scholarly journals Relations between Innovation and Firm Performance of Manufacturing Firms in Southeast Asian Emerging Markets: Empirical Evidence from Indonesia, Malaysia, and Vietnam

2019 ◽  
Vol 5 (4) ◽  
pp. 98 ◽  
Author(s):  
Kyunga Na ◽  
Young-Hee Kang
Keyword(s):  
Firm Performance ◽  
Emerging Markets ◽  
Product Innovation ◽  
Southeast Asian ◽  
Manufacturing Firms ◽  
High Tech ◽  
Sales Growth ◽  
Process Innovations ◽  
Product And Process ◽  
Asian Emerging Markets

This study aims to investigate the effects of product and process innovations on manufacturing firm performance in Southeast Asian emerging markets. To this end, using a cross-national sample of 2324 manufacturing firms from the World Bank Enterprise Survey (WBES) dataset of 2015, we test the effects of product and process innovations on the sales growth of manufacturing firms in Vietnam, Malaysia, and Indonesia. This study finds that product innovation is positively related to sales growth while new operating technologies are negatively associated with sales growth. For high-tech firms, product innovation is positively related to sales growth. The findings imply that in Southeast Asian emerging markets, governments and manufacturing firms can enhance performance by investing in product innovation.

Interrelated effects of technological and non-technological innovation on firm performance in EM – A mediation analysis of Peruvian manufacturing firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Javier Fernando Del Carpio Gallegos ◽  
Francesc Miralles
Keyword(s):  
Firm Performance ◽  
Emerging Markets ◽  
Technological Innovation ◽  
Latin American ◽  
Mediation Analysis ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
High Tech ◽  
Mediation Effects ◽  
Content Type

PurposeFirm innovative performance in emerging markets must take into account the peculiarities of their competitive environment. Research on the effect of innovation on firm performance focuses mainly on high-tech firms in developed countries. This study proposes a model that empirically examines how technological and non-technological innovation influence Peruvian manufacturing firms' performance.Design/methodology/approachUsing the resource-based view, a model is proposed that allows the mediation effects of technological innovation and non-technological innovation on firm performance among low and medium-low technological intensity manufacturing firms to be analyzed. The study uses structural equation modeling and mediation analysis with data from 503 Peruvian firms researched in the 2012 National Survey of Innovation.FindingsThe model's validation shows that the integrated perspective is relevant for emerging markets like Peru. Moreover, the results confirm that technological and non-technological innovation and their interrelationship are important for understanding the performance dimensions of Peruvian manufacturing firms.Originality/valueThis paper contributes to the literature on innovation in Latin American economies, proposing and validating a model that combines the mediation effects of technological and non-technological innovation to explain the relevant dimensions of firm performance in emerging markets.

scholarly journals Collaboration with External Organizations and Technological Innovations: Evidence from Spanish Manufacturing Firms

2019 ◽  
Vol 11 (9) ◽  
pp. 2479 ◽  
Author(s):  
Dragana Radicic ◽  
Jonathan Pinto
Keyword(s):  
Technological Innovation ◽  
State Dependence ◽  
Manufacturing Firms ◽  
Policy Implications ◽  
Technological Innovations ◽  
Process Innovations ◽  
Sectoral Analysis ◽  
Product And Process ◽  
High Degree ◽  
Technological Intensity

Based on the two knowledge dimensions of availability and accessibility, this study investigates the influence of cooperation with external organizations on technological, product, and process innovations. Using longitudinal data from Spanish manufacturing firms, we estimate dynamic random-effects probit models and thus take into account that technological innovations exhibit persistent behavior. We find that cooperation with suppliers and universities is positively associated with both product and process innovations. However, sectoral analysis according to technological intensity reveals that cooperation with suppliers increases the propensity to technological innovation in industries with a higher degree of technological intensity, while cooperation with universities increases the likelihood of innovation in industries with a lower degree of technological intensity. Moreover, empirical results indicate a high degree of true or genuine state dependence in both types of innovations. Based on these findings, we discuss the theoretical, managerial, and policy implications of the study.

scholarly journals Utilities: Innovation and Sustainability

2019 ◽  
Vol 11 (4) ◽  
pp. 1085 ◽  
Author(s):  
Enrique Loredo ◽  
Nuria Lopez-Mielgo ◽  
Gustavo Pineiro-Villaverde ◽  
María García-Álvarez
Keyword(s):  
Product Innovation ◽  
Process Innovation ◽  
Water Utilities ◽  
Firm Level ◽  
Playing Field ◽  
Process Innovations ◽  
Search Processes ◽  
Relevant Role ◽  
Product And Process Innovation ◽  
Product And Process

Pro-market reforms have disrupted the playing field and strongly affected the innovative behavior of electricity, gas and water utilities. Beyond a significant reduction in sectoral R&D investments, very little is known about how these firms accomplish their innovation strategies in this new scenario. Given this gap in the literature, the first aim of this paper is to identify the internal determinants of both the product and process innovation of utilities in a liberalized environment. Additionally, there is another external force that is also disrupting the specific landscape of utilities: the sustainability challenge. Therefore, the second aim of this paper is establishing whether sustainability-orientation is a driver of innovation in the utilities industries. The empirical study is carried out on a panel of 82 Spanish electricity, gas and water utilities over the period 2005–2012 (Technological Innovation Panel dataset (PITEC)). The main findings are: (i) the acquisition of disembodied knowledge does not play a relevant role for utilities; (ii) non-formal search processes are central to product innovation; (iii) some markets for technology –external R&D and technology embedded in equipment—are determinant factors for process innovation; (iv) sustainability orientation increases the likelihood of generating both, product and process innovations. These firm-level results are novel contributions to the field of utility management.

scholarly journals Do Workers Share Innovation Returns? A Study of the Spanish Manufacturing Sector

2004 ◽  
Vol 2 (2) ◽  
pp. 147-160 ◽  
Author(s):  
Ester Martínez‐Ros ◽  
Vicente Salas‐Fumás
Keyword(s):  
Manufacturing Sector ◽  
Manufacturing Firms ◽  
Market Conditions ◽  
Process Innovations ◽  
Demand Growth ◽  
Elasticity Of Demand ◽  
Price Elasticity Of Demand ◽  
Product Standardization ◽  
Theoretical Predictions ◽  
Product And Process

This paper explores whether workers share innovation returns and how the size of innovation returns is affected by market conditions. Using a panel data of Spanish manufacturing firms during the period from 1990 to 1993, we answer affirmatively to both questions. Product and process innovations both generate returns, but such returns are higher for process innovations. The size of innovation returns seems to be affected positively by demand growth, by product standardization, and by low product market concentration. The three empirical results are in agreement with the theoretical predictions, such as Schmoockler’s (1966) theory of demand‐pool innovation, the price‐elasticity of demand effects postulated by Kamien & Schwartz (1970), and the replacement effect suggested by Arrow (1962). At the time of generating returns, process innovations are more affected by market conditions than are other innovations.

scholarly journals Employment Effects of Innovation at the Firm Level

2007 ◽  
Vol 227 (3) ◽  
Author(s):  
Stefan Lachenmaier ◽  
Horst Rottmann
Keyword(s):  
Employment Growth ◽  
Manufacturing Firms ◽  
Firm Level ◽  
Employment Effects ◽  
Process Innovations ◽  
Positive Effects ◽  
Product Innovations ◽  
Patent Applications ◽  
Product And Process ◽  
Positive Effect

SummaryThis paper analyzes empirically the effects of innovation on employment at the firm level using a uniquely long panel dataset of German manufacturing firms. The overall effect of innovations on employment often remains unclear in theoretical contributions due to reverse effects. We distinguish between product and process innovations and additionally introduce different innovation categories. We find clearly positive effects for product and process innovations on employment growth with the effects for process innovations being slightly higher. For product innovations that involved patent applications we can identify an additional positive effect on employment.

scholarly journals ONE SIZE (DOES NOT) FIT ALL: EVIDENCE OF SIMILARITIES AND DIFFERENCES BETWEEN PRODUCT INNOVATION MANAGEMENT IN HIGH- AND LOW-TECH MANUFACTURING FIRMS

2019 ◽  
Vol 23 (01) ◽  
pp. 1950004 ◽  
Author(s):  
CLAUDINE KEARNEY ◽  
KILLIAN J. McCARTHY ◽  
EELKO K. R. E. HUIZINGH
Keyword(s):  
The Netherlands ◽  
Product Innovation ◽  
Best Practice ◽  
Innovation Management ◽  
Manufacturing Firms ◽  
High Tech ◽  
Practice Model ◽  
Negative Effect ◽  
Similarities And Differences ◽  
The Impact

Most literature on product innovation management (PIM) has developed through a small number of high-tech manufacturer studies. It is assumed that, for other types of firms, ‘one size fits all’. This research addresses this issue by investigating PIM in both high- and low-tech firms. Building on Cormican and O’Sullivan’s (2004) Best Practice Model (BPM) this paper analyzes PIM of 112 high-tech in comparison to 184 low-tech manufacturing firms in the Netherlands. The empirical results show significant sector-level differences in the impact of the five constructs and, in some cases, insignificant and even opposite effects. Our findings show that one size does not fit all, and blindly following the theory can not only have a suboptimal effect but may even have a negative effect. Furthermore, there are some similarities in high- and low-tech PIM, for example Communication and Collaboration is the only construct that is positive and significant in all cases. The implications of these results in relation to high- and low-tech manufacturing firms are discussed.

Achieving green product and process innovation through green leadership and creative engagement in manufacturing

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saira Begum ◽  
Enjun Xia ◽  
Fayaz Ali ◽  
Usama Awan ◽  
Muhammad Ashfaq
Keyword(s):  
Transformational Leadership ◽  
Creative Process ◽  
Product Innovation ◽  
Process Innovation ◽  
High Tech ◽  
Green Product ◽  
Green Process ◽  
Content Type ◽  
Product And Process Innovation ◽  
Product And Process

PurposeThe aims of this study were three-fold: to determine the impact of green transformational leadership on creative process engagement, green product innovation and green process innovation; to examine the association of creative process engagement with green product and process innovation and to identify the mediating influence of creative process engagement in the association between green transformational leadership and green process and product innovation.Design/methodology/approachData was collected through a survey questionnaire from 291 middle- and lower-level managers and employees through simple random sampling in four high-tech manufacturing industries situated in Beijing, Shanghai and Shenzhen in China. We examined the data through structural equation modeling using partial least squares to test the study hypotheses.FindingsThe findings unveiled that green transformational leadership and creative process engagement positively influence green product innovation and green process innovation. Similarly, green transformational leadership is positively linked with creative process engagement. The findings further revealed that creative process engagement mediates the impact of green transformational leadership on green process and product innovation. Hence, our findings provide strong support for the role of green transformational leadership and creative process engagement in improving green process and product innovation.Research limitations/implicationsOur sample is limited to China and collected from high-tech manufacturing industries.Practical implicationsDrawing on the componential theory of creativity, the authors suggest that organizational leaders, specifically those who practice green transformational leadership, should increase creative process engagement among subordinates, as it is a crucial intangible resource for green process and product innovation.Social implicationsWe suggest that a combination of green transformational leadership and creative process engagement improves green process and product innovation as well as the environmental performance of a business by eliminating all forms of hazardous material and waste.Originality/valueThis work is one of the earliest empirical studies to evaluate the influence of green transformational leadership on fostering green product and process innovation and the mediating impact of creative process engagement on the linkage among green transformational leadership, green product and process innovation within the manufacturing context.

Innovation in Nigerian Small and Medium Enterprises

2009 ◽  
Vol 7 (4) ◽  
pp. 40-51 ◽  
Author(s):  
A.A. Egbetokun ◽  
O.O. Olamade
Keyword(s):  
Firm Performance ◽  
New Product Development ◽  
Small And Medium Enterprises ◽  
Incremental Innovation ◽  
Export Markets ◽  
Process Innovations ◽  
Product And Process ◽  
Medium Enterprises ◽  
The Impact ◽  
Critical Consideration

This article seeks to explore the types of innovation that are predominant in SMEs in developing countries and to investigate the impact of these innovations on different dimensions of firm performance based on an industry-wide innovation survey carried out in Nigeria in 2007. Although innovation is important for superior firm performance, our result found that the type of innovation that SMEs pursue is not a critical consideration in their performance. While there was no difference found in the focus of SMEs on either of product or process innovations, evidence showed that SMEs would focus more on incremental product and process innovations. Incremental innovation was found to be very important for Nigerian SMEs and a significant predictor of product quality and not of revenue. The authors conclude that SMEs chooses to pursue such innovations that most fit their strategies and available resources. Such level of innovation affords Nigerian SMEs to more extensively exploit the domestic market but cannot support extensive new product development required to enter export markets.

Do MD&A Disclosures Help Users Interpret Disproportionate Inventory Increases?

2010 ◽  
Vol 85 (4) ◽  
pp. 1411-1440 ◽  
Author(s):  
Yan Sun
Keyword(s):  
Firm Performance ◽  
Predictive Ability ◽  
Manufacturing Firms ◽  
Sales Growth

ABSTRACT: This study investigates whether MD&A disclosures have predictive ability for future firm performance in cases of disproportionate inventory increases. Using a sample of 568 manufacturing firms with disproportionate inventory increases, I find that the favorability of explanations for inventory changes in MD&A is positively associated with a firm’s profitability and sales growth in the subsequent three years. I also find that future profitability and sales growth of firms that do not explain disproportionate inventory increases in MD&A fall between those of firms with favorable explanations and firms with unfavorable explanations. These results suggest that the existence and the favorability of MD&A inventory disclosures help users interpret disproportionate inventory increases and predict future firm performance.

The mediating role of product and process innovations on the relationship between knowledge management and operational performance in manufacturing companies in Jordan

2017 ◽  
Vol 23 (2) ◽  
pp. 349-376 ◽  
Author(s):  
Ahmad Fathi Al-Sa’di ◽  
Ayman Bahjat Abdallah ◽  
Samer Eid Dahiyat
Keyword(s):  
Knowledge Management ◽  
Product Innovation ◽  
Process Innovation ◽  
Operational Performance ◽  
Manufacturing Companies ◽  
Content Type ◽  
Process Innovations ◽  
Product And Process ◽  
The Relationship

Purpose The purpose of this paper is to investigate the effects of knowledge management (KM) on product and process innovations, as well as on operational performance (OP). In addition, the effects of product and process innovations on OP, as well as their mediating effects on the relationship between KM and OP, are also investigated. Design/methodology/approach A questionnaire-based survey was designed and used to collect data from 207 manufacturing companies operating in the Jordanian capital Amman. To assess construct validity, exploratory and confirmatory factor analyses were conducted. To test research hypotheses, the bootstrap re-sampling method was applied using Hayes’s SPSS multiple-mediator PROCESS macro. Findings The results indicate that KM has significant positive effects on product and process innovations, and OP. Process innovation was found to have a significant positive effect on OP, while product innovation was not. Furthermore, only process innovation was found to significantly mediate the KM-OP relationship. Practical implications The findings of this study provide useful insights about the role of KM in facilitating and enhancing product and process innovations, as well as OP in the surveyed manufacturing companies. An important implication concerns the roles of product and process innovations. Manufacturing companies seeking improvements in their OP are recommended to focus on process innovation rather than product innovation. While product innovation may affect other aspects of performance, such as market and financial ones, it was not found to significantly affect OP. Process innovation can also leverage KM’s contribution to manufacturing companies’ OP. Originality/value This is a pioneering study in that it developed an integrated model that depicts the interrelationships among KM, product innovation and process innovation and OP, in a developing country context.

Sign in / Sign up

Export Citation Format

Share Document