Chengxiang Chu, Sihan Cheng and Cong Cao
There is currently a gap in the research regarding the effect of corporate culture on corporate innovation capability. Based on cultural hierarchy theory, in this paper, we…
Abstract
Purpose
There is currently a gap in the research regarding the effect of corporate culture on corporate innovation capability. Based on cultural hierarchy theory, in this paper, we explore the interactions between cultural factors and innovation capability in emerging market firms (EMFs). We discuss the mechanisms by which incentive, institutional, and vibrant corporate cultures influence corporate innovation capability. Furthermore, we consider the transformation of artificial general intelligence (AGI) from a tool into a colleague and how this affects the relationship between corporate culture and innovation capability.
Design/methodology/approach
An online questionnaire was distributed to corporate employees to explore their attitudes towards AGI and corporate culture. In total, 523 valid questionnaires were empirically analysed using partial least squares structural equation modelling and multigroup analysis (MGA).
Findings
The results showed that incentive culture, institutional culture, and vibrant culture had a positive impact on corporate innovation capability. MGA revealed significant differences between employees who considered AGI a tool and those who considered it a colleague. Employees who treated AGI as a colleague were likely to be influenced by a vibrant culture, whereas employees who treated AGI as a tool were likely to be influenced by an incentive or institutional culture.
Originality/value
Building on cultural hierarchy theory, our study provides a new theoretical framework to enrich current research on the relationship between corporate culture and AGI. The study can help EMF managers adjust incentive and institutional cultures before AGI shifts from being a tool to a colleague and negatively impacts innovation capacity.
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Wenwen An, Yuehua Xu and Jianqi Zhang
Previous studies have produced inconsistent findings regarding the effects of resource constraints on corporate illegal behavior. This study aims to explore how entrepreneurial…
Abstract
Purpose
Previous studies have produced inconsistent findings regarding the effects of resource constraints on corporate illegal behavior. This study aims to explore how entrepreneurial firms can overcome the difficulties generated by resource constraints.
Design/methodology/approach
Drawing on insights from general strain theory and focusing on listed entrepreneurial firms, this study proposes that failure to obtain enough resources through listing generates strain in the managers of listed entrepreneurial firms, driving them to resort to corporate financial fraud as a solution. Nevertheless, such relationships between resource constraints and the likelihood of corporate financial fraud can be weakened by innovation capability, because innovation capability can generate more confidence in their managers and relieve their strains, thereby dissuading them from engaging in corporate financial fraud.
Findings
According to our empirical results, both financial and human resource constraints are positively related to the likelihood of corporate financial fraud in listed entrepreneurial firms, but such effects can be mitigated by innovation capability.
Practical implications
This study provides practical implications for both regulators and managers by indicating that although entrepreneurial firms with resource constraints are more likely to commit financial fraud, innovation capability could be a strategic approach to enhance managers’ confidence and relieve the strain.
Originality/value
Our study contributes to the literature by enriching our understanding of the consequences of resource constraints in entrepreneurial firms and highlighting the strategic importance of innovation capability in mitigating such effects.
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Manoj Hudnurkar, Suhas Ambekar, Sonali Bhattacharya and Pratima Amol Sheorey
This study attempts to find the structural relationship between Total Quality Management (TQM) and Corporate Sustainability (CS) by analyzing the role of Innovation Capability…
Abstract
Purpose
This study attempts to find the structural relationship between Total Quality Management (TQM) and Corporate Sustainability (CS) by analyzing the role of Innovation Capability (IC).
Design/methodology/approach
The authors conducted the study in the context of manufacturing industries in the Indian Micro Small and Medium Enterprises (MSME) sector. In the process, The authors attempt to throw light on the significance of TQM and IC in bringing out sustainable practices in organizations. The authors used Structural Equation Modeling with AMOS to study the relationship between TQM and CS.
Findings
The authors measured TQM through product control management, process control, vendor quality management and customer relationship improvement. We did find a direct relationship between TQM and CS, along with its three dimensions: environmental sustainability, economic sustainability and social sustainability. TQM was found to be antecedent to IC. IC, measured through product innovation, process innovation and managerial innovation, did not mediate the relation between TQM and CS. However, the link between TQM and social and environmental sustainability partially mediates through IC at the dimension level.
Practical implications
TQM can provide a holistic means of nurturing participation and satisfaction of stakeholders for achieving corporate sustainability and in the process, can create an innovative culture for stimulating a circular social economy.
Originality/value
This study fills the gap in the literature by providing a structural model that explains the relationship between TQM and corporate sustainability and highlights the role of innovation capability in achieving it.
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Hashim Zameer, Humaira Yasmeen, Ying Wang and Muhammad Rashid Saeed
Understanding the role of corporate strategies in sustainability has become a hot topic for scholarly research. Meanwhile, firms strive to innovate and shape their positive image…
Abstract
Purpose
Understanding the role of corporate strategies in sustainability has become a hot topic for scholarly research. Meanwhile, firms strive to innovate and shape their positive image in the contemporary business arena. Past research has ignored investigating whether and how sustainability-oriented corporate strategies could drive innovation and firm image among external stakeholders. To address the said research gap, this paper examines the path through which sustainability-oriented corporate strategy and environmental regulation improve green corporate image and green innovation capabilities (i.e. green process and product innovation).
Design/methodology/approach
This study adopted a quantitative survey-based method. The online survey was adopted to collect data from employees working at the managerial level in the equipment manufacturing sector. The data collected from 343 managers that was complete in all aspects was used for empirical analysis using structural equation modeling. Direct and indirect relations were evaluated.
Findings
The findings reveal that sustainability-oriented corporate strategy and environmental regulation drive green innovation and green corporate image. Findings further show that external knowledge adoption underpins these effects of sustainability-oriented corporate strategy and environmental regulation.
Originality/value
The study delivers theoretical and practical understandings of the importance of sustainability-oriented corporate strategies to green corporate image and green innovation capabilities.
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Liangyu Jiang, Ye Xuan and Kerong Zhang
Building upon the resource-based view (RBV) and related research, this paper empirically examines the impact and specific mechanisms of artificial intelligence transformation on…
Abstract
Purpose
Building upon the resource-based view (RBV) and related research, this paper empirically examines the impact and specific mechanisms of artificial intelligence transformation on corporate innovation capabilities. It provides micro-level evidence of AI’s influence on innovation behavior.
Design/methodology/approach
Drawing upon data from Chinese listed companies spanning the period from 2011 to 2022, this study employs a dual fixed-effects model and a mediation effects model to empirically analyze the influence of enterprise AI transformation on its innovation capability as well as the specific mechanisms involved.
Findings
The research reveals that AI transformation significantly enhances the innovation capability of enterprises. Heterogeneity analysis indicates that AI transformation exerts a stronger promoting effect on the innovation capability of non-technology firms, large enterprises and those within the manufacturing sector. Mechanism analysis further reveals that AI transformation enhances innovation capability by boosting enterprise profits, reducing costs and reinforcing internal control mechanisms. Further examination demonstrates that AI transformation elevates the quality, efficiency and eco-friendliness of enterprise innovation.
Originality/value
Firstly, this study employs text analysis methods from machine learning to construct artificial intelligence indicators at the firm level, providing stronger evidence of AI’s impact on corporate innovation capabilities. Secondly, it extends corporate innovation behavior to include innovation quality, efficiency and green innovation practices, offering a more comprehensive validation of AI’s role in fostering corporate innovation.
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Peng Xu, Mingfeng Tang, Jin Chen and Alexander Brem
China has climbed from 22nd in the Global Innovation Index Rankings in 2017 to 11th in the 2022 due to the transition of its manufacturing firms from assemblers to system…
Abstract
Purpose
China has climbed from 22nd in the Global Innovation Index Rankings in 2017 to 11th in the 2022 due to the transition of its manufacturing firms from assemblers to system integrators. This paper examines how firms can enhance their innovation capability through inbound and outbound open innovation.
Design/methodology/approach
This paper applies both open innovation and a knowledge-based view and proposes a conceptual framework that encompasses innovation capability and the significance of tacit knowledge acquisition. A questionnaire was designed to collect relevant data from 139 Chinese manufacturing firms in six regions to test this framework.
Findings
The authors found that inbound open innovation has a stronger impact than outbound open innovation on synergistic innovation capability. The acquisition of skill-based tacit knowledge has a slightly stronger intermediary role between open innovation (no matter inbound or outbound) and synergistic innovation capability than cognitive tacit knowledge does.
Practical implications
Firms should improve external tacit knowledge acquisition efforts to generate new knowledge, inspire the innovation passion of employees and implement ambidextrous open innovation.
Originality/value
This paper makes a good first step to analyze the effect of ambidextrous open innovation on the synergistic innovation capability of Chinese manufacturing firms. It verifies the role of skill-based and cognitive tacit knowledge acquisition and provides new reflections on open innovation strategy in emerging economies, thus enriching open innovation and knowledge-based theories.
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Xiaofeng Quan, Hongjun Xiao, Qiong Ji and Jinkang Zhang
This paper aims to analyse the role of government-led innovative knowledge management platforms in innovation knowledge management, social network effects and innovative resource…
Abstract
Purpose
This paper aims to analyse the role of government-led innovative knowledge management platforms in innovation knowledge management, social network effects and innovative resource clusters in the context of academician workstations in China. Specifically, this paper empirically studies the impact of academician workstations on corporate innovation capabilities and the mechanisms behind this impact.
Design/methodology/approach
This study uses the propensity matching score method and difference-in-differences method to test the relationship between academician workstations and corporate innovation capabilities. Baron and Kenny’s (1986) mediation method is used to test two potential mechanisms.
Findings
Academician workstations significantly improve corporate innovation capabilities because of their contribution to knowledge and innovation management. The facilitation effects are stronger in non-state-owned firms, high-tech firms and firms in industries with low levels of competition. Further, academician workstations enhance corporate innovation capabilities through their funding effect.
Practical implications
This paper encourages policymakers to create a better market environment and stable support policies to facilitate sustainable scientific and technological innovation.
Originality/value
To the best of authors’ knowledge, this study is among the first to empirically analyse the impacts of innovative knowledge management platforms on corporate innovation. It enriches the theoretical perspective of innovation platforms and provides an excellent research perspective for effectively analysing the impacts of innovation platforms. This study also contributes to the literature on the determinants of innovation.
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Zafer Adiguzel, Fatma Sonmez Cakir and Ferhat Özbay
The purpose of this study is to examine the importance of big data analytics capability (BDAC), knowledge management (KM), corporate sustainability strategy (CSS) and…
Abstract
Purpose
The purpose of this study is to examine the importance of big data analytics capability (BDAC), knowledge management (KM), corporate sustainability strategy (CSS) and sustainability design (SD) variables that affect the innovation performance (IP) of companies in the information technology (IT) sector. Taking these variables into consideration, the authors aim to highlight the key factors necessary for the sustainability and success of companies in the IT sector.
Design/methodology/approach
As a result of this research, a model was developed and a quantitative analysis technique was adopted. By applying PLS- structural equation modeling, the data were analyzed in the SmartPLS 4.0 program and focused on the population of companies in the IT sector. Middle and senior managers working in these companies were reached. The main reason for choosing this sector is that the variables in the research model are very important in the IT sector.
Findings
The analysis results are supported by the hypotheses that BDAC, information management, CSS and SD have positive effects on the IP of companies in the IT sector.
Research limitations/implications
In terms of research limitations, data was collected by survey method from companies operating in the IT sector in Istanbul, ensuring that participation was voluntary. Because Istanbul is the most developed city in Turkey, and hence where IT companies are located, the sample population consists of companies in this city. It is recommended that future research should develop the research model, taking this limited situation into account and contributing to the literature by collecting data from companies in different sectors by using the comparison method.
Practical implications
To benefit from the potential of big data, it can be predicted that companies in the IT sector should strengthen their infrastructure, increase their performance by better managing their knowledge and experience, realize innovations by achieving sustainability goals and create an environmentally friendly image by increasing the sustainability of their products/services and thus become a company that gains an innovative competitive advantage. Considering these variables collectively can help companies in the IT sector to be more efficient and sustainable.
Social implications
Because the studies in the literature do not have sufficient empirical findings in examining the relationships between variables, companies are offered a limited perspective on how they should approach big data initiatives. Therefore, in addition to research conducted in different sectors and different types of companies, examining the impact of BDAC as independent variables and sustainability and KM as mediator variables in companies in the IT sector will contribute to the theory.
Originality/value
There are many studies examining the relationship between BDAC and information management. However, examining the mediation variable effect of sustainability, which is one of the three goals of businesses, together with these variables, is important in terms of contributing to the literature. Because we are in the age of digitalization, companies are now renewing and developing strategies for the future. We can see data science, innovation, information and sustainability as the most important concepts of these strategies. Therefore, this study uses original research that can be referenced for both academics and companies.
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Shabir Ahmad, Rosmini Omar and Farzana Quoquab
The objective of this research is to investigate the influence of family involvement in business and innovation capability on sustainable longevity of family firms.
Abstract
Purpose
The objective of this research is to investigate the influence of family involvement in business and innovation capability on sustainable longevity of family firms.
Design/methodology/approach
Data collected from 553 executives of 200 family firms that survived to the second generation and beyond was analyzed using partial least square (PLS) approach of structural equation modeling (SEM) to test the hypotheses and validate the model.
Findings
The results provided evidence of the significant influence of family involvement in business on sustainable longevity of family firms and partial mediation of innovation capability between family involvement in business and corporate sustainable longevity.
Research limitations/implications
The sample included family firms owned and governed by the owner family. The future researchers may focus on professionally managed or publicly listed family firms.
Practical implications
The path to family firms' sustainable longevity goes through innovation capability apart from effective family control, succession, commitment to the business and family enrichment. That requires the family firm to be proactive in innovation capability.
Originality/value
Family firms are the dominant form of business representing around 80% of global business structure that strives for survival and consistently pursues sustainable longevity strategies. In the current globally competitive environment, innovation capability has become a matter of life and death for any firm. Based on the transaction cost economics (TCE) theory of family firms, this study proposes an integrative model of sustainable longevity for family firms.
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Chen Liang, Peter K.C. Lee, Minghao Zhu, Andy C.L. Yeung, T.C.E. Cheng and Honggeng Zhou
This study aims to theoretically hypothesize and empirically examine the impact of economic policy uncertainty (EPU) on firms' innovation performance as well as the contingency…
Abstract
Purpose
This study aims to theoretically hypothesize and empirically examine the impact of economic policy uncertainty (EPU) on firms' innovation performance as well as the contingency conditions of this relationship.
Design/methodology/approach
This study collects and combines secondary longitudinal data from multiple sources to test for a direct impact of EPU on firms' innovation performance. It further examines the moderating effects of firms' operational and marketing capabilities. A series of robustness checks are performed to ensure the consistency of the findings.
Findings
In contrast to the common belief that EPU reduces the innovativeness of firms, the authors find an inverted-U relationship between EPU and innovation performance, indicating that a moderate level of EPU actually promotes innovation. Further analysis suggests that firms' operational and marketing capabilities make the inverted-U relationship steeper, further enhancing firms' innovation performance at a moderate level of EPU.
Originality/value
This study adds to the emerging literature that investigates the operational implications of EPU, which enhances our understanding of the potential bright side of EPU and broadens the scope of operational risk management.