decision-making and enable more “fact-based” decisions by using business analytics. While the benefits of using business analytics to monitor, develop and improve daily operations have been reported by many scholars, using it in more complex top management decisions has received less attention. Building on the resource-based view of the firm, this study aims to investigate top management perceptions of using business analytics for making decisions on firm resources.
Design/methodology/approach
This study uses semi-structured interviews to collect perceptions of 12 top managers in large firms on when and why they use business analytics in their decision-making.
Findings
Top managers use business analytics output as their main source of information for monitoring ongoing business performance against set targets and taking corrective actions. Concerning future-oriented planning and strategic decision-making involving more complex changes on the firms’ resource base, top managers proactively complement knowledge derived via business analytics with other sources of knowledge, such as stakeholder and expert opinions. Moreover, top managers use of business analytics depends on their own expectations of its value potential and on the expectations of their organization.
Originality/value
This study adds to the extant literature on the business value of business analytics by outlining the purposes and reasons for top management business analytics use. By demonstrating when and why top managers apply business analytics when making decisions on the firm’s current and future resource base, this study contributes to the discussion on the resource-based view and decision-making practices of the firm.
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Diksha Sharma and Meena Sharma
The study examines the role of ethical leadership in the innovative performance of employees. Further, the purpose of the study is to investigate the mediating effect of human…
Abstract
Purpose
The study examines the role of ethical leadership in the innovative performance of employees. Further, the purpose of the study is to investigate the mediating effect of human capital and social capital on the relationship between ethical leadership and the innovative performance of employees.
Design/methodology/approach
The study collected primary data from 386 managerial-level employees of information technology (IT) companies in the northern region of India. Structural equation modelling (SEM) was used to analyse the data and derive the direct and indirect effects.
Findings
The findings indicate a significant positive impact of ethical leadership on the innovative performance of employees. Further, it was found that ethical leadership has both direct and indirect effects on the innovative performance of employees, where the indirect effect was mediated through intellectual capital (IC). The research confirms that IC and ethical leadership are crucial resources for fostering a knowledge-driven culture and innovative performance amongst employees.
Originality/value
The research has made a novel attempt to explore the interplay between ethical leadership, IC and innovative performance in the Indian context. Further, the study provides actionable strategies for business leaders to optimise business processes and encourage innovative practices amongst employees in the company.
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