• Title, Summary, Keyword: incremental and radical innovation performance

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Service Innovation Strategic Consensus: A Lesson from the Islamic Banking Industry in Indonesia

  • MUAFI, Muafi;DIAMASTUTI, Erlina;PAMBUDI, Argo
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.11
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    • pp.401-411
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    • 2020
  • This study aims to analyze the agreement of service innovation using contingency approach (manager personality, organizational structure) moderated by leadership agility. The study has been carried out on Islamic banking companies' managers in Indonesia, from East Java and Yogyakarta region using purposive sampling technique with questionnaire and interviews as the method of data collection. The total number of respondents in the sample is 184. This sample is then analyzed using Euclidience Distance Simple Regression and Simple Regression Moderation method. The results prove that: (1) there is a partial fit between incremental strategy with reactive personality and mechanical organizational structure, which increases the service performance; (2) there is a partial fit between radical strategy with proactive personality and organic organizational structure, which increases the service performance; (3) leadership agility is able to strengthen the fit of the relationship between incremental innovation strategy and reactive personality toward service performance; (4) leadership agility is able to strengthen the fit the relationship between radical innovation strategy and proactive personality toward service performance; (5) leadership agility is able to strengthen the fit of the relationship between incremental innovation strategy and mechanical organizational structure toward service performance; and (6) leadership agility is able to strengthen the fit of the relationship between radical innovation strategy and organic organizational structure toward service performance.

The Effect of Dynamic Capabilities, Operational Capabilities, and IT Capabilities on Innovative Performance : Focusing on Exploration and Exploitation (동적역량, 운영역량, IT역량이 혁신성과에 미치는 영향 : 탐험과 활용을 중심으로)

  • Kim, Moon-Shik
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.20 no.1
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    • pp.41-51
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    • 2019
  • This study examined the relationship between dynamic capabilities and innovation performance and the mediating effect of exploration/exploitation operational capabilities as well as the moderating effect of exploration/exploitation IT capabilities. The results are as follows: seizing capability and reconfiguration capability had positive effects on incremental and radical innovation performance. Exploration and exploitation operational capability had positive effects on incremental innovation performance. Furthermore, exploration operation capability had a positive effect on radical innovation performance. 'Exploration operational capability-exploration IT capability' had moderating effects on 'exploration operational capability-exploitation IT capability', and 'exploitation operational capability-exploitation IT capability' on incremental innovation performance. Lastly, 'exploration operational capability-exploration IT capability' had a significant mediating effect on radical innovation performance. This study is the first empirical research that divides the effects of dynamic capabilities into direct and indirect effects, and the operational/IT capabilities into exploration and exploitation.. Dynamic and operational capabilities play a complementary role in adapting and evolving companies.

How Does Openness Influence Innovation of Korean Manufacturing Firms? (외부 지식 활용이 한국 제조 기업들의 혁신에 어떤 영향을 미치는가?)

  • Moon, Seong-Wuk
    • Journal of Korea Technology Innovation Society
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    • v.14 no.4
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    • pp.711-735
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    • 2011
  • This study examines whether firms' openness to external knowledge improves their innovative performance and what factors make openness more effective in generating innovation. Using 2008 Korean Innovation Survey in manufacturing sector, this study tests whether openness improves innovative performance and how absorptive capacity, small size and use of appropriation methods to a high degree influence the effect of openness on innovation in Korean manufacturing industries. This study finds the followings: First, the effect of openness varies depending on type of innovation. Openness is more effective for incremental innovation than for radical innovation. Second, there exists complementarity between openness and the R&D intensity when innovation is incremental. When the R&D intensity level is high, the effect of openness on incremental innovation is stronger than on radical innovation. Third, openness is more effective for small firms to perform radical innovation than incremental innovation. Fourth, when a firm uses appropriation methods to a high degree, openness is not effective for incremental innovation.

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Employees' shop-floor participation and incremental innovation in small business (중소기업의 기술혁신에 관한 연구 : 종업원의 현장참여를 중심으로)

  • 안관영
    • Journal of the Society of Korea Industrial and Systems Engineering
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    • v.19 no.40
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    • pp.119-136
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    • 1996
  • With new competitive environments, innovation is more necessary to survive severe competitions than ever. However, most Small and Medium(SM) businesses are used to be short of professional staffs, money and equipments for performing various innovations(ie., technological or administrative innovation, product development or Process development, and radical or incremental innovation). Many students have suggested that incremental innovation is more adequate than radical innovation in SM business. The purpose of this paper is to find antecedent factors In promote employees' Incremental Innovation Activities(IIA), In analyse moderating effects of ability and attitudes, and to test the difference of IIA-level by ability(or attitudes) and 11 independent factors. Each IIA-level by 5 variables of 11 independent variables-job variety, importance, identity, communication, performance dependency-is found to be significantly different in high-ability group affirmative-attitude group.

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Exploratory Study on the Influence on Family Involvement on Corporate Innovation Performance (가족의 경영참여 수준이 기업의 혁신성과에 미치는 영향에 대한 탐색적 연구)

  • Kim, Young-kyun
    • Journal of the Korea Industrial Information Systems Research
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    • v.20 no.5
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    • pp.95-105
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    • 2015
  • Prior studies have reported equivocal patterns of the results about the relationships between family involvement and firm performance, particularly financial performance. In line with this research trend, this study focuses on non-financial performance that agency costs may marginally influence. tries to identify the relationship between nepotism and the three types of innovation performance, namely corporate entrepreneurship, radical innovation performance, and incremental innovation performance. The results has shown that family involvement is positively correlated with the three types of innovation performance.

The Roles of Knowledge Sources in and out of the Value Chain on Radical and Incremental Innovation : Moderating Effects of Knowledge Sources on the R&D Investment-Innovation Relationship (가치사슬 내부 및 외부의 지식원천이 급진적 혁신 및 점진적 혁신에 미치는 영향 : 지식원천들의 연구개발투자-혁신성과 관계에 대한 조절효과)

  • Kim, KonShik
    • Journal of Korea Technology Innovation Society
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    • v.21 no.1
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    • pp.454-490
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    • 2018
  • This paper examined the nonlinear relationships between external knowledge sources and the innovation performance of SMEs (small and medium-sized enterprises). Using 3,218 firm-year panel data in South Korea, this study found that increasing the number of external knowledge channels out of the value chain increases radical innovation. Meanwhile, increasing the number of external knowledge channels within the value chain increases the incremental innovation. Further, the external sources of knowledge both out of and in the value chain had inverted U-shaped relationships on radical and incremental innovation respectively. This finding implies that a mechanism of diminishing returns works in the relationship between the external sources of knowledge and innovation. The study also identified the synergistic effects between the external sources of knowledge out of the value chain and within the value chain, and confirmed that the synergistic effects strengthen the linear mechanism between the external sources of knowledge and innovation. In addition, this study found that the sources of knowledge both out of and within the value chain positively moderate the relationships between R&D investment and radical innovation of SMEs.

The Effect of Sustainability as Innovation Objectives on Innovation Performance in the Service Industry (서비스업의 혁신 목적으로서 지속가능 혁신이 혁신 성과에 미치는 영향에 관한 연구)

  • Shin, Jaeho;Yang, Hongsuk;Kim, Changhee
    • Journal of the Korean society of supply chain management
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    • v.18 no.2
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    • pp.1-8
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    • 2018
  • Though sustainability is a concept encompasses not only environmental issues but also others such as social issues, most studies on sustainable innovation has focused on environmental facets. While sustainability-related objectives exist as motivations for firms to perform innovation, moreover, the effect of them on innovation performance is still not fully answered. In this paper, we focused on sustainability as innovation objectives other than environmental issues, and figured out the effect of them on innovation performance. We set the limit to service industry only and performed regression analysis. The result showed that the safety improvement has positive effect on both radical and incremental product innovation, while material and energy reduction turned out to be negatively related to incremental product innovation. We also found that high level of safety improvement tend to increase the probability of firms adopt process innovation, while material and energy reduction tend to lower the probability.

The Quality Circle, SMEs' Performance, and Mediating Role of Organizational Ambidexterity (품질관리관행과 중소기업 성과간의 관계에 대한 연구: 조직내 맥락적 양면성의 매개효과 검증을 중심으로)

  • Lee, Soonok;Rhee, Jaehoon;Zhao, Xiaifei
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.12 no.3
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    • pp.163-176
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    • 2017
  • The fourth industrial revolution and creative economy are in the center of today's economic environments. In this context, venture companies make great efforts in achieving innovative capability for sustainable growth. Especially, in order to create the innovative capability or innovation performance, they are very much interested in obtaining such characteristics of organizational ambidexterity as exploration and exploitation. Thus, this study aims to study the organizational contextual ambidexterity as a key factor to create SMEs' performance and to conduct an empirical research with the data collected from domestic SMEs in order to find the antecedent and consequence of this ambidexterity. In so doing, we selected as an antecedent of contextual ambidexterity quality management practice, which is an innovative method of enterprise innovation and enterprise level, innovation performance (radical and incremental Innovation performance) as a consequence and ran a series of regression analyses. As a result, quality management practices such as quality circle activities have had positive effect on organizational ambidexterity, that is, exploration and exploration, and contextual ambidexterity has affected positively on innovation performance. It is also found that the contextual ambidexterity plays a full mediating role in the relationship between quality management practices and innovation performance. The results of this study suggest that contextual ambidexterity is essential to achieving organizational innovation performance and quality management activities such as quality circle should be preceded in order to stimulate or stimulate contextual ambidexterity.

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