Information Technology and Firm Innovations

2011 ◽  
Vol 2 (4) ◽  
pp. 45-63 ◽  
Author(s):  
Avimanyu Datta

This paper provides a framework comprising of research agenda explicating the relations between IT Capability and Firm Innovation. Firm innovation is conceptualized as a combination of three constructs: networks, capabilities (absorptive capacity), and commercialization of innovations (CI). These three constructs have received a very lukewarm response from the IS research community. Inclusion of these three constructs, and examining how IT- capability affects the relationships between these constructs, is essential to examining the role of IT in innovation at the firm-level. Five research agendas are identified.

Author(s):  
Avimanyu Datta

This paper provides a framework comprising of research agenda explicating the relations between IT Capability and Firm Innovation. Firm innovation is conceptualized as a combination of three constructs: networks, capabilities (absorptive capacity), and commercialization of innovations (CI). These three constructs have received a very lukewarm response from the IS research community. Inclusion of these three constructs, and examining how IT- capability affects the relationships between these constructs, is essential to examining the role of IT in innovation at the firm-level. Five research agendas are identified.


Author(s):  
Avimanyu Datta

In this paper, the author presents a theoretical framework that establishes an indirect link between IT capabilities and firm innovation by characterizing the mediating role of knowledge assets: knowledge networks and knowledge capabilities. Firm innovation itself is characterized as innovation development and innovation commercialization. The search on literature of IT capability and innovation revealed a very lukewarm recognition towards firm level variables in knowledge networks, knowledge capabilities, and distinction between innovation development and commercialization. Backed up by detailed reviews of literature on innovation, strategy, and entrepreneurship, the author posits propositions linking the aforementioned constructs, and proposes a framework for future research linking IT Capability with Firm Innovation.


Author(s):  
Avimanyu Datta

In this paper, the author presents a theoretical framework that establishes an indirect link between IT capabilities and firm innovation by characterizing the mediating role of knowledge assets: knowledge networks and knowledge capabilities. Firm innovation itself is characterized as innovation development and innovation commercialization. The search on literature of IT capability and innovation revealed a very lukewarm recognition towards firm level variables in knowledge networks, knowledge capabilities, and distinction between innovation development and commercialization. Backed up by detailed reviews of literature on innovation, strategy, and entrepreneurship, the author posits propositions linking the aforementioned constructs, and proposes a framework for future research linking IT Capability with Firm Innovation.


2019 ◽  
Vol 57 (9) ◽  
pp. 2414-2435
Author(s):  
Wenge Zhang ◽  
Jun Li ◽  
Yiyuan Mai

Purpose The purpose of this paper is to examine the relationship between industry association membership and firm innovation in Chinese private ventures. A secondary objective is to investigate potential moderating effects of firm learning practices and founder characteristics on the above relationship, and to draw out implications for policymakers and practitioners. Design/methodology/approach The paper utilizes data from a sample of 567 Chinese entrepreneurial firms operating in 9 designated emerging industries. Hierarchical regression models were employed to analyze the effect of industry association membership on firm innovation, and the potential moderating effects. A 2SLS procedure was adopted to control for potential endogeneity issue. Supplemental analyses were conducted to ensure the robustness of the findings. Findings The paper provides empirical insights about how industry association membership, along with firm learning practice and founder leadership, affect firm innovation in Chinese private ventures in emerging industries. It suggests that industry association membership positively affects firm innovation. Further, there is a three-way interaction effect of industry association membership, learning practice and founder power on innovation. Research limitations/implications Due to the design of the data set, there are some limitations. First, the study only considered whether a firm belongs to an industry association, but not the nature of such membership (length, firm status in the association, etc.). Second, the cross-sectional design may limit the power of the study to make casual implications about the tested relationships. Practical implications The paper provides important practical implications for policymakers and entrepreneurs in China. In general, the results suggest that private ventures pursuing innovation in emerging industries can benefit from industry associations, and entrepreneurs shall actively engage in firm-level and personal-level learning. For policymakers, the study suggests that to foster innovation in an emerging industry, special attention shall be paid to building necessary institutional support to develop and to strengthen the role of industry association in the industry. Originality/value This paper fulfills an important gap in the literature in that it is one of the first, which investigates the role of the industry association in firm innovation, especially in a non-western context. This paper provides new insights into the role of industry association and firm innovation in an under-researched developing economy context.


2021 ◽  
Vol 124 ◽  
pp. 08010
Author(s):  
Rabiah Eladwiah Abdul Rahim ◽  
Nor’ashikin Ali ◽  
Juraifa Jais

This study aims to investigate the factors influencing research community participation and open innovation through the mediating role of absorptive capacity from the lens of Resource Based View and Dynamic Capability perspectives. Based on a survey of 115 senior engineering faculties from three research universities in Malaysia, this study applies the Structural Equation Modelling (SEM) to investigate the research model. The findings demonstrate that top management support has a major impact on research community participation. The findings also suggest that absorptive capacity mediates the association between research community participation and open innovation capability. This study provides a theoretical basis on the resources and capability that are pertinent for open innovation. From a practical perspective, the relationships among research community participation, absorptive capacity, and open innovation suggest how universities can promote research community participation and assess their absorptive capacity to achieve open innovation.


2021 ◽  
pp. 0148558X2110594
Author(s):  
Fangfang Hou ◽  
Xinpeng Xu

This study investigates whether capital account liberalization, a leading characteristic of globalization, is associated with firms’ future innovation output. Employing a novel firm-level panel data set covering 41 countries over two decades, we show that capital account liberalization is significantly associated with higher corporate patenting activities, particularly for firms from innovation-intensive industries. Further analyses show that the effect is stronger among firms from economies in a better legal environment, signifying the important role of good institutional quality in facilitating the positive impact of liberalization. The effect is also stronger among firms with higher initial productivity, consistent with the “productivity” hypothesis, according to which bigger and more productive firms generate more innovation after liberalization. Our findings are robust to the use of various measurements, subsamples, and estimation models. This study provides global firm-level evidence of the real economic impact of financial globalization.


2018 ◽  
Vol 21 (4) ◽  
pp. 672-694 ◽  
Author(s):  
Irem Demirkan

PurposeThe purpose of this paper is to propose that the resources that a firm owns and has full control (firm-level resources) and resources that a firm access through direct connection with other firms (network-level resources) will impact firm innovation when effectively deployed by the firm. While previous research examined these factors separately, the author takes a holistic view and looks into their effects on innovation simultaneously. The author also introduces the moderating effects, i.e. the variables that can enhance firm innovation through their interaction with internal and external resources.Design/methodology/approachThe author tested the role of financial resources and slack resources in the form of cash slack and human slack at the firm level, and network size, network tie strength, and network diversity at the network level on the firm innovation. Using generalized negative binomial model with Huber-White procedure, the author analyzed 306 firms from the biotechnology industry over a span of 17 years.FindingsThe analysis suggests that cash slack impact innovation negatively. However, this link is moderated by firm size such that for large firms cash slack affects innovation positively. Network-level resources all positively impact innovation and have more economic impact on firm innovation than firm-level resources. Furthermore, although human slack negatively affects innovation, its interaction with network size enhances innovation.Originality/valueThe research makes important contributions to both strategic management and innovation literatures especially when, the author considers the role of firm-level slack in driving firm innovation. Previous research reported conflicting findings about the availability of slack resources and firm performance. The results showed that the relationship between slack resources and firm innovation is negative and significant, both for available slack and human slack. This finding parallels with previous research which reported that constraints such as lack of slack resources can actually facilitate innovation. The author also contributes to the literature by introducing boundary conditions which can enhance firm innovation through their interaction with firm-level internal and network-level external resources. In this respect, to the author’s knowledge, this is among the first studies to combine the slack literature focusing on firm-level resources with the literature on network-level resources.


2020 ◽  
Vol 120 (8) ◽  
pp. 1441-1457
Author(s):  
Jia Zheng ◽  
Hefu Liu ◽  
Jingmei Zhou

PurposeThis study aims to explore the impact of high-performance work systems (HPWS) on open innovation and the moderating role of information technology (IT) capability on the relationship between HPWS and open innovation.Design/methodology/approachThis study conducted a questionnaire survey in the industrial parks of the Yangzi River Delta in China and obtained 108 useful responses.FindingsHPWS positively impacts open innovation. IT exploration capability strengthens the relationship between HPWS and open innovation, whereas IT exploitation capability and ambidexterity do not strengthen such relationship.Research limitations/implicationsFirms should use HPWS to improve employees' motivation of external learning and searching for enhancing innovation openness. They should acknowledge the enabling role of IT exploration capability in facilitating employees' learning and searching toward open innovation and discreetly develop IT exploitation capability and ambidexterity during external knowledge searching, which may not achieve the desired facilitation purpose.Originality/valueThis study contributes to human resource management (HRM) by suggesting that a new antecedent, which is HPWS in our case, should be taken into account when considering the influence of HRM in the process of open innovation. This study has important implications for HPWS, IT capability and open innovation; open innovation can be improved by using HPWS and IT capability. This study also expands IT ambidexterity to HRM and innovation studies.


2013 ◽  
Vol 21 (4) ◽  
pp. 38-55 ◽  
Author(s):  
Rui Bi ◽  
Robert Davidson ◽  
Booi Kam ◽  
Kosmas Smyrnios

Organizations have increasingly invested money in information technology (IT) in order to improve their agility. It is generally believed that organizations with greater IT investment tend to be more agile to response to environmental changes. However, the issue of whether IT is an enabler or impeder of organizational agility still remains unresolved. Drawing upon resource-based view theory and the literatures of information systems and supply chain management, the authors develop and test a theoretical model that integrates IT capability, supply chain capability and organizational agility. The authors propose that IT capability enables the development of a higher level of supply chain capability which is embedded within inter-firm processes and in turn enhances organizational agility. Structural equation modelling is employed to test their theoretical conceptualization of 310 Australian fast-growth small-to-medium enterprises across different industrial sectors. The results show that IT capability does contribute to firm agility through enhancing inter-firm supply chain processes such as integration, information sharing and coordination. This research highlights the role of IT-enabled intermediated processes and the ways in which IT is used by firms to enhance core business processes.


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