Juan A. Sanchis Llopis, Juan A. Mañez and Andrés Mauricio Gómez-Sánchez
This paper aims to examine the interrelation between two innovating strategies (product and process) on total factor productivity (TFP) growth and the dynamic linkages between…
Abstract
Purpose
This paper aims to examine the interrelation between two innovating strategies (product and process) on total factor productivity (TFP) growth and the dynamic linkages between these strategies, for Colombia. The authors first explore whether ex ante more productive firms are those that introduce innovations (the self-selection hypothesis) and if the introduction of innovations boosts TFP growth (the returns-to-innovation hypothesis). Second, the authors study the firm’s joint dynamic decision to implement process and/or product innovations. The authors use Colombian manufacturing data from the Annual Manufacturing and the Technological Development and Innovation Surveys.
Design/methodology/approach
This study uses a four-stage procedure. First, the authors estimate TFP using a modified version of Olley and Pakes (1996) and Levinsohn and Petrin (2003), proposed by De Loecker (2010), that implements an endogenous Markov process where past firm innovations are endogenized. This TFP would be estimated by GMM, Wooldridge (2009). Second, the authors use multivariate discrete choice models to test the self-selection hypothesis. Third, the authors explore, using multi-value treatment evaluation techniques, the life span of the impact of innovations on productivity growth (returns to innovation hypothesis). Fourth, the authors analyse the joint likelihood of implementing process and product innovations using dynamic panel data bivariate probit models.
Findings
The investigation reveals that the self-selection effect is notably more pronounced in the adoption of process innovations only, as opposed to the adoption of product innovations only or the simultaneous adoption of both process and product innovations. Moreover, our results uncover distinct temporal patterns concerning innovation returns. Specifically, process innovations yield immediate benefits, whereas implementing both product innovations only and jointly process and product innovations exhibit significant, albeit delayed, advantages. Finally, the analysis confirms the existence of dynamic interconnections between the adoption of process and product innovations.
Originality/value
The contribution of this work to the literature is manifold. First, the authors thoroughly investigate the relationship between the implementation of process and product innovations and productivity for Colombian manufacturing explicitly recognising that firms’ decisions of adopting product and process innovations are very likely interrelated. Therefore, the authors start exploring the self-selection and the returns to innovation hypotheses accounting for the fact that firms might implement process innovations only, product innovations only and both process and product innovations. In the analysis of the returns of innovation, the fact that firms may choose among a menu of three innovation strategies implies the use of evaluation methods for multi-value treatments. Second, the authors study the dynamic inter-linkages between the decisions to implement process and/or product innovations, that remains under studied, at least for emerging economies. Third, the estimation of TFP is performed using an endogenous Markov process, where past firms’ innovations are endogenized.
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Antonio Cutanda and Juan Alberto Sanchis Llopis
The purpose of this study is to estimate the housing wealth effect on non-durable consumption using data from the Spanish Survey of Household Finances (Encuesta Financiera de las…
Abstract
Purpose
The purpose of this study is to estimate the housing wealth effect on non-durable consumption using data from the Spanish Survey of Household Finances (Encuesta Financiera de las Familias, SHF) for the period 2002–2017.
Design/methodology/approach
The authors aim at identifying the effect of anticipated and unanticipated housing wealth changes on consumption with the sample of homeowners, following Paiella and Pistaferri (2017).
Findings
Results of this study lead us to conclude that there exists a strong housing wealth effect on consumption for the Spanish households.
Originality/value
The authors provide evidence against the permanent income model. They also analyse how the results change with income expectations, age and the household indebtedness rate. Finally, they detect a strong excess sensitivity to income.
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Abstract
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Sylvia Novillo-Villegas, Wendy Anzules-Falcones and Juan Ignacio Martin-Castilla
This study aims to explore the relationship between the innovation capacity and performance of manufacturing firms in the Ecuadorian pharmaceutical and chemical sectors using…
Abstract
Purpose
This study aims to explore the relationship between the innovation capacity and performance of manufacturing firms in the Ecuadorian pharmaceutical and chemical sectors using strategic foresight analysis.
Design/methodology/approach
From an extensive literature review, the fundamental variables related to manufacturing firms’ innovation for better performance were identified. Six hypotheses and actions were proposed related to financing, economic resources, capacities and research and development. Several scenarios were tested through foresight methodology to determine the more appropriate to be implemented by manufacturing firms over the next five years.
Findings
Scenario 01, where all the hypotheses resulted positive, has a 15.3% probability of occurrence. The results offer a relevant understanding of the behavior of the variables proposed as strategic actions for the sector.
Originality/value
To the best of the authors’ knowledge, foresight methodology is applied for the first time to analyze the manufacturing sector in Ecuador. The authors propose a plan of action from the strategic scenario identified in this study, supporting the development of the industrial sectors under study.
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Haruna Isa Mohammad and Daniel Marcel
The goal of this work is to evaluate how corporate social responsibility (CSR) affects competitive performance in Nigeria's banking industry, with innovation capability acting as a…
Abstract
Purpose
The goal of this work is to evaluate how corporate social responsibility (CSR) affects competitive performance in Nigeria's banking industry, with innovation capability acting as a mediator and environmental uncertainty as a moderating factor.
Design/methodology/approach
The banking industry in Nigeria served as the site for the empirical investigation. Employees at deposit money institutions received a questionnaire. Direct and mediating effects and the moderating role were thus examined utilizing a final sample of 267 cases using consistent partial least squares structural equation modeling with ADANCO 2.2.1.
Findings
The data shows that CSR has both a significant strategic impact on innovation capability and a competitive innovation capability. In contrast, the outcome shows a strong effect of CSR's strategic character on performance in the marketplace. Furthermore, evidence for mediating and moderating effects was provided.
Research limitations/implications
The study was restricted to Nigerian banking institutions. Additionally, data on competitive performance were acquired from employees' perspectives, while considering the competitive performance of their rivals.
Originality/value
The primary contribution of this paper is the empirical investigation of the mediating impact of innovation capability and the moderating function of environmental uncertainty in banking organizations that use a CSR strategy to attain competitive performance.
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Juan José Tarí, Enrique Claver‐Cortés, Jorge Pereira‐Moliner and José F. Molina Azorín
The purpose of this paper is to study whether quality certified hotels develop some managerial key factors in a significantly better way and have better performance.
Abstract
Purpose
The purpose of this paper is to study whether quality certified hotels develop some managerial key factors in a significantly better way and have better performance.
Design/methodology/approach
The empirical data were collected from a sample of 303 Spanish hotels. Hotels were grouped as certified and non‐certified hotels and the differences were analysed between these two groups in relation to the key factors and performance variables.
Findings
Certified hotels develop better the key factors and have better performance. This supports the findings related to this issue in other industries and expands the literature on quality management in the hotel industry.
Practical implications
Quality certifications in hotels may be an important strategic initiative because they may facilitate the development of key factors and may have an impact on firm performance.
Originality/value
The paper reinforces the fact that the quality certification is also important in the hotel industry, where the more scarce literature on this issue in this industry suggests that it is necessary to analyse the relationship of quality certification on firm performance.
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Tahereh Hasani and Norman O'Reilly
The purpose of this paper is to depict the effects and relative importance of technological, organizational, environmental and managerial factors on the organizational performance…
Abstract
Purpose
The purpose of this paper is to depict the effects and relative importance of technological, organizational, environmental and managerial factors on the organizational performance of start-up businesses.
Design/methodology/approach
This research’s primary data was collected from 389 start-up companies in Malaysia. Principle component analysis and the orthogonal model with Varimax rotation method are used to perform exploratory factor analysis test. Structural equation modelling is also used in confirmatory factor analysis to explore the relationships between independent and dependent variables.
Findings
The findings suggest positive effects of technological and environmental characteristics on the organizational performance of start-up businesses. The managerial characteristics do not have any positive effect on the organizational performance of start-up businesses. The organizational characteristics split into two parts: the availability of internal financial resources, which positively affects the organizational performance of start-up businesses; and the availability of business incubation, which does not have any important effect. Moreover, start-up companies should choose the one with the highest perceived advantage as it would have the most significant positive effect on their organizational performance. In addition, it was detected that venture capitalists’ (VCs) support has the most positive influence on organizational performance and social customer relationship management adoption even more than governmental supports in the context of Malaysia.
Originality/value
The proposed framework of this research can be used not only as a research tool for examining determinant factors affecting organizational performance of start-up businesses but also by governments, VCs and other investors to detect best-performing start-up businesses.