Enabling innovation and facilitating learning in kifs: the role of HRM practices

The aim of this paper is to contribute to our understanding of the link between HR practices, learning orientation and types of innovation in knowledge-intensive firms (KIFs). To this end, we first compiled a comprehensive overview of the existing literature on HR practices aimed at supporting innovation. On the basis of this literature, we then collected and analyzed data from a qualitative study of 19 Danish KIFs recognized for their innovation performance, focusing on links between the HR practices they use to support exploratory and exploitive learning behaviors to enhance incremental and/or radical innovation. The findings from this study demonstrate that KIFs utilize a range of HR practices that enable different learning orientations, based on the type of innovation compatible with their organizational goals.

Innovation in Road Building: Removing Obstacles for Diffusion of Novel Building Products

How can obstacles to innovation be overcome in road construction? Using a focus group methodology, and based on two prior rounds of empirical work, the analysis in this chapter generates a set of four key solutions to two main construction innovation obstacles: (1) restrictive tender assessment and (2) disagreement over who carries the risk of new product failure. The four key solutions uncovered were: 1) pre-project product certification; 2) past innovation performance assessment; 3) earlier involvement of product suppliers and road asset operators; and 4) performance-based specifications. Additional research is suggested in order to illicit deeper insights into possible solutions to construction innovation obstacles, and should emphasise furthering the theoretical interpretation of empirical phenomena.

Knowledge stocks, knowledge flows and innovation: Evidence from matched patents and innovation panel data

Successful innovation depends on knowledge – technological, strategic and market related. In this paper we explore the role and interaction of firms’ existing knowledge stocks and current knowledge flows in shaping innovation success. The paper contributes to our understanding of the determinants of firms’ innovation outputs and provides new information on the relationship between knowledge stocks, as measured by patents, and innovation output indicators. Our analysis uses innovation panel data relating to plants’ internal knowledge creation, external knowledge search and innovation outputs. Firm-level patent data is matched with this plant-level innovation panel data to provide a measure of firms’ knowledge stock. Two substantive conclusions follow. First, existing knowledge stocks have weak negative rather than positive impacts on firms’ innovation outputs, reflecting potential core-rigidities or negative path dependencies rather than the accumulation of competitive advantages. Second, knowledge flows derived from internal investment and external search dominate the effect of existing knowledge stocks on innovation performance. Both results emphasize the importance of firms’ knowledge search strategies. Our results also re-emphasize the potential issues which arise when using patents as a measure of innovation.

Innovation in tourism: the role of regional innovation systems

Esta tese tem como principal objetivo analisar as características, a importância e o papel da inovação territorial em turismo e o seu impacto no desenvolvimento dos destinos. Consiste num estudo multidisciplinar suportado numa exaustiva revisão da literatura sobre temas como desenvolvimento, inovação e modelos de inovação territorial. Com base nas principais conclusões de natureza conceptual, considerou-se o modelo dos sistemas regionais de inovação como o mais adequado para aplicação ao sistema turístico, e a constituição de redes como estruturas fundamentais para a sua operacionalização. A partir desta abordagem teórica, foi desenvolvido um quadro conceptual para a análise da inovação sistémica no sector do turismo. Esta abordagem permitiu a definição de um conjunto de hipóteses, as quais foram testadas através dos resultados da parte empírica da tese. Foram desenvolvidos dois estudos empíricos distintos, mas complementares nas regiões do Douro e de Aveiro. O primeiro teve como objetivo inquirir empresas turísticas, enquanto o segundo foi dirigido a instituições regionais com intervenção no sector do turismo ou na inovação. Os resultados obtidos conduziram a importantes conclusões sobre o desempenho das empresas e regiões em termos de inovação, os padrões de networking desenvolvidos no âmbito de processos de inovação, a importância do conhecimento existente nas regiões e os fatores específicos das mesmas para a inovação em turismo, a perceção das empresas turísticas sobre o ambiente de inovação e o seu contributo para a evolução e para o sucesso dos destinos turísticos. A tese recorre a uma abordagem quantitativa que inclui estatística descritiva e indutiva e ao método da análise de redes (sociometria). A combinação de métodos levou a importantes conclusões sobre a inovação em turismo, com uma focalização especial no que a relaciona com os sistemas regionais de inovação. As conclusões permitem avançar com um conjunto de implicações e sugestões para futuros projetos de investigação sobre o tema, bem como para a gestão dos destinos turísticos, uma vez que contribui para um maior e mais aprofundado conhecimento do fenómeno da inovação em turismo desenvolvida a nível regional. Os resultados demonstram que diferentes regiões apresentam sistemas regionais de inovação distintos. Assim, não existe um modelo único que possa ser aplicado indistintamente em todas as regiões. Contudo, as conclusões apontam para a existência de padrões e práticas que aperfeiçoam o seu funcionamento, aumentando o desempenho ao nível da inovação, bem como a competitividade global do destino.

Sources of local knowledge spillover within the Algarve tourism region: evidence to identify a regional innovation system

Tourism sector in Algarve region is the main engine of regional economy. Although frequently, tourism is considered as a low – moderate innovative sector, tourism competitiveness is still highly dependent on specific features of a Regional Innovation Platform, highlighting the crucial importance of knowledge creation and diffusion, learning, cooperative and collaborative interaction that may evolve to a Regional Innovation System (RIS). Studies of Local Knowledge Spillovers have been frequently focused on empirical evidence provided by regions highly related with manufacturing sectors. Considering a case study in Tourism Algarve Region, emphasizing a theoretical character on the analysis of these areas and using a qualitative methodology, the goal of this study was to provide preliminary evidence of the main sources and vehicles of regional knowledge spillovers used by tourism enterprises. Main information has been obtained using primary information collected from 20 interviews over main stakeholders regarding regional private and public sector. Primary information was complemented with secondary information, a deeply and extensive bibliography revision and also statistical information. Results show that, on the one hand, main sources of knowledge used by micro and small tourism enterprises are human resources and formal and informal networks. On the other hand, large tourism companies are weakly related with regional sources using mainly internal company and economic group resources to generate innovation activities. Regional innovation platform shows clear weaknesses on linkages and coordinated initiatives to promote and support innovation performance of firms hampering to increase tourism competitiveness and regional development.

Asset recombination in international partnerships as a source of improved innovation capabilities in China

Purpose This paper examines how multinational enterprises (MNEs) and local partners, including suppliers, customers, and competitors in China, improve their innovation capabilities through collaboration. We analyse this collaboration as a three-way interaction between the ownership-specific (O) advantages or firm-specific assets (FSAs) of the MNE subsidiary, the FSAs of the local partner, and the location-specific assets of the host location. Design/methodology/approach Our propositions are examined through a survey of 320 firms, supplemented with 30 in-depth case studies, based in mainland China. Findings We find that the recombination of asset-type (Oa) FSAs and transaction-type (Ot) FSAs from both partners leads to new innovation-related ownership advantages, or ‘recombinant advantages’. Ot FSAs, in the form of access to local suppliers, customers or government networks are particularly important for reducing the liability of foreignness for MNEs. Originality/value The study reveals important patterns of reciprocal transfer, sharing, and integration for different asset categories (tacit, codified) and different forms of FSA and explicitly links these to different innovation performance outcomes. The paper reports on these findings, making an empirical contribution in an important context (China-based partnerships). We also contribute to conceptual developments, connecting various kinds of FSA, tacit and codifiable assets and ‘recombinant advantages’. Limited conceptual, methodological, and empirical contributions are made in linking asset integration with (measurable) innovation performance outcomes in international partnerships.

Innovation efforts and performances of Brazilian firms

We analyze the relationship between innovation and firms' performance in Brazil using a comprehensive database that cross-references innovation information by PINTEC (Technological Innovation Research) of the IBGE (Brazilian Institute of Geography and Statistics) and financial information from Serasa and Gazeta Mercantil. Results from the structural equation modeling suggest that variables associating with investments in innovation, which are connected to the innovative effort of a company, do not explain financial performance significantly. (C) 2013 Elsevier Inc. All rights reserved.

Dual paths to performance: the impact of global pressures on MNC subsidiary conduct and performance

Over the last decade, the international business literature has placed ever-greater emphasis on the role that learning and innovation play in determining multinational and multinational subsidiary performance. The present research seeks to understand the organizational paths leading to such desirable outcomes as greater learning, increased innovation and improved performance. Using a model tested with data collected through a survey of managers in subsidiaries of multinational firms, we find dual, independent paths to improved performance - one through networking and inter-unit learning and the other through subsidiary autonomy and innovation. A particular feature of these findings is that they can be shown to be robust after controlling for a wide range of environmental pressures and firm and industry factors. However, in the absence of environmental controls the dual path finding is rejected. These conflicting findings support the imperative to test models that include a diverse range of environmental pressures so that the true effects of organizational factors on learning, innovation and performance can be identified.

Outsourcing in the innovation process: locational and strategic determinants

There is now substantial evidence that locational and agglomeration influences can have a significant positive effect on innovation performance. Networking and boundary-spanning activities are also increasingly recognised as important contributors to innovation success. In this article we attempt to discover whether these factors are associated: in particular, is there any link between plant location, agglomeration effects and the extent of outsourcing in the innovation process? Using data for a large sample of UK and German manufacturing plants, we find that organisational and strategic factors play a much greater and more consistent role than locational influences in shaping the level of outsourcing in the innovation process. Strategic approaches to outsourcing may also benefit plants in obtaining economies of scope in the management or governance of outsourcing within the innovation process.

The limits of open innovation:openness and (quasi-)markets in the organization of innovation

Recent studies have stressed the importance of ‘open innovation’ as a means of enhancing innovation performance. The essence of the open innovation model is to take advantage of external as well as internal knowledge sources in developing and commercialising innovation, so avoiding an excessively narrow internal focus in a key area of corporate activity. Although the external aspect of open innovation is often stressed, another key aspect involves maximising the flow of ideas and knowledge from different sources within the firm, for example through knowledge sharing via the use of cross-functional teams. A fully open innovation approach would therefore combine both aspects i.e. cross-functional teams with boundary-spanning knowledge linkages. This suggests that there should be complementarities between the use cross-functional teams with boundary-spanning knowledge linkages i.e. the returns to implementing open innovation in one innovation activity is should be greater if open innovation is already in place in another innovation activity. However, our findings – based on a large sample of UK and German manufacturing plants – do not support this view. Our results suggest that in practice the benefits envisaged in the open innovation model are not generally achievable by the majority of plants, and that instead the adoption of open innovation across the whole innovation process is likely to reduce innovation outputs. Our results provide some guidance on the type of activities where the adoption of a market-based governance structure such as open innovation may be most valuable. This is likely to be in innovation activities where search is deterministic, activities are separable, and where the required level of knowledge sharing is correspondingly moderate – in other words those activities which are more routinized. For this type of activity market-based governance mechanisms (i.e. open innovation) may well be more efficient than hierarchical governance structures. For other innovation activities where outcomes are more uncertain and unpredictable and the risks of knowledge exchange hazards are greater, quasi-market based governance structures such as open innovation are likely to be subject to rapidly diminishing returns in terms of innovation outputs.

Knowledge, capabilities and manufacturing innovation: a US-Europe comparison

In this paper we report a comparative analysis of the factors which contribute to the innovation performance of manufacturing firms in the US state of Georgia, and three European regions, the UK regions of Wales and the West Midlands, and the Spanish region of Catalonia. We consider the factors which shape firms’ ability to generate new products and processes and undertake various forms of organisational and structural change. We are particularly concerned with how firms collect the knowledge on which they base their innovation and their effectiveness in translating that knowledge into new innovations. Three main empirical conclusions result. First, US firms have more widespread links to external knowledge sources than those in Europe and notably the universities make a greater contribution to innovation in the US than in Europe. Second, UK firms prove more effective at capturing synergies between their innovation activities than US and Catalan firms. Third, firms’ operating environment proves more conducive to innovation in the US than in either the UK regions or Catalonia. Our results suggest the potential for mutual learning. For the UK there are lessons in terms of the way in which the universities in Georgia are supporting innovation. For firms in Georgia and in Catalonia the potential lessons are more strategic or organisational and relate to how they can better capture potential synergies between their innovation activities.

The innovation value chain in new technology-based firms:evidence from the U.K.

Innovation is central to the survival and growth of firms, and ultimately to the health of the economies of which they are part. A clear understanding both of the processes by which firms perform innovation and the benefits which flow from innovation in terms of productivity and growth is therefore essential. This paper demonstrates the use of a conceptual framework and modeling tool, the innovation value chain (IVC), and shows how the IVC approach helps to highlight strengths and weaknesses in the innovation performance of a key group of firms-new technology-based firms. The value of the IVC is demonstrated in showing the key interrelationships in the whole process of innovation from sourcing knowledge through product and process innovation to performance in terms of the growth and productivity outcomes of different types of innovation. The use of the IVC highlights key complementarities, such as that between internal R&D, external R&D, and other external sources of knowledge. Other important relationships are also highlighted. Skill resources matter throughout the IVC, being positively associated with external knowledge linkages and innovation success, and also having a direct influence on growth independent of the effect on innovation. A key benefit of the IVC approach is therefore its ability to highlight the roles of different factors at various stages of the knowledge-innovation-performance nexus, and to show their indirect as well as direct impact. This in turn permits both managerial and policy implications to be drawn. © 2012 Product Development & Management Association.

Learning from openness : the dynamics of breadth in external innovation linkages

We explore how openness in terms of external linkages generates learning effects, which enable firms to generate more innovation outputs from any given breadth of external linkages. Openness to external knowledge sources, whether through search activity or linkages to external partners in new product development, involves a process of interaction and information processing. Such activities are likely to be subject to a learning process, as firms learn which knowledge sources and collaborative linkages are most useful to their particular needs, and which partnerships are most effective in delivering innovation performance. Using panel data from Irish manufacturing plants, we find evidence of such learning effects: establishments with substantial experience of external collaborations in previous periods derive more innovation output from openness in the current period. © 2013 The Authors. Strategic Management Journal published by John Wiley & Sons Ltd.

Externalities of openness in innovation

Discussion of open innovation has typically stressed the benefits to the individual enterprise from boundary-spanning linkages and improved internal knowledge sharing. In this paper we explore the potential for wider benefits from openness in innovation and argue that openness may itself generate positive externalities by enabling improved knowledge diffusion. The potential for these (positive) externalities suggests a divergence between the private and social returns to openness and the potential for a sub-optimal level of openness where this is determined purely by firms' private returns. Our analysis is based on Irish plant-level panel data from manufacturing industry over the period 1994-2008. Based on instrumental variables regression models our results suggest that externalities of openness in innovation are significant and that they are positively associated with firms' innovation performance. We find that these externality effects are unlikely to work through their effect on the spread of open innovation practices. Instead, they appear to positively influence innovation outputs by either increasing knowledge diffusion or strengthening competition. Our evidence on the significance of externalities from openness in innovation provides a rationale for public policy aimed at promoting open innovation practices among firms. © 2013 Elsevier B.V. All rights reserved.

Learning from openness:the dynamics of breadth in external innovation linkages

We explore how openness in terms of external linkages generates learning effects, which enable firms to generate more innovation outputs from any given breadth of external linkages. Openness to external knowledge sources, whether through search activity or linkages to external partners in new product development, involves a process of interaction and information processing. Such activities are likely to be subject to a learning process, as firms learn which knowledge sources and collaborative linkages are most useful to their particular needs, and which partnerships are most effective in delivering innovation performance. Using panel data from Irish manufacturing plants, we find evidence of such learning effects: establishments with substantial experience of external collaborations in previous periods derive more innovation output from openness in the current period. © 2013 The Authors. Strategic Management Journal published by John Wiley & Sons Ltd.