Emerald | Management Decision | Table of Contents

Services and organisational innovation: the right mix for value creation

Fri, 21 Jun 2013 00:00:00 +0100

Abstract

Purpose - The paper aims to discuss how services and service innovation are interlinked and support organisational innovation. Especially the reorganisation of operations and the introduction of new organisational arrangements are examined and conceptualised for further empirical analysis.Design/methodology/approach - Based on the analysis of different most recent developments in literature and practical experiences a conceptual framework has been developed which incorporates service and organisational innovation.Findings - The developed conceptualisation focuses on the role of services and service innovation, and the emerging interactions between organisations and services providers, where facilitators play a role. Accordingly, services are no longer a secondary part of the value chain. Instead, they have become essential and may add value from their involvement, for instance, in product design, business management, procurement in global markets, and support to customers’ participation in value creation. Research limitations/implications - The paper provides a concept derived from an in-depth literature analysis. In a next step an empirical analysis based on the proposed concept would complete the theoretical findings.Practical implications - The proposed conceptual framework supports the entire recognition of service and organisational innovation as a powerful mechanism to gain competitive advantage for companies.Originality/value - This paper proposes for the first time a conceptual framework which show that organisational innovation turns into a prevailing tool which facilitates the integration of service innovations into the value chains of companies and, thus, the increasing level of inter-connectedness required for firms’ competitiveness.

CLUSTERS, NETWORKS AND FIRMS’ PRODUCT SUCCESS. AN EMPIRICAL STUDY

literatinetwork@emeraldinsight.com (Elisa Giuliani) — Fri, 21 Jun 2013 00:00:00 +0100

Abstract

Purpose - This paper analyzes the relationship between different kind of networking and the performance of firms in industry clusters. In particular, it studies the importance of local embeddedness and external openness for product success, in two wine clusters in Chile and Italy. Design/methodology/approach - The analysis is based on original firm level data. Case-study methodology is combined econometric analysis. Findings - The empirical analysis shows that local embeddedness positively influences the development of successful products but with decreasing returns. More importantly however, we find that external openness is more significant than local embeddedness for explaining firm success. Practical implications - The paper has implications for managers not working in current "hot spots" who are keen to transform their environments into thriving economies. We recommend that managers look beyond the local context and establish extra-cluster linkages with relevant knowledge sources, which may vary from sector to sector. Managers should tap into local knowledge but avoid local overembeddedness. Originality/value - The paper contributes to the understanding of how and whether networks influence the performance of cluster firms.

Public policy innovations: the case of undeclared work

Fri, 21 Jun 2013 00:00:00 +0100

Abstract

Purpose - For many decades, European national governments sought to stamp out undeclared work using a repressive approach. In the changing economic context of declining employment participation rates, however, the European Commission has called for a new approach to transform undeclared work into declared work. This necessitates public policy innovations. The aim of this paper is to evaluate the degree to which this European Commission call for policy innovation has been adopted by European national governments. Design/methodology/approach - To evaluate this, the results are reported of an e-survey conducted in 2010 of 104 senior stakeholders from government departments, trade unions and employer organisations in 31 European countries, and 24 follow-up in-depth interviews. Findings - The finding is that although European nations have responded to the changing economic context and the resultant call by the European Commission for a new approach by adopting an array of innovative new policy measures to facilitate the declaration of undeclared work, stamping out such endeavour through repression measures remains the principal approach in most nations. Research limitations/implications - Until now, few studies have evaluated critically the different policy approaches adopted by European national governments to tackle undeclared work. This paper fills that gap.Practical implications - This paper reveals that if undeclared jobs are to be transformed into declared jobs and economic inclusion promoted, national governments will need to accord more priority to innovative new policy measures to legitimise declared work than is currently the case. Originality/value - This is the first critical evaluation of whether the European Commission call for innovative new policy measures when tackling undeclared work has been implemented.

Linking the Unlinked – Knowledge-Based Perspective on Non-Routine Change

literatinetwork@emeraldinsight.com (Paavo Ritala) — Fri, 21 Jun 2013 00:00:00 +0100

Abstract

Purpose - Firms operating in contemporary hypercompetitive environments have to seek series of temporary advantages, sometimes requiring them to move beyond their current knowledge domains. The existing knowledge- and capability-based views have certain shortcomings in terms of explaining firm competitiveness in such situations. In order to narrow this gap, this study puts forward a "knowledge-based perspective on non-routine change" to explain how firms can generate innovative processes and outcomes that are disconnected from their current knowledge and capability base.Design/methodology/approach - The study is a conceptual theory-development paper, which is based on the recent knowledge-based and capability approaches, and on other relevant literature related to non-routine change in organizations. Findings - Non-routine change is defined here as a process and an outcome that is disconnected from the firm’s current knowledge and capability base. The process involves the detachment from firm’s current knowledge and capability base, the identification of certain types of disconnected knowledge (slack, unrelated, unused, or unknown), and the leverage and combination of such knowledge in the search for novel, non-routine change outcomes.Originality/value - The novelty of this paper lies in its view on firm-level competitiveness in situations in which the existing knowledge and capability bases are of little value. The study proposes a categorization that explains what types of disconnected knowledge assets are particularly useful in such a process, and identifies where they are likely to be located. Thus, the study provides new insights into the management of knowledge related to non-routine change in organizations.

Perceived usefulness of innovation programs for high-tech and low-tech firms

Fri, 21 Jun 2013 00:00:00 +0100

Abstract

Purpose - Despite the sizable amount of previous research on this topic, little is known about the reasons why firms decide to start collaboration projects with innovation advanced service providers, such as universities and technological institutes. This paper investigates which factors at an individual firm level are involved in these collaborative strategies on supporting product and management improvements offered by local institutions to innovative firmsDesign/methodology/approach - The research is contextualized in the Valencian region and applies the Resource Based View and the Regional Innovation System approach as theoretical frameworks. Methodologically, the paper adopts a cross-sectional analysis and employs ordered regression models on a sample of innovative firms during 2009.Findings - Firstly, this paper endorses previous research suggesting the crucial role of cooperation and external knowledge on SME innovation. Secondly, it evidences how internal resources and capabilities determine a firm's use of public supported innovation. Thirdly, previous experience appears to be extremely relevant in explaining successful engagement in both technological and managerial innovation programs.Research limitations/implications - Because the case study approach and qualitative methodologies are used, we advise readers not to generalize our findings. The research on the subject matter is offered as a means to substantiate or refute the latest research premises, and provide empirical evidence on the selected region.Originality/value - Because the case study approach and qualitative methodologies are used, we advise readers not to generalize our findings. The research on the subject matter is offered as a means to substantiate or refute the latest research premises, and provide empirical evidence on the selected region.

Network Resources and Innovation Performance: Evidence from Chinese Manufacturing Firms

literatinetwork@emeraldinsight.com (Suli Zheng, Huiping Li, Xiaobo Wu) — Fri, 21 Jun 2013 00:00:00 +0100

Abstract

Purpose - To understand the effects of network resources on firm innovation and performance within alliances and networks, this paper examines the correlation between network resources and innovation performance through the mediation of capability accumulation and relative bargaining power.Design/methodology/approach - Drawing on a survey of 208 Chinese firms engaged in global production networks, this paper extracts four sets of hierarchical regressions to test the impact of network resources on innovation performance.Findings - Results show that network resources are an important source of competitive advantage and the distinction between accessed resources and embedded resources is critical. Other than through direct influences, innovation performance was partly achieved through the mediating role of technological capability and relative bargaining power. Research limitations/implications - Building upon the data introduced in this paper, future studies may examine the effects of network resources in different contexts and the interaction between external and internal resources.Practical implications - For firms competing within and between various networks, the forming and utilizing of network resources become a new source of competitive advantage. Hence, careful planning and a consideration of network resources should be undertaken to achieve improvements to a firm’s performance.Originality/value - First, this paper adds value to the network resource construct by distinguishing two different dimensions. Second, by integrating the mediating effects of technological capabilities and relative bargaining power, this paper reveals the mechanism by which network resources impact innovation performance within various network structures.

Innovation in industrial districts: evidence from Italy

literatinetwork@emeraldinsight.com (Marco Capasso, Andrea Morrison) — Fri, 21 Jun 2013 00:00:00 +0100

Abstract

Purpose - The recent transformations brought about by the Globalisation of markets have increased the competitive pressure for firms operating in traditional sectors, and in particular for those in Industrial districts. Our aim is to understand the extent to which firms responded to these new challenges. More in details we investigate the determinants of innovation at firm level focusing on the role of firm's outsourcing strategies. Design/methodology/approach - Drawing on a original firm-level dataset, we analyse the determinants of innovation in a typical Italian industrial district, i.e. the hosiery district of Castel Goffredo in the Third Italy. We apply econometric techniques. In particular OLS and Tobit models. Findings - Our findings suggests that industrial districts are evolving towards a differentiated organisational structure in which innovation is driven by firms, which are focused on core competences and high valued added activitiesResearch limitations/implications - Limitations: our results should be interpreted with some caution, since the cross-sectional design of our data does not allow us to fully control for potential reverse causation effects, which might be relevant for some of the explanatory variables. Our data do not allow us to include additional instrumental variables, thus we cannot control for endogeneity. Therefore, our interpretation is limited to comment the extent and regularity of the relation between dependent and explanatory variables.Practical implications - The evidence presented in this study corroborates some arguments highlighted in the current debate about the evolution of industrial districts. A network based organisation is the dominant organisational structure. We have some evidence on the importance of size as driver of innovation. Originality/value - We find original evidence at firm level on the relation between organisational change, in the form of outsourcing and innovation in the context of an industrial district. We also find empirical support to arguments debated in the recent policy debates on whether small firms can be regarded as engine of innovation in industrial districts.

An Organization’s Ethical Climate, Innovation, and Performance: Effects of Support for Innovation and Performance Evaluation

Fri, 21 Jun 2013 00:00:00 +0100

Abstract

Purpose - The purpose of this study is to examine how an organization’s ethical climate positively relates to its financial performance by considering an organization’s innovation, a support for innovation and performance evaluation.Design/methodology/approach - Data were collected from employees and managers of 41 subsidiaries of a conglomerate in South Korea through survey questionnaires.Findings - The results indicate that an organization’s ethical climate is positively related to financial performance, and its positive relationship is mediated by an organization’s innovation. The result also shows that a support for innovation has the moderating effect, such that the positive influence of an organization’s ethical climate on its innovation increases when a support for innovation is high. However, this study fails to find the moderating effect of performance evaluation Research limitations/implications - There might be the issue of generalizability, because the sample of this study is on the sample of a conglomerate in South Korea. Future research with different types of organizations in other nations is needed.Practical implications - This study indicates that an organization’s ethical climate can be a critical predictor of its innovation as well as financial performance. In this regard, organizations should pay attention to employees’ perceptions of the organization’s ethical climate. Originality/value - This study explains the mechanisms on how an organization’s ethical climate is related to its financial performance, and provides implications for organizations strivings for ethics in developing countries such as South Korea.

Innovation systems in motion: an early music case

Fri, 21 Jun 2013 00:00:00 +0100

Abstract

Purpose - This study provides an in-depth understanding of the innovation system and the learning processes involved in a very specific cultural field: the production of early music.Design/methodology/approach - A single case study of the generic value chain in the music production industry describes and analyses the process and the actors involved in editing a new early music collection resulting from the collaboration between a record company and a public research organization.Findings - There is a need for new knowledge in the various stages of performance and publication of a new recording. The early music sector is a knowledge-intensive, science-driven sector that can be characterized as a system because the interactions among actors substantially influence final products.Research limitations/implications - The single case study represents a specific sector within the music industry. However, its conclusions can be applied to other fields in the cultural heritage sector.Practical implications - The results are useful for the design of policy guidelines regarding the innovation process and innovation systems implications in the area of early music and heritageOriginality/value - The literature on innovation in the cultural field primarily focuses on the relationship between art and information and communication technology (ICT). This paper is novel in analysing a case where scientific knowledge is key to new product development, and suggesting that we need to take account of the interactions among cultural heritage entities, universities and other knowledge production organizations. It concludes that these organizations should be involved institutionally in other aspects of the innovation process.

Innovative firms and the urban/rural divide: the case of agro-food system in the Valencia region

Fri, 21 Jun 2013 00:00:00 +0100

Abstract

Purpose - This paper analyses the capacity of rural and urban spaces to promote innovation in the agro-food firms. The purpose is to determine if the rural/urban division affects the innovative behaviour of agriculture, food processing and food distribution firms.Design/methodology/approach - Business data have been obtained for ove two thousand firms based in the Valencia region, Spain. Out of them, over two hundred declared to have taken part in R&D&i activities, mainly in partnership with public support institutions. The database supplies data of micro and small enterprises, which have been typically underestimated in the Spanish Survey on Technological Innovation in Enterprises. The database also allows to identifying the main location of agrofood business, and the territory is divided in Local Labour Systems (LLS). LLS were in turn classified as rural or urban according to alternative criteria (OECD, national legislation). A logit model has been used in the analyses.Findings - The location of enterprises according to the rural/urban divide does not appear relevant concerning innovation, although businesses orientated to the primary sector seem less innovative. Co-op businesses appear to be more innovative.Practical implications - Rural features do not seem to be constraining on the innovative behavior. This is relevant for economic policies that encourage rural development.Originality/value - The paper offers an approach of innovation in the agrofood traditionally considered as a non innovative system. It explores how territory affects innovation using data from firms.

Doing Research in Business & Management. An Essential Guide to Planning Your Project

literatinetwork@emeraldinsight.com (Jasmina Berbegal-Mirabent) — Fri, 21 Jun 2013 00:00:00 +0100

Abstract

Not available.