Zilong Wang, Zhiwen Zhang and Ng Choon Yeong Jhony
As a transition economy, China is interested in allocating its limited innovation resources economically, reasonably and efficiently to produce as many outputs as possible with…
Abstract
Purpose
As a transition economy, China is interested in allocating its limited innovation resources economically, reasonably and efficiently to produce as many outputs as possible with its limited financial and human resources. Nonetheless, what is the efficiency of the allocation of innovative resources for civil–military integration enterprises, and what factors hinder its efficiency improvement? The purpose of this paper is to explore these problems.
Design/methodology/approach
The improved two-stage network data envelopment analysis (DEA) method is used to measure the overall efficiency and stage efficiency of the innovation resource allocation of 58 Chinese civil–military integration listed companies from 2010 to 2016. Tobit model is used to analyze the influencing factors of resource allocation efficiency.
Findings
The results indicate that the overall efficiency and stage efficiency of innovation resource allocation fluctuate in varying degrees during the period. The optimization of overall efficiency is restricted by lower efficiency of innovation achievement transformation. Enterprise scale was found to have a significant negative impact on both overall and two-stage efficiencies. Proportion of research and development (R&D) personnel had a positive effect on the overall and two-stage efficiency. Government support had a significant positive effect on the stage of innovation resource development and overall efficiency.
Originality/value
Previous research studies have used either the DEA or stochastic frontier analysis method to measure the efficiency of innovation activities as a whole and ignored the stage of initial investment to final output in innovation activities. That is, the process in which initial input of R&D resources becomes innovation output, and then becomes economic benefits. Therefore, this paper studies the efficiency of innovation resource allocation of civil–military integration listed companies. The improved two-stage chain network DEA method and Tobit model were used.
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Yongfeng Zhu, Zilong Wang and Jie Yang
The existing three-stage network Data Envelopment Analysis (DEA) models with shared input are self-assessment model that are prone to extreme efficiency scores in pursuit of…
Abstract
Purpose
The existing three-stage network Data Envelopment Analysis (DEA) models with shared input are self-assessment model that are prone to extreme efficiency scores in pursuit of decision-making units (DMUs) efficiency maximization. This study aims to solve the sorting failure problem of the three-stage network DEA model with shared input and applies the proposed model to evaluate innovation resource allocation efficiency of Chinese industrial enterprises.
Design/methodology/approach
A three-stage network cross-DEA model considering shared input is proposed by incorporating the cross-efficiency model into the three-stage network DEA model. An application of the proposed model in the innovation resource allocation of industrial enterprise is implemented in 30 provinces of China during 2015–2019.
Findings
The efficiency of DMU would be overestimated if the decision-maker preference is overlooked. Moreover, the innovation resource allocation performance of Chinese industrial enterprises had a different spatial distribution, with high in eastern and central China and low in western China. Eastern China was good at knowledge production and technology development but not good at commercial transformation. Northeast China performed well in technology development and commercial conversion but not in knowledge production. The central China did not perform well in terms of technology development.
Originality/value
A three-stage network DEA model with shared input is proposed for the first time, which makes up for the problem of sorting failure of the general three-stage network model.
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Krista Jaakson, Dorel Tamm and Gerli Hämmal
The biotechnology sector provides business‐to‐business service and continuous innovation is an imperative for biotechnology organisations in order to survive. The aim of this…
Abstract
Purpose
The biotechnology sector provides business‐to‐business service and continuous innovation is an imperative for biotechnology organisations in order to survive. The aim of this paper is to outline the elements in Estonian biotechnology organisations that inhibit them from becoming more innovative, and based on that, suggest how managers can increase their organisational innovativeness (OI).
Design/methodology/approach
The study is based on single‐respondent structured interviews that were carried out in 15 biotechnology organisations in Estonia. The questions were divided into five categories: strategic orientation to innovation, processes related to resource allocation, processes related to work organisation, behaviour related to innovation initiation and behaviour related to innovation implementation. For each category OI the score was calculated and analysed.
Findings
The study hypothesised that OI is about half of its potential and the lowest scores were expected to emerge in the resource allocation to innovation and processes related to work organisation categories. The authors found that OI was higher than expected among the study sample and the only resource allocation score was significantly lower than the scores of other categories. Surprisingly, the score of strategic orientation to innovation was the next lowest after resource allocation.
Practical implications
The results imply that Estonian biotechnology organisations could increase their innovativeness by better integrating innovation into their formal strategy and rewarding employees for innovative ideas. Also, specific aspects in other categories are elevated (rotating employees across functions/regions, introducing development discussions, etc.) that would enhance OI.
Originality/value
The originality of the paper lies in its profound overview of recent literature on OI, and the development of an interview questionnaire that covers a range of relevant issues assumed to support innovation.
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Antonio K.W. Lau, Richard C.M. Yam and Esther P.Y. Tang
Recent studies have advocated the impact of technological innovation capabilities (TIC) on firms' competitive performances. This paper adopts a study framework of innovation audit…
Abstract
Purpose
Recent studies have advocated the impact of technological innovation capabilities (TIC) on firms' competitive performances. This paper adopts a study framework of innovation audit to examine the relevance of TIC on the innovation performance of the electronics industry in Hong Kong (HK)/Pearl River Delta region.
Design/methodology/approach
Empirical data were acquired through a recent survey of electronics firms in the region. Pearson correlation and regression analysis were employed to examine the relationship between TIC and innovation performance.
Findings
The results verify that R&D, resource allocation, learning, and strategy planning capabilities can significantly improve the innovation sales. R&D and resource allocation capabilities can also significantly improve new product introduction.
Research limitations/implications
The paper contributes to existing literature by studying the impact of TIC on innovation performance in HK. It also explores two out of seven TIC – R&D and resource allocation capabilities – to improve firms' innovation performance in the region.
Originality/value
This paper is one of very few that provide empirical evidence of the TIC and innovation performance in HK. It also revisits the audit framework proposed by recent innovation studies, which helps theoretical development.
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Yan Shi, Bo Zou, Chunlan Wang and Ou Li
How to promote innovation remains a challenge. In practice, some enterprises try to initiate an organizational crisis intentionally to spur innovation. This study approaches this…
Abstract
Purpose
How to promote innovation remains a challenge. In practice, some enterprises try to initiate an organizational crisis intentionally to spur innovation. This study approaches this practice and aims to explore the role of intentional organizational crisis in innovation.
Design/methodology/approach
This study conducted an empirical study. Data was collected from 297 companies in China by a questionnaire survey.
Findings
Results show the role of intentional organizational crisis in innovation. There is a U-shaped relationship between intentional organizational crisis and product innovation capability. Past performance and resources allocation capability moderate this relationship by weakening the impact of intentional organizational crisis on product innovation capability.
Originality/value
This study highlights the light and dark sides of intentional organizational crisis and explores its impact on innovation capability, providing some implications for practitioners to use crises as shocks to spur innovation and enriching the research of organizational crisis and innovation capability.
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Xingxin Zhao, Xinrui Zhan and Jiafu Su
This study explores the contingent relationship between technological diversification (TD) and innovation performance, particularly in the context of China’s high-tech firms. It…
Abstract
Purpose
This study explores the contingent relationship between technological diversification (TD) and innovation performance, particularly in the context of China’s high-tech firms. It aims to understand how the structure of firm ownership influences the allocation of innovation resources and, consequently, the efficiency of innovation activities.
Design/methodology/approach
The research employs a fixed-effect regression model to analyze a unique panel dataset of 1,139 Chinese listed high-tech firms over a nine-year period. The dataset includes firm-year observations from 19 industries, allowing for a comprehensive analysis of the relationships between TD, innovation performance and ownership structure.
Findings
This study finds an inverted U-shaped relationship between TD and innovation performance, indicating that while a certain level of TD can enhance innovation performance, excessive diversification can lead to diminishing returns. The findings also reveal that ownership concentration amplifies this relationship, suggesting that firms with more concentrated ownership structures can quickly reach optimal levels of innovation performance but are also more susceptible to the “over-diversification trap.” In contrast, equity restriction and ownership type (state-owned vs privately owned enterprises) moderate the relationship, indicating that firms with these structures may maintain optimal innovation performance levels for longer periods.
Originality/value
This research provides novel insights by confirming a nonlinear, inverted U-shaped relationship between TD and innovation performance, specifically within the context of Chinese high-tech firms. By integrating corporate governance theory, our study advances understanding of how ownership structure – through ownership concentration, equity restriction and ownership type – moderates the TD-innovation performance relationship. This perspective offers a deeper understanding of resource allocation and innovation efficiency in emerging markets. The findings hold practical implications for managers and policymakers, underscoring the importance of aligning TD strategies with firm ownership structures to optimize innovation outcomes.
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Noufou Ouedraogo, William X. Wei, Ali Muhammad and Mohammed Laid Ouakouak
The purpose of this research is to investigate the effects of market pressure on organisational innovation performance through commitment and resource to innovate and manager…
Abstract
Purpose
The purpose of this research is to investigate the effects of market pressure on organisational innovation performance through commitment and resource to innovate and manager innovation capability.
Design/methodology/approach
A quantitative study was conducted with 273 participants working in different organisations. These participants were drawn from the LinkedIn network of one of the researchers. The data were collected using a survey questionnaire uploaded onto www.surveymonkey.com. The data were analysed using SPSS and AMOS, and structural equation modelling techniques were used to test the hypotheses.
Findings
We found that market pressure has a positive effect on both commitment to innovate and resource to innovate. In turn, both commitment to innovate and resource to innovate influence manager innovation capability. We also found that manager innovation capability positively affects organisational innovation performance. Furthermore, manager innovation capability is a mediator in the relationship between commitment to innovate and organisational innovation performance as well as in the relationship between resource to innovate and organisational innovation performance. Finally, the relationship between manager innovation capability and organisational innovation performance is moderated by both extrinsic and intrinsic motivations to innovate.
Practical implications
Our study provides empirical evidence of the roles of commitment to innovate, resource to innovate and manager innovation capability in enhancing the innovation performance of organisations. Therefore, organisations should show their commitment to innovate, provide resources to innovate, develop managers’ capabilities to innovate and use a mix of intrinsic and extrinsic motivators to boost their innovation performance.
Originality/value
This study offers new insights into the dynamics of how market pressure leads to innovation within organisations.
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Qi Wang and Qiuming Wu
The purpose of this study was to measure the innovative performance of a managed and owned mainland Chinese family business. The objective of the study was to assist an inheritor…
Abstract
Purpose
The purpose of this study was to measure the innovative performance of a managed and owned mainland Chinese family business. The objective of the study was to assist an inheritor and/or successor of a family business and to find management problems in innovative activity.
Design/methodology/approach
To improve the innovative technical efficiency (TE) of the business, the study offers methods that enhance the allocation of resources to provide outcomes that improve the core competitiveness of the business and realize the sustainable development of the business. Innovation performance is a well-organized and efficient way of turning innovation input into innovation output. Human input, research and development expenditures measure innovation input. Patent output and other outputs, which include total labor productivity and asset liability ratios, measure innovation output. To complete the study’s task, the innovative performance of 46 Chinese listed family run and owned businesses were evaluated based on the data envelopment analysis and the Banker, Charnes and Cooper model.
Findings
The results of the study show that the overall TE of innovation in a Chinese family run and owned business is low and that the returns to scale of most such businesses is decreasing, and furthermore, that the overall innovation performance of is low.
Originality/value
The implications from the study further suggest that for business efficiency and increased profit a beneficiary of a Chinese family-owned business should optimize the firm’s size and resource allocation.
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The purpose of this paper is to integrate existing streams of literature in service innovation and services marketing and adopt an internal perspective of the new service…
Abstract
Purpose
The purpose of this paper is to integrate existing streams of literature in service innovation and services marketing and adopt an internal perspective of the new service development (NSD) process by discussing the role of some intra‐organizational contingencies that determine NSD project performance.
Design/methodology/approach
This paper develops a number of propositions applicable to new service development projects, in order to shed light on how internal team dynamics and contextual antecedents of service innovation affect NSD project performance.
Findings
The importance of adopting an internal market orientation (IMO) for new service development performance is illustrated. The role of intrateam contingencies, such as trust, relationship conflict and political activity and some contextual antecedents, such as resource allocation effectiveness and efficiency and cross‐functional integration for NSD project performance are also discussed.
Originality/value
This study is clearly a fruitful path of exploration ahead to help NSD project managers understand the importance of the internal environment for NSD performance. Moreover, different proxies of NSD performance are suggested in order to identify organizational gains stemming from NSD initiatives.
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Shuangying Chen, Feng Fu, Tingting Xiang and Junli Zeng
Extant research on the crowding-out effects of government subsidies on the positive role of firm innovation resources or activity remains limited. This paper aims to investigate…
Abstract
Purpose
Extant research on the crowding-out effects of government subsidies on the positive role of firm innovation resources or activity remains limited. This paper aims to investigate the crowding-out effects of subsidies on the utilization of technological capabilities and also the contingency mechanisms of market-oriented economy based on the resource-based view (RBV), given the co-existence of the subsidies and technological capabilities for firm innovation in transitional economy.
Design/methodology/approach
This paper used panel data of 115 Chinese high-tech firms from 2002 to 2010. Fixed-effects model was used to test several hypotheses.
Findings
This paper empirically demonstrates that the subsidies crowd out the utilization of firms’ technological capabilities for invention outcomes in the near-term. Furthermore, this paper finds that the crowding-out effects are weaker when firms have high export intensity or are located in provinces with high market-oriented systems.
Research limitations/implications
The findings of this paper apply to Chinese firms. Future research could test their generalizability to different samples and other transitional economies.
Practical implications
This paper highlights the crowding-out effects of the subsidies, revealing that high-tech firms should balance the direct effects and crowding-out effects of the subsidies.
Originality/value
This paper highlights the neglected interactions between the subsidies and technological capabilities based on RBV and provides a more nuanced understanding of the crowding-out effects of the subsidies in transitional economy.