Search

Purpose: Prior research on business analytics has advanced substantially our understanding of how social media analytics affect business performance. However, the specific value of social media analytics to product innovation has not been fully explored and appreciated. To address this important issue, the present study draws on the resource-based view and the knowledge-based view to examine (1) whether the use of social media analytics strengthens radical product innovation to a greater extent than it does incremental product innovation and (2) how knowledge-exploration competence and knowledge-exploitation competence mediate the influence of social media analytics on radical and incremental product innovation. Design/methodology/approach: This study tested the proposed model using data collected from 205 manufacturing firms. Structural equation modeling was applied to test the research hypotheses using LISREL 8.80 software program. Findings: The statistical findings provide compelling evidence that the use of social media analytics is more likely to lead to radical product innovation than to incremental product innovation. In addition, knowledge-exploration competence only partially mediates the relationship between social media analytics and radical product innovation. Knowledge-exploitation competence not only partially mediates such a relationship, but also fully mediates the link between social media analytics and incremental product innovation. Originality/value: This study contributes to the social media analytics and innovation literature by offering novel theoretical and empirical insights into how firms can leverage the value of social media analytics to create superior product innovation. [ABSTRACT FROM AUTHOR]

Despite increasing attention to the influence of customer involvement and social media in developing innovation in small- and medium-sized enterprises (SMEs), few studies have specifically investigated how to improve the effectiveness of social media–based customer involvement. Drawing on the knowledge-based view, social network and capability theories, we address this question by arguing that Social Customer Relation Management (CRM) enhances the effect of social media–based customer involvement upon innovation. Two key capabilities further enhance the moderating effect of Social CRM: social media network and customer information processing capabilities. The results from a longitudinal dataset of 317 SMEs indicate that SME customer involvement, enabled by Social CRM, social media network and customer information processing capabilities increases innovation. These findings have important implications for researchers and managers interested in enhancing the efficacy of SME customer involvement using social media. [ABSTRACT FROM AUTHOR]

This study investigates two types of firm capabilities (network and innovation) that could enhance the effects of open innovation activities (inbound and outbound) on radical innovation with the consideration of environmental dynamism. Based on a cross-industry survey of 201 Asian firms, we find that the effectiveness of firm capabilities and open innovation activities is contingent on the level of environmental dynamism. Specifically, when the level of environmental dynamism increases, inbound activities, network capabilities, and innovation capabilities are able to enhance radical innovation. In addition, the level of environmental dynamism moderates the effect of network capabilities on both inbound and outbound activities in creating radical innovation, but not so with the effect of innovation capabilities. Overall, this study contributes to the open innovation literature by shedding light on important complementarities between inbound/outbound activities and specific types of firm-enabled capabilities (network and innovation) under conditions of environmental dynamism. [ABSTRACT FROM AUTHOR]

Despite the importance of collaborative innovation, the existing literature tends to be somewhat vague in identifying when strategic orientations are beneficial for service innovation between a focal firm and its business partners. The purpose of this study is to examine the relative effects of four strategic orientations (market, service, interaction, and learning) on collaborative service innovation performance, while considering the contextual factor of service offerings (basic installed base, maintenance, operational, and professional). Results based on survey data from 362 paired B2B firms show that learning orientation has the strongest effect on collaborative service innovation performance, and is the most effective for basic installed base services and maintenance services. In contrast, interaction orientation best supports those firms with operational services, while market and service orientations are more effective for professional services. Managers are advised to consider alternative strategic orientations individually aligned with service offerings to achieve desired collaborative service innovation outcomes. [ABSTRACT FROM AUTHOR]

Purpose – While co-innovation with third parties (e.g. customer or supplier) has been widely documented, the literature seems to pay scant attention on co-innovation with business partners. Building on the resource dependence theory (RDT) and the input-process-output model, the purpose of this paper is to examine how four criteria of business partner selection affect service delivery co-innovation, which, in turn, influences firms’ competitive advantage. Design/methodology/approach – A mail survey was sent to 600 IT service firms in Taiwan, the target respondents being senior marketing managers in charge of collaborative new service development. A total of 120 usable questionnaires were collected, for a response rate of 20 percent. Findings – The findings support the argument that all four criteria of business partner selection have positive relationships with service delivery co-innovation. Meanwhile, adopting these criteria, firms’ service delivery co-innovation is able to create superior competitive advantage. Research limitations/implications – The findings enrich the existing literature by proposing and empirically confirming that the use of appropriate criteria to select business partners enhances the effectiveness of firms’ service delivery co-innovation and competitive advantage. Practical implications – Managers must be aware of the criteria to select their business partners, in terms of developing service delivery co-innovation. Originality/value – This study adds to the service innovation literature by providing support for the RDT that partner reliability, partner complementarity, partner expertise, and partner compatibility are important business partner selection criteria to create service delivery co-innovation and achieve firms’ competitive advantage. [ABSTRACT FROM AUTHOR]

This article investigates local authorities’ motives for transferring their rights of control over state-owned enterprises (SOEs) to the central government. Using a difference-in-difference approach, we find that both employment and investment improves significantly following such transfers, and these findings are more pronounced among firms located in regions where the political pressure on local officials is higher. However, we fail to find any significant improvement in profitability. Our findings suggest that local governments tend to alleviate the political pressure they face by giving up their control rights and even sacrifice long-term economic benefits to do so. [ABSTRACT FROM AUTHOR]

Purpose - Despite extensive published research into the relationship between open innovation (OI) activities and performance, the nature and direction of the relationship remain inconclusive. The purpose of this paper is to investigate the relationship as to how firms' inbound and outbound OI activities, as well as their interaction influence incremental and radical innovation performance. The authors also consider the potentially mediating roles of knowledge learning and organizational capabilities in such a relationship. Design/methodology/approach - To investigate this relationship, data were collected from a cross-industry survey of 304 leading Taiwanese-based firms. Three-stage least square analysis was employed to test the model. Findings - Analyses reveal that knowledge learning and organizational capabilities mediate the OI activities-innovation performance relationship. In addition, a firm focussing on inbound activities enhances its radical innovation performance, but hinders its incremental innovation performance, while focussing on outbound activities produces the opposite effects. Among the findings, it is worth emphasizing that the effect of the interaction between inbound and outbound activities on innovation performance can be counter-productive. Research limitations/implications - The findings demonstrate that existing studies only partially explain the effects of OI activities on innovation performance. Understanding how OI activities influence innovation performance will facilitate more informed decision making, leading to more effective use of OI activities. Practical implications - The results suggest that managers need to consider knowledge learning and organizational capabilities in order to fully capture the potential effects of OI activities. Managers also need to be aware of the limitations of OI activities. Originality/value - The theoretical model presented here offers a timely contribution to the theory base underpinning the development of OI activities for innovation performance. [ABSTRACT FROM AUTHOR]